MD Operations Summary

Licensed Entity:

(02/11/2015)

WFG National Title Insurance Company WFG Lender Services, LLC

• See Attached HUD Sample for Additional Information

Banking Information

(02/11/2015)

• Bank account -- <<INSERT ACCOUNT #/ROUTING #/BANK NAME>>
• Checks stale dated after -- ___ days of issuance
• Good Funds Law -- Yes – no de minimus
• Disbursements Requirements -- <<INSERT IF WFG REQUIRES CD?>>
• Special Bank Requirements (IOLTA/IOTA/OTHER or account specific to that state’s funds) -- Yes – Maryland Affordable Housing Trust Account (“MAHT”)
  • Annual Report Required March 31
  • FAQ about MAHT Reporting

Escrow/Settlement

(02/11/2015)

• Who can prepare the HUD -- Licensed Title Insurance Producer (or employee of Underwriter in direct operation)
• Who can sign the HUD (EO/LTP/Attorney) -- Licensed Title Insurance Producer (or employee of Underwriter in direct operation)
• Who orders hazard insurance -- Customary -
• When is transaction consummated for new HUDS --
• Record before/after disburse -- Disburse then record
• Filed/restricted escrow rates -- No
• Record retention requirements -- 3 years for Notice to Buyer
• Is an attorney involved in the closing -- No
• Who can handle loan document signing -- Notary licensed as a title insurance producer
• Doc Prep Restrictions -- Yes – instrument must contain certificate of preparing – party (not agent) or Maryland attorney
• Use Escrow Instructions or not -- No
• Use Estimated HUD or Final -- Final
• Pass-thru charges -- Yes
• Rates Inclusive or not -- No Search fees are pass-through charges typically paid by the purchaser/borrower. Examination fees are charged at the discretion of the title agent
• Up Charging -- No
• Junk Charges -- No
• Special HUD Requirements -- No
• Special Disclosures -- Yes – notice to buyers
• CPL --
• UPL Issues -- Doc prep is UPL; Closing w/o title insurance is UPL
• Joinder of non-titled spouse -- No
• Survey Required -- Owner – Yes; Loan – No
• Withholding -- MD has a Non-Resident Withholding Tax equal to 6.75% for individuals and 8.25% for entities: http://individuals.marylandtaxes.com/estatetax/withholding.asp

Audits

(02/11/2015)

• Required -- Yes, Annual UW Audit (now must be filed with DOI)

Recording Process

(02/11/2015)

• E-recording --
• Record before disbursement -- Disburse then record
• Special recording procedure -- Prince George County – special requirements. Each County (and Baltimore City) in Maryland has its own recordation tax which varies. All such information may be found at: http://www.dat.state.md.us/sdatweb/recordation.html

Land Intake Sheet required all counties

Recording/Document Requirements

(02/11/2015)

• Marital Status Stated -- Not required
• Transfer Tax -- Yes. Each County (and Baltimore City) in Maryland has its own recordation tax which varies. All such information may be found at: http://www.dat.state.md.us/sdatweb/recordation.html; There is State (.5%) and individual county transfer tax due on a conveyance of title: http://www.dat.state.md.us/sdatweb/transfer.html
• Mortgage Tax -- Yes
• Address for grantor/grantee/property --
• Witnesses -- No Witnesses required; notary acknowledgement required unless a leasehold estate
• Names typed/printed -- Yes
• Prepared by/return to -- Yes – instrument must contain certificate of preparing – party (not agent) or Maryland attorney
• Notary Stamp/requirements --
• Parcel or tax index number -- Yes – 1st page
• Recitation of Consideration --
• Derivation Clause -- Yes
• Corporate Signatures/Attestation --
• Ink Color/Font -- Black, 8 pt minimum
• Legal Description --
• Margins -- 1st page – 2” top margin, 1” all others
• Other Special Recording: -- Prince George County – special requirements

Land Intake Sheet required all counties

Document Types

(02/11/2015)

• Conveyance -- Special Warranty Deed
• Security Instrument -- Deeds of Trust
• Release --

Tenancies

(02/11/2015)

• Tenants in Common -- Yes
• Joint Tenants -- Yes
• Tenancy by Entireties -- Yes
• Community Property -- No
• Homestead -- NO
• Joinder of Non-titled Spouse -- No spousal joinder required for non-title spouse. Maryland has abolished both dower and curtesy.

Taxes

(02/11/2015)

• Taxes Levied --

Property tax bills are issued in July/August of each year by the 24 counties (including Baltimore City) and the 155 incorporated municipalities (cities) in Maryland. Tax bills are rendered for the upcoming fiscal year and are effective as of July 1.

• Taxes due -- 7/1
• Delinquent -- 10/1

Commitment/Policy Special Requirements

(02/11/2015) Who can sign Commitment/Policy -- Licensed Insurance Producer (Employee of Underwriter in direct operation)

• Other --

Post Closing Requirements

• Recon follow up required --