Q. How do I know which Settlement Agent/Attorney to use?
A. It is the customer’s decision of who they want to use.
Q. How do you save the customer money on the new Lender’s Policy?
A. Provide an existing Owner’s Policy for a Reissue Rate. NOTE:  Title Underwriter’s are demanding that the full premium be charged if the Existing Policy is not given prior to the search of the property.
Q. How do you save the customer a Survey cost for a Purchase?
A. Ask the owner for a copy of the existing survey. NOTE:  This will be acceptable if the property is the same as in the Survey.
Q. How do you save your customer time when waiting on Termite Inspections?
A. FHA – Make sure either you or the Settlement Agent has ordered the Termite at an appropriate time.

Purchase – Make sure the Listing Agent has ordered the Termite at an appropriate time.
Q. How do you insure the Customer closes their loan in a timely manner?
A. Make sure the Settlement Agent has all pertinent information about everyone involved in the transaction.  DO NOT ASSUME they have everything they need!
Q. How to get Payoff’s in a timely manner?
A. Make sure when you place your order with the Settlement Agent that you also give them an Authorization to Release Information and all pertinent account information (i.e. account number, lender name and contact number).
Q. Who is the Signatory on a Valid Deed of Trust?
A. All Owner’s listed on the Title Binder with a Vested Interest needs to sign the Deed of Trust, Truth in Lending and Notice of Right to Cancel, regardless if they are on the loan or not. 
Q. Why isn’t a Quit Claim Deed sufficient in all cases where a Deed is required?
A. Quit Claim Deeds DO NOT transfer Ownership Interest, it only transfers any interest you may or may not have now or in the future.  It does not provide for the Arm’s Length Transaction.
Q. How do you remove a person from Title?
A. Have a Valid Deed signed by all Owner’s.
Q. Who cannot sign a Deed and/or a Deed of Trust?
A. A minor (under 18) or any persons considered incapacitated.
Q. Why does the customer still owe money on a Judgment that was included in a Bankruptcy?
A. Because a Bankruptcy does not release the lien from the property.  If you want the lien removed you will have to pay the cost set by the lien holder.

NOTE:  There are exceptions to this Rule.
Q. What are Supplemental Taxes and when do they apply?
A. Supplemental Taxes are for Construction purposes.  Taxes are assessed after the completion of the home and are taxed according to the County the property is located in. 
Q. How do I know how many Deeds of Trust and/or Judgments the Customer has?
A. Look at Schedule B, Section II, Requirements Page for all requirements to be satisfied before a Final Policy can be issued (Deeds and Trust and Judgments are included on this page)
Q. When is an Automatic Subordination allowable?
A. When the new loan amount is no more than $5000.00 above the existing principal balance, the new interest rate is lower than the existing rate and the existing second is no more than $50,000.00.  NOTE: The new loan may NOT be an Adjustable Rate Mortgage.
Q. Why is it necessary to “Clear” all Requirements on Schedule B of the Title Binder?
A. Clearing all Requirements insure the New Lender has a valid First Lien Position.
Q. Where can I get the Tax Information for the Property?
A. Most Binders provide that information on Schedule B, Section II, Requirements page.
Q. How do I get the Settlement Agent to remove the Credit Accounts listed on the Closing Instructions to be Paid?
A. Have the Lender send an Amended Closing Instructions to the Settlement Agent allowing the removal of the Credit Accounts.
Q. When are Seller Held Second Mortgages not Acceptable?
A. When the Lender does not know or does not allow them.
Q. Who is responsible for obtaining the Documents for Seller Held Second Mortgages?
A. The Seller’s Attorney.
Q. When is it necessary to let the Settlement Agent know about the Seller Held Second Mortgage?
A. Immediately (Cost will be altered).
Q. How do Addendums to Purchase Contracts affect the Closing?
A. If it is an addendum including money exchanging hands then the Lender has to approve it.  If the Lender does not know about it or does not allow it then the Settlement Agent is not allowed either.
Q. What happens when a Buyer is to get $5000.00 in Closing Cost by the Seller and the Lender only allows $3900.00?
A. The Settlement Agent may only apply $3900.00 on the Hud-1 and can only disburse the amount shown on the Hud-1.
Q. Why can Settlement Agents not close a Purchase without the Lender funds?
A. Settlement Agents and Attorney’s need to disburse according to State Law known as the Wet Funds Settlement Act, which states money must be accessible immediately.
Q. When will the Seller be able to pick up their check after Settlement?
A. When the documents have been properly recorded in the Clerk’s Office.
Q. How long does a Settlement Agent have to disburse?
A. Purchase - 48 hours from Settlement.

Refinance – As soon as possible at the end of the Borrowers Rescission Period.
Q. Why do Lender’s need an ICL from Settlement Agents?
A. The ICL is insuring that the Settlement Agent is not going to run off with the Lender’s money or willingly do anything against the Lender’s Closing Instructions.
Q. Can a Settlement Agent hold an Escrow?
A. Yes, with an appropriate Escrow Agreement signed by all parties.
Q. Can a Settlement Agent refund an unfound credit account check to the customer?
A. Only with the Lender’s permission.
Q. Can a Settlement Agent refund any fee to the customers?
A. Only with a Paid in Full receipt.
Q. Can the Settlement Agent change a check name?
A. Only with the appropriate documentation with the correct name.
Q. What is the difference between an Attorney and a Settlement Agent doing a closing.
A. The Attorney can offer and explain legal necessities and a Settlement Agent cannot.
Q. What does a Settlement Agent do when posed with a legal question in a closing?
A. Refer the customer to an attorney.
Q. Can a Settlement Agent really perform a Settlement?
A. Yes, the Settlement Agent must be CRESPA approved, be bonded and insured, and be listed and approved with an Title Insurance Provider.

Please let us know if you have any other questions, and we will be happy to assist you. info@homesetc.org

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