 | | Geri Huser |
 From the Director
The spring real estate market is upon us and we anticipate that our current historic low interest rates will trigger renewed interest from prospective home buyers. With this in mind I am devoting this article to reintroduce streamlined processes that allow our customers to quickly and efficiently meet buyer and lender needs.
The Rapid Certificate program eliminates the need for holding the final abstract or post-closing search certification until the releases of liens that were paid at the closing are shown on file. If issues arise post-closing, proof of payment at closing allows for use of the Mortgage Release Program.
The Standards in Excellence program is used by participants who have voluntarily committed to providing their services within the following prescribed time frames:
Abstractors:
- Pre-closing Abstract continuation/update = 3 business days;
- Post-closing continuation/update = 7 business days;
- Create new abstract = 20 business days.
Attorneys:
- Preliminary title opinion or Commitment = 3 business days;
- Final title opinion or Certificate = 7 business days.
Adherence to these guidelines is important to ensure timely and efficient delivery to our customers.
For more information about these or other programs available through Title Guaranty, contact Linda Berg, 515-725-4893.
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CAP FAQ
Q: When is a name affidavit required?
A: Title Standard 8.2 says there is a presumption of identity and no affidavit is required when the variances between the names (deed is different from mortgage) result from the addition of a middle name or middle initial. Otherwise, a name affidavit may be used to clarify minor name discrepancies such as when a titleholder's maiden name appears on the deed, but their new name appears on the mortgage with no "a/k/a" or "n/k/a".
Q: When title is held by a trust, how should the mortgage be executed?
A: The mortgage should be executed by the trustees in their representative capacity, with the proper notary acknowledgement. The following exception should also be added to Schedule B whenever a trust is in title: "Terms, powers, provisions and limitations of the trust under which title to the Land is held."
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New General Contractor's Sworn Statement - Residential
There is a new version of the "General Contractor's Sworn Statement - Residential" on our web site. In order to provide mechanic's lien coverage, we normally require a list of all of the subcontractors and material suppliers that have worked on or supplied materials for a construction project, plus lien waivers from each. The sworn statement is a document the general contractor can use to supply information about the project, including the name and address of each subcontractor or material provider, the type of material furnished or labor performed, the date(s) the material or labor are supplied and the total dollar amount of the material or labor.
Under the column "Type of Material Furnished or Labor Performed", the new version of the sworn statement now lists many of the common types of materials or work that are involved in building a new home. The addition of this information should help determine whether all lien waivers have been provided. Of course, the list of suggested categories of common work and materials is not exhaustive and there may be other subcontractors or material providers involved based upon each individual project.
The General Contractor's Sworn Statement - Residential is located under the New Construction information on our website. |
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Title Guaranty Settlement Conference
The date is set! We will hold the 2012 Settlement Conference April 19, 2012, at the West Des Moines Sheraton Hotel. Topics and speakers include:
- Craig Christensen Iowa Division of Banking
- Kevin Hitchins, Esq. Title Issues
- Tim Gartin, Esq. Ethics and mortgage closings
- Jorge Gomez, Jr., Esq. Short sales - what to know about closings
We will also have sessions on RESPA - what's new and what's coming, closing IFA loans and more!
Watch for registration information coming soon. For more information, contact Jess Flaherty, 515-725-4961. |
Title Guaranty 101: Abstract of Title - what it is and how do things get on the abstract?
"An abstract of title, or title abstract, briefly summarizes the various activities affecting ownership of a parcel of land."[1] It is a condensed history of the ownership of a piece of land taken from public records or documents. In Iowa, an abstract of title is prepared in accordance with the Forty Year Marketable Title Act as set out in Sections 614.29 through 614.38 of the 1971 Code of Iowa. The abstract normally begins with the original land grant of the property from the United States of America, but it may also begin with a root of title, which is "that conveyance or other title transaction or other link in the chain of title of a person, purporting to create the interest claimed by such person, upon which the person relies as a basis for the marketability of the person's title, and which was the most recent to be recorded or established as of a date forty years prior to the time when marketability is being determined."2 The abstractor will search various public records, including but not limited to the records of the recorder, assessor, auditor, treasurer, and clerk of court of the county in which the property is located. The abstract of title will report such matters of record as conveyances, easements, ordinances, covenants, judicial proceedings, and all liens or encumbrances against the property such as mortgages, deeds of trust, UCC filings of record, judgments, taxes, tax liens, and special assessments, including any evidence or proof of satisfaction of any of the liens or encumbrances. The abstractor must also understand the various means of describing the exact boundaries of a piece of land (legal descriptions) and must recognize unacceptable methods. The entries in an abstract are usually shown in chronological order and the abstractor will certify that the history is complete and accurate as of a specific date and time. The certification page will also set out the names of all individuals that the abstractor searched for liens or judgments. The abstract of title is not an opinion of title. The opinion of title is based upon a review of the abstract of title, and is a statement, based upon the professional judgment of the person rendering the opinion, as to the vesting of the title and other matters concerning the status of the chain of title. |
Endorsement: Future Advance - Reverse Mortgage
Title Guaranty offers a Future Advance - Reverse Mortgage Endorsement (ALTA 14.3-06) which may be issued only with a reverse mortgage. The endorsement is issued with a lender's certificate only and costs an additional $15. A reverse mortgage, also known as a Home Equity Conversion Mortgage (HECM),enables older homeowners to withdraw some of the equity in their home in the form of monthly payments for life or a fixed term or in a lump sum or through a line of credit. If the borrower should sell the property or should die, mortgage balance is repaid through the sale of the property. Any money left over from the sale is returned to the owner or their estate. Generally speaking, the Future Advance - Reverse Mortgage Endorsement guarantees against loss or damage sustained by the Guaranteed by reason of the invalidity or unenforceability of the lien of the mortgage as security for each advance of principal indebtedness made after the Date of Certificate. The endorsement also guarantees against loss or damage by reason of the lack of priority of the lien of the mortgage as security for each advance over any other lien or encumbrance on the Title. To issue the endorsement, Title Guaranty requires the following: a. Verification that the recorded mortgage discloses it is a reverse mortgage that secures future advances. b. Verification that the recorded mortgage contains the statutory notice provision prescribed in Iowa Code Section 654.12A: NOTICE: This mortgage secures credit in the amount of _____. Loans and advances up to this amount, together with interest, are senior to indebtedness to other creditors under subsequently recorded or filed mortgages and liens. c. Verification that the mortgage conforms to one of the approved reverse mortgage programs involving HUD Home Equity Conversion Mortgage program, FNMA, GNMA, FHLMC, or FHA. A sample copy of the endorsement, along with the specific underwriting requirements, may be found in Chapter 4.14 of the Title Guaranty Staff Supplement. |
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Commercial Corner - NRCS Programs
The Natural Resources Conservation Services (NRCS) of the United States Department of Agriculture (USDA) provides assistance to restore, protect, and enhance land eligible for conservation programs such as the Wetlands Reserve Program, the Grassland Reserve Program, and the Emergency Watershed Protection Program. The NRCS programs provide easement acquisitions of Iowa land in exchange for retiring land from agricultural uses. Title Guaranty has partnered with NRCS since 1995 to guarantee title to Iowa land enrolled in the NRCS programs. In fiscal year 2011, Title Guaranty Commercial provided coverage for more than $49 million of the NRCS easement acquisitions. Title Guaranty Commercial operations are expanding! Please visit our website at www.TitleGuarantyCommercial.com or contact Matthew Veldey at 515.725.4885 for more information. .................................................... |
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