Illinois Hot Topics Newsletter - Fall 2015

ILLINOIS

H T TOPICS

A SPECIAL EDITION OF THE ILLINOIS AGENCY INSIGHTS NEWSLETTER

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Mortgage Disclosure Rule aka TRID

Wire fraud is alive and on the rise

KNOW BEFORE YOU OWE

FRAUD AWARENESS

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FALL 2015

NEW LEGISLATION Be aware of the new legislation affecting you

KNOW BEFORE YOU OWE Mortgage Disclosure Rule | aka TRID Closing and Consummation Date Timing Calculator

Closing Disclosure Forms

• Calculate the mailing date based on consummation date or determine the earliest consummation date based on mailing date.

• Closing Disclosure - Borrower Only

• Print or email calendar to clients.

• Closing Disclosure - Seller Only (2 pages)

• Rescission dates are included to give a full picture of timelines on one calendar.

• Closing Disclosure - Seller Only (5 pages)

• The calculator determines what dates cannot be counted as delivery dates and rescission dates, taking the guesswork out of planning.

We hope you never have to use these, but if you do, you will want to be able to access them quickly and in the easiest format to manipulate and share. These forms are also available on AgentNet® under the Agent Resource Center > Integrated Mortgage Disclosure tab.

https://closingdates.firstam.com

Available in blank and editable format for Agents to use.

• Closing Disclosure - Buyer Only • Closing Disclosure - Combined

YouTube® Video Series

(Continued)

HOT TOPICS IN ILLINOIS UNDERWRITING Presented by: Stacy West The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice.

Readers should not act upon this without seeking advice from professional advisers.

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

AMD: 12/2015

www.firstam.com ©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

KNOW BEFORE YOU OWE

Mortgage Disclosure Rule | aka TRID (Continued)

Lender’s Closing Instructions Must Be Read Very Carefully With lenders responsible for production and delivery of the Closing Disclosure under the TILA-RESPA Integrated Disclosures (TRID) Rule, many lenders are modifying their closing instructions and shifting liability onto settlement and closing agents.

Because of this, the American Land Title Association (ALTA) is reminding members to read all lender closing instructions carefully.

Some lenders are modifying instructions to hold settlement agents liable for violations of any laws at the federal, state or local level.

An Underwriting Communication containing additional information on the topic of Lender’s Closing Instructions was sent November 2, 2015 from IllinoisAgency@firstam.com.

FRAUD AWARENESS Wire fraud is alive and on the rise with emails being intercepted and compromised. The Illinois Land Title Association (ILTA) is in the process of preparing an educational webinar for agents, lenders and real estate agents to address this important topic. This is a Crime of Time, so agents should implement an emergency plan of what to do and who to contact in case they are a victim of wire fraud. Here are some helpful hints: • Always verbally confirm the wire instructions at a trusted phone number, NOT the phone number at the bottom of the email you are trying to confirm.

• Obtain the seller’s written signature approving the wire instructions.

• Be especially skeptical of any change in wiring instructions from any party to the transaction.

• STOP if any revision of wire instructions is received, and CALL THE SELLER. • Report any wire tampering to the local FBI office.

• Consider cyber liability insurance and be aware of the different coverages.

TILA-RESPA Integrated Disclosure Frequently Asked Questions This 44-page document*, dated November 7, 2015, includes questions and answers on the following topics: • TILA-RESPA Integrated Disclosure Rule • Loan Estimate • Closing Disclosure • Settlement Statement * Available on AgentNet in the Agent Resource Center in the Training Materials section of the Integrated Mortgage Disclosures tab.

Notice of Right to Purchase Owner’s Policy of Title Insurance R E S I DE N T I A L P ROP E R T Y ON LY

NOTICE OF RIGHT TO PURCHASE

OWNER’S POLICY OF TITLE INSURANCE TO

DAT E

BUYER ADDRESS

P R O P E R T Y TO B E P U R C H A S E D

As part of your real estate transaction to purchase the property referred to above, a title insurance policy insuring your mortgage lender may be issued. Even though you would pay for the lender’s policy, it will NOT insure your interest as the property owner.

Only an Owner’s Policy of Title Insurance can provide that protection to you.

INITIAL(S)

INITIAL(S)

INITIAL(S)

INITIAL(S) INITIAL(S)

I/We understand an Owner’s Policy of Title Insurance can insure against the actual loss suffered resulting from certain title risks covered by the policy, if those risks affect the property on the effective date of the policy and are not excluded or excepted from the policy.

I/We understand some of those risks may include: • Someone other than purchaser (or a person listed in the policy) owning an interest in your property; • Lack of legal access to and from the property; • A claim against my/our ownership interest based on fraud, forgery, or incapacity in a transaction; • An outstanding lien against my/our title for matters such as unpaid real estate taxes, a court judgment or a prior owner’s mortgage; • Someone enforcing rights to use the property due to an easement that is not listed in the policy; • Someone limiting your right to use the property due to a restriction that is not listed in the policy.

I/We understand an Owner’s Policy of Title Insurance will provide insurance against unmarketable title. If a buyer can refuse to buy, or a lender can refuse to lend due to a covered matter, I/we may have a marketability claim.

In addition, I/we understand an Owner’s Policy will provide a defense to a claim against my/our ownership interest, including payment of attorney’s fees and court costs or, in the alternative, payment to the person making the claim against the property title or, to me/us.

• The Lender’s Policy (almost always required) will cost me/us • An Owner’s Policy to cover your interest of

SA LE P R I C E

AC TU A L C O S T O F LE N D E R ’ S P O LI C Y - PA I D BY B O R R O W E R

will cost me/us

.

A D D ITI O N A L C O S T D I F F E R E NTI A L B E T W E E N TH E LE N D E R ’ S P O LI C Y A N D O W N E R ’ S P O LI C Y - PA I D BY B O R R O W E R

.

If you are uncertain about the purchase of an Owner’s Policy of Title Insurance, we urge you to seek independent advice.

INITIAL(S) INITIAL(S)

This form, available on AgentNet in the Agent Resource Center under the Pass-Thru Marketing tab, can be customized with your company logo and contact information.

I/We DO wish to purchase an Owner’s Policy of Title Insurance.

I/We understand the risk we are taking and DO NOT wish to purchase an Owner’s Policy of Title Insurance.

BUYER /BORROWER

S I G N AT U R E

DAT E

BUYER /BORROWER

S I G N AT U R E

DAT E

NEW LEGISLATION SUBSTITUTION OF BOND AMENDMENT TO THE MECHANICS LIEN ACT • 770 ILCS 60/38.1 »» Allows an interested party to petition for an order allowing a surety bond in place of any mechanics lien rights in the property.

• Marty Cann, Area Underwriting Counsel, will present a Webinar on this topic.

• An Underwriting Communication and details on the Webinar will be coming soon.

TRUSTS AND TRUSTEES ACT • 760 ILCS 5/8.5 »» Allows a Trustee to furnish a certification of trust rather than the full trust document.

• Sets forth the information to be contained in the form.

• In light of the recent Mendelson v. Mendelson case, in most instances, First American Title Insurance Company will make a risk determination and continue to require a full trust document and a deed into the trust.

NOT FOR USE IN FLORIDA, TEXAS OR PENNSYLVANIA

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

AMD: 11/2015

AN INDEPENDENT POLICY-ISSUING AGENT OF FIRST AMERICAN TITLE INSURANCE COMPANY ©2015 First American Financial Corporation and/or its affiliates. All rights reserved.  NYSE: FAF

First American Title | Illinois Hot Topics | Fall 2015

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