How Lenders and Title Companies Work Together to Ensure a Smooth Transaction Laura Triplett VP, Senior Loan Officer Atlantic Coast Mortgage, LLC NMLS ID #181420 Marc Wiltshire Executive Vice President Kensington Vanguard

Communication/Teamwork/Education

Value of Preference Predictability Speed of administrative duties Safety net for things falling through cracks Missing closing dates that cause EMD to be at risk After closing issues Ability to frame expectations Flexibility and expertise to make changes for excessive seller closing credits without delay

The Key to a Successful Closing is… Response from the client Responding to electronic disclosures quickly, provide all documentation early and quickly, finalizing insurance policies early! Know what funds are needed prior to closing (federal law states the borrower must sign a disclosure at least three business days prior to closing with the final amount to close). Make sure you know how the funds should be transferred to closing (wire, cashier’s check, etc.) If using a power of attorney, please make sure it has been approved by the lender and settlement company early and bring the original to closing! Bring Identification.

The Key to a Successful Closing is… 12/6/2018 Communication, What makes a good Realtor GREAT! The Realtor must deliver a fully ratified, complete, contract with a case information sheet explaining any details of realtor credits, rent backs, power of attorney requirements, buyer/seller negotiated items that may change closer to closing, additional home warranties or homeowner initiation fees. Ways to hold title, is it in a living trust? Is there a non-borrower title holder? Identify unusual characteristics of a property. This starts with the Realtor.  The Realtor must deliver a fully ratified, complete, contract with a case information sheet explaining any details of realtor credits, rent backs, power of attorney requirements, buyer/seller negotiated items that may change closer to closing, additional home warranties or homeowner initiation fees. MAI Institute and Signature Mortgage

The Key to a Successful Closing is… Early Communication Between the Lender & the Title Company Checking the Contract for Issues Title Companies | Initial CD's Title binder package with 24 months chain of title: Real Estate tax amounts and due dates, Wiring instructions, CPL (closing protection letter) Preliminary CD completed with title and other charges with all licensee info (title company and title agent, realty companies and the agents) what is this…why important? Underwriting Requests Seller LLC docs HOA & 3rd party requirements

The Key to a Successful Closing is… The key to a successful closing is communication between all third parties. Well, septic, or termite Repairs required/completed-licensed contractor? Receipts? Final permits 3rd party approval on behalf of seller Lender required documents to be signed by a third party Hazard/flood insurance Verification of employment/credit HOA requirements Payoffs/releases for seller Any contingencies listed in the contract

Third Parties Are there third parties involved in making the decision on the loan closing? This can include but not limited to: For the seller: banks, trustees, absentee sellers, LLCs, etc. For both buyer or seller: Parents or other advisors For the Buyer: Accountants, Investment Brokers, Attorneys, Executors Legal name changes, liens due to non payment of debt, deed transfers, etc. Multiple lots, easements, private road maintenance agreements, etc. Well, septic, termite, survey, permits for construction on site Provide relevant invoices to be reimbursed at closing

The Final Closing Disclosure Escrows HOA Dues Payoff of debt as instructed by the lender Fees from the Real Estate Company: Admin Fees Home Warranty Commission Adjustments Tennis anyone??

Seller/Lender/Realtor Credits 1. What is the allowable concession for the program? 2. Are the concessions being used in full? Is the lender providing a credit towards a fee or charge? 3. What fees or charges can the concession be applied to? 4. Is there an “interest credit” on the loan?

Title Considerations Name affidavits -Basic Principles of Title Underwriting - Encumbrances and Liens - Bankruptcy - Patriot Act - Policies Endorsements - Claims -Easements-shared driveway-private road-structures close to boundaries that would trigger a survey

What about Fraud? 1. Wire fraud-how to combat 2. Silent Escrows not allowed – the title company has to maintain the fiduciary duty to the lender instructions 3. Seller paid repairs not required by the lender