insurance

FHA Loans Continue to Play Important Role for Consumers

RIS Media has some good information on those very common  FHA loans that many don’t understand. They point out a number of  facts that make the FHA Loan product so appealing and popular, including:

  • Those with imperfect credit can still qualify for an FHA Loan
  • Sellers, builders and lenders can legally pay some of the closing costs to induce the buyers to purchase
  • Extra cash is available under the 203B program  for those homes needing repairs
  • Although FHA  requires a 2.25% fee upfront towards mortgage insurance along with ongoing FHA premiums,  the low down payment makes an FHA loan very attractive for those without a large down payment

Read the whole article here 

Closing Transactions with FEMA Flood Insurance

For those who explain Flood Insurance and FEMA Maps to consumers at closing, I always believed Flood Insurance ( which is only available only through FEMA, the Federal Emergency Management Agency) was only available on properties that lie within the designated areas of the Flood Zone maps. Well, the Atlanta-Constitution Journal has advised that many properties OUTSIDE the flood maps have been destroyed in recent days by floods.  Does that mean “buyer beware?”  What if the map-checker  misread it and the buyer didn’t get needed coverage?  Those maps are pretty rough after all.  Under the crazy flood seasons we’ve had recently, should the maps be extended? Should those near a flood zone who wish to apply for flood insurance be able to obtain it “just in case?”  Food for thought.  One more thing to worry about.  I think I will check into my flood insurance…

MN Dept Commerce Takes Action against Embezzeling Closer

Used with Permission of Robert Franco, Source of Title
The Minnesota Department of Commerce has summarily suspended the real estate closing license, resident insurance producer license and Notary Public commission of Kuntee Singramdoo and charged her with embezzling over $230,000 in real estate closing proceeds and using the money to pay off her own creditors or her family members’ creditors.

Singramdoo, a resident of Lakeville, was an independent closer hired by Walsh Title & Real Estate Services, where she provided real estate closing services, sold title insurance policies and notarized real estate documents. The Commerce Department complaint alleges that Singramdoo engaged in a pattern of misappropriating, converting and/or embezzling settlement proceeds by issuing Walsh Title checks for her own benefit or for the benefit of her family members.

The alleged embezzlement includes at least 184 checks issued between February 2004 and June 2007 to 24 different creditors including $68,109 to U.S. Bank, $48,863 to Wells Fargo, $800 to JC Penney, $4,764 to Macy’s, $6,286 to Goodman Jewelers, $800 to Bloomingdale’s, $6,866 to Honda, $2,734 to American Express and $2,323 to Discover.

Singramdoo admitted under questioning from Commerce Department investigators that she embezzled the funds but at this time has only paid back $10,000 to Walsh Title.

Singramdoo accomplished the embezzlement by entering her own creditors on the HUD-1 mortgage loan form as if the debts belonged to the buyer or seller and subsequently issued checks directly to the creditors in her name. She also changed HUD-1 mortgage loan documents after closings to reflect the fraudulent payments.

“This brazen embezzlement scheme is a warning to everyone to pay close attention to the loan documents you are signing during the closing of a mortgage,” said Glenn Wilson, the commissioner of Minnesota’s Department of Commerce.

What Happens When Your Title Underwriter is Defunct?

A statement in A.M.Best’s special report posted by the freelibrary reports:

Title insurer failures are more bad news for homeowners trying to sell or refinance property in the current down market; as such transactions can trigger a title search and a potential claim. Recourse for policyholders can be difficult and, at best, slow, as very few states cover title insurance under their guaranty funds.

 

With the recent bankruptcy of LandAmerica, Commonwealth Land Title, etal, I wonder what has become of the liability for their title policies? For those who have legitimate title claims written by those underwriters, including lenders in this messy foreclosure and short sale market, what happens? Clearly, the title commitments that are being closed today show many title issues, with judgments, foreclosures and under-water sales commonplace. It seems some of the title problems were missed because of poor search and examination procedures, and lessened searches during a busy market. Anyone care to speak up? 

 

Read the full report here.

Real Estate Titles US – Inexpensive Title Education

A new online education company, RealEstateTitles.us (RETUS) has been formed specifically for title professionals. Its purpose is to provide high quality, inexpensive education for those involved with real estate titles. That includes: Closers, Abstractors and Title Searchers, County Recorders, Real Property Attorneys, Title Examiners, Title Agencies and Title Insurance Underwriters. The company offers primarily Professional Development courses for its customers, as most states have no education requirements for these professionals, but also offers some continuing education classes for those states that require CE. Additional License and Pre-license courses are planned for the future.

“RETUS Online courses provide quality education at lower costs for the consumer, as they don’t have to spend money for hotels, meals or travel, and they have the flexibility of working on their own timeframe. Even 15-20 minutes can be very worthwhile in studying important title concepts- and they can enter and exit courses as time allows.” 

The online courses have all been prepared by subject matter experts in the land title field, some being written or edited by Jeanine W. (Jeanne) Johnson. Courses coming soon include

  •  “A Settlement Agents Guide to Closing,” which will cover the full spectum of closing, including the newest changes to the HUD-1 Settlement Statement;
  •   “Introduction to Title Insurance and Land Titles,” that gives a history of title insurance and is a primer of key concepts in the title industry;
  •  “Real Property Ownership and Land Title Use,” which covers legal descriptions, platting, land use controls, rights of the government in planning. Especially helpful in dealing with new construction, land development and commercial properties.

Take a free test drive of the new title education courses for your state by clicking on your state, then the information button on the US MAP.

Definition of Marriage Changed in Dictionary

I caught a Closer Licensing Course last week.  Among the many issues that we discussed in drafting legal documents, was a conversation about marital status.  We talked about the fact that in Minnesota, you are either married or not.  If you are separated, you are still married.  If you are divorced, you are not married.  We also talked about the fact that marriage is recognized anywhere within the United States.  If you are married in Pennsylvania, we accept that marriage in Florida.  But the question came up as to whether or not we recognize marriage between two men or two women?  My response was that I had not run across that issue.  I suggested that they may want to talk to their underwriter.  Rule of thumb however it is that we accept marriages created anywhere within United States.

Interestingly enough, I saw a blog articles today in the Adjunct Law Prof that Marriage is no longer limited to opposite-sex unions, according to Merriam-Webster’s Collegiate Dictionary, which defined marriage as “the state of being united to a person of the same sex in a relationship like that of a traditional marriage,” in a post.

Any thoughts from title insurance underwriters or title agents?  Has anyone come across this issue? What was the response? And how does that affect title searches? We always searched Mrs. John Smith if we knew Mary Smith was married to John Smith. How do we search Jim Jones, married to Tom Brown?

 

What Kind of Bones do You Have?

Someone once said that there are 4 kinds of bones in every organization.

• There are the “wishbones,” those who spend their time wishing someone else would do all the work.

• There are the “jawbones,” who do all the talking but very little else.

• There are the “knucklebones.” They knock everything anyone ever tries to do.

• And finally, there are the “backbones” who carry the load and quietly do the work.

In an environment where many title insurance abstractors, closers and title examiners are out of a job, it is easy to guess who will be kept on.

Title Insurance Industry Cut 19% of Workforce in 2008

Interesting mention  of the title insurance industry this week by A.M. Best Company, Inc.  In discussing the stability in  various segments of the insurance industry in 2008, they reported:

“Every other segment of the insurance industry saw job losses , with the mos severe cuts, once again, in the title insurance segment. Title Insurers have shed 19.4% of the worforce since January, 2008, starting 2009 with 67,300 employees.”

Read full insurance article here.

Info On Home Closing

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