Title FAQ’s and Best Practices

1. Title FAQ’s and Best Practices

2. Where to find basic info on a title Some lenders require new loan amount on title to match our request amount

3. Schedule a Note the effective dateunder Schedule A When a lender asks for a revised date on title, sometimes they are also referring to the effective date as well as the date listed on the first page of title.

4. Schedule a Schedule A of the Title will general pertain to the new loan (Refi) -This section will also show how the client will be referenced on the new loan -Who will actually be listed on the new loan (see highlighted section)

5. Schedule b On most titles, Schedule Bwill contain the information pertaining to the liens already associated with the subject property Item 3 shows the current first mortgage and item 4 shows the second mortgage. These liens should directly correlate to the liens listed in AMP

6. Verifying liens on title w/ liens in amp

7. Confirming subject property We need to make sure that we are looking at the subject property. See the RED above and make sure that it says YES under subject property We have now successfully verified that there are two liens on the title and two liens listed on AMP!

8. Legal description All titles will contain a Legal Descriptionof the property. It can be on a separate page as shown above. With the legal description there is also information regarding the property’s Tax ID# (also sometimes called Parcel#), County and State

9. Determining a lien’s position Whichever RECORDED date came first is the one who holds the higher lien position Q: A: How is a lien position determined? Lien position is determined by the recording date for the mortgage.

10. Additional verbiage under liens In this example, the lien listed as #3 would be in 1st lien position due to its recorded date compared to the recorded date of item #4. But the highlighted verbiage listed under #3 states that this lien was previously subordinated Item #4= 1st lien Item#3= 2nd lien (already subbed)

11. Modification verbiage In this example, we see additional verbiage under the lien. This refers to a modification that was done to this loan either reducing or increasing the lien amount

12. Assignment verbiage In this example, we see that the loan traded hands from one lender to another (called an assignment). The loan originated with MERS as nominee for Suntrust Mortgage, but through assignment is now held by Suntrust Mortgage, Inc.

13. If its not a title Most times we have a pretty Title Source title as listed in the examples above, but we do use other title companies so here are a few examples of what liens will look like on other titles… ATLA Titles: Liens will still be under Schedule B

14. Fidelity Title:

15. Texas Titles: The lone star state has to be different; Texas titles will show the lien information under Schedule C

16. Buffalo Titles:

17. Judgments and financing statements These are also considered liens and will show on title as… Financing Statement/UCC Statement: Another example:

18. UCC statements/judgments UCC statements need to be counted as liens and should also be listed in AMP under REO. This is unless there are notes stating that the liens will be paid off. Judgments: Effective This is an example of a judgment on title. The TSI tracking in AMP will let us know if this lien is to be paid off or if it will be subbed.

19. EFFECTIVE 4/23/13 Q: A: What should I do if I come across a judgment? Put in notes that we cannot sub a judgment and mark the sub tracking item “Problem Pending Review” and ALSO send an email to Sub UW Requests so that they can take a look and make the appropriate changes to the loan