 | | Geri Huser |
 From the Director
Thank you to all who have welcomed me into my new position as director of Title Guaranty. Iowa Title Guaranty is invested in the Iowa land title system and ensuring that the integrity and high standards that Iowans value in land transactions continue into the future. The evolution and success of Title Guaranty is due to the involvement and constructive criticism of our partners. I will strive to seek out your input in this unique public-private partnership.
2011 was a strong year for Title Guaranty, as shown in the Title Guaranty 2011 - By he Numbers article. Right now we are planning for an even stronger 2012, and we can't do it without you. As Ted Jones stressed at the Annual Conference - all real estate is local! Your local expertise combined with the strength and tradition of Title Guaranty is what makes the program work.
I would like to thank you for everything you've done to support Title Guaranty in the past and ask for your continued cooperation in the future. My New Year's resolution is to listen and be responsive to your comments and suggestions.
My best wishes for a prosperous new year! |
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CAP Processing FAQ
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Q. What special requirements exist when the lender's coverage amount exceeds $500K?
A. A survey or real property inspection report (RPIR) showing the boundary lines, the location of all improvements relative to the property lines, easements, setbacks, property dimensions and showing no encroachments is required to provide survey coverage to lenders.
Q. I have a buyer who wants mechanic's lien coverage. How do I give this coverage?
A. Mechanics's lien coverage is provided to buyers by waiving standard exception number four with the Standard Exception Waiver Endorsement. This Endorsement is available for $15. Remember, Title Guaranty requires a sworn statement from the general contractor listing labor and material providers within the last 90 days, an affidavit from the general contractor stating that all work is completed and subcontractors have been paid, and final lien waivers for any work performed within the 90 days prior to closing. |
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Personnel Changes
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We are happy to announce several personnel changes at Title Guaranty. Becky Gahart and Ashley Watts, both former interns have joined the staff.
 | | Becky Gahart |
Becky has accepted the position of Commercial Services Assistant. Becky recently graduated from Drake University with a Bachelor of Arts in Economics and English. She held an internship position with Iowa Finance Authority for a year before joining Title Guaranty, during which she worked with the legislative, grant administration, and marketing programs.
 | | Ashley Watts |
Ashley has accepted the position of Commercial Underwriting Counsel. Ashley earned a Bachelor of Arts degree in international management and Spanish from Central College. She graduated from Drake University Law School and was admitted to practice law in the State of Iowa in 2010. Prior to joining Title Guaranty, Ashley was a Contract Specialist for the Section 8 Department of the Iowa Finance Authority where she assisted with the successful rebidding of the HUD Project-Based Section 8 Contract and the administration of the Section 8 program.
 | | Linda Berg |
In addition, Linda Berg has accepted the position of Field Operations Director. Linda joined Title Guaranty in 2005 as Business Development Director overseeing marketing and communications initiatives. In her new role, Linda will manage internal and external compliance, training and continue to represent Title Guaranty with industry organizations. Linda is a graduate of Simpson College and holds an MBA from Drake University. Her previous experience includes sales management and marketing to real estate settlement services providers, including national lenders, real estate sales professionals and the title insurance industry. |
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Free Owner's Coverage
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Title Guaranty offers free Owner's Certificates whenever we issue a Lender Certificate on a purchase transaction, provided the property is valued less than $500,000 and the borrower will occupy the property as their primary residence. While we've noticed a significant increase in the volume of Owner's Certificates issued in conjunction with Lender's coverage, we believe that there are some Iowa homebuyers who are not getting the benefit of Title Guaranty. As a reminder, the coverage is free, but not automatic. In order to add this coverage, the borrower needs to complete paragraph 5 of the Composite Mortgage Affidavit - check "Elect" and provide the sales price of the property. That's all it takes! Owner's coverage is only available in conjunction with a purchase transaction. For transactions not meeting the free coverage criteria, coverage is still available at a nominal fee.
We have recently revised our Consumer Brochure to clearly explain the benefits of Title Guaranty owner's coverage. If you would like a supply of these brochures for your buyers, please contact Jess Flaherty at 515-725-4928. |
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2011 Annual Conference
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 The Title Guaranty annual conference was held November 3, 2010, in Des Moines. Our keynote speaker, Dr. Ted Jones, Chief Economist with Stewart Title provided updated statistics on the national and local housing markets, while reminding us all that "there is no national real estate market - all real estate is local". It's sometimes easy to forget when we see headlines about depressed real estate markets in other parts of the country. All presentations from the conference are posted on the Title Guaranty Website. Watch for information on the 2012 Annual Conference in Coralville, Iowa.
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Rapid Certificate
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We have noticed a steady increase in the number of Title Guaranty Certificates issued using the Rapid Certificate program. This is a terrific way for our field-issuing participants to offer better service and quicker turnaround times on post-closing documents. In many cases, lenders are required to provide all final documents to their investor within 60-90 days of closing, including the final Certificate. Unfortunately, satisfactions or releases of liens paid at closing are not always that prompt. That was the driving force behind Rapid Certificate - creating a way to meet the lenders needs while maintaining the quality of Iowa's land title system. The process is simple, but can only be implemented by field-issuing participants. The issuer should have proof of the payment of the lien. For a mortgage, this will be a copy of the payoff statement and proof of payment - cancelled check or wired funds receipt. If the issuer also conducted the closing, they will have this information in their files. If not, the lender or closer will need to provide this information. After closing, the abstract company is notified that they do not need to hold the abstract (or Form 901 in the case of a refinance) for release of mortgage. The field issuer prepares the Title Guaranty Certificate listing the unreleased lien on Schedule B, and issues an Endorsement Against Loss Lien specifically covering this lien. This Certificate, including the Endorsement, guarantees the lender and the buyer against any loss due to the unreleased lien. The lender can deliver their file to the investor and the buyer is protected from any loss due to the unreleased lien.
A few months after closing, we will remind the issuer to check public records for the satisfaction. If recorded, they will enter the appropriate information in our system . If not, we ask them to submit copies of the proof of payoff and Title Guaranty will use the Mortgage Release program to clear the lien from the records. There is no additional charge - Title Guaranty bears the cost of recording and/or publication fees for the Mortgage Release program when used in conjunction with Rapid Certificate. It's a great program designed to eliminate post-closing delays. For more information on how you can benefit from Rapid Certificate, contact Title Guaranty at 515-725-4357. |
Title Guaranty 2011 - By the Numbers
FISCAL YEAR 2011
Total Certificates Issued..............69,400
Revenue Generated...............$6.3Million
Value of Real Estate Covered...........$3.7Billion
TRANSFERS TO AFFORDABLE HOUSING
FY11.....................$3.4Million
Since Inception.........$47.8Million
Total Participating Attorneys, Abstractors, Closers......1693 |
Manufactured Housing Unit Endorsements
Title Guaranty now offers two Manufactured Housing Endorsements, ALTA 7-06, the Manufactured Housing Unit Endorsement, and ALTA 7.1-06, the Manufactured Housing Unit-Conversion Endorsement. Each endorsement costs an additional $15 and requires similar underwriting considerations.
The ALTA 7-06 states that "The term 'Land' includes the manufactured housing unit located on the land described in Schedule A at Date of Certificate". To issue the endorsement, Title Guaranty requires the following:
- Verification that the home is located outside a "manufactured home community" or "mobile home park".
- Verification that the mobile home has been permanently attached to the land (i.e. concrete foundation, wheels removed, etc.), which can be determined by a current appraisal, inspection, survey or affidavit.
- Verification that the assessor has classified the manufactured home as a real property improvement for current or future assessments.
- Verification that the certificate of title for the modular or manufactured home has been surrendered to the county assessor or treasurer.
The ALTA 7.1-06, also assures the lender that the term "Land" includes the manufactured housing unit, but goes further to add the following guarantees:
- 1. There is a manufactured housing unit located on the land described in Schedule A.
- The manufactured housing unit is considered real property.
- The owner of the land is the owner of the manufactured housing unit.
- There are no liens attached to the manufactured housing unit as personal property.
- The lien of the Guaranteed Mortgage is enforceable against the land.
- The lien of the Guaranteed Mortgage is enforceable in a single foreclosure procedure.
In addition to the underwriting requirements for the ALTA 7-06, Title Guaranty requires the following in order to issue the 7.1-06 version:
- A UCC fixture filing search against the titleholders with the Iowa Secretary of State, unless the buyer obtains a newly constructed home with either cash or a purchase money mortgage.
- If the certificate of title will not be canceled until the current closing, verification that any personal property taxes have been paid.
- Verification that the manufactured housing unit is taxed as real estate.
Sample copies of both endorsements, along with the specific underwriting requirements, may be found in Chapters 4.20 and 4.21 of the Title Guaranty Staff Supplement For more information, please contact Bob Skelley. |
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