First American Title Chicago Metro Taking Flight Newsletter - Winter 2017

summer 2006

Fall 2007

spring 2007

WINTER 2011 Fall 2012

Welcome to

Taking Flight !

Welcome to the first edition of “Taking Flight”, First American Title’s quarterly newsletter. Our goal is to provide you with timely information and articles that will keep you abreast of what is happening in the real estate and legal communities as it pertains to the title industry, as well as keeping you up to date on First American.

We will feature regular columns such as: Ask the Title Officer, What’s New at First American, Marketing Tips, What’s New in the Industry, and Tips for Your Practice. We also welcome suggestions from you on any topics you would like to see in future issues, and we invite you to submit articles for publication.

Feedback and ideas can be emailed to: takingflight.il@firstam.com

Ask the Title Officer…

effect, the following should apply when using the form:

Answer:

1. The date of signing should exactly match the notary date.

2. If representing the seller, the name and address of the principal should exactly match the name and address on the deed. If representing the buyer, they should exactly match the mortgage. If it is a cash deal, they should exactly match the grantee clause of the deed.

3. Please ensure that the following selections are not stricken out: Ê Uʺ,i> ÊiÃÌ>ÌiÊÌÀ> Ã>VÌ Ã» Ê Uʺ > V > Ê ÃÌ ÌÕÌ ÊÌÀ> Ã>VÌ Ã» Ê UÊʺ/> } L iÊ«iÀà > Ê«À «iÀÌÞÊÌÀ> Ã>VÌ Ã»Ê (for the personal property affidavit) Ê Uʺ ÀÀ Ü }ÊÌÀ> Ã>VÌ Ã»Ê Ê UÊ ÞÊ Ì iÀÊ«À «iÀÌÞÊ« ÜiÀÃÊ 4. The POA should always include the property address and legal description, which can be attached on a separate page.

5. The POA should terminate “upon the completion of the closing”. Entering a specific date could terminate the POA prematurely, should additional documents need to be signed at a later date.

6. The agent should be listed by name, not by the name of the law firm or other entity.

7. The signature should exactly match the name of the principal.

8. The POA must be notarized, with the notary paragraph filled in completely. The notary cannot be the principal, agent or witness.

9. The POA must be witnessed, and the witness cannot be the principal, agent or notary.

10. The “Prepared by” name and address must be filled in.

Although the presence of the parties at the closing is preferred, powers of attorney are often utilized to facilitate a closing. Unless it is not possible, the original signatures of the grantor(s) should still be obtained on the deed

If representing a borrower, the lender must approve the use of a POA. When signing as the agent, the agent must sign the principal’s name by the agent as his or her attorney-in-fact. If i h d i h i

Question: What should an effective Power of Attorney for property contain?

At First American, our goal is to create a culture that sets us apart from our competitors.

We believe it is our people that make the difference, and in support of that belief, our employees participate daily in our Customer Delight program, which is dedicated to the continual improvement of the closing experience. It utilizes a process that actively promotes all aspects of customer service. Our ultimate goal is to ensure that your experience here will be efficient, effective and friendly. We will discuss this program in more detail in our next issue.

Have a safe and happy summer!

TA KIN G FLIGHT

S U M M E R 2015

A Quarterly Publication for the Chicago Metro Area IN THIS ISSUE

PAGE

From the Top .............................................................. 1-3 Ask the Title Officer ................................................... 4-5 What’s New at First American Title ........................ 6-14 Items of Interest .......................................................... 15 Your Point of View ....................................................... 16

Visit us online at www.il.firstam.com

From the Top Harry E. Stirmell, Supervisor of the Title Insurance Section of the Illinois Department of Financial and Professional Regulation

Professional Regulation, has asked every Title Company to remind their title insurance agents who are registered as a Corporation or as a Limited Liability Company to maintain

“ As a result of their failure to file their annual reports, the Secretary of State website will show these companies as: “Not in Good Standing”

F R O M T H E TO P...

Three Things By: John Hollenbeck EVP, Corporate Business Director Wow - just weeks away from the implementation of TRID, the TILA RESPA Integrated Disclosure Rule.

As we approach October 3rd, here are three personal observations to consider as you prepare to implement the new rule: 1. Notwithstanding the constant drumbeat to the contrary, the new Closing Disclosure is not exactly a replacement for the existing HUD-1 Settlement Statement.

2. Most lenders will produce and deliver the initial borrower’s Closing Disclosure. Most lenders will also produce later versions of the Closing Disclosure but may rely upon the settlement agent to deliver an amended Closing Disclosure at closing.

3. Doing our work early will be important.

Borrower’s Closing Disclosure is not a replacement for HUD-1 Settlement Statement.

The existing HUD-1 Settlement Statement is mandated by Regulation X, the federal regulation implementing the Real Estate Settlement Procedures Act, or RESPA. It requires the settlement agent to issue the final HUD-1, which reflects what happened at closing. The key here is the HUD-1 is a settlement statement.

Memorandum From The DFI Harry E. Stirmell, Supervisor of the Title Insurance Section of the Illinois Department of Financial and

their “Good Standing” status each year.

In a Memorandum issued on April 23, 2007, Stirmell stated, “It is becoming more and more common for corporations and limited liability companies not to file their annual reports with the Illinois Secretary of State. As a result of their failure

?

Ask the Title e Officer…

Question: How can an attorney utilize lize a “Short Sale” to assist a seller eller who is in default but does es not have enough money to close? l ?

of transaction is referred to as a “short sale”. A short sale occurs when the lender agrees to write off the portion of a mortgage that is higher than the fair market value of the the home, provided pro ovvided there the r is re a bu buyer uy uyer willing i to ing

to file their annual reports, the Secretary of State website will show these companies as: “Not in Good Standing”, “Dissolved”, or “Involuntary Dissolution”.

“In In order for these corporations and limited liability companies to operate lim in the t State of Illinois, they must be in “Good Standing” with the Illinois Secretary of State. Therefore, effective Se immediately, when our office finds im that tha a registered corporate or LLC title titl insurance agent is not in good standing with the Secretary of State, sta a cancellation letter will be sent to the title insurance agent, with a copy to the title insurance company.”

The status of an Illinois corporation or LLC can be found at the Illinois Secretary of State Website: http://www.ilsos.gov/corporatellc/

property. Other options besides the short sale are bankruptcy, assumption, and deed-in-lieu of foreclosure.

If your client knows that there will not be enough funds, the realtor should list the property as “commission and offer subject to short sale”. The same verbiage should be in the sales contract.

Ask the seller if a workout package

W I N T E R 2015

TAKING FL IGHT A Quarterly Publication for the Chicago Metro Area IN THIS ISSUE

PAGE

F R O M T H E T O P. . .

From the Top .............................................................. 1-2 Ask the Title Officer ................................................... 2-3

By: Michael T. Koors

Best Practices ............................................................. 4-5

Senior Vice President, Direct Division - East Region First American Title

Whats New at First American Title ........................... 6-9 The Practice of Marketing ..................................... 10-11

First American Title Insurance Company traces its roots back to 1889 in Southern California. Having celebrated our 125th anniversary this past year it is a great time to reflect on the company and the title insurance industry. You might say that if one has been in the title insurance and settlement services industry for while you have seen a lot of changes. Actually, it is continually changing, so let’s take a look at the recent past and what we might expect for the coming year.

Items of Interest .......................................................... 12 Your Point of View .................................................. 13-15

Visit us online at www.il.firstam.com

I think we would probably all agree that the challenges since around 2007 have been some of the most trying. The real estate market and lending environment have been tested time and again. Those that provide quality service and reinvest in the industry that we enjoy so much are the ones that have survived and even thrived during these past years. First American is one of these companies. We remain focused on our employees, our customers and the long-term health of our industry and those associated with it.

After a very successful 2013, the many dedicated l t Fi t A i i dt ti

Summer 2008

From the Top

“The Role of an Attorney in a Real Estate Transaction: Is an Attorney Really Necessary?”

In the majority of states, lawyers are not involved in the real estate transactional practice. In many states, escrow companies close the transaction and prepare the documents, and no lawyers are involved. In other states, there are no escrows, and title or escrow companies facilitate the transaction by preparing seller documents to finalize the transaction. In Illinois, the Chicago metropolitan area real estate transaction normally will have attorneys for both the buyer and the seller. On the other hand, outside the Chicago metropolitan area, the normal real estate transaction will be devoid of legal representation for either party. The reason for this lack of representation is the cost of lawyers whose services are viewed as unnecessary.

Is an attorney necessary in a real estate transaction? For years lip service has been paid to the fact that “the purchase of a

home is the single most expensive purchase people make in their lives, and they should be represented by counsel”. However, the legal community still has failed to appropriately foster this concept with the public. The answer to the preceding question is a resounding “yes”, and the following are just some of the reasons:

“ The answer to the preceding question is a resounding ‘YES’ ” 1. Real estate contracts have become more complex. State-mandated disclosure requirements must be reviewed with the client since they are the foundation of the contract and carry with them various obligations and potential liabilities. Utilizing the attorney approval provisions found in most contracts, the attorney can properly “blue print” his or her client’s understanding of the transaction. By maintaining time

Ask the Title Officer…

Question: What documents are required for closing when representing a limited liability company, corporation, partnership, religious organization, or not-forfit i ti ?

limits for inspections, financing, notices, and other contingencies, the attorney can protect the client’s rights during the contract phase. The attorney can also address potential tax liabilities of the seller.

2. Many issues, including but not limited to financing, need to be discussed with the purchaser.

3. Financing has become more specialized over the years. Having a lawyer’s guidance at this point in the transaction will avoid problems at the closing and after the purchase is consummated. If a person cannot afford the property without “exotic” financing, proper advice should be given to the client.

4. Municipalities have imposed various requirements that must be satisfied before the real estate transfer can be accomplished. Some municipalities require inspections and repairs, zoning certificates, water certifications and payments, and payment of transfer or purchase taxes before a property can be transferred.

Advising a client of these requirements, in advance, will avoid later confusion and frustration.

SPECIAL EDITION

A Quarterly Publication For The Chicago Metro Area In This Issue

FROM THE TOP While we are not completely out of the woods from an economic standpoint, it appears that we have begun the steady climb towards recovery. Recent data shows lower mortgage delinquency rates, reduced foreclosure activity, and an increase in home values. The Mortgage Bankers Association John Paku is anticipating a 16 percent increase in VP, State Manager, purchase originations from 2012 to 2013 Illinois and Indiana Direct and they are forecasting that interest rates Operations will remain below 4 percent through at least the middle of 2013. That sounds encouraging!

(continued on page 3)

For those entities that have a statutory filing requirement with the State of Illinois, the Illinois Secretary of State has a website for “good standing” verification at http://www.ilsos.gov/corporatellc/. h On-line O verification is free, although t there is a charge if you request a certified c copy.

Page

From the Top

As 2012 begins to wind down and we look forward to 2013, I’d like to take a few moments for reflection.

I want to express my gratitude to all of our business partners; we have stood together to weather the storm. It has taken patience, perseverance and hard work from our employees and our customers to endure and I am proud to have come this far with you.

1

Ask the Title Officer

2-3

Ready. Set. Grow!

4-5

What’s New at First American

6-8

Where to begin with Real Estate Tax Issues?

9

FHFA Announces New Standard Short Sale Guidelines for Fannie Mae and Freddie Mac

10-13

Your Point of View

17

All First American Title offices will be closed Tuesday, January 1st

We still have a long road ahead of us but we know the path that we have to take and will continue to follow it, working hard to earn your

Fall 2008 08 0 8

spring 2007

SUMMER 2010

FROM THE TOP

Ask the Title Officer

From the Top

By Mojca Anaya Illinois State Escrow Lead First American Title

Question: Is a survey required by the title insurance company for the purchase of residential real estate?

Empowering the First American Escrow Team At First American, we search for new technology, resources and ideas to improve the quality and performance of our closing process. Empowering the First American escrow team in Illinois is the daily focus of the Illinois State Escrow Lead so that your closing experience with us is pleasant, quick and accurate.

Residential closings require that closers represent First American Title as well as the interests of the lender. Closers are responsible for verifying that documents are properly executed while ensuring lender funds are disbursed in accordance with their instructions.

As the State Escrow Lead, I oversee the escrow processes throughout the State of Illinois for First American Title, including the development of new closing practices and procedures. With the support of the Chicago Area Escrow Services Manager, Kelli Winsky, and the Area Managers, Mary Glavac, Jill Pasko and John Rekart, my ultimate goal is to ensure that all regulatory and compliance matters are adhered to at the closing table

Answer: The title insurance company

“ In my role, I regularly seek opportunities to educate ” RS Form1099-s Forrm rm1 m1099 1099 0 99-ss and d IRS I Form FFo Form 83 8300 3000 and a do oth ottther IRS other title underwriting issues which could result in claims.

More recently, the understanding of the processes and the title company’s liability under SB1167, the Predatory Lending Database Program, has been a focus within the escrow field so that we are prepared for the impact this new law has on our closings and it’s effect on all of the parties at the closing table.

will not require a survey in order to close a residential real estate transaction. However, if extended coverage over the standard exceptions in the title insurance policy is desired by the buyer, a boundary survey is necessary. Standard real estate contracts, such as the multi-board residential real estate contract 4.0, require surveys. Many lenders also require survey coverage.

The Standard Exceptions are as follows: 1. Rights or claims of parties in possession not shown by the public records.

2. Easements or claims of easements, not shown by y the public records.

As of July 1st, all mortgages recorded in Cook County require a certificate from the state Anti Predatory Lending Database Although

From the Top The New ALTA Documents

On June 17, 2006, the American Land Title Association adopted the 2006 ALTA Owner’s and Loan policies, along with new endorsement forms. These policies and endorsements will be available in the Illinois marketplace in the near future. The 1992 ALTA Owner’s and Loan policies will remain valid ALTA forms until June 17, 2007, to allow time for the transition to the new forms, both locally and nationally. Some of the significant changes in the 2006 documents are as follows: • The “Exclusion to an Exclusion” issue has been resolved – coverages that were previously given as a “carve out” from an exclusion are restated as “Covered Risk”.

• Previously existing coverages that continue to exist in broadly worded fashion are expanded by the use of additional “Covered Risks”, to better explain the coverage.

• Creditors’ Rights coverage for transactions in the prior chain of title is specifically given.

• Survey coverage is expressly given, unless specifically excepted.

• Gap coverage is given.

• Coverage is given for loans created byy electronic transactions.

• The definition of “Insured” is broadened ened to i t t i f th

• The non-cumulative liability clause has been eliminated from the Loan Policy.

• The “Insured” is now given the right, under certain circumstances, to elect the point in time at which the amount of loss is determined, electing either the date when the claim is made or when the claim is settled and paid, and under those same circumstances the Insured will benefit from an automatic increase in the “Amount of Insurance”.

• In the Loan Policy, frequently used endorsements can be issued by use of a “check the box” procedure.

A comparison of the 1992 and 2006 ALTA Owner’s and Loan policies is being prepared for distribution, together with the new endorsement forms. Samples of the updated documents can be found on the ALTA website at: http://www.alta.org/standards/ index.cfm

Robert J. Duffin,

First American VP and Midwest Regional Counsel, and recently elected President of the Illinois Land Title Association (ILTA).

From the Top

Ask the Title Officer…

To make consistency possible, I conduct special-issue training meetings as often as needed and also lead our Underwriting School. At the Underwriting School, ten employees endure extensive training one morning every week for a year. All the enrolled employees are willing volunteers, to various degrees, although I was asked at the end of the first day this year if we really were going to have a quiz every single week. Well, my answer was yes, making me think of one of my esteemed Ohio State University law professors who used to say: “the beatings will continue until morale improves”.

Heard it all?

Not Yet...

My position as Illinois State Underwriting Counsel for First American Title Insurance Company is perhaps a bit complicated to define, but it is one of the most interesting places to be in the title insurance industry.

I focus on the underwriting portion of the transaction, which is basically the risk assessment functions of title clearance and assumption of risk by endorsement or other methods.

Answer:

Property of four units or less used for residential purposes is considered residential property. All other types of property are considered commercial.

This includes: factories, apartment buildings of more than four units, retail stores, storage facilities, and farm land, to name a few.

I am privileged to manage a team of

experienced, capable senior underwriting staff of our title and hold harmless departments.

The team includes Joyce Chatman, Megan Dunn, Linda Kozlowski, Alice Lange, Walter Lesus, Sandy Pyle, Kay Senneke, Cindy Topps and John Wolff. Their wealth of knowledge and experience makes managing this senior staff personally rewarding and I learn a lot from them. The most challenging thing is making sure all the title officers are on the same page in order to avoid “title officer shopping” –

PAGE

Ask the Title Officer ................................................... 2-3 Customer First Team ..................................................... 4 What’s New at First American ...................................... 5 Offices on the Move ..................................................... 6 Looking for a Form or Document? .............................. 6 Parking Validation ......................................................... 6

I have spent the better part of my career working in state government as a regulator. Prior to joining the Title Insurance Section of DFI in 1999, I examined consumer and mortgage lenders for the Consumer Credit Division. I also have regulated other non-banking financial institutions with DFI. My background has provided me with the foundation necessary to properly understand and implement the duties of my new position. For example, in 2006, I worked for an Illinois-based title insurance underwriter, and later for an Illinois-based title insurance agency. For more than six years I worked in the title insurance industry, which has provided me a great learning opportunity. I have experienced the “title insurance world” from all sides.

MCLE Seminar ............................................................... 7

in a fifive-attorney Joliet law firm, I had the good for fortune of spending the first few years of my titl title careerr under the tutelage of a 40-yearr veteran of the title industry. Hee was ding an outstanding d teacher and mentor. Hee often told me that youu will be an

From the Top

Recently I accepted the position of Title Insurance Supervisor of the Division of Financial Institutions (“DFI”) at the Illinois Department of Financial and Professional Regulation. The duties of the position are statutorily mandated, but allow for the holder to develop initiatives that seek to enhance the oversight of the industry. Maintaining financial stability and governance of Title Insurance Companies and their requisite agencies is vital to the protection of Illinois consumers.

From the Top .............................................................. 1-2

un underwriting. Following seven years of ge general practice transacting and litigating

process customer friendly”

Ask the

IN THIS ISSUE

Besides internal training, I enjoy teaching be because I understand the importance of it ffor confident, flexible, and reasonable

“ My goal is to keep our underwriting

My goal is to keep our underwriting process customer friendly by making it efficient, clear, reasonable, and if need be, creative when possible. To achieve this, I serve as a resource for attorneys, lenders, and builders. I also oversee training and procedures that integrate new legislation, case law and current trends in real estate into our workflow.

In a typical residential closing with loan proceeds being used to purchase the property, First American acts as the agent for the lender and must follow the lender’s instructions as agreed to in a Closing Protection Letter. In a

A Quarterly Publication for the Chicago Metro Area

especially by the sales reps!

By Martin Cann Illinois State Underwriting Counsel First American Title

Question: How does a commercial closing differ from a residential closing?

By: Phil Stein Title Insurance Supervisor Illinois Department of Financial and Professional Regulation

TA K I N G F L I G H T

Best Practices ................................................................ 7

Visit us online at www.il.firstam.com

Answer: With the demise of several large builders and a rising A An

M b

k

dh

id d

FALL 2009

“The Role of an Attorney in a Real Estate Transaction: Is an Attorney Really Necessary?”

In the majority of states, lawyers are not involved in the real estate transactional practice. In many states, escrow companies close the transaction and prepare the documents, and no lawyers are involved. In other states, there are no escrows, and title or escrow companies facilitate the transaction by preparing seller documents to finalize the transaction. In Illinois, the Chicago metropolitan area real estate transaction normally will have attorneys for both the buyer and the seller. On the other hand, outside the Chicago metropolitan area, the normal real estate transaction will be devoid of legal representation for either party. The reason for this lack of representation is the cost of lawyers whose services are viewed as unnecessary.

Is an attorney necessary in a real estate transaction? For years lip service has been paid to the fact that “the purchase of a

home is the single most expensive purchase people make in their lives, and they should be represented by counsel”. However, the legal community still has failed to appropriately foster this concept with the public. The answer to the preceding question is a resounding “yes”, and the following are just some of the reasons:

“ The answer to the preceding question is a resounding ‘YES’ ” 1. Real estate contracts have become more complex. State-mandated disclosure requirements must be reviewed with the client since they are the foundation of the contract and carry with them various obligations and potential liabilities. Utilizing the attorney approval provisions found in most contracts, the attorney can properly “blue print” his or her client’s understanding of the transaction. By maintaining time

Ask the Title Officer…

Question: What documents are required for

ith th

limits for inspections, financing, notices, and other contingencies, the attorney can protect the client’s rights during the contract phase. The attorney can also address potential tax liabilities of the seller.

2. Many issues, including but not limited to financing, need to be discussed with the purchaser.

3. Financing has become more specialized over the years. Having a lawyer’s guidance at this point in the transaction will avoid problems at the closing and after the purchase is consummated. If a person cannot afford the property without “exotic” financing, proper advice should be given to the client.

4. Municipalities have imposed various requirements that must be satisfied before the real estate transfer can be accomplished. Some municipalities require inspections and repairs, zoning certificates, water certifications and payments, and payment of transfer or purchase taxes before a property can be transferred.

Advising a client of these requirements, in advance, will avoid later confusion and frustration. (continued on page 3)

For those entities that have a statutory filing requirement with the State of Illinois, the Illinois Secretary of State has a website for “good standing” verification at

FROM THE TOP

In This Issue

Page

From the Top

1

Ask the Title Officer

2-4

First American Completes Corporate Spin-Off

Focus On: Customer First Promise

5

What’s New at First American

6

By: Mike Mills Senior Vice President, Regional Manager First American Title Insurance Company

The Practice of Marketing Championship Marketing

7

Items of Interest

8-18

Your Point of View

19

On June 1st, 2010 the First American Corporation split into two separate companies.

For over 120 years, First American has worked hard to bring unparalleled title insurance services to our customers. Over the past 20 years, we have also built the preeminent real estate information business.

Our company, which will include our title insurance and closing/settlement services -- along with our specialty insurance services (which include but is not limited to homeowners insurance, home warranty, and 1031 Exchange) -- will be known as First American Financial Corporation (NYSE: FAF) and will be commonly referred to as First American.

The corporation that will include our current real estate information and analytic services businesses is named Corelogic, Inc. (NYSE: CGLX) First American and Corelogic, Inc. will operate independently of one another and without a common parent company.

First American’s dedicated focus to your needs combined with our financial strength will ensure a long lasting and mutually beneficial partnership.

FALL 2011

Winter 2012

Spring 2012

TA KING FL IGHT

FROM THE TOP A Quarterly Publication For The Chicago Metro Area

FROM THE TOP We would like to share this recent memo from Rich Cannan, First American’s Eastern Division leader. It expresses our commitment to being the industry standard in providing customer delight.

There are times when I like to turn my brain off and rest, but I can’t seem to do that lately. Recently, I did a lot of thinking about the company and our division, and there are many things that have become very apparent to me that I would like to share with you.

Despite operating in a still-challenging market, the Eastern Division was profitable in 2011. Our increased efficiencies have helped us aggressively manage our expenses, and we find ourselves at the beginning of this year to be a company that is streamlined and poised to take advantage of any improvement in the economy, in general, and the housing industry, in particular. All of this is positive, but at the same time, we must execute a clear strategy for growing our customer base as well as preserving our existing business. I believe that the best way to accomplish this is to become a company that is 100% customer-focused.

In the fall of 2011, First American Title conducted a customer survey for our agency and direct operations to learn what key elements are necessary to create highly-satisfied customers. Conducted on a blind basis, the questionnaires were developed with input from First American management and completed by h f h h l l

In This Issue

Page

From the Top

1-2

Memorial Day Independence Day

2

Ask the Title Officer

3

The Customer First Team

4-5

What’s New at First American Give Your Business a SWOT in the Arm

6 7-8

Items of Intrest

9

CoreLogic® Introduces HARP 2.0 Refinance Data Services

10

Management Matters in the Title Insurance Industry

11-16

Your Point of View

Parker S. Kennedy Chairman and Chief Executive

First American Celebrates 120-Year Anniversary As It Prepares To Split Into Two Publicly Traded Companies

17

- Separation of Financial Services Companies from Information Solutions Companies Will Enable Both to Grow and Prosper America’s largest provider of business information, announced a yearlong celebration to mark its 120th year of service to the real estate and mortgage industries. The company also reaffirmed its plan to separate its Information Solutions and Financial Services businesses, creating two new publicly traded companies, as soon as the first half of 2010. From its roots as an Orange County, Calif., abstract company, First American has grown to become an industry leader, delivering a vast array of products and services used in real estate transactions, risk management, insurance and consumer marketing.

Today, 90 percent of all real estate transactions in the United States involve at least one First American product or service. The company’s primary businesses include one of the nation’s largest title insurance

SUMMER 2014

A Quarterly Publication for the Chicago Metro Area IN THIS ISSUE

FROM THE TOP

PAGE

From the Top ............................................................ 1 - 2

In This Issue

Page

From the Top

1-2

Asks the Title Officer

3-4

Eagle Services Unit

5

Soaring High

5

What’s New at First American

6

Know the Way...

7

(RESPA Reform Webinar) (John Wolf Set to Retire)

(TIL & RESPA Reform)

Office Moves to Note

FROM THE TOP

What’s New at First American Title ...................... 4 - 10

By: Patricia Weinstein Illinois State Manager

The Practice of Marketing .......................................... 11 Focus On ..................................................................... 12 Items of Interest ................................................... 13 - 19 Your Point of View ................................................ 20 - 21

Visit us online at www.il.firstam.com

7

Best Practices

Ask the Title Officer ................................................. 2 - 3

Well guess what? It’s not magic. Walt Disney had a vision for a theme park that would be better, cleaner and nicer to experience than any other amusement destination in the world.

Since the opening of Disneyland in the 1950s and Disney World in the 1970s, the Disney organization has worked relentlessly to improve the experience every day.

8

Items of Interest

9-12

The Practice of Marketing

13, 15-21

Your Point of View

14

(Basic Ethics for The Real Estate Attorney)

Ever been to Disneyland or Disney World? If you have you probably went with your family and have dozens of memories from those trips. Why go to an amusement park thousands of miles away, spend a ton of money, spend hours in lines to experience rides that do not compare to the wildest roller coasters in the world?

As anyone who has gone to either Disney Park may tell you, it is the experience. For some people it is the awe and excitement of their children and/or grandchildren, for some people it is their own personal enjoyment of the parks and attractions. Many people will share that the reasons they go to Disneyland and Disney World is because that is where the magic happens.

John Paku Vice President and State Manager Illinois and Indiana Direct Operations First American Title Insurance Company In my 20+ years with First American Title, I have had the pleasure of working with talented First American employees and our valued customers. My new opportunity, as state manager of Illinois and Indiana direct operations, comes at a time when Mike Mills, senior vice president and regional manager, is now responsible for direct operations in Florida, Ohio, Pennsylvania, New Jersey, Michigan, Indiana, and Illinois. I am honored to be leading our team of title, escrow, and sales professionals and continuing to serve our highly-respected customers.

In This Issue

Page

From the Top

1

Ask The Title Officer

2-4

The Customer First Team

5-6

What’s New at First American

7

Items of Interest

8-10

The Short Sale Bankruptcy Relationship

11-12

TA KING FL IGHT IN THIS ISSUE

PAGE

From the Top .............................................................. 1-2 Ask the Title Officer ................................................... 2-3 Best Practices ................................................................ 4

New Chicago Ordinance: Secure and Maintain Vacant Buildings

12-13

What's New at First American Title ........................ 5-10

Your Point of View

14

The Practice of Marketing ..................................... 11-12 Items of Interest .......................................................... 13 Your Point of View ....................................................... 14

One of the core operating principles of First American Title is to exceed our customers’ expectations. Our focus will be to continually improve the experience you and your clients’ have with First American. Our goal is for you to use our knowledgeable and experienced team to garner repeat business from your clients. Recently, Customer First workshops for all employees were conducted.

We reviewed customer service skills and behaviors and shared best practices designed to provide you with exceptional service. In addition, First American conducted a survey of our lender customers to collect feedback on how our various departments and offices are performing. We have used this data to focus our efforts on improving and customizing service based on the feedback we received. Furthermore, First American will continue to seek customer feedback through surveys and in person to meet your needs and exceed your expectations

S U M M E R 2016

FROM THE TOP

A Quarterly Publication for the Chicago Metro Area

Visit us online at www.il.firstam.com

In This Issue

In this edition of Taking Flight, we focus on the new year and renew our commitment to provide superior service to you, our valued customer.

F R O M T H E TO P...

By: Patricia Weinstein

We resolve to earn your business by providing you with unparalleled customer service on each and every transaction, and we look forward to hearing from you and working together in 2012.

IL State Manager I am not sure if my attitude about people in general was a product of my upbringing or a personality trait. But in my life and over the length of my career, I have always felt that all people deserve respect, courtesy and dignity.

That is why I love that First American Title has worked so hard to recognize we should always place our “People First”. For those of you who have visited our offices, you may have seen posters or banners with those words in our offices. This is not just a slogan to management at First American Title; it is a commitment to putting our employees first and is an integral part of our culture.

Corporate leadership thinks of the employee experience as the interactions they have within the company that influence their performance from “hire to retire”. Positive employee experiences are vital to our company’s success. By providing employees with what they need to do their job to the best of their abilities, we empower them to deliver outstanding customer service that drives growth.

John Paku VP, State Manager, Illinois and Indiana Direct Operations

We hope you enjoy this edition of Taking Flight and have a joyous and prosperous New Year!

Page 1

From the Top Resolutions

1-4

Daylight Saving Time The Customer First Team

4 5-6

What’s New at First American Items of Interest Your Point of View

7 8-11 12

Visit us online at www.il.firstam.com

Our New Year Resolution is for you – our valued customer!

Our Illinois leadership has embraced this philosophy wholeheartedly.

On corporate, regional and state levels we have a myriad of training programs employees are encouraged to use. We have multiple online l h ff h

SPRING 2010 Winter 2013

TAK I N G F L I G H T

FA L L 2 0 1 4

A Quarterly Publication for the Chicago Metro Area IN THIS ISSUE

PAGE

From the Top ............................................................ 1 - 2 Ask the Title Officer ...................................................... 2 Best Practices ................................................................ 3 Whats Old at First American Title ................................ 4 Whats New at First American Title .............................. 5 The Practive of Marketing .......................................... 13 Items of Interest .......................................................... 14 Your Point of View ....................................................... 20

Visit us online at www.il.firstam.com

F R O M T H E T O P. . .

TA KI NG F LI GH T IN THIS ISSUE

PAGE

From the Top .............................................................. 1-2

By: Patricia Weinstein Illinois State Manager

Ask the Title Officer ...................................................... 4

We have a lot of offices located throughout Illinois with a heavy concentration in the Chicago Metro Area. With Metro’s broad diversity, we see a lot of different cultures in our closing rooms. I am sure that as real estate professionals you have had to deal with clients from different cultures.

I always assumed that if our First American staff were pleasant to all our guests, helpful and efficient that we were doing just fine even if English was not their first language. So it came as a surprise to me when I met with members of our Strategic Markets Department that perhaps we were falling short of the WOW moments in our Customer Care for different cultures.

Two wonderful ladies from Strategic Markets came to Chicago in July and spoke to our sales staff and escrow

First American Looks Back at 2015 ......................... 5-15 Items of Interest ..................................................... 16-19

Visit us online at www.il.firstam.com

From the Top

S P R I N G 2016

A Quarterly Publication for the Chicago Metro Area

S T R AT E G I C M A R K E T I N G

F R O M T H E TO P...

IL State Escrow Lead

In This Issue

Page

From the Top

1-3

Ask the Title Officer Customer First Team

Spring is nearing its end with summer right around the corner. How can the time be moving forward so quickly? Wasn’t it just yesterday we were nodding our heads wondering how TRID, the TILA RESPA Integrated Disclosure Rule aka Know Before You Owe rule, was going to impact our market? Well, here we are. More than 6 months into implementation and buyers and sellers are still purchasing and selling homes – YAHOO!

4 5-6

What’s New at First American

7-8

Tax Considerations for Real Estate Investors Purchasing Residential Properties in Cook County

9-10

Items of Interest

11-13

Integrity

14

Your Point of View

15

Pictured from left to right: Mary Glavac, Jim Stucker, Amy Michalak, Carie Holzl, Ryan Pettengill, Mojca Anaya, Marty Cann

FROM THE TOP

First American is More Than Title Insurance!

A Quarterly Publication For The Chicago Metro Area

FROM THE TOP

Happy New Year from the staff of Taking Flight

By: Mojca Anaya

When asked to accept the role as our State Escrow Lead 10 years ago, I knew I would miss the direct interaction I shared with you, our customers.

It was one of the aspects I enjoyed so often when working in closing branches. Thus, 2015 was an exceptionally exciting year for me as I had the opportunity to see and talk with so many attorneys and realtors, whether through a TRID presentation or webinar. I met with lenders to discuss what might need to be done differently so the lending community could meet the deadlines and requirements of TRID. Internally, we updated our title and settlement software system and our diverse customer calculators. We held full-day staff trainings with every employee in Illinois. We not only wanted to know the rule but understand how TRID was going to affect each and every customer, what could we do to assist keeping the closing experience with us pleasant, quick, accurate and compliant.

Summer 2012

The First American Corporation traces its roots back to 1889, and we have spent the last fifteen years aggressively assembling businesses that have enabled us to diversify from our title insurance roots.

This diversification has led to First American becoming the nation’s leading provider of advanced property and ownership information, analytics, and services; our database covers more than 98 percent of the nation’s real estate transactions.

The services provided by our five business segments -(1) title insurance and services, (2) mortgage information, (3) property information, (4) specialty insurance, and (5) risk mitigation and business solutions -- fuel the major economic events of your clients’ lives through businesses that use our information to help people buy a house, get a mortgage, build their business, and live their lives.

Owning a home remains an American dream. First American Title is committed to helping many Americans make their dream come true. In addition to our title and escrow services, we also provide homeowners with high quality property and casualty coverage (First American Property & Casualty Insurance Companies) and renewable home warranties (First American Home Buyers Protection). We are the industry leader in helping first-time and under-served homebuyers learn more about the home buying process through our national and community educational outreach programs (First American Homeownership Foundation)

What’s the Rush?

By: Leanne Zinn-Cox Director of Strategic Initiatives First American Title

Ask the Title Officer…

Question: How do I close a real estate sale if a title holder is deceased?

It is said that it takes a village to raise a child. Well, some of the same

I think we can all agree that our housing market is causing many to rethink processes and strategies while aiming at meaningful improvement. When business is good we have a tendency to lose our sense of direction, sometimes forgetting that what goes up must come down. In the leaner times, many businesses will force rapid change in almost a “knee-jerk” reaction. Many companies have rushed to correct past sins, rushed to scale down, rushed to automate and/or outsource. You will read quotes by the leadership of companies denouncing the old traditional ways of running their businesses and making new commitments to explore emerging frontiers. They claim they can “instantly” revolutionize an industry by processing their workloads from remote locations, breaking up bricks and mortar, cutting fat and running lean organizations.

enhances our standard practices and enables us to elevate our service in the following areas:

First American is a financially strong, methodical and deliberate company. Regardless of good or lean times, unlike our competition, we have not had to make rush decisions that could potentially put our customers’ experience at risk. Why? Because First American Title Insurance Company agrees with

The outcome of our planning, pooling of talent and customization will create the

x x x x x x x

In This Issue

Page

From the Top

1

Ask the Title Officer

2-4

Focus On: The Suburban Metro Area

4-5

What’s New at First American

6-8

The Practice of Marketing

9

Items of Interest

10-17

Best Practices

18

Your Point of View

19

Knowledgeable personnel available to answer your question every time you call Proactive Communication Customer Preferences Error Free Production Workgroup Team Approach Service Level Agreements to deliver product with consistent turn around time Extraordinary Closing Experience

TAKIN G FLIGH T

A Quarterly Publication For The Chicago Metro Area FROM THE TOP

In This Issue

Page

Honoring the Memory of Donald P. Kennedy 1918 - 2012

From the Top

1-2

Ask the Title Officer

2-3

We would like to dedicate this feature of From the Top to the memory of the man who was instrumental in transforming First American Title from a single county operation in California into a national and international giant in the industry. They say a corporation mimics the traits of its leader. If that is the case, Donald P. Kennedy was the perfect role model.

Don Kennedy served the company his grandfather founded with remarkable distinction for more than 60 years. During this time, the company grew from a oneoffice firm in Santa Ana, Calif., to a FORTUNE® 500 company with hundreds of offices around the world. He did it by picking great people, setting a course and allowing people to succeed in their own way. He was tough, but never mean; smart but never condescending. He led with humor and grace and always found time for fun.

“The real strength behind First American is our people,” he once said. “We’ve made it through some tough times and came out stronger for it. I am consistently amazed by the talent and dedication of the great people we have in our Company.”

Don Kennedy was a textbook example of how innovative thinking, combined with grit and longevity, can revolutionize not only a company, but an entire industry.

Continued...

TAK I N G F L I G H T

IN THIS ISSUE

PAGE

From the Top .............................................................. 1-2

The Hidden Costs of Not-To-Exceed Acreage on an ALTA

4

The Customer First Team

5

First American Financial Strength

6

Ask the Title Officer ................................................... 2-3 What's New at First American Title ........................ 4-10 The Practice of Marketing ..................................... 11-12

What’s New at First American

7-8

Items of Interest

9-10

Discownts

11

Your Point of View

12

Items of Interest ..................................................... 13-15 Your Point of View ....................................................... 16

Visit us online at www.il.firstam.com

F R O M T H E TO P...

A Time for Finishing Strong By: Jim Stucker IL State Sales Manager “Finish strong” – a phrase we commonly hear in sports. It’s the focus of teams as the baseball season winds down to the playoffs, it’s the added push a swimmer makes at the end of a race or the kick a marathon runner makes toward the finish line, even when there doesn’t seem to be any “gas left in the tank."

But what does it mean to us in the real estate industry?

Although many of the following points seem to be sales related, you will find that all or most of them can be applied to any aspect of your business, whether you are an attorney, a Realtor, a lender or a builder.

As the year end draws closer, take time to review your goals

W I N T E R 2017

A Quarterly Publication for the Chicago Metro Area in this issue

page

From the Top ............................................................... 1-2 Ask the Title Officer .................................................... 2-3 Best Practices ................................................................. 4 What's New at First American Title ......................... 5-11 Items of Interest ...................................................... 12-17 Your Point of View ........................................................ 18

Visit us online at www.il.firstam.com

F R O M T H E TO P...

By: Jim Stucker IL State Sales Manager Newsletters are often very much like New Year’s resolutions. Often they are good ideas borne from good intentions. Unfortunately, like our promise to lose weight, quit smoking, spend less, save more, etc., newsletters are frequently started and quickly neglected.

Not so with Taking Flight. In 2017, we are proud to be celebrating our 10th year of publication! In our very first publication in the summer of 2006, we announced that the goal of Taking Flight was “to provide you with timely information and articles that will keep you abreast of what is happening in the real estate and legal communities as it pertains to the title industry, as well as keeping you up-to-date on First American”. That goal remains firm today as we are driven to keep the publication relevant with columns that focus on topics that keep you abreast of the underpinnings of title underwriting, news about First American Title’s local people and operations, marketing tips and tricks, items of interest to our industry, and best practices. What you won’t find is an overabundance of “fluff” material that often resides in newsletters. While crossword puzzles and recipes have

©2017 First American Financial Corporation and/or its affiliates. All rights reserved. | NYSE: FAF | 15121640217

First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume 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.

Continued...

F A L L 2016

A Quarterly Publication for the Chicago Metro Area

Continued...

F R O M T H E T O P. . . their place, we decided early on to create a resource for our readers not merely for distraction but one congruent with the level of professionalism we all strive to attain. That being said, we still understand that having fun is an important part of keeping the workplace habitable! You will see pictures and articles about golf outings, industry events, employee parties and of course, our employees’ and readers’ contributions on lighter subjects via Your Point of View.

We have witnessed so many changes since our inaugural edition.

In 2006, the real estate market was flying high with very few of us predicting the precipitous cliff we were about to fall from.

The downturn in the market changed the way we conducted business but also proved the resilience and strength of all of you survivors! We all rolled with the punches as RESPA underwent changes in 2010 and TRID rocked us in October of 2015. Taking Flight has kept you informed of the numerous legislative changes throughout these past 10 years. The industry has witnessed the proliferation of fraudulent schemes and we have shared tips and conducted classes on how to help prevent it. You have also watched our “family” grow and develop as many of our people have risen through the ranks to take on new roles and responsibilities. In many ways, Taking Flight is similar to our family albums, recording the highs and lows we all experience.

As we head into our 11th year, we are committed to a sound principle. Newsletters are not published for the benefit of their creators. They should be constructed in accordance with what the reader wants or needs. We want to continue Taking Flight not as our newsletter, but as your newsletter. Please let us know what you would like to see (or let us know what isn’t working for you!). We welcome your critique and contribution. We look forward to the next ten years!

ASK THE TITLE OFFICER QUES T IO N What is the effect of the new section added to the Trusts and Trustees Act for 2017?

ANS WER Public Act 99-0743, relating to transfers into trust, took effect on January 1, 2017 as new section 760 ILCS 5/6.5, of the Trusts and Trustees Act. It was enacted in response to the Estate of Mendelson v. Mendelson, 2015 IL App (2d) 150084 (unpublished opinion), opinion modified and superseded on rehearing, 2016 IL App (2d) 150084, 48 N.E.3d 891, 400 Ill.Dec. 604. The case involved the estate of a decedent who had sought to convey her home to one of her sons, Michael, upon her death, and excluding her other sons. To that end, she had executed a deed to herself and Michael, in joint tenancy, but the deed was never recorded. Some years later, in her trust agreement, she declared that the land was part of the trust estate and was to pass to Michael upon her death.

In the Second District appellate court’s first opinion, the court decided that the decedent’s home was to go to Michael. It held that the declaration in the trust was sufficient, and that the decedent was not required to separately and formally transfer the home into the trust with a recorded deed.

The Second District reconsidered its earlier ruling and reversed itself, holding that the plain language of the trust instrument indicated that the decedent was not transferring the home into the trust because of the joint tenancy deed. Because it was not proven that the joint tenancy deed had ever been delivered, the son could not receive an ownership interest in the home through the trust or through the referenced joint tenancy deed.

New Section 760 ILCS 5/6.5 provides as follows: Sec. 6.5. Transfer of property to trust. (a) The transfer of real property to a trust requires a transfer of legal title to the trustee evidenced by a written instrument of conveyance and acceptance by the trustee. (b) If the transferor is a trustee of the trust, an Continued...

Winter 2017 | PAGE 2

interest in real property does not become trust property unless the instrument of conveyance is recorded in the office of the recorder of the county in which the property is located.

otherwise contrary to law shall control, notwithstanding this Act. The provisions of this Act apply to the trust to the extent that they are not inconsistent with the provisions of the instrument.

Usually a grantor who is acting as the trustee for a living trust indicates acceptance by signing the deed in both capacities. If a third party is the trustee, an acceptance by the trustee may need to be added to the deed or by an additional document before recording. However, the new section does not address a penalty for non-compliance.

Therefore, unless Recorders of Deeds start rejecting deeds into trust that do not satisfy the acceptance signature requirement, it is not likely to become a title insurer requirement for insuring conveyances into trust.

It could be an opportunity to attack the validity of a deed conveying into trust and poses a potential legal malpractice trap. At the Illinois State Bar Association Real Estate Law Update, presenter Bruno W. Tabis, Jr. proposed the following language to be added to the deed:

(2) This Act applies to every trust created by will, deed, agreement, declaration or other instrument, except that the provisions of Sections 4.01 through 4.08, Sections 4.10 through 4.12, and Sections 4.14 through 4.24 apply only to trusts executed on or after October 1, 1973 and, with respect to Section 17, to an order entered on or after that date, and provided further that the provisions of this Act do not apply to any: (a) land trust; (b) voting trust; (c) security instrument such as a trust deed or mortgage; (d) liquidation trust; (e) escrow; (f) instrument under which a nominee, custodian for property or paying or receiving agent is appointed; or (g) a trust created by a deposit arrangement in a banking or savings institution, commonly known as a "Totten trust" unless in the governing instrument any of the provisions of this Act are made applicable by specific reference.

The foregoing transfer of title/conveyance is hereby accepted by _________of__________, as Trustee under the provisions of the________ .

(3) This Act does not apply to the Grain Indemnity Trust Account or any other trust created under the Grain Code.

_____________________________________ Trustee, as aforesaid In addition to not offering statutory acceptance language, the statute does not address whether the signature accepting should be notarized. Nor does it say whether the acceptance need be in the conveyance instrument or can be a separate written acceptance instrument.

As to what instruments it does not apply to, section 5/3 of the Trust and Trustees Act states:

So the new section would not be applicable to land trusts and other trusts unless in the governing instrument any of the provisions of this Act are made applicable by specific reference. Reliance should be able to be placed on the corporate fiduciary as to whether the agreement has provisions specifically referenced. Similarly transfer on death instruments are governed by the Illinois Residential Real Property Transfer on Death Instrument Act (755 ILCS 27/1 et seq.)

However for other instruments, an attorney may want to consider adding the acceptance to avoid any potential legal malpractice issues by not complying with the new section 5/6.5 of the Trust and Trustees Act.

(1) A person establishing a trust may specify in the instrument the rights, powers, duties, limitations and immunities applicable to the trustee, beneficiary and others and those provisions where not Winter 2017 | PAGE 3

B E S T P R AC T I C E S ...

R E A L E S TAT E A N D T H E D I SA B L E D A D U LT

By: Erich Pavel III Sooner or later every real estate attorney is going to run into the following situation: your client calls and tells you he wants to sell his home, but his wife, who is on the title with him, is in a nursing home - and the doctor says she has dementia. The first question you should ask your client is whether they have Powers of Attorney. If the answer is no, you may have no alternative but to advise your client to have his wife declared a disabled adult, and himself appointed as her guardian. Under 755 ILCS 5/11a-2, a “disabled adult” is defined as a person over the age of 18 who (a) because of mental deterioration or physical incapacity is not fully able to manage his person or estate; (b) is a person with mental illness or a person with a developmental disability and who, because of his mental illness or developmental disability, is not fully able to manage his person or estate; (c) because of gambling, idleness, debauchery, or excessive use of intoxicants or drugs so spends or wastes his estate as to expose himself or his family to want or suffering; or (d) is diagnosed with fetal alcohol syndrome or fetal alcohol effects.

During my initial conference with my client I will strongly recommend that he have his wife evaluated by a licensed physician for the purpose of determining if guardianship is necessary. To aid my client when he talks with the doctor I give him a Medical Report Form, (in Cook County it is commonly referred to as a CCP-211 Medical Report). The Form is used in Guardianship court and it specifically asks the doctor to give a description of the disability and its effect

on the person being examined. In addition, the Report asks the Doctor to give a medical opinion as to the level of disability. Is the person being examined TOTALLY or only PARTIALLY incapable of making PERSONAL and/or FINANCIAL DECISIONS. If the Doctor determines that the person is partially incapable the report asks the doctor to list the things that the person is capable of doing and not doing.

In our case, if the Doctor says that the spouse is only mildly impaired, and that she would understand at the present time what is happening in sale of the real estate, then problem solved. However, if the Doctor says that the spouse is TOTALLY INCAPABLE of making personal and/or financial decisions, the only alternative is to file for guardianship. The disabled spouse does not have the legal capacity to sign valid sale documents.

The actual process of filing for Guardianship is pretty straight forward.

All of the metropolitan counties, Cook, Will, DuPage and Lake have PDF forms on the circuit court clerk’s websites that you can fill out. It is highly recommended that you use the court forms when filing your petition. You will need a Petition, Oath and Bond, Summons, and Medical Report.

When filling out the Petition for Guardianship, it is necessary to understand that there are two types of Guardianship: Guardian of the Person and Guardian of the Estate, and the authority given to the guardian is different for both. A Guardian of the Person is responsible for all of the personal affairs of the Disabled person, such as where they are to live, what doctor they see, who can visit with the disabled person and so forth. One misconception many people have is that the Guardian of the Person does NOT have the authority to force the disabled adult to take medication if they are refusing.

The Guardian of the Estate is responsible for all of the financial affairs of the disabled adult, such as in our example selling the spouse’s interest in real estate. The Guardian of the Estate would have to petition the court for the authority to sell the real estate. If the Court gives the Guardian of the Estate the authority to sell then the title company will want to see a copy of that court order. Upon the completion of the sale of the property the Guardian of the Estate would have to deposit the wife’s share of the sale proceeds into a separate bank account in the name of the wife and said funds could only be used for the benefit of the wife. The Guardian of the Estate is required to annually file with the court an accounting of how that money is being spent on behalf of his wife.

Upon the filing of the Petition, the Court will generally appoint a Guardian ad Litem (GAL). The Guardian ad Litem is ordered to meet with the alleged disabled adult for the purpose of explaining that a petition for guardianship has been filed, answer any questions that the alleged disabled adult may have and finally determine if there are any objections to the petition. The GAL will also give the Court a recommendation as to the need for a guardian. If the alleged disabled adult has no objections to the appointment of a guardian, the matter can usually be resolved in one or two court appearances. However, if the alleged disabled adult objects to the appointment it may become necessary to have a trial in which the doctor is brought in to testify as to the need for the guardianship.

Representing a client in a guardianship case wherein he is seeking to have his spouse of many years declared a disabled adult is a very emotional and often times confusing thing for the client. The client does not understand why his wife’s doctors will not talk to him about her medical condition, or why his wife cannot just sign the sale documents. It is up to the attorney to explain why guardianship is necessary, and it is therefore essential that the attorney have a good understanding of guardianship law and the proper procedures to follow. If you are interested in gaining some experience in guardianship court, I suggest that you contact the Chicago Volunteer Legal Services. CVLS periodically runs a free seminar on GAL training, which includes a case assignment for participants. It is good way to learn about the area of adult guardianship, while also doing something worthwhile and rewarding.

Winter 2017 | PAGE 4

AT F I R S T A M E R I C A N T I T L E ?

Offices on the Move L A K E CO U N T Y O FFI C E S A R E O N T H E M OV E! First American Title’s Gurnee Office has a new home as of Monday, February 13th. Stop by 1800 Nations Drive, Suite 221 in Gurnee to check out our new space and visit with the best title professionals in the business.

Our new Vernon Hills Office address is going to have a familiar ring to it. In early April, our location will be 3 Hawthorn Parkway, Suite 225, Vernon Hills. Look for more details from your First American Title Representative in the coming weeks.

In early December, Ron Ogorek, Dawn Bragg and David Robles dropped off toys that were donated by our employees to La Rabida Children’s Hospital.

This is the only hospital of its kind in Chicago.

They specialize in treatment of chronic illnesses, developmental disabilities, abuse and trauma.

From Left to Right: Ron Ogorek, Dawn Bragg and David Robles

2016 H A L LOW E E N C A N DY FO R H E R O E S This past Halloween our offices collected approximately 70 lbs. of candy that was sent to our troops through Operation Gratitude.

Operation Gratitude annually sends 200,000+ care packages to Veterans, First Responders, New Recruits, Wounded Heroes, their Care Givers, and to individually named U.S. service members deployed overseas and their families waiting at home. Their mission is to lift the spirits and meet the evolving needs of the Military and First Responder communities, and provide volunteer opportunities for civilians anywhere in America to express their appreciation to all who serve our nation. Since its inception in 2003, Operation Gratitude volunteers have shipped more than 1.6 Million Care Packages. http://www.operationgratitude.com

Winter 2017 | PAGE 5

E M PL OY E E A PPR ECI AT ION PA RT Y Our annual First American Title employee appreciation/holiday party was once again a great success. On Saturday, January 7th, a bitterly cold night, employees and guests came together at Stonegate Conference and Banquet Centre to celebrate a successful 2016. We enjoyed a wonderful cocktail and hors d’oeuvres hour before being treated to a delicious four course meal. Before the dancing began, the very entertaining magician Rob Thompson put on a terrific show. Fun was had by all and it was a great way to kick off the New Year!

Winter 2017 | PAGE 6

U G LY S W E AT E R S This past December, employees were encouraged to participate in "ugly sweater day". There sure were some UGLY sweaters...

On December 14th, the Warrenville office was treated to a delicious lunch catered

by Browns Chicken as a way to show our appreciation for another great year.

Winter 2017 | PAGE 7

IRELA CLE & First American Title was a proud sponsor of the December 14th IRELA CLE & Holiday Gathering which took place at the Belvedere Events & Banquets in Elk Grove Village.

The CLE topic was BEHIND THE SCENES: At the Title Company, a panel discussion on what goes on at the title company to get the deal successfully closed in the TRID environment. The 3 person panel included Mojca Anaya, IL State Escrow Lead, First American Title, Patty Woods, Closing Administration Manager, Attorneys’ Title Guaranty Fund, Inc. and Michele Clement, Northern Cook Escrow Manager, Fidelity National Title. The audience was very engaged, and several best practices were shared to improve the closing process for buyers and sellers. Of course, the real enjoyment began after the CLE concluded and all attendees had the opportunity to share holiday wishes with known friends and new acquaintances.

Front Row L to R: Patty Woods, Mojca Anaya, Michele Clement Back Row L to R: Attorney Ralph Schuman, IRELA President, Catherine Murphy Gonzalez, Attorney Jeff McDonald.

Recognizing Our Employees In December 2016, Tenishia Valentine, Field Manager for the Mobile Closing Unit and Warrenville closing branch was honored as one of 50 First American employees nationwide to receive the People First Award. The award recognizes employees who demonstrate exemplary performance and embody company values. “In the 11 years I’ve worked at First American, I have set goals for myself and am proud to say I have achieved them. To receive this very prestigious award, was not only a surprise, but a humbling experience. I thank Pat Weinstein and the leadership team for this recognition”, said Tenishia. Congratulations, Tenishia! It is well deserved.

Women in Leadership In November, Illinois State manager Pat Weinstein was selected to participate in First American’s Women in Leadership program.

The program is designed to recognize women leaders who have demonstrated success in their current role, and provide them with the opportunity to continue professional development, build awareness, drive results and lead change within First American. Women from a cross section of the company’s divisions are selected for the one-year program.

Winter 2017 | PAGE 8

Lily Pope, Tyler Tosch and Jim Stucker

Lily Pope, Traci Benjamin and Jim Stucker

Charlotte Palmer Law, David Wiles and Jim Stucker

Charlotte Palmer Law, David Dominguez and Jim Stucker

Charlotte Palmer Law, Anne Dominguez and Jim Stucker

Lily Pope, Richard Guban and Jim Stucker

Lily Pope, Michelle Hoffenberg and Jim Stucker

Lily Pope, Stacy Atkinson and Jim Stucker

In 2016, our Illinois Sales Team continued working with business consultants Bob and Charlotte Law by utilizing their company, High Impact Training & Coaching Systems. This high energy duo conducted bi-monthly workshops with our group, fine-tuning this team of professionals and helping them to soar to even greater heights. Simply put, the emphasis was on training the participants to readily grasp and quickly apply practical concepts and techniques.

The ultimate goal is to become a trusted advisor to our business partners by helping them succeed in their businesses.

In addition to the meetings, Bob and Charlotte also provided individual coaching to several members of the team. The coaching proved to be invaluable, aiding the sales reps in honing their skills and overcoming obstacles and problems.

We feel that education is a significant factor in enhancing our skills and just as importantly, allowing our people to continue to grow and develop. Following that thought, we will be welcoming Bob and Charlotte Law back into the “classroom� in 2017!

Lily Pope, Kimberly Furtek and Jim Stucker

Charlotte Palmer Law, Nick Simich and Jim Stucker

Lily Pope, Catherine Murphy Gonzalez and Jim Stucker

Lily Pope, Michael J. Stump and Jim Stucker

Charlotte Palmer law, Jim Flynn and Jim Stucker

Charlotte Palmer Law, Maureen Dahlgren and Jim Stucker

Charlotte Palmer Law, Colletta Ball and Jim Stucker

Charlotte Palmer Law, Jennifer Mahoney and Jim Stucker

Winter 2017 | PAGE 9

8,000 Women Agree As a company whose U.S. employee base is nearly 70 percent women, we are very proud to have been recognized as one of the 100 Best Workplaces for Women

by Fortune® magazine in 2016. It's a designation that was determined through feedback from our employees, making the honor especially welcome. We thank everyone, including the valued customers we serve, for helping make First American a great place to work.

Joe’s Bell Ringing The Holiday Season has a way of bRINGing out the best in people. McHenry County Account Executive, Joe Pratt, assisted the Heartland Realtor Association in ringing the bell for The Salvation Army. Caring for our local community is just one of the many ways First American Title gives back. Make sure they follow my example on bRINGing.

DARRYL FREEMAN TO PRESENT AT THE IMBA MORTGAGE LENDING INDUSTRY CONFERENCE On March 9th the Illinois Mortgage Bankers Association (IMBA) will be hosting the 2017 Mortgage Lending Industry Conference. The event will be held at the Hilton/Lisle Naperville and will commence at 8:00 a.m. and conclude at 5:30 p.m.

Our very own Darryl Freeman, Market Integration Manager of our Strategic Markets Division, will lead a breakout session titled “Strategies to Reach Multi-Cultural Markets”. The IMBA has a whole slate of talented speakers addressing important and timely topics and we are proud to be a part of this annual event.

I.D. CHECKING GUIDES Do you ever encounter an ID which appears to be tampered with? All our local First American Title closing offices have I.D. Checking Guides available for review. The U.S. and Canada guide covers every valid driver's license and ID format with original size photos. The international ID covers 180 countries. When in doubt, ask to compare your ID within the appropriate ID book. Our closers find this tool invaluable.

Winter 2017 | PAGE 10

HEL PI NG T O CR E AT E T HE A MER IC A N DR E A M Did you know First American has a "KEY" prop to capture the moments after the closing is completed. The photo can be taken by our staff with the customer’s phone for a lifetime of memories.

Winter 2017 | PAGE 11

Items of Interest

Three Reasons to Remain Bullish on Housing By: Mark Fleming Tags: Homeownership, Housing, Millennials

Earlier this month, I participated in the 2017 Housing Market Forecast and Homebuyer Trends webinar hosted by the American Land Title Association (ALTA). Jessica Lautz, a consumer research expert from the National Association of Realtors, and I discussed how the real estate market is changing and what we can expect. We tried to answer the question and title of the webinar, “Has the Game Changed?”

Secondly, the rise of mortgage rates. The odds are higher than ever that 2017 is the year we say goodbye to 30-year, fixed-rate mortgages with rates below 4 percent. This will usher in a new market era, where higher mortgage rates mean less refinance activity, and more reliance on the firsttime homebuyer, magnifying the influence of Millennials I mentioned above.

It’s a timely topic here in Washington D.C., as one can argue that the game, in many ways, has most certainly changed.

Naturally, as a chief economist focused on real estate and mortgage finance, I’ve been focused on what the game changers are for the real estate market in the year ahead.

I look forward to the next 12 months in the housing market because I believe the fundamentals are sound and the desire for homeownership remains strong.

In my humble opinion, three main themes will dictate the story for the real estate market in 2017. First, and most important, is the continued demographic transition of economic power from Baby Boomers to Millennials.

Millennials are an increasingly important economic force and a growing source of homeownership demand that will gradually become more and more influential to our housing market. In fact, as the figure shows, we are already see growing first-time homebuyer demand. The Government Sponsored Enterprise (GSE) share of purchases to first-time homebuyers is over 50 percent.

Finally, the housing market will still thrive in these conditions.

Higher rates reduce consumer house-buying power and reduce affordability. However, the reason rates rise is because of faster economic growth and inflation, which usually increases wages, and can offset the impact of higher rates.

My research also shows that rate increases reduce the pace of house price growth more than they cut demand. When you examine all these factors together, the result is homes will remain more affordable than they have been in recent memory.

For more on these themes, and for additional details on Millennials from Jessica Lautz, I encourage you to watch the ALTA webinar.

I look forward to the next 12 months in the housing market because I believe the fundamentals are sound and the desire for homeownership remains strong. Will there be challenges?

Of course, but when it comes to housing, there are some built-in market advantages – you can’t outsource it and everyone needs it.

Winter 2017 | PAGE 12

Housing Price Forecasts, 2017 Illinois & Chicago Graphs came from Regional Economics Applications Laboratory, Institute of Government and Public Affairs at the University of Illinois and appears in Illinois Realtors, an online newsletter.

McHenry County Plat Act Affidavit The Office of Joseph J. Tirio, McHenry County Recorder, has advised that going forward, no documents bearing any former recorder’s name will be accepted for recording. An example of one such recordable document is the Plat Act Affidavit. The County's approved Plat Act Affidavit resides on the McHenry County Recorder's Office website. An editable version is available on our customer website:

www.il.firstam.com (Forms & Documents section)

Like Us on Facebook www.facebook.com/FirstAm.Chicago

Winter 2017 | PAGE 13

N E W L E G I S L AT I O N

School Board Employees Public Act 99-0794 effective January 1, 2017 amends105 ILCS 5/5-22 amends the School Code.

In the case of residential property constructed or renovated by students as part of a curricular program, allows a school board, by a resolution adopted by at least two-thirds of the board members, to engage the services of a licensed real estate broker to sell the property for a commission not to exceed 7%, contingent on the public listing of the property on a multiple listing service for a minimum of 14 calendar days and the sale of the property within 120 days.

Public Construction Lien Notice Public Act 99-0673 effective January 1, 2017 amends 30 ILCS 550/2 amends the Public Construction Bond Act. The Act provides that the verified notice shall be deemed filed on the date personal services occurs or the date when the verified notice is mailed.

Illinois Electronic Recording Commission Public Act 99-0662 effective January 1, 2017 amends 30 ILCS 550/2 amends the Uniform Real Property Electronic Recording Act. The Act provides that the Illinois Electronic Recording Commission shall include 2 additional members who are licensed real estate brokers or managing brokers under the Real Estate License Act of 2000. The Act also provides that 9 (instead of 8) commissioners shall constitute a quorum. The Act further provides that one of the new commissioners shall serve an initial term of 2 years and the other new commissioner shall serve a term of 3 years, to be determined by lot.

Disabled Individuals Access Public Act 99-0582 effective January 1, 2017 amends 410 ILCS 25/2, 410 ILCS 25/3, 410 ILCS 25/4, 410 ILCS 25/5, 410 ILCS 25/6, and 410 ILCS 25/8 and repeals 410 ILCS 25/7 of the Environmental Barriers Act. The Act changes references from "accessibility standards" to "the Illinois Accessibility Code", and makes related changes. The Act removes a provision requiring the Capital Development Board to establish standards for areas restricted to employee use.

The Act requires the Capital Development Board to update the Code within 3 years (rather than 2 years) after federal standards are updated. The Act provides that the Act generally applies to public facilities and multi-story housing constructed after May 1, 1988, with specific provisions concerning the Code's application. The Act requires new housing construction to comply with the Department of Housing and Urban Development's March 6, 1991 Fair Housing Accessibility Guidelines and all later versions, amendments, and supplements. The Act requires all alterations to public facilities and multi-story housing to comply with the Code as it exists at the time of alteration.

the powers of the Attorney General. The Act changes references from "environmentally limited persons" to "individuals with disabilities“. The Act provides that 20% of dwelling units in multi-story housing shall be adaptable.

The Act also provides that any person who knowingly issues a building permit or other official authorization for the construction or alteration of a public facility or the construction of multi-story housing in violation of the Act shall be subject to a specified penalty.

Unclaimed Property Public Act 99-0577 effective January 1, 2017 amends 765 ILCS 1025/8 and 765 ILCS 1025/8.1 of the Uniform Disposition of Unclaimed Property Act. The Act decreases the duration from 7 years to 5 years for unclaimed property held by any federal, state, local government or governmental entity to be presumed abandoned.

Rental Equipment Public Act 99-0627 effective January 1, 2017 amends 765 ILCS 1-60(a) amends the Criminal Code of 2012.

The Act includes in the theft of rental property renting or leasing equipment exceeding $500 in value including tools, construction or industry equipment, and such items as linens, tableware, tents, tables, chairs and other equipment specially rented for a party or special event. The Act allows the trier of fact to infer evidence that the person is without good cause for failure to return the property if the person signs the agreement with a name or address other than his or her own. The Act also provides that in addition to any other penalty imposed, the court may order a person convicted of the offense to make restitution to the victim of the offense.

Identification Cards Public Act 99-0511 effective January 1, 2017 amends 15 ILCS 5/2, 15 ILCS 335/5, 15 ILCS 335/8, 625 ILCS 5/6-103, 625 ILCS 5/6-106 of the Illinois Identification Card Act. The Act rovides that beginning July 1, 2017, the Secretary of State shall refuse to issue any identification card to any person who has been issued a driver's license under the Illinois Vehicle Code. The Act also provides that any person may surrender his or her driver's license in order to become eligible to obtain an identification card. The Act also provides that beginning July 1, 2017, all applicants for standard Illinois Identification Cards and Illinois Person with a Disability Identification Cards shall provide proof of lawful status in the United States. The Act also provides that applicants who are unable to provide the Secretary with proof of lawful status are ineligible for identification cards. The Act provides further criteria for the expiration of Illinois Identification Cards and Illinois Person with a Disability Identification Cards. The Act amends the Illinois Vehicle Code to make similar changes concerning Illinois driver's licenses, except that driver's license applicants who are unable to provide proof of lawful status in the United States may apply for a temporary visitor's driver's license.

Adds provisions concerning alterations that impact accessibility or usability of paths of travel. The Act repeals provisions concerning alterations. The Act combines provisions concerning civil enforcement and other penalties.

The Act provides that any violation of the Code is a violation of the Act. The Act provides the Attorney General with discretion to investigate complaints made under the Act. The Act adds enforcement provisions concerning Winter 2017 | PAGE 14

N E W L E G I S L AT I O N

Personal Information Public Act 99-0503 effective January 1, 2017 amends 815 ILCS 530/5,815 ILCS 530/10, 815 ILCS 530/12, and creates 815 ILCS 530/45 and 815 ILCS 530/50 of the Personal Information Protection Act. The Act includes breaches of security involving medical information, health insurance information, and certain unique biometric data to the types of breaches for which notice is required. The Act adds requirements concerning notices disclosing a breach of security involving a user name or email address in combination with a password or security question and answer.

The Act permits substitute notice to prominent local media under specified conditions and requires certain data collectors to use reasonable security measures to protect records. The Act also provides that a covered entity or business associate that is subject to and in compliance with the privacy and security standards for the protection of electronic health information under the federal Health Insurance Portability and Accountability Act of 1996 and the Health Information Technology for Economic and Clinical Health Act is deemed to be in compliance with the Personal Information Protection Act if a covered entity or business associate required to provide notification of a breach to the Secretary of Health and Human Services under the Health Information Technology for Economic and Clinical Health Act also provides the notification to the Attorney General within 5 business days of notifying the Secretary.

Human Rights Public Act 99-0548 effective January 1, 2017 amends 775 ILCS 5/8B-104 of the Illinois Human Rights Act. The Act increases the amount of civil penalties for civil rights violations relating to real estate transactions as follows: (i) a maximum of $16,000 (instead of $10,000) if the respondent has not been adjudged to have committed any prior civil rights violation concerning real estate transactions; (ii) a maximum of $42,500 (instead of $25,000) if the respondent has been adjudged to have committed one other civil rights violation concerning real estate transactions during the 5-year period ending on the date of the filing of the current charge; and (iii) a maximum of $70,000 (instead of $50,000) if the respondent has been adjudged to have committed 2 or more civil rights violations concerning real estate transactions during the 7-year period ending on the date of the filing of the current charge.

Forcible Entry and Detainer Public Act 99-0753 effective January 1, 2017 amends 735 ILCS 5/9-117 amends the Forcible Entry and Detainer Article of the Code of Civil Procedure.

The Act changes a statutory notice of motion for the extension of an order of possession by replacing references to "landlord" with "plaintiff�.

Lead Poisoning Public Act 99-0790 effective January 1, 2017 amends 410 ILCS 45/9.1 of the Lead Poisoning Prevention Act. The Act provides that before an owner of a facility regulated under the Act who has received a mitigation notice renews a lease or enters into a new sales contract (rather than a new lease agreement or sales contract) for the dwelling unit for which the notice was issued, they shall provide the current lessee or lessees or prospective purchasers (rather than prospective lessees

or purchasers) with a specified written notice unless the owner has obtained a certificate of compliance. The Act further provides that an owner shall (rather than may) satisfy the notice requirement by providing the prospective lessee or purchaser with a copy of the mitigation notice and inspection report (rather than a copy of the inspection report). The Act also provides that in the case of a sale, the seller shall provide the Department of Public Health with specified written notice of the sale. The act also provides that an owner of a regulated facility who has received a mitigation notice or an owner who purchased a facility from an owner that received a mitigation notice and who also receives specified written notice shall, before entering into a new lease, mitigate the lead hazard and obtain a certificate of compliance. The Act further provides that before entering into a lease agreement or sales contract, owners of facilities regulated under the Act and built before 1978 shall give prospective lessees or purchasers information on the potential health hazards posed by lead in such facilities that is consistent with specified federal regulations.

Mobile Home Landlords and Tenants Public Act 99-0731 effective January 1, 2017 amends 410 ILCS 45/9.1 of the Mobile Home Landlord and Tenant Rights Act. The Act provides that if the tenant breaches any provision of the lease or rules and regulations of the mobile home park, the park owner shall give the tenant written notice specifying in writing the reason for any fine that may be imposed on the tenant. The Act also provides that "fine" does not include fees that are imposed on a tenant for services or products provided by the park owner to the tenant. The Act also provides that if a fine is imposed on a tenant, the following applies for 45 days after written notice of the fine is delivered to the tenant: (1) non-payment of a fine shall not be grounds for refusal to accept a rent payment; and (2) the fine shall not be deducted from a rent payment. The Act also provides that acceptance of a rent payment shall not be construed as a waiver of an unpaid fine.

Trusts and Trustees Public Act 99-0743 effective January 1, 2017 creates 760 ILCS 5/6.5 the Trusts and Trustees Act. The Act provides that the transfer of real property to a trust requires a transfer of legal title to the trustee evidenced by a written instrument of conveyance and acceptance by the trustee. If the transferor is a trustee of the trust, an interest in real property does not become trust property unless the instrument of conveyance is recorded in the office of the recorder of the county in which the property is located.

Land Trust Beneficiaries Public Act 99-0627 effective January 1, 2017 creates 765 ILCS 405/0.01 et. seq. creates the Land Trust Beneficiary Rights Act. The Act provides that if the identity of the trustee of a land trust has been changed by virtue of sale, assignment, appointment, or otherwise, but the beneficial owner or owners of the land trust remain unchanged, the rights of the beneficial owner or owners shall in no way be impaired by the change of trustees.

The Act also provides that a change of trustee pursuant to a sale, acquisition, or appointment governed by the Corporate Fiduciary Act is not a bar or defense to any court action filed by or in the name of either the previous trustee, irrespective of whether the court action was originally filed in a representative capacity on behalf of the beneficial owner or owners.

Winter 2017 | PAGE 15

N E W L E G I S L AT I O N

Common Interest Community Associations

Common Interest Community Associations

Public Act 99-0612 effective January 1, 2017 amends 765 ILCS 1-5 and 1-85 and 765 ILCS 605/2 and 18.8 amends the Common Interest Community Association Act and the Condominium Property Act.

Public Act 99-0627 effective January 1, 2017 amends 765 ILCS 1-60(a) of the Common Interest Community Association Act.

The Act provides that the term "acceptable technological means" includes, among other things, any generally available technology that, by rule of the association, is deemed to provide reasonable security, reliability, identification, and verifiability. The Act also provides that acceptable technological means may be used to conduct association business, including: notice required to be sent or received; signature, vote, consent, or approval required to be obtained; and the performance of obligations or exercise of rights. The Act provides that Sections concerning the use of technology do not apply to any notices required: (i) under the Forcible Entry and Detainer Article of the Code of Civil Procedure; or (ii) in connection with foreclosure proceedings in enforcement of any lien rights" under the Act (instead of "notices required under [the Forcible Entry and Detainer Article] of the Code of Civil Procedure related to: (i) an action by the common interest community association to collect a common expense; or (ii) foreclosure proceedings in enforcement of any lien rights" under the Act).

The Act provides that if a provision of the community instruments does not conform to the Act or to another applicable law because of an error, omission, or inconsistency in the community instruments of the association, the association may correct the error, omission, or inconsistency to conform the community instruments to the Act or to another applicable law by an amendment adopted by vote of two-thirds of the board of directors, without a membership vote. The Act also provides that a provision in the community instruments requiring members of record to vote to approve an amendment to the community instruments, or for the members of record to be given notice of an amendment to the community instruments, does not apply to an amendment that corrects an omission, error, or inconsistency to conform the community instruments to the Act or to another applicable law.

The Act also deletes language providing that corrections of errors or omissions may be adopted by a majority vote of the members at a meeting called for that purpose unless other procedural requirements apply.

Common Interest Community Associations

Common Interest Community Associations

Public Act 99-0567 effective January 1, 2017 amends 765 ILCS 160/1-40(b)(5) and 765 ILCS 605/18(a)(9)A) of the Common Interest Community Association Act and the Condominium Property Act.

Public Act 99-0569 effective January 1, 2017 creates 765 ILCS 160/1-47 and 765 ILCS 605/9.5 amends the Common Interest Community Association Act and the Condominium Property Act.

The Act provides that every meeting of the board of managers shall be open to any unit owner, except that the board may close any portion of a noticed meeting or meet separately from a noticed meeting to conduct specified business (instead of "except for the portion of any meeting held to discuss or consider information relating to" specified business).

The Act provides that any assignment of a developer's interest in the property is not effective until the successor obtains the assignment in writing and records it.

In the provision allowing the board to discuss employment matters in a closed meeting, the Act provides that the board may also discuss the engagement of any independent contractor, agent, or other provider of goods and services and interview a potential employee, independent contractor, agent, or other provider of goods and services.

Also the Act provides that the board may consult with the association's legal counsel during a closed meeting.

Condominium Associations Public Act 99-0849 effective January 1, 2017 amends 765 ILCS 605/18.4 effective January 1, 2017 amends 765 ILCS 605/18.4 of the Condominium Property Act. The Act grants the board of managers the power to assign the right of the association to future income from common expenses or other sources and to mortgage or pledge substantially all of the remaining assets of the association. The Act deletes language providing that the power is subject to the provisions of the condominium instruments.

Winter 2017 | PAGE 16

Help Us Help Your Client

Avoid Wire Fraud!

For over a year, the real estate industry has been flooded with reports of fraudsters impersonating clients to steal money from unsuspecting consumers and lenders. These reports have come from both attorneys and title companies throughout the country. The threat still exists and we need your help to combat the criminals and avoid wire fraud.

Because wire fraud is still rampant in Illinois, First American Title is incorporating a new form into our local closing process: Proceeds Disbursement Instructions Form.

First American Title Phone 877-295-4328

File No.: ______________________

To: First American Title Re: __________________________________________, ___________________________________ ("Property")

Proceeds/Funds Disbursement Instructions Proceeds: The undersigned directs that the proceeds/funds due will be disbursed in the following manner:

The Proceeds Disbursement Instructions form verifies that proceeds are routed to the correct bank and account number. This form should be acknowledged by the seller requesting funds to be wired. If these instructions cannot be presented to us at the time of closing with a seller original signature only, to protect your client, our escrow officer will contact the seller. Please be prepared to provide a trusted phone number for the seller; a number you have used to contact your client in the past. This document may be completed and pre-signed by the seller and brought to closing by the sellers’ attorney if the seller is not attending the closing.

[ ] Mailed to the address below

[ ] Sent via overnight delivery

[ ] Sent via wire transfer **

[ ] Other:________________________________________

** If checked, attach wiring instructions of receiving bank or fill in below. With cyber fraud on the increase, we suggest you mail, use an overnight service or hand-deliver any items containing banking or other private information and not send via email.)

Bank Name:

___________________________________________________

Name on the Acct: ___________________________________________________ Account No.:

__________________________________________________

Routing No.:

___________________________________________________

Phone No.:

___________________________________________________

Type of Account:

Checking

Savings

Any further instructions: ________________________________________________________________

Please Note: Modified or amended disbursement instructions must be signed by the parties at a First American office. Proof of identity will be required.

Funds disbursed to other than record owner must be in writing with authorized approval by First American Title Company and possibly buyer/borrower’s lender on a TILA-RESPA Integrated Disclosure (TRID) regulated loan.

Receiving Banks may impose a charge for the receipt of any wire transfers.

Escrow Holder is not responsible for delays in wiring caused by time restrictions of the Federal Reserve Board or late confirmation of recording.

When funds are sent to a bank outside the United States, Escrow Holder shall not be responsible or liable for any loss or expense incurred as a result of currency exchange rates, delays in availability of funds, or delays due to the U.S. bank or foreign bank requiring additional information. Escrow Holder shall have no liability or responsibility after properly initiating the outgoing wire transfer.

The undersigned acknowledge that the Proceeds/Funds Disbursement Instructions are complete and accurate.

X___________________________________________________________________ Print Name(s): _________________________________________________ Date:

This editable PDF is located on our customer website, www.il.firstam.com or may be obtained from any First American Title employee.

____________________________________________________

Address:

Address: Home Phone:

_____________________________ ______________________________________________ ______________________________________________

Cell Phone:

______________________________________________

Business Phone:

______________________________________________

F O R M O R E I N F O R M AT I O N

Please contact our Illinois Escrow Lead, Mojca Anaya at mmagajne@firstam.com or call her at 630.799.7340.

We realize that you have been hearing from us on these issues well over a year now. Please understand that the threats have not diminished and are not going away.

Winter 2017 | PAGE 17

What’s your Favorite Star Wars movie & why?

Your Point of View…

Attorney Jonathan A. Vold

Irene Chase, Underwriting Counsel

900 E. Northwest Highway, Mount Prospect, IL

First American Title, Chicago, IL

I found Rogue One to be surprisingly good because it was a refreshing change from the other plots and exposed us to new characters. Also liked how it filled in the gaps from the past movies.

My favorite movie is what I still call STAR WARS but I have learned to call "A New Hope". I don't know which was better-the first time I watched the movie or watching it with my kids.

Tricia Tenute, Escrow Operations Manager

Nathan Britsch

Doc Processing, Title Indemnity, Eagle Services First American Title, Warrenville, IL

VP of Compliance / PERL Mortgage, Inc. 101 W. Grand Ave., Chicago, IL

Star Wars A New Hope and The Empire Strikes Back are my favorites. I love the banter between Princess Leia (RIP Carrie Fisher) and Han Solo.

Best of the series was definitely the Thrawn Trilogy, also known as the Heir to the Empire trilogy, books by Timothy Zahn. Grand Admiral Thrawn was written to be a complicated, subtle, and even honorable opponent, who makes all the conflict that much more dramatic. There’s sympathy to his character’s sense of duty to the Empire that’s a sad contrast to their respect for him. You’re given the impression that if Thrawn had been present for the original trilogy, there’s no way the Rebels would have won.

Patricia Weinstein First American Title, Warrenville, IL My favorite is Return of the Jedi. Luke confronts his father, Darth Vader who ultimately destroys the emperor and saves his son; the Sith are destroyed and who doesn't love the Ewoks from the moon of Endor?

The new Disney movies are killing the canon on the books, but they’re still an enjoyable read. Also, Rouge One was pretty good.

Patricia T. Gruber My favorite one is definitely the Return of the Jedi, because the final show down between Luke and Vader is dramatic and isn't just a fight - its relationship, redemption, and reconciliation! Hence, the closest thing to a chick flick in the original Star Wars trilogy.

Winter 2017 | PAGE 18

Looking for a form or document?

Check us out on-line! Go to: www.firstam.com/title/il/documents/index.html We have‌ Our current rate card and branch location list | Affidavit of Title | Bill of Sale | Wire Instructions | HOA Request Letter | Warranty Deed | HUD BSCA Addendum Just to name a few!

We would love to hear from you!

If you are interested in submitting an article to be considered for our newsletter, please contact your First American Account Representative.

Would you like to receive the Taking Flight Newsletter via email?

Please send your email address to: takingflight.il@firstam.com if you would like us to send you a copy of this newsletter to your inbox.

Winter 2017 | PAGE 19

F I RST A M E R IC AN TITLE CH IC AGO MET R O OF F IC ES ARLINGTON HEIGHTS

HICKORY HILLS

OAK PARK

WHEATON

85 W. Algonquin Road, Suite 390 Arlington Heights, IL 60005 phone 847.290.6370 | fax 866.563.7611

8707 West 95th Street Hickory Hills, IL 60457 phone 708.430.2932 | fax 866.596.4854

1100 Lake Street, Suite 265 Oak Park, IL 60301 phone 708.386.6416 | fax 866.242.3110

311 South County Farm Road, Unit F Wheaton, IL 60187 phone 630.653.4893 | fax 866.227.7148

escrow.arlingtonheights.il@firstam.com

escrow.hickoryhills.il@firstam.com

escrow.oakpark.il@firstam.com

escrow.wheaton.il@firstam.com

AURORA

HOFFMAN ESTATES

PARK RIDGE

WOODRIDGE

2363 Sequoia, Suite 119 Aurora, IL 60506 phone 630.907.0175 | fax 866.563.7689

2300 Barrington Road, Suite 120 Hoffman Estates, IL 60169 phone 847.885.2849 | fax 866.524.1656

1300 Higgins Road, Suite 101 Park Ridge, IL 60068 phone 847.653.1370 | fax 866.596.4851

1005 Internationale Parkway, Suite 215 Woodridge, IL 60517 phone 630.759.9090 | fax 866.563.7656

escrow.aurora.il@firstam.com

escrow.hoffmanestates.il@firstam.com

escrow.parkridge.il@firstam.com

escrow.woodridge.il@firstam.com

BENSENVILLE

JOLIET – DOWNTOWN

SAINT CHARLES

1035 South York Road Bensenville, IL 60106 phone 630.616.9444 | fax 866.741.5409

167 N. Ottawa Street, Suite 102 Joliet, IL 60432 phone 815.723.0640 | fax 866.240.0503

2435 Dean Street, Suite A Saint Charles, IL 60175 phone 630.377.4661 | fax 866.524.8730

CHICAGO METRO CONSTRUCTION ESCROW

escrow.bensenville.il@firstam.com

escrow.joliet.il@firstam.com

escrow.stcharles.il@firstam.com

CHICAGO – LOOP

JOLIET – WEST

SKOKIE

30 North LaSalle Street, Suite 2220 Chicago, IL 60602 phone 312.750.6780 | fax 866.563.2766

3492 Caton Farm Road, Unit I Joliet, IL 60431 phone 815.439.1800 | fax 866.596.4853

escrow.chicago.il@firstam.com

escrow.westjoliet.il@firstam.com

5215 Old Orchard Road, Suite 250 Skokie, IL 60077 p h o n e 847.470.3190 | fa x 866.524.3882 escrow.skokie.il@firstam.com

CHICAGO – IRVING PARK

LOMBARD

TINLEY PARK

4230 West Irving Park Road Chicago, IL 60641 phone 773.481.7589 | fax 866.425.8271

1 East 22nd Street, Suite 205 Lombard, IL 60148 phone 630.627.6334 | fax 866.242.3159

18501 Maple Creek Drive, Suite 950 Tinley Park, IL 60477 phone 708.429.0044 | fax 866.524.5676

escrow.irvingpark.il@firstam.com

escrow.lombard.il@firstam.com

escrow.tinleypark.il@firstam.com

CRYSTAL LAKE

MOBILE CLOSING UNIT

VERNON HILLS

265 Exchange Drive, Suite 110 Crystal Lake, IL 60014 phone 815.356.8900 | fax 866.596.4858

27775 Diehl Road Warrenville, IL 60555 phone 630.799.7389 | fax 866.583.4812

300 Center Drive, Suite 107 Vernon Hills, IL 60061 phone 847.573.8800 | fax 866.524.8737

escrow.crystallake.il@firstam.com

mcu.warrenville.il@firstam.com

escrow.vernonhills.il@firstam.com

ELGIN

NAPERVILLE

MOVING IN APRIL 2017

2250 Point Blvd., Suite 125 Elgin, IL 60123 phone 847.551.9396 | fax 866.596.4835

552 South Washington Street, Suite 217 Naperville, IL 60540 phone 630.355.1864 | fax 866.241.7360

Three Hawthorn Parkway, Suite 225 Vernon Hills, IL 60061

escrow.elgin.il@firstam.com

GURNEE 6475 Washington Street, Suite 105 Gurnee, IL 60031 phone 847.662.1520 | fax 866.596.4860 escrow.gurnee.il@firstam.com

MOVING IN FEBRUARY 2017 1800 Nations Drive, Suite 221 Gurnee, IL 60031

escrow.naperville.il@firstam.com

NORTHBROOK 40 Skokie Blvd Suite 420 Northbrook, IL 60062 phone 847.272.5945 | fax 866.240.8811 escrow.northbrook.il@firstam.com

WARRENVILLE 27775 Diehl Road Warrenville, IL 60555 phone 630.799.7000 | fax 866.225.0823

27775 Diehl Road Warrenville, IL 60555 phone 866.831.2341 | fax 866.799.6770 build.il@firstam.com

Wire To

First American Trust, FSB 5 First American Way Santa Ana, CA 92707

ABA

122241255

For Credit To

First American Title Company Deposit Account

Account Number Based on Closing Location Chicago Metro Illinois: 3023560000

Central/Downstate Illinois: 3010920000 Chicago Metro: New Construction Draws: 3015010000

escrow.warrenville.il@firstam.com

WESTCHESTER 2400 Wolf Road, Suite 102 Westchester, IL 60154 phone 708.531.0051 | fax 866.225.0824 escrow.westchester.il@firstam.com

One email address for all closing packages and figures: figures.il@firstam.com Winter 2017 | PAGE 20

KE Y C O N TACT INFORM AT ION TITLE

SPECIAL SERVICES

ESCROW

CUSTOMER SOLUTIONS

1031 EXCHANGE

SCHEDULING

Title Order Status/Inquiries/General Information phone 877.295.4328 | fax 866.892.1147 customercare.il@firstam.com

1031 Inquiries phone 888.625.1031 1031exchange.chicago.il@firstam.com

Schedule Closing/Closing Confirmation phone 877.295.4328 | fax 866.583.5219 scheduling.il@firstam.com

TITLE UNDERWRITING

CHICAGO WATER & ZONING

E-HUD

Title Underwriting Guidance phone 877.295.4328 | fax 866.675.7593 tu.il@firstam.com

Water & Zoning Requests/Inquiries phone 877.295.4328 | fax 866.238.9937 chicagowatercert.il@firstam.com

HUD-1 Preparation/ Inquiries phone 877.295.4328 | fax 866.212.2305 figures.il@firstam.com

EXAMINING SEARCH PACKAGE HELP LINE

CLAIMS

RECORDING

Agent Search Package Assistance phone 877.295.4328 | fax 866.892.1147 customercare.il@firstam.com

Claim Filing/Inquiries phone 877.295.4328 | fax 866.606.8167 claims.nic@firstam.com

Recording Inquiries phone 877.295.4328 | fax 866.606.8187 recording.il@firstam.com

UNDERWRITING COUNSEL

EAGLE SERVICES UNIT

TITLE INDEMNITY

Marty Cann phone 630.799.7309 | fax 866.606.8168 mcann@firstam.com

Lender Services Team phone 877.295.4328 | fax 866.946.0940 eagleservices.il@firstam.com

Title Indemnity Inquiries phone 877.295.4328 | fax 866.525.5530 ti.il@firstam.com

TITLE ORDER DESK

FORECLOSURE

CONSTRUCTION ESCROW

Order Title Product phone 877.295.4328 | fax 866.892.1147 orders.il@firstam.com

Foreclosure Updates/Inquiries phone 877.295.4328 | fax 866.563.7657 fcl.searchpackage.il@firstam.com

Construction Payouts/Inquiries phone 866.831.2341 | fax 866.799.6770 build.il@firstam.com

POLICY

HOLD HARMLESS

Policy Inquiries phone 877.295.4328 | fax 866.892.1198 policy.il@firstam.com

Hold Harmless Requests/Inquiries phone 877.295.4328 | fax 866.678.3744 holdharmless.il@firstam.com

AGENT ADVANTAGE

ANTI-PREDATORY LENDING DATABASE

Agent Advantage Inquiries phone 877.295.4328 agentadvantage.warrenville.il@firstam.com

Closing Inquiries phone 877.295.4328 | fax 866.933.2753 apld.il@firstam.com

www.firstam.com/title/il

MOBILE CLOSING UNIT Mobile Closings phone 630.799.7389 | fax 866.583.4812 mcu.il@firstam.com

COMMERCIAL Chicago Metro Commercial Center phone 866.563.7707 | fax 877.315.1066 cmcc.il@firstam.com

REO ESCROW DEPARTMENT HUD Buyer/Select phone 630.799.REO1 (7361) reoescrow.il@firstam.com

Winter 2017 | PAGE 21

NOTES

Winter 2017 | PAGE 22

NOTES

Winter 2017 | PAGE 23

Illinois Winter 2017 Taking Flight Newsletter (REV 02/2017) Š2017 First American Financial Corporation and/or its affiliates. All rights reserved. | NYSE: FAF