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 From the Director
July marks the beginning of a new fiscal year, and the beginning of the 25th year of Title Guaranty operations. The new fiscal year will also mean a new Director for Title Guaranty. Please join us in welcoming Geri Huser! Geri is a graduate of Briar Cliff College and Drake University Law School. Prior to joining Title Guaranty, Geri was in private practice with the Skinner Law Office in Altoona, and was a State Representative from 1997 to 2010.
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Geri Huser. |
From the beginning, Title Guaranty was established with the purpose of working in partnership with Iowa attorneys and abstractors to provide a service to lenders and buyers of Iowa real estate. 25 years later, the way we provide that service has changed, but not our primary purpose. We appreciate the opportunity to work within the industry with our partners to create a title system that is effective, efficient and affordable, while maintaining the value of the proud tradition of the abstract/attorney system.
Iowa's home buyers benefit from the system in several ways. First, many are eligible for free owner's coverage when their lender selects Title Guaranty to protect the lender's interest. Secondly, home buyers benefit from the protection afforded by having an attorney review their abstract, uncovering potential issues prior to closing. Lastly, home buyers and the real estate industry benefit from the transfer of excess Title Guaranty revenue to the Iowa Finance Authority for housing initiatives. Each year, hundreds of Iowa first time homebuyers receive down payment assistance through the FirstHome program - funded by Title Guaranty. In fiscal 2012, we anticipate exceeding the $50million mark in transferred funds. Revenue returned to Iowans for housing.
It would not be possible for us to look forward to our 25th year if it were not for our partnership with the attorneys and abstractors of Iowa. Many of the enhancements to the program have come from their initiatives and suggestions. Today, more than 90% of all Title Guaranty Commitments and Certificates are issued in the field by our partners. This has allowed us to grow the program as well as our market share in the most efficient manner possible. |
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CAP Processing FAQ
Q. How do I know if the property is "residential" for purposes of using the Form 900? What if it's zoned agricultural?
A. The primary consideration is how the property is used. The zoning classification is not always determinative, nor is the number of acres. There must be a 1-4 family residence on the property and no evidence of a farming operation. Mixed-use properties require traditional abstracting. Remember, non-residential are processed by our commercial staff at our office in Des Moines. Please send us the title opinion and application for coverage and we will process.
Q. Why is Rapid Certificate required with a CPL file?
A.Most closing instructions require the closer to provide a final title policy within 30-60 days of closing. A closing protection letter provides affirmative coverage to lenders that the closing instructions will be followed. The only way to assure a final Title Guaranty Certificate is issued in a timely fashion is to use the Rapid Certificate Program. |
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Settlement Conference
Presentations from the 2011 Settlement Conference are now posted on the Title Guaranty website.
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Plans are underway for the Title Guaranty Annual Conference. This year, the conference will be in Des Moines at the Downtown Marriott hotel. As always, we've got a great lineup of speakers and workshops, including a fresh perspective on the national and local economy from Ted Jones, Chief Economist with Stewart Title. In addition, we are very pleased to include a legislative update session presented by the legislative committee of the Iowa State Bar Association as well as panels on Title Issues (David Erickson, Esq.), the ever-popular Ethics Panel and a special Abstractor/Attorney discussion with Dave Rubow, President, Iowa Land Title Association and Dan Moore, Esq. We are looking forward to a great event! Registration information will be available online soon at www.titleguarantyevents.com. Or, for more infomation contact Linda Berg, 515.725.4893 |
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TITLE GUARANTY - 25 YEARS: LOOKING BACK
Title Guaranty is proud to celebrate its 25th year in 2011. The Iowa Legislature created Title Guaranty in 1985 to provide guarantees of Iowa real property titles, facilitate mortgage lenders' participation in the secondary market and to help assure the integrity of Iowa's land-title system. Our Silver Anniversary is an opportunity to look back on the growth and accomplishments of the past 25 years.
Evidence of the rapid growth of Title Guaranty can be found in the increase each year in the number of certificates issued. In 1987, the first full year of operation, Title Guaranty issued a total of 58 certificates, but it took only three years (1990) for the Division to issue its 10,000th certificate. Certificate number 100,000 was issued only five years later in 1995, and the 500,000th certificate went out the door in 2006. Since 2006, Title Guaranty and our partners in the field have more than 700,000 Certificates.
Title Guaranty revenue means dollars for the Iowa Finance Authority's housing programs. In 1988, a total of $300,000 was transferred to housing programs. During fiscal 2012, we anticipate the total volume of funds transferred reaching $50million. Now, more than ever, Title Guaranty is committed to providing an excellent product efficiently and cost-effectively. Our procedures have changed dramatically to reflect the changing needs of the industry. In 2003, Title Guaranty implemented the Mortgage Release Program to provide a simple means of obtaining a release of a prior mortgage that would otherwise prove difficult if not impossible. The Rapid Certificate Program was born in 2005 to help our customers receive their Certificates without delay. In 2006, Title Guaranty implemented a new flat-fee pricing scale, the Non-Purchase Product (streamlined refinance), and the Closing Protection Letter Program. In 2007 we began offering free Owner's Certificates, and the Commercial Services Division.
Key improvements in technology have also changed the way Title Guaranty delivers our products and services. Our on-line processing system allows certificates to be e-mailed to the customer within minutes of being issued. Records are stored electronically for quick and easy retrieval and we now file documents electronically with Iowa's county recorders. Stay tuned for more technological advances in the near future that will make ordering and receiving certificates even easier.
In 1986, no one could have imagined where the Division would be 25 years later. We anticipate the next 25 years will bring changes that are unimaginable today. We are confident that whatever those changes may be, Title Guaranty will continue to work with our partners to provide an effective, efficient and affordable system that will continue to maintain the integrity of land titles in the state of Iowa.
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Are you Blockbuster in a Redbox World?
 | | Randy Slings, President Iowa Title Company |
If your hometown is like mine, the local video store doors have long-since closed and the mighty Redbox has appeared in front of your favorite fast-food chain, grocery or drugstore. What does this have to do with the title industry? Everything! Our industry needs to recognize the mistakes that Blockbuster made could happen in our industry. Blockbuster was synonymous with video rental, and they are getting schooled by Redbox. Complacency, alienation of their customers, and failure to recognize changing trends has allowed Redbox and Netflix to dominate the market once ruled by Blockbuster. Redbox recognized that the customer wants a product and service of value delivered easily and conveniently. Product availability when the customer wants it was an essential strategy that can be duplicated in the title industry. We can apply this valuable lesson to our business. We need to ask the questions now, identify new trends, and work to be the Redbox of our industry. Redbox provides the same product that Blockbuster provides; they just adapted to the changing demand of their customers. Similarly, our industry needs to find new ways of providing our same product to our customers while adapting to their changing demands. Time-sensitivity is just as important as accuracy. If you haven't been asked to email or provide an electronic option, you will be.
Have you developed a strategy to accommodate the changing profile of the home-buyer? Baby Boomers and Generation Xers make up the majority of home buyers in today's market. These people are independent, tech-savvy, and used to instant response. Real estate and title professionals would be prudent to deploy strategies that appeal to the Gen X & Y consumers. Traditional sales and marketing approaches need to be revised to communicate in their language. Products and services need to evolve to meet the expectations of instant and convenient access. Gen X and Y consumers respond and engage through the use of online social networking and technology. We can retain our traditional values of quality and accuracy, and still adapt our business plans that will prevent us from becoming the Blockbuster of the title world.
Are you Blockbuster in a Redbox World?
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Proper Notary Use
Title Guaranty staff is seeing an increase in defective instruments due to an improper acknowledgment. Common errors include the failure to require personal appearance, incomplete notary certificate, use of an incorrect acknowledgment form (ie: personal vs. representative capacity), listing incorrect jurisdiction and use of illegible stamp or seal. Proper notarization, while sometimes overlooked, is a critical step in a real estate transaction.
Iowa Code section §558.42 states that "A document shall not be deemed lawfully recorded, unless it has been previously acknowledged or proved in a manner prescribed in chapter 9E." Accordingly, a defective acknowledgment contained in a mortgage, deed or other instrument affecting real estate does not afford constructive notice to a subsequent purchaser or a bankruptcy trustee. This has become increasingly important in the bankruptcy and mortgage foreclosure areas because of the incentive to invalidate the instrument.
In a valid acknowledgment, the signer must personally appear before and be positively identified by a notary and the signer must acknowledge they signed freely, voluntarily and for the purpose stated in the document. (An acknowledgment does NOT have to be signed in the notary's presence, provided the document signer appears before the notary and acknowledges he/she signed it.)
Iowa Code section 9E.14 requires a notary to complete a notarial certificate that serves as proof that the proper notarization procedure has been followed. The certificate must include the state and county where the signer appeared before the notary and either signed the document, or acknowledged that he previously signed it. The notary must date and sign the certificate under the title, "Notary Public." As of 2002, an Iowa notary is required by law to use a stamp or seal when notarizing a document.
Although Iowa law does not require a notary public to keep a journal, it is strongly recommended. A sample is available from the Secretary of State. However, a Title Guaranty Closer notarizing documents must keep a detailed journal of the parties present at the closing, and specify where and when the closing is held. Everyone should pay extra attention when preparing an acknowledgement during a real estate transaction. Ensuring the proper notarization of a document at the beginning of the transaction will make the entire process more efficient.
For more information on Iowa Notary Law, visit the Secretary of State's website |
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