10.26.07
Posted in Education at 3:08 pm by Jeanne
aba journal report
THE TRAP: My Boss Made Me Do It
When John B. Bowden started work as a managing associate for the Forquer Law Firm in Greenville, S.C., he was in for an unpleasant surprise. Bowden discovered that the firm was inflating government recording fees on settlement statements for HUD-1 real estate transactions. When he asked his boss in the Charlotte, N.C., office about it, Robert Forquer told him the practice was legal and ethical.
Wrong answer. The South Carolina Office of Disciplinary Counsel informed Bowden that the firm’s Greenville office failed to keep sufficient records of recording fee charges and failed to track client funds relating to those fees. Even worse, Forquer was apparently using excess fees to cover office expenses and make various payments to himself, according to a ruling by the South Carolina Supreme Court in a disciplinary action against Bowden.
Fortunately for Bowden, he wasn’t aware of the misuse of funds. But in an agreement with the ODC that resulted in a reprimand by the court, Bowden acknowledged that it was his duty to tell clients that their bills were inflated and to assure that HUD-1 forms were accurate in closings he supervised. He also acknowledged an ethical duty to assure that other lawyers in his office complied with state ethics rules. In the Matter of John B. Bowden, No. 25978 (May 9, 2005).
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10.09.07
Posted in Education at 2:15 pm by Jeanne
The MN Bar Association will host more than 1300 real estate professionals this year for its annual Real Estate Institute. The event, offered Friday through Saturday, November 9th and 10th at St. Paul’s RiverCentre, is in its 25th year, and will have a host of topics relevant to Abstracting and Title Professionals, including:
Updates on important real estate suits, including Collier
Changes in Homestead Levies
Mortgage Fraud
Choice of Entities (Corporations, LLCs, etc.) in your Business
Pitfalls in Mortgage Foreclosures
and many, many more…
For more Info and/or to Register for the Real Estate Institute, click here
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10.07.07
Posted in Industry News at 7:45 pm by Jeanne
For all of us in the mortgage banking and title industries, there is a great website that stays current on significant National Mortgage Banking operations. They watch as companies fold up, shrink-up, delete divisions that handle equity-line mortgages or high-risk loans, or make other substantial changes in the way they do their mortgage business.
To get up-to-date information on how fast it is happening and how many companies are affected (including those companies with whom you do or have been doing business) check the mortgage “Implosions” site.
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10.03.07
Posted in 60 second title work, Value of a title searcher at 4:17 pm by Jeanne
I was talking to a very seasoned contract title examiner recently (one who has been in the business of doing overflow exams during the refi-season as well as difficult sale exams for many years.) He works for a variety of Title Agents, who underwrite for each of the major underwriters. He was saying how difficult it is to keep track of how each Agent wants their title commitments done. Apparently each claims that their Underwriter has different standards on how to examine title. Some never examine behind a recorded plat. Others go back 2, 3 or 4 owners. Some want 40 years on a sale, but only 2 owners on a refinance. Others just categorically ignore easements and restrictions (even on a sale) and only look for and show liens.
What has the industry come to? In talking with Title Insurance Agents across the country, and with independent contractors for those agents, it is clear that liberal shortcuts are being taken (I am told, with the sanctioning of the major title underwriters) when examining titles and almost everyone is confused. I personally think that the search standards have become too weak, and that Underwriters and Agents alike will likely pay a price for the lack of quality coming out in title policies. A few years ago, ALTA said that one in 6 files had title problems, and then it changed to 1 in 4, then to 1 in 3. (They no longer declare how many files have problems.) When is the last time you picked up a file without a title problem?
There is clearly confusion among Title Agents – where do the Underwriters stand? There is no consistent message. What do you think is most important to you and what do you think is most important your Underwriter: Bringing in every possible deal so you have enough volume to keep your Agency Contract (even though your gut says “should I really be doing this or working with this customer?”); Turning the product out within 24-48 hours (regardless of quality?); Keeping fees low but high enough to make a profit(and what about RESPA and fee mark-ups?); Cutting long-time seasoned staff and contracting out exams to perhaps less competent staff to keep expenses volume-related(Ouch)? It’s a conundrum.
The Underwriters have been slow to tell us their long-term wishes and plans or us. Some wonder if the Underwriters aren’t trying to force out small Agents and replace Agents with Super-inexpensive contract staff from overseas – it is certainly happening.
I think it would be most helpful if the Underwriters would admit that in this day and age they are no longer trying to find and eliminate problems. Title Insurers have rather become a risk-underwriting type of insurance. The Underwriters’ real focus seems to be keeping expenses as low as possible. But tell us, please, if that means we should take short-cuts in abstracting and change the way we old-timers were taught to do business. And tell us, please, that if you will be using off-shore staff to post title plants, what does that mean? We need to know where we fit in.
It is clearly incomprehensible that with the 3,000+ counties in the U.S. and the hundreds of thousands of places to search (with probate, taxes, assessments, Courts, Cities, Townships, hundreds of types of judgments found in all sorts of locations, that the classic American abstractor that we have known for decades will be obsolete. No, I can’t believe that.
But we are scared and confused. We don’t understand. Please Explain.
Your Thoughts and Comments Appreciated….
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10.02.07
Posted in Real Estate fun at 12:52 pm by Jeanne
Her conversation went something like this:
“I should like this address to be corrected, please. The street name is wrong.”
“Your address isn’t 301 N. Ottawa?”
“No sir, the street is not Ottawa. The office is on Nottawa.”
“That’s what I said. It’s on N. Ottawa.”
“No, not on N. Ottawa, on Nottawa.”
“Didn’t I just say that?”
“No, you said N. Ottawa.
“You know, it might be less confusing if you said North Ottawa instead of N. Ottawa.”
“It’s not North Ottawa! Nor is it N Ottawa! It’s on Nottawa! N-0-T-T-A-W-A!”
“Well, I never said it was Tawa. I know it isn’t Tawa.”
“No, it’s not Tawa. It is Nottawa!”
“Frankly I don’t care what it is not. If it’s not Tawa, what is it? Awa?”
“No, it’s not Awa.”
“It’s not Awa?”
“‘No, it’s Nottawa!”
“Didn’t I just say that?”
“Forget it! Maybe I’ll just get a P.O. Box!”
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