Saturday, May 23, 2009

Release Red Flags

We recently received a communication from First American Title adding a few new procedures to our title search and review checklist. These changes center around a new and disturbing trend of forged and suspicious satisfactions.

These procedure changes call us to:

1. More closely scrutinize satisfactions/releases recorded 24-months prior to the search;

2. Red flag any releases not recorded immediately with or shortly after documents evidencing a sale or new mortgage;

3. Verify MERS certificates of satisfaction at;

4. More closely scrutinize assignments prior to a questionable certificate of satisfaction; and

5. Place questionable satisfactions on the Schedule B-2 on the commitment with a corresponding Schedule B-1 requirement for verification of the validity of the satisfaction.

Why am I telling you this, and how does this affect you as the real estate agent, broker or loan officer?

Your title company will likely be taking these extra precautions, and questioning satisfactions/releases more closely. Should there be a delay because of this issue, or should the title company be seeking additional confirmation from a lender, now you will have an explanation as to why.