Art's Blog

HUD Seeks Public Comment on Affiliated Business Arrangements (AfBAs)

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Fri, 09 Jul 2010 01:00:05 -0700

To: All Members of NAILTA

From: Robert B. Holman, Esq., Chairman of NAILTA Policy and Legislative Committee

Date: June 7, 2010

Re: HUD Seeks Public Comment on Affiliated Business Arrangements (AfBAs)

View the official notice by following this link: http://www.nailta.org/memo-to-members06-07-2010.pdf

The U.S. Department of Housing and Urban Development (HUD) has issued the attached Advance Notice of Proposed Rulemaking (ANPR) regarding the definition of "required use" in the affiliated business arrangement portion of RESPA known as Section 8. This is the first meaningful attempt to address affiliated business arrangement issues since 1996. As an organization dedicated to the preservation of independent title insurance agents and agencies, we want to alert each of you to an opportunity to have your voice heard on this important subject.

As the enclosed suggests, HUD is seeking public comment to strengthen and clarify the prohibition against the "required use" of affiliated settlement service providers in residential mortgage transactions under section 8 of RESPA. HUD has received complaints that some homebuyers are committing to use a builder's affiliated mortgage lender in exchange for construction discounts or discounted upgrades, without sufficient time to research their contracts or to comparison shop. While this is a narrow review, the ANPR suggests that HUD will entertain actions in addition to or as an alternative to rulemaking that would better address concerns with affiliated business arrangements in residential mortgage transactions.

The public comment period will remain open until September 1, 2010.

To make your voice heard, you can send your written comments to the following by regular U.S. Mail:

Regulations Division

Office of General Counsel

Department of Housing and Urban Development

451 7th Street SW

Room 10276

Washington, DC 20410-0500

or make your comments via email to the following:

www.regulations.gov

In the normal course following the Administrative Procedures Act, after HUD collects data in this ANPR proceeding, HUD's next steps would be one of three: (i) HUD could decide to no longer pursue the matter, (ii) HUD could decide to continue to deliberate without taking further action at that time, or (iii) HUD could issue a Notice of Proposed Rulemaking, which would include for comment the actual text of the new proposed rule.

Again, we encourage each of you to prepare your own public comments and file them with HUD. Make sure to include the fact that you are a member of NAILTA in your letter to HUD. We want to show our strength in numbers!

If you do not wish to file your own separate comments, but would like to have NAILTA complete a form letter comment for your agency, please let us know and we will be happy to oblige our members.

NAILTA will be presenting its own official and separate comment on the ANPR prior to the deadline.

If you have any questions about the ANPR, affiliated business arrangements or our stance on either, please feel free to contact me via email rholman@generaltitleco.com or by telephone at (800) 344-7445 or by contacting NAILTA's Public Relations Committee Chairman, Harvey Pollack, at hpollack@nailta.org or HAP@landtitleservices.net.

Title Insurance Reform: NJ Senate Bill 2229

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Thu, 08 Jul 2010 08:36:40 -0700

July 1st, 2010 NJ Senate Bill 2229 is scheduled for debate by the Senate Commerce Committee in the next legislative term. This bill would bring real competition to the title insurance industry and allow title companies to offer lower prices to consumers. As it stands now title insurance rates are regulated by the state. This of course is under the guise that it is done to protect consumers from paying too much but in reality it is designed to protect the profits of title insurance companies. Senate Bill 2229 would force title insurance companies to compete for customers and would require they adjust prices in a way that benefits consumers instead of their bottom line. Many companies are against this bill because they understand that their old business practices will have to change or they will not make the huge profits they are currently reaping. First we have to look at how title insurance works in New Jersey at this moment. Basically the law states that there is a set rate for title insurance and all title companies must charge this rate. The real reason for this is not to keep title companies from overcharging clients but in reality it is to restrict competition and it allows title companies to gouge customers. This is because they all charge the same premium but many title companies simply add on “junk” fees and extra charges to boost their bottom line and pay illegal kick backs to other professionals for business referrals. This arrangement is good for them as it keeps a consumer driven competitor from offering lower premiums, even though some new companies have cut out the junk fees and do offer a lower rate for title insurance and closing services. How would Senate Bill 2229 change this? By allowing title insurance companies to offer discounted premiums the state would open the market to competitive forces. The would result in a free market for consumer driven title companies to thrive while the traditional anti-consumer forces would be forced to change or risk going out of business. New entries to the industry would now be able to offer lower premiums along with cutting out the “junk” fees, which they are already doing. This scares traditional title insurers and they are fighting the passage of this bill. Who is against this bill? The NJLTA has come out strongly against this bill. The reason they give is that it would force title insurers to lower their rates to a point where they would no longer be able to survive. Of course this argument makes no sense. Why should the title insurance industry be unlike any other? If someone can offer a lower price while still making a profit why should they be denied the right to do so? The real reason they are against it is because they realize that it will force them to change their business practices and actually focus on offering the consumer the lowest prices and the best service. They want to continue making their nice profits on the backs of New Jersey consumers. Who is supporting this bill? Along with consumers, who stand to benefit with lower closing costs, new title insurance companies dedicating to bringing the industry more in line with the needs of consumers support the passage for Senate Bill 2229. These new companies are attempting to move the title industry into the 21st century by working directly with consumers in a variety of ways. Their business model is to offer the lowest price they can to the consumer while still being able to run their business. By not engaging in the illegal kick backs they can pass that savings on to the consumer while still being able to run a profitable business. Support of Senate Bill 2229 would change the title insurance industry in New Jersey in a way that would benefit consumers and companies that embrace a free market. The title insurance industry is changing and title companies need to embrace this or they will die. The Internet has increased the amount of information available about everything and title insurance is no different. As consumers become more educated they will begin to demand change and those who fight are doomed to failure. Those who embrace it have an opportunity to succeed at a high level. New title companies are embracing this change and will move the industry forward for the benefit of consumers. Senate Bill 2229 is a step in the right direction for New Jersey and its passage will guarantee that consumers will gain more control over their closing and save money on title insurance and closing costs. Mark Pilatowski is a title industry insider and has followed the litigation surrounding the title industry for the past few years. Because of the problems with other title companies he joined the team at My Closing Space [http://www.myclosingspace.com]. myClosingSPACE offers Title insurance [http://www.myclosingspace.com] and closing services direct to the consumer without the junk fees and kickbacks that other title companies charge. Article Source:http://EzineArticles.com/?expert=Mark_Pilatowski

e-closing

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Fri, 21 May 2010 09:03:39 -0700

The Journey to the e-Mortgage/eClosing City

In June, 2006, I started on my journey down the eClosing/eMortgage road hoping by now, I would have reached the ever elusive Emerald City. My Emerald City is that glittering Green world that shimmers without paper and inefficiencies that plague our Title and Lending institutions.

I had such high hopes in June 2006 when I put together the first eClosings with Lenders for my company. What a glorious day of excitement and hope. The excitement stemmed from turning a paper laden process into a celebration around the closing table with Buyers, Sellers and Realtors that took 16 minutes to complete.

The buyer was thrilled because she only had to sign her name a couple times. One signature captured on a Signing pad was applied to all previously reviewed documents except the Note and Mortgage. She commented on how nice it was not to have to sign 40-60 pieces of paper as she had in the past. She was appreciative of being able to review her loan closing documents prior to the closing in the comfort of her own home without the pressures of people watching her.

The Seller commented on the brief time the closing took. Obviously, electronically signing her handful of documents and having the opportunity to review everything prior to the closing made the closing stress free.

The Realtors were impressed because there were no surprises and all parties were relaxed. They commented, this was much better than the traditional paper closings which took anywhere from one hour to an hour and a half.

The Lender was thrilled as he knew he had a quality set of closed documents with each document having the signatures in the right places. No signatures missing, no middle initials missing, no documents left behind when shipping. It provided a more efficient funding procedure and improved data integrity.

The Settlement Agent spent 15 minutes in a closing and did not have to make copy or shipping packages for all parties. Everybody had secure access to their pertinent documents housed within the online file.

Yes, that 1^st eClosing in 2006 impressed all parties and then just as quickly as it happened, someone clicked their heels and collectively decided to return to the catatonic like processes that create time wasting, inefficient pothole craters on the road to the glimmering paperless eCity .

I reflect back on that June day and sometimes wonder if it really happened or was I struck in the head during a tornado and imagined all of it. No, I know it happened, I was there, media covered it, so there is proof! Fast forward to 2010, 4 years later....

Are we any closer to adopting eClosings and eMortgages? The answer is a quiet, deflated, but hopeful, Yes. Every time we seem to make progress along our yellow brick road, flying Monkey's swoop down and change our focus and halt our progress forward. Our flying monkeys have been the economy and the new HUD.

The economy was an enormous distraction for all parties. It is difficult to implement new processes when one is trying to concentrate on staying vital with reduced staffs and shrinking budgets. Just as the snow fell on the poppies and marketing efforts began to awaken, the HUD /RESPA Monkey flew in to divert focus and again halt eClosing efforts. However, this flying monkey has turned out to be somewhat helpful as electronic processes can focus on accuracy and make certain the timeframe requirements are met.

There has been progress and at times I can see the glittering light at the end of the road. I am experiencing a renewed interest from settlement agents looking at ways to market that set themselves apart in their marketplace. They are beginning to realize it is time to embrace processes that can create efficiencies as well as build strong partnerships with their customer base.

The eClosing/eMortgage function addresses current needs of the Lenders, Realtors and Settlement Agents. The ability to create and support a paperless file from the point of sale throughout the closing is paramount in directing and fulfilling a better process for all parties involved.

eClosings will benefit the Lenders by allowing all parties to collaborate throughout the process, monitoring progress in real time. The Lender will see improved data integrity, a more quality product, a better experience for the customer, less phone calls and faxes throughout the process, reduction in post closing errors, a reduction in overnight fees and paper costs. In addition the Lender's customers will experience a better customer experience and allow all parties the ability to contribute to a green initiative.

eClosings will benefit the Settlement agent by allowing for the collaboration throughout the process which eliminates surprises at the closing table. The Settlement agent will also realize benefits with a reduction in paper and overnight fees, supporting the Green initiative, less post closing issues after the fact, spending less than 20 minutes at the closing table enabling an ability to do more closings in a day with less stress. Thus the Agent will have the advantage of building strong partnerships with Lenders which will provide a far more convenient closing for everyone.

So why isn't everyone trying to figure out ways to support eClosings? It is still a process that is new and for the most part, all parties can still function and do function in the paper world. There are Lenders who have realized the many benefits of eClosing and demand that their loans be supported in an eClosing environment.

Certainly, there are many pieces and moving parts of deploying an eClosing environment. Those pieces and parts are all available, legal and compliant today. An office can support a complete eMortgage or in most cases a hybrid eMortgage/eClosing.

The complete eMortgage is where all loan documentation is created, executed, transferred and stored electronically. But, the reality is that most transactions are hybrid eMortgages. In the hybrid process we have to wet sign some documents due to external factors; i.e....county does not support eRecording; state does not allow eNotatarization; or Note is not a SMART Doc. However, in a hybrid eClosing we are able to still support 95% of the file in a paperless scenario. Being a pioneer in this "e" environment requires an office to embrace a change in known processes, mindset, philosophies and requires, a "CAN DO" attitude.

Over the next several blogs I am going to examine the pieces and parts necessary to engage in this new frontier and hopefully many of you will want to take this road to that "e"Emerald City, and it will be a journey that will be "e"xciting. "e"fficient, "e'ducational , "e"asy and absolutely

"e" seamless journey!

Nancy G. Pratt

Director of Business Development/eStrategy Manager

PropertyInfo Corporation /eMortgage Solutions

Guest Author

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Fri, 21 May 2010 09:01:24 -0700

I am happy to introduce Nancy Pratt as a guest author on this blog. I've known Nancy for a few years and have always been impressed with her knowledge of the industry. I am excited that she has agreed to post here occasionally to share some of her insight.

Nancy G Pratt, the Business Development Director of eMortgage Services at PropertyInfo Corp., is responsible for the strategic planning and decision-making process to create revenue producing business development programs that promote and sell eMortgage solutions throughout the lender customer segments. Pratt is responsible for targeting and calling on direct sales opportunities as well as defining other potential distribution partners to embed our technology and offer as a service.

Nancy most recently served as Director of Lender Solutions for Stewart Title Guaranty in Region H. In this capacity she was responsible for the Marketing initiative for Stewart's Regional Order Center. (ROC) The Regional Order Center facilitated National Title orders for nationwide lenders, and established consistent distribution and fulfillment of Stewart's services across the country. In addition, Pratt provided solutions for Foreclosure Attorneys, Mortgage Servicing Portfolio Retention plans, Commercial Cell Tower clients, as well as supporting Stewart Agents and Affiliates in a 17 state Region.

As Director of Lender Solutions, Pratt brought the 1^st eClosings with Lenders to Stewart and the first eClosings in the state of Indiana.

Nancy has over 22 years of experience in the Mortgage Industry, working in multiple positions in Management, Operations and Origination. She also served as Education liaison for a Mortgage Company where she was responsible for FHA/VA training of Loan Officers in a multi state area.

Nancy is a member of ILTA, MISMO eMortgage workgroup, MISMO ResTech workgroup, MISMO Reverse Mtg workgroup, MISMO ROI workgroup and has served as Past President for South Central Mortgage Bankers and Chairman of the Legislative Committee.

Pratt graduated from Utah State University with a Bachelors degree in Political Science. She lives in Indianapolis, Indiana and has one son.

Art Oswald

Need course authors

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Fri, 04 Dec 2009 22:03:22 -0800

The New Jersey Supreme Court has decided that attorneys in New Jersey need more education. Beginning in January of 2010, attorneys will be required to obtain 24 hours of continuing education every 2 years. That's good for me. I have an online Leaning Management System and would like to host as many courses as I can for Attorneys to take. I need authors. If you are an attorney and have a presentation that you would like to develop into an online course, let me know. Once the course is developed and online, you will recieve a royalty everytime someone enrolls. Hope to hear from your. Email art@learntitle.com

NJLTI has course approved

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Thu, 15 Oct 2009 13:10:57 -0700

The New Jersey Land Title Institute has had Ethics and Fraud in Title Insurance approved for continuing education credit online. Fraud along with ethics is something we are hearing and talking a lot about these days. This course will look at both of these issues in the title industry. This course is will provide 1 Ethics CE credit and 2 Title CE credits. It will review the following: (a) Making Ethics Personal (b) The Title Industry Consumer Initiative (c) Understanding Compliance in New Jersey (d) Understanding Compliance – Federal (e) Confronting Pressure & Temptation (f) Managing Funds (g) Recognizing Fraud Go to http://njlti.net/catalog/coursedetails.asp?caid=10&crid=41 to enroll

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New Course on Mortgages approved

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Sat, 03 Oct 2009 16:45:32 -0700

Learntitle.com, LLC has had “Mortgage Issues in Title” approved for 2 credit hours of continuing education credit in New Jersey. The major lien disclosed on the county level is a mortgage. A mortgage is a limited conveyance of real property, the purpose of which is to create a security interest for an underlying debt, usually a mortgage note. Understanding the mortgage, how it is recorded, and how to remove it from the record is a core understanding of the Title Insurance industry. Go to learntitle.net to enroll.

New HUD-1 Continuing Education approved in Pennsylvania

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Sun, 20 Sep 2009 09:56:02 -0700

Stewart Title Continuing Education has had "The Mysteries of the New HUD-1 Uncovered" course approved for 2 credit hours in Pennsylvania. The course discusses the relationship between the HUD-1 and the Good Faith Estimate. The HUD-1 now has a 3^rd page. It contains costs that cannot change, costs that can only change by 10%, and costs that may change to whatever they turn out to be. The new HUD-1 will be required by January 1, 2010 so the approval of this course is timely. Go to http://www.stewartce.com to enroll. Stewart agents receive a discount off the price of the course

New Jersey Rate Manual Course Available for 3 credit hours

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 26 Aug 2009 19:33:31 -0700

Stewart Title of New Jersey has made available another online course. This course covers the entire New Jersey Rate Manual as amended March of 2009. It discusses: 1. Definitions 2. Methods Of Operation 3. General Rules 4. Schedule Of Rates 5. Examination Charges 6. Closing Or Settlement Charges 7. Miscellaneous Charges 8. Reserved For Future Use 9. Government Or Charitable Transactions 10. Endorsements The course has been approved for 3 hours of continuing education credit. If you have not taken a course from Stewartce, and you are a Stewart agent, please request a discount code before you register for the course. Request a code by Clicking Here

New Title Continuing Education approved for PA

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Mon, 24 Aug 2009 08:56:46 -0700

Stewart Title Continuing Education School has released "Pa Title Commitment Requirements" This course discusses the requirements listed on Schedule B1 of a Title Insurance commitment. The course is goof for 3 credits.

you can Enroll here

Mortgage Underwriting???

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 05 Aug 2009 10:27:49 -0700

Mortgage Underwriting
by Diane Cipa

I guess since we have standards again, folks are experiencing real mortgage underwriting - perhaps for the first time. That's good but it sure is generating questions. I've had numerous e-mails over the past few weeks and decided to post answers to a few questions here.

In my pre-title life, I was a mortgage underwriter - FHA direct endorsement, VA automatic approval and FNMA/FHLMC. I had the pleasure of managing a couple of high volume retail/wholesale underwriting departments, so when you ask "What happens in mortgage underwriting?", I'll use my experience to answer that question. I say that because the automated pre-underwriting takes place earlier in the transaction and so when your file "goes to underwriting" it's going to a human being.

The biggest question on everyone's mind is how long will it take?

The actual file review will take about an hour if your case is fairly straight forward and the underwriter has the experience to make decisions on the risks identified in your circumstance.

Most of the time lost "in underwriting" is waiting for your turn at the decision table. When I managed underwriting departments our goal was always to get a file in and out inside of 24 hours. In high volume situations we shot for 48 hours, but the reality is that sometimes the flow of files due to rate fluctuations can be overwhelming and the wait can be days.

Why? Well, human underwriters are highly trained individuals and there aren't many of them, especially these days. Mortgage lenders are recreating and retraining underwriting teams.

So, are there any tips on how to make the process work for you - maybe make your file go through a bit faster? Your job as a borrower is to first have patience. Secondly, provide as much clear concise documentation as you can to demonstrate you have assets, stable income and a credit profile that demonstrates a willingness to repay the debt.

If you fight with your loan officer and complain about having to provide information, your loan officer might be forced to send your file into underwriting without sufficient data to convince the underwriter that you are a good risk or that your circumstances meet the guidelines of the program. So, your file will wait it's turn only to go into suspense or worst yet, be rejected. If that happens, you end up having to provide the data then go back into a waiting line again.

So, be your own best friend, realize that the mortgage underwriting guidelines - while they may seem onerous - are there for a reason - one that you may not understand, however, if you need a mortgage, you've got to play the game. Be honest but be thorough. Help your mortgage lender find in your financial profile a willing and able borrower.

If you can't do that honestly, then wait until you can. Fudging the data is fraud and criminal. If you cannot yet demonstrate stability of income or a willingness to repay debt, then start now and create your new financial future by being a more conservative manager of your money. After a year or two of a new financial profile, you should be able to get through the underwriting process successfully.

Hope that helps and good luck. ;)

Pennsylvania Insurance Department to Hold May 28 Public Hearing on Title Insurance

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Thu, 07 May 2009 17:46:34 -0700

SOURCE Pennsylvania Department of Insurance HARRISBURG, Pa., May 7 /PRNewswire-USNewswire/ -- Insurance Commissioner Joel Ario today announced that the Insurance Department will hold a public informational hearing on title insurance at 10 a.m. on Thursday, May 28, in Hearing Room 4 of the Keystone Building, 400 North Street, in Harrisburg. Topics discussed at the hearing will range from the basic structure of the product, the pricing of the product and the relationships between the title insurance companies and those who sell the product. Consumers and those from the title industry who are interested in testifying are encouraged to attend. The department is charged with overseeing the title insurance business in Pennsylvania, including rates and policy forms, licensing of companies and title agents and market practices relating to title coverage. At the present time, an overall rate level increase of 4.1 percent is pending on behalf of the Title Insurance Rating Bureau of Pennsylvania. Information about the upcoming hearing and related materials are available for review on the department's Web site. Interested parties should visit www.insurance.state.pa.us, go to "Topical Information" on the right side of the site and click on "Title Insurance Hearing." EDITOR'S NOTE: The following information outlines the specifics about the public informational hearing: The hearing will be held at 10 a.m. on Thursday, May 28, in Hearing Room 4 of the Keystone Building, 400 North Street, Harrisburg. Individuals wishing to testify may contact the department's Office of Insurance Consumer Liaison and Market Analysis, 1326 Strawberry Square, Harrisburg, PA 17120, (717) 525-5884, or ra-in-consumerliaison@state.pa.us. If hearing impaired, please call the department's TTY/TDD telephone number (717) 783-3898. The deadline for written comments is June 4, 2009. Also, individuals may appear at the hearing without advance notice. They will be permitted to testify after all individuals scheduled in-advance has testified. Oral testimony will be limited to a 10-minute presentation. The department requests that individuals provide a written copy of their testimony the day of the hearing. Written testimony can be of any length. CONTACT: Rosanne Placey or Melissa Fox 717-787-3289 SOURCE Pennsylvania Department of Insurance

Changes in the HUD Part 3

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 29 Apr 2009 20:25:13 -0700

This is the 3rd installment of text taken from the Federal Register about changes to the settlement process. This section deals with requirements for the “Good Faith Estimate”. It’s a lot longer – 4 pages now. The next post will have comments by the public about the proposed changes. III. GFE and GFE Requirements— Discussion of Public Comments A. Overall Comments on the Proposed Required GFE Form Proposed Rule. HUD proposed a four page GFE form. The first page of the GFE included a summary chart with key terms and information about the loan for which the GFE was provided, including initial loan balance; loan term; initial interest rate; initial amount owed for principal, interest, and any mortgage insurance; rate lock period; whether the interest rate can rise; whether the loan balance can rise; whether the monthly amount owed for principal, interest, and any mortgage insurance can rise; whether the loan has a prepayment penalty; whether the loan has a balloon payment; and whether the loan includes a monthly escrow payment for property taxes and possibly other obligations. The first page of the form also included information regarding the length of time the interest rate for the GFE was valid; the length of time the other settlement charges were valid; information about when settlement must occur if the borrower proceeds with the loan; and information concerning how many days the interest rate must be locked before settlement. At the bottom of the first page, the GFE included a summary of the settlement charges. The adjusted origination charges listed on the second page, along with the charges for all other settlement charges listed on the second page, would have been totaled and listed on this page. The second page of the GFE included a listing of estimated settlement charges. The loan originator’s service charge would have been required to be listed at the top of page two, and the credit or charge (points) for the specific interest rate chosen would have been required to be subtracted or added to the service charge to arrive at the adjusted origination charge, which would have been shown on the top of page two. Page two of the GFE also would have required an estimate for all other settlement services. The GFE included categories for other settlement services including: Required services that the loan originator selected; title services and lender’s title insurance; required services that the borrower would have been able to shop for; government recording and transfer charges; reserves or escrow; daily interest charges; homeowner’s insurance; and optional owner’s title insurance. The GFE would have required these charges to be subtotaled at the bottom of page two. The sum of the adjusted origination charges and the charges for all other settlement services would have been required to be listed on the bottom of page 2. The third page of the GFE would have required information concerning shopping for a loan offer. In addition, page three would have included information about which settlement charges could change at settlement, and by how much such charges could change. Page 3 also would have required the loan originator to include information about loans for which a borrower would have qualified that would increase or decrease settlement charges, with a corresponding change in the interest rate of the loan. The fourth page of the GFE included a discussion of financial responsibilities of a homeowner. The loan originator would have been required to state the annual property taxes and annual homeowner’s flood, and other required property protection insurance, but would not have been required to state estimates for other charges such as annual homeowner’s association or condominium fees. The GFE included a section that advised borrowers that the type of loan chosen could affect current and future monthly payments. The proposed GFE also indicated that the borrower could ask the loan originator for more information about loan types and could look at several government publications, including HUD’s Special Information Booklet on settlement charges, Truth in Lending Act (TILA) disclosures, and consumer information publications of the Federal Reserve Board. The March 2008 proposed rule invited comments on possible additional ways to increase consumer understanding of adjustable rate mortgages. Page 4 also would have included information about possible lender compensation after settlement. In addition, page 4 would have included a shopping chart to assist the borrower in comparing GFEs from different loan originators and information about how to apply for the loan for which the GFE had been provided.
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Another Form to sign at closing

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 29 Apr 2009 05:43:51 -0700

The name Countrywide Financial has been retired and Bank of America Home Loans has taken its place. Bank of America Home Loans has renamed its one-page loan summary presented to borrowers the Clarity Commitment. The bank said it will contain interest rate, terms and other details of the loan in plain language similar to the Good Faith Estimate. Provided both at application and at closing, the Clarity Commitment document, says Bank of America, is available on most new purchase and refinance transactions, including traditional and government-backed loans. In addition, the company said it has introduced the Bank of America Home Loan Guide as part of the new Bank of America home loans Web site. By explaining key data inputs, highlighting "rules of thumb" and tips with each step, and providing context around the results, the guide is supposed to give consumers relevant, personalized information that helps them understand their options and make informed decisions. Considering RESPA changes to the Good Faith Estimate and changes to the HUD-1 if this Clarity Commitment is really necessary. I know I would appreciate one less form to sign at a closing.
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New HUD rule - Part 2

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Mon, 27 Apr 2009 05:59:31 -0700

This section of the report describes how HUD received comments. New rules are required to go through a comment period and this section explains how HUD complied with that requirement. From: Federal Register / Vol. 73, No. 222 / Monday, November 17, 2008 / Rules and Regulations II. Overview of Commenters The public comment period on the March 2008 proposed rule was originally scheduled to close on May 13, 2008. In response to numerous requests, including congressional requests, to extend the comment period, and HUD's desire to develop a better rule, HUD announced an extension of the comment period. This announcement was made on both HUD's Web site and by publication of a notice in the Federal Register on May 12, 2008 (73 FR 26953). At the close of the extended public comment period on June 12, 2008, HUD had received approximately 12,000 comments. Approximately two-thirds of the comments received were duplicative or repeat comments; i.e., individuals or organizations who submitted identical or virtually identical comments. For example, members of certain trade organizations, or employees of certain companies, frequently submitted identical comments. HUD received comments from homeowners, prospective homeowners, organizations representative of consumers, and numerous industry organizations involved in the settlement process, including lending institutions, mortgage brokers, real estate agents, lawyers, title agents, escrow agents, closing agents and notaries, community development corporations, and major organizations representative of key industry areas such as bankers, mortgage bankers, mortgage brokers, realtors, and title and escrow agents, as well as from state and federal regulators. HUD appreciates all those who took the time to review the March 2008 proposed rule and submit comments. In addition to submission of comments, HUD representatives accepted invitations to participate in public forums and panel discussions about RESPA and HUD's March 2008 proposed rule. HUD also met, at HUD Headquarters or at the offices of the Office of Management and Budget (OMB), with interested parties, requesting meetings as provided by Executive Order 12866 (Regulatory Planning and Review), who highlighted for HUD and OMB areas of concern and support for various aspects of the rule. All of this input contributed to HUD's decisions that resulted in this final rule. HUD also received approximately 100 public comments that were submitted after the deadline. To the extent feasible, HUD reviewed late comments to determine if issues were raised that were not addressed in comments submitted by the deadline. Subsequently, I will be posting comments submitted to HUD concerning the new rule so you will be able to see how your organization related to HUD in the development of the new HUD.
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Changes in the HUD-1

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Tue, 21 Apr 2009 21:18:22 -0700

Federal Register / Vol. 73, No. 222 / Monday, November 17, 2008 / Rules and Regulations 68205
2008 Proposed Rule
RESPA is a consumer protection statute, and, as further described in this preamble, consumer groups were, in general, very supportive of the basic goals and key components of the March 2008 proposed rule. For example, the National Consumer Law Center, in a joint comment with Consumer Action, the Consumer Federation of America, and the National Association of Consumer Advocates, stated, ‘‘HUD has done an excellent job in moving the ball toward greater protection for consumers in the settlement process.’’ In addition, the Center for Responsible Lending, in its comment concluded: ‘‘[W]e applaud HUD for addressing the challenge of reforming RESPA. We believe HUD’s proposed GFE provides important improvements over existing requirements.’’

HUD received adverse comments about many aspects of the proposed rule, primarily from mortgage industry representatives, including requests that HUD withdraw its proposal entirely or that HUD postpone its current efforts in order to work with the Federal Reserve Board to arrive at a joint regulatory approach. HUD takes these comments very seriously and appreciates the concerns raised by these commenters. HUD’s view continues to be, however, that improvements in disclosures to consumers about critical information relating to the costs of obtaining a home mortgage, often the most significant financial transaction a consumer will enter into, are needed, and that such disclosures are a central purpose of RESPA.(emphasis added) Most commenters—including consumers, industry representatives, and federal and state regulatory agencies—supported the concept of better disclosures in general, and commended both HUD’s efforts and particular provisions in the proposed rule.

Moreover, given the current mortgage crisis, the foreclosure situation many homeowners are now facing because they entered into mortgage transactions that they did not fully understand, and the prospect that future homeowners may find themselves in this same situation, HUD believes that it is very important that the improvements in mortgage disclosures made by this final rule move forward immediately. Nevertheless, as noted in the preamble to the March 2008 proposed rule, HUD will continue to work with the Federal Reserve Board to achieve coordination and consistency between the Board’s current regulatory efforts and HUD’s requirements.

HUD has made many changes to the March 2008 proposed rule in response to public comment and further consideration of certain issues by HUD. Some of the provisions in the March 2008 proposed rule have been revised in this final rule and others have been withdrawn for further consideration. HUD believes that the result is a final rule that will give borrowers additional and more reliable information about their mortgage loans earlier in the application process, and will better assure that the mortgage loans to which they commit at settlement will be the loans of their choice. At the same time, in recognition of the concerns raised by industry commenters about the need for sufficient time for the industry to make systems and operational changes necessary to meet the requirements of the new rule, the final rule provides that the new GFE and HUD–1 will not be required until January 1, 2010. However, certain other provisions of the rule will take effect 60 days from the publication date of the final rule. The following are some of the most significant changes made at this final rule stage, and are discussed in more detail in the discussion of public comment.

A GFE form that is shorter than had been proposed.
Allowing originators the option not to fill out the tradeoff table on the GFE form.
A revised definition of ‘‘application’’ to eliminate the separate GFE application process.
Adoption of requirements for the GFE that are similar to recently revised Federal Reserve Board Truth-in-Lending regulations which limit fees charged in connection with early disclosures and defining timely provision of the disclosures.
Clarification of terminology that describes the process applicable to, and the terms of, an applicant’s particular loan.
Inclusion of a provision to allow lenders a short period of time in which to correct certain violations of the new disclosure requirements.
A revised HUD–1/1A settlement statement form that includes a summary page of information that provides a comparison of the GFE and HUD–1/1A list of charges and a listing of final loan terms as a substitute for the proposed closing script addition.
Elimination of the requirement for a closing script to be completed and read by the closing agent.
A simplified process for utilizing an average charge mechanism.
No regulatory change in this rulemaking regarding negotiated discounts, including volume based discounts.

I will be posting more on the HUD changes so that we can all prepare for January 1, 2010
Art
Continuing Ed for Title Agents
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Authors needed

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 15 Apr 2009 20:01:40 -0700

Still looking for authors. The time will come soon when realtors will need continuing education credits. I own the name RealtySchoolsite.com and I am looking for people who can provide content for online courses. Online courses have become a very popular way to earn continuing education credits. I have successfully set up courses for title insurance agents(Click Here) and am looking forward to expanding into Real Estate courses. If you are interested in getting in on the ground floor - let me know

Title Agents E and O

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 15 Apr 2009 19:34:57 -0700

Is your E and O coverage written on a claims made and reported policy form? Do you even know what that means? Apparently a claims made and reported policy form covers you for errors or omissions which are first made and reported during the policy period, as long as the act leading to the claim took place AFTER your retroactive or prior acts date listed in your policy. The retroactive or prior acts date is the most important feature of any E&O policy. I didn’t know there was such a thing as a retroactive or prior acts date in my policy, did you? I thought title insurance was complicated. I figured if I made a mistake or even if I didn’t but somehow got caught up in a claim, my e and o would cover me. Seems there is some important stuff in the fine print. Nevemind, just call Robin and she will explain it to you and make sure you are covered for the best price.
Continuing Ed for Title Agents
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The copy machine is not just a copy machine

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 08 Apr 2009 05:34:59 -0700

We recently started using our copy machine's scanning feature and it has made a significant difference in the way we deliver our product. We have software to produce a title commitment. The system usess Microsoft word to assemble the documents required to go into the commitment package. Then there are all the supporting documents like the county search, the tax search and the judgement search. Most of those get delivered via the web so they are already in pdf format. The county search may come via mail, fax, or email. This is where the copy machne/scanner comes in. We can now put all the documents into one file whether we have to scan them in or just upload them. We can then move the pages around on the screen by just clicking and dragging them to the place we want. We can take out pages that aren't needed and scan in pages that are needed. The Word docs that were generated by the title software are converted on the fly as we drag them from Windows Explorer to the copy software were the package is assembeled. Once we have all the pages we need in the order we need them, we can email the package as an attachment. Saves some time and lots of paper. Once we get it all figured out, we sholdn't have to print out anything.

New course offered by Learntitle.com

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Sat, 04 Apr 2009 20:26:10 -0700

Learntitle.com has recently had a course approved by the New Jersey Dept of Banking and Insurance. "How to Search" is now available at www.Learntitle.net. The course is good for 2 hours of continuing education credits. It discusses the proper technique for searching the public records in the courthouses of New Jersey. Something every title agent should know and now can learn about online from the comfort of your home or office.

Continuing Ed for Title Agents
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Mortgage Modification

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 01 Apr 2009 22:11:39 -0700

There seems to be a lot of buzz on the web about mortgage modifications. Seems there are some firms that are specializing in “forensic loan” examinations. These firms are looking for respa violations that may have happened during closing of a loan that may give the borrow some leverage in renegotiating their mortgage. Not sure how effective these investigations are. I’m sure they are not done for free and I am wondering if the subsequent modification is really worth the trouble. I am wondering also if there are violations found, if the title agent has any culpability and what their level of liability is. As always your comments are welcome.
Continuing Ed for Title Agents
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How I would Remake Federal Financial Regulation

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Wed, 01 Apr 2009 09:32:28 -0700

by Bill Maloni The Obama Administration and Congress need to substantively refurbish the federal financial regulatory network, which failed us as a nation during the Bush years and continues to provide more questions than answers. Rhetoric to the side, federal policy makers have an opportunity today to drive a significant restructuring or just could wimp out and merely change the coverlet on the financial regulatory bed, introducing some pretty new colors, but leaving in place soiled blankets and sheets underneath. The early Obama/Geithner plans look more like the latter than the former. The President needs to be bolder. Read More

Course authors

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Sun, 22 Mar 2009 07:50:51 -0700

I am always looking for authors for continuing ed classes. Once the course is approved and online, you will earn a commission every time someone signs up for the course. Contact me

Looking for anyone interested in offering online courses

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Mon, 23 Feb 2009 18:11:45 -0800

I own the name RealtySchoolsite.com and I am looking for people who can provide content for online courses. Online courses have become a very popular way to earn continuing education credits. I have successfully set up courses for title insurance agents(Click Here) and am looking forward to expanding into Real Estate courses. If you are interested in getting in on the ground floor - let me know

Owning a house is not a human right

Art Oswald (Learntitle.com & Elite Title Services, Inc.) — Sat, 14 Feb 2009 07:03:56 -0800

Saw this in a comment about what HUD may be doing to stop foreclosures:

"Owning a house is not a human right that must be protected by government. Foreclose, move to an apartment, and let the houses fall in value until others buy them."

any reaction?