Licensing

License Renewals for MN are Due by June 30th

Real estate agents, abstracters, closing agents and brokers are reminded that they must renew their licenses on or before June 30th. So please check your license for renewals.

Information from the Commerce Department on MN state licensing can be found here.

Pulseportal information can be found here.

Closing Agent License Renewal is Due Now

Check your closing agent license for your renewal date! Licenses are good for two years and must be renewed by June 30th of the second year after your license is issued. If you miss the cutoff, you will be required to retake the Closing Agent Prelicense course, pay new license fees, and once again complete the entire process through the State’s Pulseportal System.

Meanwhile, and this is totally random, don’t miss the Elvis Cockatoo on youtube. It will make your day. 🙂

 https://www.youtube.com/watch?v=CEQuDyuQFKE

MN Dept Commerce New E-license Website

The Minnesota Department of Commerce  has a new e-license Website regarding Closing Agent Licenses, look here for info:  https://mn.gov/elicense/a-z/?id=1083231369#/list/appId//filterType//filterValue//page/1/sort//order/

For the Abstracter Licensing the new  e-license link is: https://mn.gov/elicense/a-z/#/list/appId/0/filterType/Subject/filterValue/Abstracters/page/1/sort//order/

HUD REACHES SETTLEMENT AGREEMENTS COMPANIES RE: VIOLATING FAIR HOUSING ACT

HUD Press Release
Thursday January 26, 2017

WASHINGTON – The U.S. Department of Housing and Urban Development announced agreements with two insurance companies in Ohio and Florida settling allegations the companies violated the Fair Housing Act by denying insurance coverage to properties that contain “subsidized housing” and “low-income housing.”

The Fair Housing Act makes it unlawful for providers of housing-related services or products, including insurance providers, to discriminate because of race, color, religion, sex, national origin, disability, and familial status.

The agreements stemmed from a Secretary-Initiated complaint HUD filed after receiving reports the insurance companies’ policies and practices had a discriminatory effect because of race and national origin. Specifically, HUD’s complaint alleged that the companies refused to provide umbrella coverage, which provides additional liability coverage when an insured’s other primary policy limits have been reached, to properties containing subsidized or low-income housing.

Under the agreements, McGowan and Company will remove “subsidized” and “low-income” from its list of prohibited properties, spend $100,000 to affirmatively market its services and products to the affordable and low-income housing markets and provide fair housing training for management and staff that review and/or approve applications for insurance. Mack & Waltz will spend $10,000 to affirmatively promote its services in affordable and low-income housing markets, and provide fair housing training for its management and staff.

People who believe they have experienced discrimination may file a complaint by contacting HUD’s Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY). Housing discrimination complaints may also be filed by going to www.hud.gov/fairhousing, or by downloading HUD’s free housing discrimination mobile application, which can be accessed through Apple and Android devices.

 

Bank requires few mortgage documents: Seems like housing deja vu

Excerpt from CNBC 6/9/16

 They were a hallmark of the U.S. housing crash: Mortgages that required little or even no documentation.

During the boom, they were called “stated income” loans, but advertised as “low-doc” or “no-doc” loans. When the damage was done, they were deemed “liar loans.” Both lenders and borrowers alike would write basically anything on the mortgage application to get the deal done. Now, nearly a decade after the financial crisis began, a new version of the stated income loan is making a comeback.

“Lite Doc.” That is what Quontic Bank, an FDIC-insured community lender in New York City is calling its product. It requires only verification of employment and two months worth of bank statements. For self-employed borrowers, it requires documentation of one year of profit and losses. The Lite Doc loans are five-year adjustable-rate mortgages with interest rates in the low- to mid-5 percent range, according to the bank. Thirty-year fixed-rate loans, which when fully documented can offer rates in the high-3 percent range, are not part of the offering.

Read full article here

Title Agent Could Spend Fifteen Years in Prison

Another sad tale for the title industry. A Jacksonville FL title agent has been charged with defrauding clients of nearly $400,000 while operating an unlicensed title agency.

The Florida Department of Financial Services Division of Insurance Fraud arrested 41-year-old Kristine Ann Spahr, who is accused of illegally defrauding clients of nearly $400,000; illegally operating  Signature Title and Trust LLC;  and profiting from escrow monies belonging clients.

The investigation started in January, when the Florida Division of Insurance Fraud got a complaint about Spahr’s operations.  Investigators soon learned Spahr had forfeited her title agency to work for another title company, Grace Title, but she was allegedly still operating Signature Title without a license.

Spahr is accused of defrauding clients on at least seven separate occasions by keeping their real estate escrow funds and not giving clients the title insurance they paid for. Those funds exceed $391,000, according to investigators.  Spahr was booked in to the Nassau County Jail for a felony count of organized schemes to defraud and could face up to 15 years in prison if convicted.

It has been a long time since I have seen information from Commerce on the Licensing requirements for Abstracters, and I was pleased to see their latest bulletin.  While I know there is no education requirement, the content is significant and requires a good working knowledge of the trade. For those who need assistance with the legalese in title searching the online Principles of Abstracting course can help.  In any case, here is the outline from the PSI bulletin.

ABSTRACTER EXAMINATION CANDIDATE INFORMATION BULLETIN

Legal description and elements of real property (10 items)

  1. Definitions and components of real property
  2. Methods of legal description
  3. Estates in real property
  4. Forms of ownership
  5. Transfer / alienation of real property
  6. Deeds
  7. Types
  8. Characteristics / elements

iii. Warranties

  1. Land use controls
  2. Public
  3. Private/Covenants, conditions, and restrictions (CC&Rs)
  1. Condominium Law

Documents (15 items)

  1. Conveyance
  2. Recording
  3. Torrens
  4. Encumbrances
  5. Types and priorities of liens
  6. Easements
  7. Encroachments

Research and Compilation of Abstract (20 items)

  1. Indexes
  2. Search requirements and techniques
  3. Documents and Entries
  4. Legal description in abstract
  5. Searches (including judgments in favor of the U.S.)
  6. Certification

Licensing and Professional Conduct (5 items)

  1. Licensing requirements
  2. Prohibited conduct

 

MN Closer Licensing Course

I’ve had many questions on the MN Closer Pre-License Course, so here are some pointers:

Pointers

Pointers

  • the 8 hour class is available online 24/7 and you have 90 days to complete it.
  • You do not need to take all 8 hours in one sitting!  Just bookmark your place and return to it later.
  • there is a minimum amount of time that must be spent on each of the 12 sections, but there is no maximum time, so spend as long as you’d like to be sure you understand the material
  • if you don’t complete a section before the minimum required time and you log out , you will have to repeat that section
  • Each section has a quiz at the end. You must pass the quiz to move on
  • the final examination requires a proctor form (someone who says they saw you take the exam without assistance of any kind.)  The proctor cannot be a spouse, relative or boss.  A neighbor, friend or public librarian (there is no charge) works fine
  • the final exam is 90 questions and you need 75% to pass.  You may spend as long as you like on the exam (but you cannot leave your desk during the exam, so the proctor knows you have not used outside materials for any answers.)
  • If you fail the exam, not to worry. You can review the material (if you wish) but must retake the quizzes to retake the exam (no extra charge.)

Mobile Notaries Require Closing Agent License

The Minnesota Department of Commerce Enforcement Division is reminding mobile notaries who explain mortgage documents, notarize deeds, collect funds and handle other tasks incidental to closing, that they are required by Minnesota Law to obtain a Closing Agent License.  The closer licenses are licenses that expire June 30th  two years after they are issued.   The online course listed above, “Principles of Closing,” satisfies the state requirement for the license.

Due Diligence Required of ALL Closing Staff

We all use auxiliary help when times are busy.  Signing agents and temporary help.  But beware; are you giving “non-employees” dangerous access to personal information that you are responsible for?

The DOJ has issued a press release regarding  a temporary employee who’s job was simply copying loan documents. In that capacity, she  stole personal  information belonging to over 250 would-be home buyers and used that information to obtain fraudulent credit cards.

Use due diligence in the hiring and overseeing of all of your help and assure they are properly licensed.   Even non-employees require oversight in the title and closing business.

Department of Justice Press Release – Temporary Help Steals Information to Get Fraudulent Credit Cards        Read article here at the Department of Justice Website

Info On Home Closing

Home Closing 101: An Educational Initiative of the American Land Title Association