November 2016 - Attorney's Closing Services

Several mortgage and housing trade groups have requested that the Consumer Financial Protection Bureau (CFPB) go a step further in cleaning up the agency’s TRID consumer-disclosure rules, the increased regulation that took effect one year ago.

Industry groups are asking that the bureau extend a ‘soft enforcement’ period for several months, and proposed changes that the CFPB had previously declined. For example, the industry wants the bureau to establish a way for companies to correct errors found in the documents after the loan has been originated. This would help protect a lender from legal liability should the loan ultimately default, and reassure issuers of mortgage-backed securities. TRID errors have shown up in recent loans that were to be collective into securities.

Industry groups also requested the bureau give lenders more flexibility around the time of the closing. TRID has largely forced companies to lock in mortgage rates and the consumer’s expenses three days before closing. The CFPB has proposed to allow companies to make adjustments of the loan costs in the final closing document, but the industry has requested further modifications.

The industry is asking for numerous technical changes that will clarify aspects of the rule.

TRID, or the TILA-RESPA Integrated Disclosure rule, took effect on Oct. 3, 2015, creating new streamlined forms on the initial rate disclosure and final closing documents. It also established a timeline for disclosures. The rule was intended to make it easier for consumers to understand, but the changes created huge technical challenges for the industry. In April, CFPB announced it would make changes to TRID using the industry’s input.

The Mortgage Bankers Association, the National Association of Realtors and other groups submitted separate letters ahead of the deadline, including their comments and suggestions. The CFPB is expected to publish a final rule sometime next year.

Not up-to-date or unsure of the new TRID Rules? Losing a paralegal? Tired of tedious bookkeeping? Let Attorneys’ Closing Services (ACS) save you time and money. Whether your office needs assistance with full or partial closing processing services, ACS is ready to step in at a moment’s notice. We tailor our services to meet each client’s individual needs. We offer full-service processing for commercial and residential attorney title agents and charge a flat fee for our services. While we handle the processing, you can remain the closing agent and collect the premium. We would be honored to work with you on any and all of your real estate closings. Call us today at 407-270-8855 to see how we can help you. To learn more, visit https://attyclosingservices.com/about-us/

In Florida, a legal conflict between the buyer, seller and a third party with a vested interest in the property can quickly derail the closing in a real estate transaction.

These third parties can include contractors who have performed services to improve the property prior to sale and have filed a lien in the public records to ensure they get paid for their work. Until these title issues are resolved, the closing cannot occur due to the seller not being able to convey “marketable title.”

Here are a few examples of common title issues that can arise during a title search prior to closing.

Florida Statute Chapter 695 Record of Conveyances of Real Estate protects people from schemes and silent deals when it comes to the ownership of real estate. For example, let’s say a contractor is in the process of replacing hardwood floors in the home. If the deal closes, whose responsibility is it to pay the contractor? The seller who hired him or the buyer who is enjoying the new floors? In accordance with Florida’s recording law, the title to the home is not marketable if the contractor filed a notice in the public records that he performed the services to improve the property. The contractor in this case has the superior interest, which would likely prevent the real estate transaction from closing.

You might be surprised how often two individuals claim to have deeds or titles to the same piece of real estate. In Florida, we have what is referred to as the “common source of title” legal doctrine. Here, there is a conflict when two parties both claim title to the real estate from a single source. Under the law, the party that can provide evidence of “better” title from that single source will be given legal title to the property.

When a buyer decides to purchase real estate in Florida, and takes title to that real estate knowing that there are prior claims on that property, then the buyer accepts full responsibility to those claims. For example, there may be a covenant within the deed itself that stipulates that the buyer assumes a specific debt against the land as part of the sale and purchase price. That covenant will legally make the buyer liable for that debt. The buyer does not have to sign any document agreeing to “accept the debt as their own,” by simply paying the purchase price and taking the deed, the buyer has accepted responsibility.

Attorneys’ Closing Services (ACS) assists everyone from the sole practitioner to fully-staffed offices. We offer full service processing for commercial and residential attorney title agents. Whether your office needs assistance with full or partial closing processing services, ACS stands ready to assist you at a moment’s notice.

ACS is owned and operated by Ronald J. Conte and David H. Trevett, practicing attorneys who have more than 50 years of combined experience in the fields of law and real estate. We would be honored to work with you on any and all of your real estate closings. To learn more, click here or call us today at 407-270-8855 to see how we can help you.

Source:

http://www.abajournal.com/blawg/About_Florida_Law

Archives for November 2016

Mortgage Industry Pushes for Improved TRID Consumer-Disclosure Rules

Key Title Issues that Can Derail a Florida Real Estate Closing