How is the "Robo-Signer" Issue Affecting Title Insurance in MD, DC and VA?

Even those not in real estate are now familiar with the term "Robo-Signer" - a term describing a mortgage company employee who allegedly signed thousands of documents authorizing foreclosures across the country, without actually having personally reviewed the loan documents. If you're not familiar with the story, this is one of the earlier pieces which brought the matter to light.

What impact has this had on the market nationally?

The investigation has caused lenders such as JP Morgan Chase, Bank of America and GMAC to cease their foreclosure practices in a number of jurisdictions while these entities take inventory and review procedures relating to the processing of these types of transactions. In addition, Bank of America announced today that it is halting foreclosures in all 50 states due to concerns that this practice affects all foreclosures, not just judicial ones.

What is the status in MD, VA, and the District of Columbia?

As of the writing of this post, only Bank of America has an outright freeze on foreclosures in MD, VA and DC. These jurisdictions are not considered pure "judicial foreclosure" states, and therefore are not included in the list of 23 states that Ally/GMAC (among others) is halting foreclosures in.

How does this affect how we evidence or insure title?

At this time, whenever there is a foreclosure in the chain of title or we are passing title from a lender to a new buyer as a result of foreclosure, we carefully examine the title and if we see irregularities we consult with our underwriter before insuring. At least one of our underwriters has instructed us to consult with them before insuring a foreclosure from Ally/GMAC.

Please be advised that this is a very fluid and dynamic situation. As we receive more updates from either lenders/servicers, or our underwriters, we will keep you updated.

Any questions? Please call your Title Service Representative or email us at info[at]MASettlement[dot]com today!

Fraud Alert: Canadian Checks

It was reported as early as June of this year that some real estate agents were being approached by clients via email (and in many cases through Trulia) to facilitate the purchase of a home. The fact pattern went something like this:

"Buyer" contacts agent through Trulia's "Voices" channel, offering to purchase a certain house for $XXX,XXX.00. The individual is very clear about (1) being foreign (often he is an Asian individual living in Canada); and (2) having cash to purchase the property. He is particular about using Docusign, and once agreement is signed sends the checks (often written from a Canadian bank) for EMD + additional deposits to either brokerage or title company. The problem is that the checks they provide for closing funds are counterfeit. Shortly after the checks are received, the "buyer" cancels contract and demands the funds be wired back to them. If the scam is successful, the funds are wired back before it is determined the checks are counterfeit.

Some online examples of this fraud can be found here, here and here.

Note that a Maryland agent has been approached with a similar offer as recently as today. Should you be approached by someone with a similar fact pattern, tread lightly. Feel free to contact us, and we'll go through the specifics with our underwriting counsel. Under no circumstances should you wire funds out of any accounts until you are 100% sure they are in your account and under your control.

ALERT: Home-Buyer Tax Credit Extension Passed in Senate

The Senate voted 60-37 today to extend the closing deadline of the home-buyer tax credit from June 30th to September 30th. The bill still needs passage by both chambers of Congress, but if successful will allow home buyers who signed a contract by April 30th to still get the full benefits of the home-buyer tax credit provided they settle by September 30th, 2010. This will be particularly helpful for those buyers who entered into short sale or REO (foreclosed) properties in the waning days of the 4/30 signing deadline, as many of those transactions will not be ready to settle by the end of this month.

The full MarketWatch article can be read here.

UPDATE: This is not effective law, as it has neither passed the House nor been signed by the President. See here for most current status.

Northern Virginia Alert: Fairfax County Courthouse to close at 1:00 PM Tomorrow (3/26)

The Fairfax County (VA) Courthouse is closing at 1:00pm tomorrow (March 26th) to update their computer systems. Recorders are likely going to get in line at the courthouse around 10:30 or 11:00AM, so make sure you or your title company gets documents to them as early as possible today or tomorrow if you want them recorded tomorrow.

Weather Update: Delayed Opening for Thursday, February 11th

Due to the anticipated road conditions Thursday morning, our Hunt Valley office is planning a delayed opening at 12:00 PM. We will monitor traffic conditions in the morning, and will update accordingly if anything changes.

Should you need any assistance while the office is closed, please call your Title Service Rep (TSR) on his or her cell phone, Dan Coleman at 410-382-7491 or Derek Massey at 443-541-1199.

Weather Update: Wednesday, February 10th

Due to the already challenging road conditions coupled with the high probably of more snow and blizzard conditions today, the Mid-Atlantic Settlement Services offices will be closed today, Wednesday, February 10th. We will reopen at 8:30AM tomorrow morning.

We apologize for any inconvenience caused. Should you need any assistance throughout the day, please call your Title Service Rep (TSR) on his or her cell phone, Dan Coleman at 410-382-7491 or Derek Massey at 443-541-1199.

Thank you, and please be safe!

Early Closure Due to Snowstorm

Due to today's impending snow storm, we will be closing at 12:30. We hope all of our customers have a safe and fun Super Bowl® weekend!


Flickr photo by distar97

Happy Holidays!

From everyone at Mid-Atlantic Settlement Services, we wish you Happy Holidays!

We appreciate the support, friendship and business from all of our brokers, agents, loan officers, buyers and sellers.

Please note that we will be closed on December 24th, and will reopen on Monday, December 28th. Should you need any help during this time, please send an email to info[at]MASettlement[dot]com and we will respond as soon as possible.

Flickr photo by di_the_huntress

Company Holiday Party Today: Front Desk Switchboard Turned Off at 3PM

Just a friendly reminder that today (12/9) is Mid-Atlantic Settlement Service's employee holiday party. At 3PM this afternoon, our front desk switchboard will be closed down. Customers can still access the directory via the Operations Center 800 number, and can call direct dial numbers, but our team players will be having some good holiday fun. Should you absolutely need to reach us today after 3PM, feel free to call my line (443-541-1199) and I if I don't get your call right away I will get the message to the appropriate team player to assist you.


HAPPY HOLIDAYS FROM ALL OF US TO ALL OF YOU!

Photo by Muffet on Flickr

We Have a New Banking Relationship in Maryland

Effective today, July 1st, new title orders taken will be disbursed out of our new M&T Bank account for Maryland properties only (VA and DC files not affected). After an exhaustive search and interview process, we chose M&T based on their ability to handle trust accounts, their history of delivering top-notch customer service, their geographic spread across Maryland, and their commitment to the Maryland and Greater Baltimore communities.

Existing files already opened will be processed and disbursed from the Bank of America account we are currently utilizing. Nothing will change for those files. This change will only effect files opened today or later.

This move should be seamless for our customers through the transition. Should a wire mistakenly be sent to the wrong account during this transition period, we have internal mechanisms in place to get the funds into the proper account. Our customers need not do anything differently, except that lenders will need to pay close attention to the wiring instructions that accompany each commitment.

Should any questions arise, please feel free to call your TSR or send an email to info[at]MASettlement[dot]com.

Hunt Valley Phones are Back Up

Our phone lines are back up. Thank you for your patience!

Hunt Valley Phones Down

Our phone lines for our Hunt Valley headquarters are currently down. Computer and fax communication is unaffected, you can still email and fax us.

Should you need to get a hold of us for a pending file, please call your TSR, Dan Coleman (410-382-7491) or Harry Yazbek (703-946-4470).

I will continue to update people here as to service recovery.