Welcome to the June Edition of Virginia Title Center's Title Notes E-Blast. It is our hope that you will find the information contained herein to be useful and timely. Please let us know what you think. We want to hear from you.
Director of Marketing & Communications
Title Notes E-Blast
HEALTH CARE REFORM FREE WEBINAR on July 17 at 2 pm
Don't Delay - Register Today!
Update on Changes and Impact to Small Businesses, Their Employees and Families
It's not news to any of us that one of the biggest challenges facing your small business clients is the volatility facing the health care industry and its resulting impact on employers.
John Snead, Director, Sales and Marketing at VBA Benefits Corporation, will moderate a Live webinar on July 17th beginning at 2 p.m.
This is an excellent opportunity to learn more about the key provisions and changes that are planned over the next 12 months and what it means for your clients, their employees and families.
Don't miss your chance to hear the latest on this hot topic. Reserve your FREE Webinar seat now!
A Little Background on John Snead
In John's current role at the Virginia Bankers Association he is responsible for marketing all employee benefit programs and services provided by the VBA Benefits Corporation.
Prior to joining the Virginia Bankers Association, John worked for Willis of Virginia as an Employee Benefits Sales Executive and for Genworth Financial as a Sales Analyst. His key responsibilities at Willis were to ensure that company's benefit programs were current, competitive, and in compliance with all legal requirements. He analyzed statistical data and reports to identify and determine causes of healthcare cost drivers. At Genworth, he organized qualitative information and data to identify sales strategies for the Group Long Term Care market.
John graduated from James Madison University (JMU) with both his Bachelor's and Master's in Business Administration. He also holds a Virginia Life and Health Insurance License.
CFPB Launches New Mortgage Rule Implementation Page
June 17, 2013 | by CFPB Web Team
reprint courtesy of CFPB Blog
The CFPB recently announced its new Regulatory Implementation page
, which consolidates all of the new 2013 mortgage rules and related implementation materials. This is an effort to support rule implementation and ensure that industry is ready to comply with the new borrower protections.
This is the central access point for our mortgage-related implementation materials, including:
- Mortgage rules at a glance
- Small entity compliance guides
- Quick reference charts
- 2013 rural or underserved counties list
- Other helpful materials
The goal with this page is to provide access to the mortgage-related implementation resources though a single page that makes the rule content more accessible for a broad array of industry constituents, especially smaller businesses with limited legal and compliance staff.
Although these implementation materials give an overview of the rules, they are not substitutes for the underlying rules.
We hope you'll familiarize yourself with the new page and the related available resources. When additional resources become available for the new mortgage rules, they will add them to the Regulatory Implementation page.
BANKS PUT ON NOTICE: CFPB Says Banks are Responsible for Service Providers
The Consumer Financial Protection Bureau (CFPB) issued a three-page memorandum ("Memo") in April 2012, that put banks on notice that they have "legal responsibility" to "oversee their business relationships with service providers..."
The Memo specifically singles out service providers as: ". . . any person that provides a material service to a covered person in connection with the offering or provision by such covered person of a consumer financial product or service." For the purpose of this article, we will focus on those service providers that have the most direct impact on your real estate closings: title agents and settlement agents, including attorneys.
The Memo acknowledges the banks' use of service providers as an appropriate business decision. The CFPB has asked banks to look at their service provider relationships to make sure they are working with trusted, ethical professionals. The CFPB wants banks to use and oversee service providers "in a manner that ensures compliance with Federal consumer financial law, which is designed to protect the interests of consumers and avoid consumer harm. The CFPB's exercise of its supervisory and enforcement authority will closely reflect this orientation and emphasis." These statements in the Memo sent a shockwave through the lending industry as banks can now be fined or sued by the CFPB over the illegal activities of their service providers.
The Memo says that banks are expected to:
please click here to read the rest of the article
VTC is Moving Ahead with Social Media .... Jump on Board with Us!
Want Updated Industry Info Faster?
Follow Virginia Title Center's new BLOG and 'Like' us on Facebook!
In our efforts to continue to bring you value beyond our Title and Settlement Services, VTC recently increased its presence in the world of social media.
Bookmark and Follow the VTC Blog - send us ideas for new posts
'Like' our VTC Facebook Page - check out our past posts for great information
We are working to beef up the content of our website too! Check out a couple of our new features:
We are novices (so don't judge) and we invite your input, feedback and ideas for information to post, so don't be shy!
Send your comments to Patti Dickerson.
TitleHound On-Line Rate Calculator
Virginia Title Center is excited to bring a new convenience feature to its Lenders and Partners: an easy-to-use on-line closing cost premium rate calculator.
TitleHound is a unique title insurance premium rate calculator. It allows you to get closing costs for accurate Good Faith Estimates (GFE) and estimated HUD statements. This allows for instant and accurate disclosures for mortgage refinance loans and real estate purchases.
Unlike other rate calculators, TitleHound ensures the premiums, endorsements, settlement fees, and government recording fees, as well as mortgage taxes and transfer taxes, are disclosed accurately to avoid tolerance losses.
TitleHound can be easily accessed from VTC's website home page under the RESOURCES tab or by going directly to the following link. Feeling uneasy about trying it out? Check out the handy TitleHound Tips & Best Practices document or contact any VTC staff member to walk you through a demo.
NOTE: TitleHound is not meant to replace your communication with our team, just to serve as another service convenience.
ALTA's Best Practices Offers Banks the Guidance to Know written by Jonathan Biggs, VP for Risk Management, Investors Title Insurance Company and member of the ALTA Best Practice Task Force
Your Service Providers.
ALTA's Best Practices offers banks the guidance to know your service providers. The ALTA Best Practices help banks and service providers navigate the requirements of the Memo. ALTA has also provided a mechanism for the banks to verify compliance.
ALTA has offered 7 questions that each bank should ask its service providers. Every service provider may be measured by 7 standards called the ALTA Best Practices that can be summarized with 7 routine questions, which are:
ALTA Best Practice #1 - Licensing
- Are they properly licensed?
ALTA Best Practice #2 - Escrow Account Controls
- Do they have proper controls in place to safeguard the millions of dollars that your bank sends through their trust/escrow accounts?
ALTA Best Practice #3 - Protect Confidential Info
- Do they have proper controls in place to safeguard the bank customers' personal information from identity theft and cyber fraud?
ALTA Best Practice #4 - Follow Federal & State Consumer Laws
- Do they know and follow the consumer laws that are required to protect the bank's customers?
ALTA Best Practice #5 - Deliver Policies on Time
- Do they have procedures in place to make sure that title matters are concluded in a timely fashion?
ALTA Best Practice #6 - Maintain Appropriate Insurance
- Do they maintain the appropriate levels of insurance to protect the bank's interests and the bank customers' interests in the event that things do not go according to plan?
ALTA Best Practice #7 - Address Consumer Complaints
- Do they address the bank's complaints and the bank customers' complaints (if any) in a timely and professional manner?
An elementary evaluation of the service provider relationships would prompt one to ask these seven routine questions. The CFPB is now requiring that banks (i) ask these questions, (ii) be assured that the service providers' policies are appropriate for the circumstances, (iii) be assured that the service provider follows its own policies and (iv) have mechanisms to be aware and address failures when the service provider does not follow its own policies for the protection of the bank and the bank's customers.
Compliance with some of the ALTA Best Practices can be as simple as asking: "Does the service provider have a proper license?" .....
Please click here to see the entire article and for additional guidance.
TITLE TIP: When Do Mobile and Manufactured Homes Qualify for ALTA Endorsement Form 7?
submitted by Debbie Elig, Certified Commercial Underwriter, Virginia Title Center, LLC
The Code of Virginia defines a mobile home as follows:
"... A structure, transportable in one or more sections, which in the traveling mode is eight body feet or more in width or forty body feet or more in length, or when erected on site, is 320 or more square feet, and which is built on a permanent chassis and designed to be used as a dwelling with or without a permanent foundation when connected to the required utilities, and includes the plumbing, heating, air conditioning, and electrical systems contained there." Va. Code Ann. �46.2-100.
Manufactured home is defined in substantially the same fashion in VA. Code Ann. �36-85.3 However the Code of Virginia does not define the nature of title to a mobile or manufactured home. The law of fixtures defines title, according to case law. In order to be considered part of the real property, the following factors must be considered:
- Annexation of the mobile or manufactured home to the real estate.
- Adaptation to the use or purpose of the real estate.
- The intention of the parties.
There is no clear cut rule to determine when a mobile or manufactured home becomes real propriety. One important step in making the leap from personal property to real estate involves evidencing intent to detitle the home. A copy of the title should be submitted to the Virginia Department of Motor Vehicles with a picture of the finished product showing if permanently affixed to the land, and with Real Estate" written across the top. The use of a note and deed of trust to finance the home with description of the home will also be proper when the intent of the parties if for the property to be considered real estate.
ALTA Endorsement Form 7, 7.1 and 7.2
These endorsements provide that the term "land" as defined in this policy includes the manufactured housing unit located on the land at the Date of Policy. The ALTA 7 and 7.1 endorsements are available in connection with loan policies in which it has been determined that the mobile or manufactured home constitutes real property.
The ALTA 7.2 Manufactured Housing Endorsement is designed to be issued with an owner's policy of title insurance. The ALTA 7.2 endorsement provides the owner with essential the same coverage as a lender who receives the ALTA 7.1 with only a couple of exceptions -- this applicability to the owner differs from other standard ALTA endorsements.
So What Requirements Does A Title Underwriter Consider?
If the mobile or manufactured home is to be treated as real property, the following requirement must be met:
VA-Mobile: If the Mobile or Manufactured Home is to be treated as "real property" (1) we must receive a copy of the title sent to the DMV with the words "Real Estate" written on it: and (2) we must receive either (a) the Manufactured Housing Affidavit (enclosed) or (b) satisfactory information from the certifying attorney as to the statements on said affidavit. NOTE: Upon receipt of said Affidavit AND subject to the facts related therein, no mobile home exception will be made in the final Owner's Policy or Loan Policy; also the corresponding ALTA Endorsement will be attached to the final policy.
Your Title Underwriter remains the best resource to ensure the property qualifies and the appropriate endorsement is utilized.
IN THE WORDS OF A VTC CLIENT
".... I just love, love, love working with the team at Virginia Title Center! You are all wonderful to deal with, more than accommodating for my customers, and always very understanding with last minute changes. I feel very fortunate to work with such a great group of individuals and with Virginia Title Center."
Nikki Sprouse, Mortgage Loan Consultant
The First Bank & Trust Company
VTC TEAMMATE FEATURE
VTC Commercial Title Services
Debbie Elig, Certified Commercial Underwriter
Debbie has been a member of the VTC team since May of 1990, holding a degree in Economics from Radford University, and Paralegal certification from George Washington University.
Prior to joining VTC, Debbie worked as a police officer with the US Capital Police in Washington, DC.
Debbie is our certified commercial underwriter, works on our aging premiums, attorney approvals, and assisting our clients with any other special needs they may have.
Debbie resides in Roanoke with her husband and daughter, 2 dogs and cat. She enjoys traveling, scrapbooking and trips to the beach. Send Debbie a note.
|Meet your VTC Roanoke, VA Team. Seated L to R: Debbie Elig, Bobby Fothergill;
Standing L to R: Vicki Tyree, Gail Duffy, Patti Dickerson, Laura Lesando, Mary Lynn Fothergill, Pam Blake
**Remember to offer your borrowers Owners' Coverage on their most valuable investment. It's a one time premium with a lifetime of security. In addition, they will receive a reduced premium rate when they obtain it simultaneously with your Lender's Coverage.**
WANTED: YOUR FEEDBACK
What Topics Are On Your Mind?
Virginia Title Center wants to provide you with pertinent information in future E-Blasts and Webinars. What questions are on your mind regarding the real estate and mortgage lending industry? What Hot Topics would you like to receive greater insights and clarity? Send Patti your thoughts.
Patti L. Dickerson
Director of Marketing & Communications
Virginia Title Center, LLC
1.800.468.5811 or 540.772.0585
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