Florida Legal Eagle Newsletter

Volume IV April/May/June 2016

An Underwriting Newsletter by First American Title

HIGHLIGHTS OF “Hi-Li”s FinCEN

GEOGRAPHIC TARGETING ORDER CLOSING CORNER

THE VALUE OF A PHONE CALL RUMOR OR REALITY?

CYBER LIABILITY INSURANCE GET TO KNOW

MICHELE GREEN SVP, SENIOR BUSINESS COUNSEL-AGENCY DIVISION

www.firstam.com

IN THIS ISSUE: PAGE

FROM THE EDITOR’S DESK LEN PRESCOTT VP, Florida State Counsel

Insurance underwriters are trained to assess risk and charge accordingly. Did you know that the term underwriting is commonly believed to have originated from the tradition at Lloyd’s® of London, an important historical insurer, when providing insurance for ocean-going ships? Lloyd’s would agree to take responsibility for certain inherent risks in return for a set premium or, perhaps, a stake in the profit as well. Lloyd’s would then add their signatures under a list of the risks they were willing to assume and the signature of the shipper, hence the term “underwriter.” I love this visual of us signing our names next to the risk we are willing to assume. In fact, you will see in the article Highlights of “Hi-Li”s that this original practice is not very different from our practice today of documenting the risks and approval for high-risk transactions. One of the core functions of title underwriters is to use their knowledge of the title policy and Florida law, coupled with a deep understanding of the transaction and desires of the parties, to quickly spot issues and ultimately fashion coverage which protects all stakeholders. The role of the underwriter is at the core of First American Title and its services. We take the #1 Rule of Underwriting -- to know all aspects of the transaction, identifying risks, acceptable solutions and potential impacts -- very seriously. We stand by our commitments in every transaction we insure, service we provide, and agreement we make. The next time you have a complex or high-risk deal, you will find us ready to provide the assistance you need to move forward and the security of knowing we will proudly sign our names under yours. All the Best,

Len Prescott

TITLE

Executive Spotlight: Michele Green

Coffee and Espresso with the Underwriter Webinar Schedule

The Property Professor

Underwriting Q&A: Marriage is What Brings Us Together Today: Property Interests of Married Individuals

Closing Corner: The Value of a Phone Call or Face-to-Face Meeting

FinCEN Geographic Targeting Orders: Which Stage of Grief Are You In?

Highlights of “Hi-Li”s What You Need to Know About Over-the-Limit and Other High Risk Transactions

Underwriting Spotlight: Alan McCall

Rumor or Reality? Cyber Liability Insurance

Case Law Updates / Legal and Industry Updates

Central Florida Underwriting Team

We Want Your Insight! Your insight is valued by the Florida Underwriting Team! If you would like to contribute to The Florida Legal Eagle newsletter, or if you have any comments or suggestions for topics that you would like to see in our newsletter, please submit your ideas to JoJo Grove, Underwriting Associate, at Cgrove@firstam.com. We look forward to your input!

First American Title | The Florida Legal Eagle 2233 Lee Road, Suite 202, Winter Park, FL 32789 407.691.5295 EXECUTIVE EDITORS: Len Prescott Alan McCall Trish Ladan Chip Koval

EDITORS: JoJo Grove

The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers. First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. ©2016 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

t h g i l t o p e v i t u Exec S M ichele Green SVP, SENIOR BUSINESS COUNSEL-AGENCY DIVISION

WHAT WAS YOUR FIRST JOB IN THE TITLE INSURANCE INDUSTRY?

WHAT ATTRIBUTES DO YOU THINK AN EFFECTIVE UNDERWRITER SHOULD POSSESS?

or my entire legal career, nearly 26 years, I have been F associated with this industry; first as an agent and outside counsel of First American Title, then as an employee. I officially joined First American Title in 1998 as State Counsel for the great state of Rhode Island. In those days, in a small state, State Counsel meant you wore a lot of hats; claims counsel, underwriting counsel, agency counsel, regulatory counsel – you name it, I did it (mostly because there was no one else to do it!). Those years were invaluable to learning about the agency business and everything that goes into being profitable or not.

There is no one-size-fits-all recipe, for sure. In my experience, effective and successful underwriters run the gamut of attributes and personality traits. Without fail, though, all truly successful underwriters: - are knowledgeable; - yet know what they do NOT know; - are great communicators; and - understand the value/role of underwriting in why agents choose First American Title over our competitors.

DO YOU HAVE ANY INTERESTS OR HOBBIES OUTSIDE OF WORK?

DID YOU EXPERIENCE ANY MAJOR SETBACKS DURING YOUR PATH TO YOUR CURRENT POSITION?

Not particularly. Each role I’ve taken seemed to logically flow from the last. After 10 years in Rhode Island, I was asked to take on the role of Regional Claims Counsel for several years. From there, I moved to the Corporate Underwriting Department. In those few years at Corporate, I learned more about our Company and our industry, and in particular the underwriting function, than in the prior 13 years combined. From there, I took on my current role as Senior Business Counsel for the Agency Division, which has been tremendously gratifying and exciting for me. I am privileged to support our Agency underwriting and business leaders in helping our agents grow their businesses profitably.

I am married with three active daughters, three rescue dogs and a busy job, but beyond that, I play tennis nearly every day (either very early or very late!) and compete regularly in leagues and tournaments. Having that physical stress relief and competition on a regular basis has become an important part of my life.

WHAT ADVICE WOULD YOU GIVE TO OUR FLORIDA UNDERWRITERS TO CONTINUE FIRST AMERICAN’S GROWTH IN THE MARKET?

Our Florida underwriting team is already top-notch and true leaders in the First American Title community. My best advice would be to keep doing what they’re doing. Stay close to our agent customers and really understand why they choose First American Title when they do - both the said and the unsaid. Everything else flows from that principle.

Our offices will be closed

MONDAY, MAY 30TH

in observance of Memorial Day. First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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&Espresso

with the Underwriter

| 2016 WEBINAR SERIES

Recorded Webinars On Demand:

Upcoming Webinars:

DRILLING DOWN THE UNDERWRITING ON FLORIDA OIL, GAS & MINERAL RIGHTS CLE Credit available Len Prescott, VP, Florida State Counsel » Access recording at: https://attendee.gotowebinar.com/ register/1456725734752619522

NOTARIES, ACKNOWLEDGMENTS AND JURATS Wednesday, June 8th | 9:30am – 10:30am Alan McCall, VP, Southeast Region Underwriting Counsel

FIRPTA - IMPORTANT CHANGES FOR 2016 Wade Wallace, Underwriting Counsel » Access recording at: https://attendee.gotowebinar.com/ register/4278747672611558401 FinCEN – GEOGRAPHIC TARGETING ORDER FOR MIAMI-DADE, COUNTY AND COMPLIANCE Len Prescott, VP, Florida State Counsel » Access recording at: https://attendee.gotowebinar.com/ recording/7643452265775496961

BANKRUPTCY CLE Credit available Wednesday, July 13th | 9:30am – 10:30am Pat Newton, Senior Underwriting Counsel MOBILE HOMES Wednesday, August 10 th | 9:30am – 10:30am Greg Blomeley, Underwriter

Following each webinar, a recorded copy will be available. Links to the presentations will be provided at a later date. Invitation and registration information coming soon!

UNDERWRITING COMMUNICATIONS – A REVIEW OF RECENT HOT TOPICS Trish Ladan, Senior Underwriting Counsel, Florida Associate State Counsel » Access recording at: https://attendee.gotowebinar.com/ recording/899572408619882500 EASEMENTS-INSURING AND EXCEPTING CLE Credit available Jennifer Bloodworth, Senior Underwriting Counsel » Access recording at: https://attendee.gotowebinar.com/ recording/4430140529911198723 THE VALUE OF OWNER’S TITLE INSURANCE Barbara Burke, Ph.D., Esquire, Legal Education Specialist » Access recording at: https://attendee.gotowebinar.com/ register/8099534088395899908

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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THE

PROPERTY

PROFESSOR By: Alan McCall VP, Southeast Region Underwriting Counsel, Daytona Beach, FL

Dear Property Professor,

Dear Confident,

I have a closing coming up … later today, in fact. So I wanted to rush this letter so that you’d have time to give me a great answer. I hope you are free today.

Although I would never want bad title to stand in the way of a good closing, this one needs work. When homestead validly passes to a spouse or to heirs (either through a will or by intestacy), it is deemed to be “protected” from the creditors of the decedent. Protected homestead is not an asset of the estate. See § 731.201(33), Fla. Stat. Therefore, the Personal Representative cannot transfer title. Likewise, the court order is ineffective with or without the consent of the heirs. Since title passed to the children, each one of them must execute a deed (or may join in one or more deeds).

A widow and mother of seventeen kids died at 96 owning her home in Two Egg, Florida. Luckily, she had a will but no spouse (not so lucky, there, I guess). She left everything to her kids. They live “hither and yon and one in Saskatchewan” (if you know what I mean). We’d have to postpone the closing to try to get deeds from all of them and the price is only $41,500 (including the trailer). But, this is my best real estate agent, so I want to make everyone happy. We got an Order Determining Homestead, but just to be safe, I required them to get an Order authorizing the Personal Representative (PR) to sell the property with written consents from all the kids. Since there was no spouse or minor child, I told the real estate agent (three weeks ago) that we could just use a deed from the PR. He’s a “local.” Could you confirm this is ok? The buyer’s rate lock expires on Wednesday.

– Confident in Cocoa

Since title acquired by the heirs is not protected against their own creditors, judgments and other liens against them may attach to each child’s share. A child’s spouse may have to join in the deed if the heir is living on the property. Additional deeds may be required from any heir of a child who may have died (please check with your title underwriter for more details) after probate of those estates. Finally, there may be multiple layers of federal and state estate taxes to deal with as well. So, you have your work cut out for you. While “Closing won’t be Tuesday,” as the saying goes, I am really glad that I could help you set a course to an eventual closing that will be as good and insurable as the title.

– Property Professor

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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Underwriting Q&A

Marriage is What Brings Us Together Today: Property Interests of Married Individuals By: JoJo Grove Associate Underwriter, Gainesville, FL

A DEED PURPORTS TO CONVEY PROPERTY TO A AND B, A MARRIED COUPLE, AND C, A SINGLE PERSON. WHAT IS THE EFFECT OF THIS DEED WITHOUT ANY STATEMENT ABOUT THE SHARES THAT EACH GRANTEE WILL TAKE?

A AND B ARE MARRIED, BUT TITLE TO HOMESTEAD PROPERTY IS HELD SOLELY BY A. IF A WANTS TO DEED THE PROPERTY TO A AND B AS TENANTS BY THE ENTIRETY, DOES B NEED TO JOIN IN THE CONVEYANCE?

If the deed does not specify the percentages of each party’s interest, the courts in Florida have ruled that a married couple takes only one share, not two shares, as the spouses are considered to be a single entity. The Florida Supreme Court in Ohio Butterine Co. v. Hargrave, 84 So. 376 (Fla. 1920), adhered to the common law principle that married partners are considered one person and they take title as such unless the conveyance expresses a contrary intent. The First District Court of Appeals addressed the issue of property that was conveyed to a husband and wife and a third party, with no language specifying the grantees’ respective shares. While the trial court held that each party had a ¹/³ interest in a tenancy in common, the district court overruled and held that the married couple and the third party each held a ½ interest as tenants in common, and the married couples’ interest was held as a tenancy by the entirety. Aderhold v. Aderhold, 983 So. 2d 43 (Fla 1st DCA 2008).

No, B is not required to join in a deed that conveys the homestead property to A and B in a tenancy by the entirety. The Florida Constitution, Article X, Section 4(c) states in part, “…The owner of homestead real estate, joined by the spouse if married, may alienate the homestead by mortgage, sale or gift and, if married, may by deed transfer the title to an estate by the entirety with the spouse…” Section 689.11(1), Fla. Stat., also authorizes interspousal transfer of homestead property without joinder of the grantee spouse. Additionally, in Jameson v. Jameson, 387 So. 2d 351 (Fla. 1980), the Florida Supreme Court ruled that homestead property owned solely by one spouse may be deeded to both spouses as tenants by the entirety without joinder of the non-owner spouse.

A MORTGAGE WAS GIVEN TO A MARRIED COUPLE AND THEREAFTER ONE SPOUSE DIED AND THE SURVIVING SPOUSE SATISFIED THE MORTGAGE. IS THIS A VALID SATISFACTION?

It is important to remember that this is a rule of construction only used when the interests conveyed by the deed are unclear. Evidence of a contrary intention can defeat the rule. This problem can easily be avoided by specifically stating in the deed the percentage of the property being conveyed to each party and the type of tenancy in which each will hold title.

If the spouses are Florida residents: Unless the mortgage states a contrary intent, a tenancy by the entirety was created in the spouses and when one spouse died, the entire ownership of the mortgage became vested in the surviving spouse. Thus, as sole owner of the mortgage, the surviving spouse alone has the right and power to satisfy it. See Section 689.115, Fla. Stat. The underwriting requirements in this case are the same as those applicable to tenancies by the entirety in real property. Therefore, proof of the death of one spouse is required, and it is also advisable to obtain an affidavit of continuous marriage.

A SAME-SEX MARRIED COUPLE TOOK TITLE TO A PROPERTY IN FLORIDA BY A DEED RECORDED PRIOR TO JULY 15, 2015. THE DEED DID NOT EXPRESS AN INTENT TO TAKE TITLE OTHER THAN AS TENANTS BY THE ENTIRETY. NOW ONE SPOUSE HAS DIED AND THE SURVIVING SPOUSE WANTS TO SELL THE PROPERTY. WILL FIRST AMERICAN TITLE INSURE THIS TRANSACTION? The United States Supreme Court’s decision in Obergefell v. Hodges, 135 S. Ct. 2584 (2015), legalized same-sex marriage in all jurisdictions and also prevents states from refusing to recognize a same-sex marriage legally performed in another state. While the Court did not specify whether its ruling would apply retroactively, First American Title currently will insure a sale by the surviving spouse of a same-sex couple who took title prior to the court’s ruling if the following conditions are met: 1) There is proof that the couple was lawfully married when they took title to the property; 2) There is no evidence of probate proceedings in the county where the property is located in which title is claimed by the heirs or devisees of the decedent; and 3) No other litigation involving a claim against the title of the survivor is pending.

If the spouses are not Florida residents: Unless the mortgage states a contrary intent, the default rules of the state in which the spouses reside control the disposition of the mortgage interest upon the death of one spouse. See In re Estate of Siegel, 350 So. 2d 89 (Fla. 4th DCA 1977). If their state of domicile recognizes tenancy by the entirety as the default tenancy for married couples, then the analysis is the same as under Florida law. However, many states do not recognize tenancy by the entirety and instead declare a tenancy in common as the default tenancy for married couples. If this is the case, then the decedent spouse’s half-interest in the mortgage must be probated to obtain a satisfaction.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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Closing Corner:

The Value of a Phone Call or Face-to-Face Meeting By: Stefanie Lollis Escrow Branch Manager, Winter Park, FL

Recently, while attending a meeting with my fellow colleagues, the leader of the meeting pointed out a few reasons why in-person meetings are so valuable. Later the same day, I had the pleasure of watching an internal company video where another colleague asked the audience to “pick up the phone, not the file.” These two instances resonated with me, and for days, I could not stop thinking of the importance of faceto-face and phone interactions to business in general. We are so accustomed to communicating by email, online meeting or conference call that it must impact our business in some way. Does it save time and money? In some cases, but there are other times when it does not. Heavy reliance on electronic communication may be impacting our business or relationships by severely limiting the personal interaction. I resolved to spend more time face-to-face with people who are important to the success of our internal and external business. Can I tell a difference? Yes! The reaction I feel when I sit down and visit with people in person is a pleasant surprise. The personal conversations with my internal and external customers are having an immediate impact on the relationships I have and they are so important to my company and my professional life. I have found there are 3 ways to make the most of your in-person meetings: MAKE AN IMPRESSION I bought a new handbag. It’s faux ostrich and pink. Really pink. I’ve received compliments on it from every woman (and one man) I’ve met with in the past two weeks.I worried it would be seen as unprofessional, but the style and color were bold, “springy” and made me smile. Who knew my $60 knock-off handbag would be such a great conversation starter and deliver such a strong personal statement? You can’t do that over Skype! It is much easier to make a good, lasting impression in person than through online communication.

READ THE BODY LANGUAGE Facial expressions often communicate so much more than words. We frequently host coffee events, inviting a handful of independent consultants to our office to help us better understand the nuances of each professional in a relaxed setting. We need to know what isn’t on the résumé that makes each person unique. In their eyes and in their body language, we can see confidence, empathy, fear, friendliness or sincerity. That ability to “read” a person beyond their keywords is a huge advantage.

LEARN WHERE THE ACTION IS I learn so much about my clients when I visit their offices. Is the lobby bright and inviting with recent accolades proudly displayed? Do employees seem happy? Does the client offer free juice and healthy snacks in the cafeteria? Are there new Herman Miller chairs in the conference room? Is everyone moving in slow motion, or is there a palpable buzz? The environment speaks volumes and may factor into your business proposal or plan. By understanding company dynamics, we can communicate more effectively to meet our clients’ needs.

5 REASONS ONE-ON-ONE PHONE CALLS AND IN-PERSON MEETINGS CAN MAKE A DIFFERENCE: INFLUENCE Two-way communication can often seal a deal. Influencing a customer or client is much more difficult by email or during an online meeting or conference call.

RELATIONSHIPS Seldom are they built through emails or online meetings. The added touch of a call or faceto-face meeting may set you apart in the client’s mind and strengthen your relationship.

INTIMACY A phone conversation or face-to-face meeting tends to be more intimate. While emails and online meetings are quick and easy, they also might be addressed to or attended by multiple parties, which almost always makes them seem less personal.

PRODUCTIVITY Reading and replying to an email can actually be more time consuming and less productive than making a quick phone call. A phone call may often result in a more immediate and complete answer to an issue.

TONE It is very difficult to convey tone online; there is always the danger of being misunderstood in an innocently intended email, which can turn into a potential heated exchange. The tone conveyed in a phone call or in person tends to resolve matters amicably.

I love new technologies that allow me to communicate with others more freely and quickly. But, in business, I try to remember that customers want to work with someone they can relate to, not just buy from. Whether you are motivating a sales force, building a cohesive team, increasing customer and employee loyalty, launching a product, training, strategizing, or networking … engaging experiences which capitalize on the need for human connections and the energy generated when people come together are when magic happens. Resolve to make more one-on-one phone calls and schedule more face-to-face meetings. You won’t regret doing so.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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FinCEN

GEOGRAPHIC TARGETING ORDERS Which Stage of Grief Are You In? By: Leonard Prescott VP, Florida State Counsel | FLTA Board Member and Chair of FLTA Forms Committee

The seven emotional stages of grief are commonly understood to be: shock or disbelief, denial, bargaining, guilt, anger, depression, and finally, acceptance and hope. Do you recall which stage you were in when you first heard the news in early January that the United States Department of the Treasury’s Financial Crimes Enforcement Network (FinCEN) had issued a Geographic Targeting Order (GTO) creating new reporting requirements for certain cash, residential real estate transactions in Miami-Dade County? Which stage are you in now? I am not being flippant by asking this question. After all, when this news was announced, luxury home developers, real estate brokers, attorneys, title companies, and pretty much anyone involved in real estate settlement services in Miami were already confronted with a number of challenging issues. Slumping prices and slowing demand were driven in Miami by many factors. The strong dollar and the drop in the world equity markets was turning away foreign buyers, and prices were depressed by increased inventory with as many as 36,000 new condo units in the construction pipeline for Miami-Dade County. News that the United States Department of Treasury had decided to start scrutinizing all cash buyers was met with some disbelief. Many of us were still in the midst of working through the new TRID Rule implementation required by the CFPB and the anticipated changes to FIRPTA in February. We were just starting to really look forward to the next cash residential real estate transaction … and now this! During those first few weeks, many conversations took place among real estate attorneys, developers, and title agents that demonstrated disbelief, denial, and even anger. What does title insurance have to do with this new regulatory enforcement anyway? What about privacy and attorney-client privilege? We had to learn that the information necessary to comply with a GTO cannot be withheld from the government based upon a claim of privilege. Why us? Why only here in Miami-Dade and Manhattan? And why now? Why exclude personal and business checks and wires from the GTO? It seems that we are going to have more work and potential liability, but we aren’t even going to catch the bad guys! Those of us that progressed to the acceptance phase were doing so with a collective shrug rather than hope. “The GTO is going to have very little impact on us because we only accept wires.” The bottom line is that none of us should have been surprised. Did you know that the Currency and Foreign Transactions Reporting Act of 1970, frequently referred to as the Bank Secrecy Act (BSA), includes “persons involved in real estate closings and settlements” within the definition of a financial

agency which is subject to the reporting requirements? Or that FinCEN was created in 1990 as a Bureau within the US Treasury Department charged with collecting and analyzing financial transaction information in support of federal, state, local and international enforcement of anti-money laundering (AML) laws? FinCEN’s role was fundamentally changed after the attacks of 9/11, with the passage of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act” (USA Patriot Act). [And you thought the title industry loved its acronyms.] It was at this time we realized that AML was not just about drugs, fraud, and crime, but also about terrorism, national defense, and security. Congress gave a clear mandate through Title III of the Patriot Act to deter the ability of international criminals and terrorists to fund their activities with money laundered through banks and other assets such as real estate. Because this was such a large undertaking, the Treasury Department provided a “temporary exemption” from Title III to “persons involved in real estate closings and settlements.” The Treasury Department has been studying what AML program requirements would be put into effect for our industry ever since. Did you know that imposing AML requirements upon attorneys and real estate closing and settlement agents has been the international standard for some time? This makes sense because cash is the dominant method of purchasing real estate in most foreign jurisdictions. But in the United States (thanks in no small part to the benefits of our Title Insurance Industry), seventy-eight percent (78%) of property transactions involve a mortgage. This unique aspect of American real estate allowed FinCEN to direct its regulatory focus toward bank financing to address its Congressional mandate. But with these GTOs, FinCEN is signaling it is now ready to direct its attention once again to “persons involved in real estate closings and settlements.” Consider this statement from the FinCEN January 13, 2016, Press Release:

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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Myth Busters GEOGRAPHIC TARGETING ORDERS TRID FinCEN What You Need to Know When Sharing Closing Documents

Which Stage of Grief Are You In?

With these GTOs, FinCEN is proceeding with its risk-based approach to combating money laundering in the real estate sector. Having prioritized anti-money laundering protections on real estate transactions involving lending, FinCEN’s remaining concern is with the money laundering vulnerabilities associated with all-cash real estate transactions. This includes transactions in which individuals use shell companies to purchase high-value residential real estate, primarily in certain large U.S. cities. “We are seeking to understand the risk that corrupt foreign officials, or transnational criminals, may be using premium U.S. real estate to secretly invest millions in dirty money,” said FinCEN Director Jennifer Shasky Calvery. “Over the years, our rules have evolved to make the standard

mortgage market more transparent and less hospitable to fraud and money laundering. But cash purchases present a more complex gap that we seek to address. These GTOs will produce valuable data that will assist law enforcement and inform our broader efforts to combat money laundering in the real estate sector.” In other words, these GTOs are a pilot program - an information collecting tool that FinCEN hopes will identify what regulatory AML program requirements should be placed upon our industry. There are influential people arguing that real estate closing and settlement agents should be covered with regulatory AML program requirements whether the transaction involves institutional financing or not. For those of you that have only shrugged acceptance because the GTO doesn’t include wires or checks, or institutional financing, do you still believe that nothing more will happen?

SUNDAY, JUNE 19TH

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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HIGHLIGHTS OF “Hi-Li”s What You Need to Know About Over-the-Limit and Other High Risk Transactions By: The Florida Underwriting Team

WHAT ARE “Hi-Li” TRANSACTIONS AND WHY DO I NEED SPECIFIC “Hi-Li APPROVAL”? As you know, the title industry loves its acronyms! In our world, “Hi-Li” is short for any transaction that is considered high liability or high risk and requires additional, specific underwriting approval. Most commonly, a transaction is considered high liability because the amount of insurance requested is above an agent’s contractually authorized dollar limit. However, Hi-Li transactions are also those transactions that include extra-hazardous or special risks regardless of policy amount such as mechanics’ liens, condominium terminations, pending litigation, creditor’s rights issues, golf course conversions, overburdened easements, or the acceptance of secured and unsecured indemnities. When presented with a transaction that requires Hi-Li approval, an agent must protect themselves by contacting an underwriter and getting specific underwriting approval in writing. All of us should be keenly aware that every agency agreement with their underwriter limits the authority of the agent to issue policies above a given amount without approval of the underwriter. Why is there an authorized dollar limitation? After all, the limitation is not intended to preclude the agent from issuing policies in greater amounts. And, the issuance of policies for a lesser amount still requires the same application of skill, care, professionalism and adherence to company guidelines as do larger policies. The short answer is that transactions over a certain amount necessitate stricter scrutiny to protect both the agent and the underwriter from unintended liability. An agent who exceeds this authority risks exposing themselves or the agency to liability in excess of the contractual agreement and the standard of care inherent in all agency relationships. In addition to being an essential requirement for limiting an agent’s liability, our Hi-Li procedures also provide a terrific opportunity to obtain expert guidance in sorting through high risk or difficult title issues, allowing agents to provide the best service to their clients and customers. After all, Hi-Li transactions are often complex and typically demand additional requirements, which can and will change as facts and circumstances change. The underwriters at First American are particularly trained and highly familiar with the issues and risk involved in Hi-Li commercial and residential transactions. We are eager to work with you to mitigate risks, comply with underwriting requirements and to eliminate surprises that can cause last minute closing delays! Because complying with some of the necessary requirements for Hi-Li transactions can be time-consuming, it is important to request Hi-Li Approval as early in the transaction as possible! And, whenever a high liability or high risk transaction is identified, the agent must obtain this additional, specific underwriting

approval for such transaction (“Hi-Li Approval”) prior to closing or issuing the policy. Evidence of this approval must be kept in the agent’s file. HOW DO YOU KNOW IF YOU NEED “Hi-Li” APPROVAL? Agency contracts with First American include the following key provisions: (1) limitations on the agent’s authority to issue policies above a given amount without First American’s prior approval, and (2) requirements that you comply with First American’s underwriting standards and guidelines, even when the policy amount is less than your authority limit. The failure to comply with either of these contract terms puts you at risk of exposing yourself or your agency to additional liability. Do you know your authorized limit? You may contact your underwriter or Agency Representative to discuss this information. In order to comply with the agency contract terms, you and your staff should not only be aware of your authority limit but also trained to spot the types of extra-hazardous or special risks that also trigger the requirement for Hi-Li Approval. Your staff should be trained on First American’s underwriting guidelines, policies and procedures and be familiar with our underwriting communications, including standards, advisories, and caveats, as well as manuals, presentations and other available training materials. Of course, you can always utilize our favorite training method by picking up the phone and calling your underwriter anytime there is something unusual about your transaction! HOW DO YOU SUBMIT A REQUEST FOR Hi-Li APPROVAL? Depending upon the specifics of your transaction, an email exchange between you and your underwriter may be all that is necessary. But for anything complex, First American has developed a standard High Liability Authorization Request form (Rev 3/13)1 (“Hi-Li Request Form”) that is a very useful tool for describing the necessary details of a transaction and the risk for which the approval is sought. The Hi-Li Request Form can be scanned and emailed to your Agency Representative or underwriter; or the Underwriting Request feature in AgentNet ® makes it easy to submit Over Underwriting Limit, Mechanics’ Lien Risk, and other unusual risks directly from AgentNet. While at first it may seem like mere “paper work,” the form is designed to properly document both the request and the permission to exceed the agent’s authority limit and/or insure a transaction that involves a high risk element. It also serves as the agent’s record of disclosing the risks inherent in the transaction and receiving specific permission to insure in light of those risks. This is the most current version of the form and has been modified to reflect the Florida promulgated Endorsements.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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HIGHLIGHTS OF “Hi-Li”s What You Need to Know About Over-the-Limit and Other High Risk Transactions

HOW QUICKLY WILL YOUR Hi-Li REQUEST BE APPROVED? Because each transaction is different, there can be no set time expectation for approval. If the amount of insurance requested is under twenty-five million dollars ($25,000,000.00) and the transaction is fairly straight-forward, with all relevant issues and documents provided, we would expect to deliver your Hi-Li approval within twenty-four hours from your request. However, if the transaction is complex or involves a higher risk element, the review and approval will take longer as we satisfy our internal underwriting controls and requirements for collaboration and approval between senior underwriting levels. For this reason, if you know that there are high or unusual risks, the best strategy for a quick approval is to involve your underwriter as soon as possible. HOW CAN YOU EXPEDITE REVIEW AND APPROVAL OF A Hi-Li REQUEST? The #1 rule of underwriting is to “know your deal.” As soon as you know that there are high liability or special risks involved, immediately contact your underwriter to help sort through the material issues and evaluate the necessary documentation. By framing the material underwriting issues with you early, our underwriters will help prevent the Hi-Li Approval from being conditioned upon surprise requirements that may delay closing. When submitting your Hi-Li requests, please include the following: 1. A copy of the commitment; 2. T he Hi-Li Request Form, ensuring that it is accurately and completely filled out. This includes the following, often overlooked, information: a. Summary of the transaction, which is your opportunity to provide the Who, What, When, Where, and Why snapshot of the transaction and, when necessary, a detailed explanation of what the material underwriting risks may be and how they are to be addressed. Your practical insight and preferences should inform the decisionmaking process to narrow the potential solutions to the most desirable and workable, allowing us to be your advocate and saving everyone time and effort; b. T he Summary portion of the form is also a good place to note whether a Closing Protection Letter (“CPL”) is requested, as this requires separate approval. If a CPL is needed, we need to quantify how much money will be handled at closing and understand the Agency’s escrow and security controls. c. E ndorsements or affirmative coverages requested for respective Owner’s and Loan policies; d. C heck any unusual risks, and then include a note about your desired outcome on what is being done to resolve the risks, e.g., terminating any open Notice(s) of Commencement.

3. P rior policies and any other relevant or useful documentation. Yes, we are the title company and can get our own access to the public records; but forwarding copies of the relevant documents lessens the potential for miscommunication or mistakes and speeds review and response time. Many times a quick review of documents will reveal the appropriate solution or will allow us to determine if the questions being asked include the only or most pressing issue that needs to be resolved. Perhaps the best way to expedite the Hi-Li process is to build a relationship with your underwriter in advance. In your relationship with the underwriter, as in any relationship, transparency is necessary to build trust and loyalty. Don’t cry wolf or fail to disclose that you have already discussed this same issue with another underwriter. Remember that we are constantly prioritizing and re-prioritizing our time in order to meet the demands of our position. A relationship based upon trust, honesty, and an authentic balance of give and take will guarantee that your underwriter is as responsive as possible. WHAT IF I OBTAINED Hi-Li APPROVAL BUT THE TRANSACTION HAS NOW CHANGED? If the transaction has changed in a material way since obtaining Hi-Li Approval, such as an increase to the insured amount or change to a different borrower entity, a revised Hi-Li Approval is required prior to closing the transaction. WHAT IF THE TRANSACTION HAS ALREADY CLOSED WITHOUT PRIOR Hi-Li APPROVAL? Hi-Li Approval is required prior to the transaction closing for the proper protection of both the agent and the underwriter. A Hi-Li transaction that has closed without prior approval presents the potential for liability to an agency that would not be present if the transaction had gone through the proper Hi-Li process. So what do you do if you find that a transaction has already closed without obtaining the required prior approval? You must alert your underwriter and submit the Hi-Li Request, commitment and supporting documentation as soon as possible. While not a substitute for the protection of prior approval, this post-closing Hi-Li Approval will confirm if the proper requirements were made and followed and provide an early opportunity for any needed curative work, the timing of which is often crucial to limiting liability and mitigating damages in the event of a claim. The bottom line on the Hi-Li Approval process is that we operate as a team - empowered, accountable and respectful of each other - and mindful of our shared mission to protect all stakeholders and close high liability and high risk transactions as smoothly as possible. Thank you, as always, for your consideration and commitment.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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Underwriting Spotlight:

Alan McCall VP, Southeast Region Underwriting Counsel, Daytona Beach, FL Q

I N WHAT AREA OF LAW DID YOU PRACTICE PRIOR TO COMING TO FIRST AMERICAN TITLE?

After law school at the University of Florida and passing the Florida Bar, I took the advice of a classmate and headed to the DC area to work for Chicago Title in Arlington, Virginia. I passed the Virginia Bar. For two years, I worked as Virginia State Underwriting Counsel and as the Claims Counsel for the Mid-Atlantic States. Then, bingo! I found a “good” government job in the US Department of Justice where I labored in the Title Section of the Lands Division which handled condemnation and other cases across the United States. At the time, there were only two of us in the Title Section. This meant that in order for any US agency to acquire any interest in land, title had to be reviewed and approved by me. I was 28 years old. I have many interesting stories to tell about my time in government, but life is short.

Not many people know that during college, I had a job playing solo acoustic guitar and harmonica, and also singing at a pizza restaurant from 9pm to 1am every Thursday. They only had one PA system for both the ordering system and the stage. So whenever an order was ready for pickup, the announcement would cut in while I was singing, wherever I was in the song. Learning to adapt suddenly became very important. Often, folks in the audience asked to sit in and I typically refused their request. One night, I allowed a kid to play some tunes. He kept coming back, night after night, to play the same three or four songs. Finally, he insisted that I go with him to Jacksonville to see his brother in a band that he said “was about to hit the big time” (I thought, who isn’t?). He said the band was from California (who wasn’t?) and he wanted to go backstage and play with the members of the band during rehearsal and I could get to know them. I finally deferred using the excuse that I had to study. Then I asked, “What’s the name of the band?” He said, “The Eagles.” Turns out his brother was Bernie Leadon who really was in a band about to make it big. His little brother, Tommy, the kid who only knew three songs, had just left Tom Petty’s well-known Gainesville band, Mudcrutch. By then, Tommy Leadon was living in LA and doing some producing while trying to talk Tom Petty and the rest of the band into coming to the West Coast. Eventually, they did. They changed their name to the Heartbreakers and both they and the Eagles are now in the Rock and Roll Hall of Fame. As for me, I get nostalgic whenever I smell fresh baked pizza or hear Tequila Sunrise on the radio. And I can still hear a small voice in my head saying, “Number 23, your Stromboli is ready for pickup.”

Soon, I left the bureaucracy to go back into the title insurance business. I was transferred to Atlanta where I was a regional counsel for the Southeastern states. I was traded to South Florida for two employees who wanted to move to Atlanta (and a player to be named later). In 1995, I became state counsel for Commonwealth in Orlando where I had grown up and gone to elementary and high school. In 2011, I moved to Daytona Beach about five miles from where I used to live when I attended Seabreeze Junior High School. This is what I mean when I tell folks that “I haven’t got very far in life.”

Q A

WHAT MADE YOU WANT TO WORK IN THE TITLE INSURANCE INDUSTRY? I wanted to work in the title industry because I hated the shoe business. When I graduated from college, there was a recession going on and all I could find to tide me over until the start of law school was a management position at Butler Shoes in downtown Orlando. I once led the Southeast in the sales of accessories, including purses, polish and potpourri. The commissions were outrageously low, but the sales experience has lasted a lifetime. A customer told me about an opening at the Fund Headquarters on Gore Street in Orlando. Once I verified that I could sit in a chair all day, while drawing legal descriptions using skills I had learned in 9th grade geometry, I was sold. The pay was awful, but thankfully, law school awaited.

Q A

WHAT BROUGHT YOU TO FIRST AMERICAN TITLE?

TELL US ABOUT THE EMPLOYEE CULTURE IN THE DAYTONA BEACH OFFICE.

I work out of a remote office in Daytona Beach. Just me and Wilson, a volleyball that was a gift from an old office mate in Winter Park. He was concerned that I would go stir crazy with no one to talk to. Wilson has traveled with me to Daytona and we still observe the tradition of casual Fridays.

John LaJoie, legal council for Florida at the time, asked me to come to First American Title in 2001, and I am I glad he did. I had just experienced my 5th merger and consolidation in the title business when Chicago Title was acquired by Fidelity National, a company that had once been an agent for Chicago Title. I like to say, “I love a good merger,” but, I don’t really mean it. The Southeast Region director also convinced me that coming aboard would be a good move since First American Title was not looking to merge with anyone. I am thankful the opportunity was brought to me at just the right time. I still love working here.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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Rumor or Reality?

Cyber Liability Insurance

By: Barbara Burke and the SE Region – Agency Division Education Team

IS CYBER SECURITY PART OF THE ALTA BEST PRACTICES?

The ALTA Best Practices do require cyber security. Policies and procedures designed to protect consumers’ Nonpublic Personal Information (NPI) from unauthorized access through a company’s computer network are required by ALTA Best Practice #3 (see also Assessment Procedure 3.10). Cyber security also includes policies and procedures implemented to prevent fraudulent transfers or other losses of funds held by settlement agents.

A LENDER WANTS TO KNOW IF WE HAVE CYBER LIABILITY INSURANCE COVERAGE WITH SPECIFIC COVERAGE FOR NOTIFICATION TO ITS CUSTOMERS AND COVERAGE OF THE EXPENSES FOR THEIR CREDIT MONITORING. ANY IDEA WHAT THIS IS ALL ABOUT??

Lenders may require settlement agents to have both cyber security procedures and cyber liability insurance to provide necessary services and resources in case the security procedures don’t work. What is cyber liability insurance? As a teaser to read the rest of this article, you’ll discover what I found out about the overlap and gap between fidelity insurance and cyber liability insurance, and the fact that cyber liability insurance policies offer different types of coverages that could be significant to your business.

There is no law that says you have to implement any of the ALTA Best Practices, but since they are an industry standard, your failure to implement them might be viewed negatively in the event of a cyber security breach. Perhaps more importantly, they might be a required by your lender customers. This requirement might become more common due to a recent enforcement action taken by the Consumer Finance Protection Bureau (CFPB). In a March 2, 2016, consent order, the CFPB found that Dwolla, Inc., an e-commerce company, had failed to: a. adopt and implement data-security policies and procedures reasonable and appropriate for the organization; b. use appropriate measures to identify reasonably foreseeable security risks; c. ensure that employees who have access to or handle consumer information received adequate training and guidance about security risks; d. u se encryption technologies to properly safeguard sensitive consumer information; and e. p ractice secure software development, particularly with regard to consumer facing applications developed at an affiliated website, Dwollalabs. Dwolla, Inc. had to pay to create and implement the described policies and procedures, pay for continuing compliance monitoring, pay a fine of $100,000, and agree to submit follow-up reports to the CFPB for at least a year. It didn’t help that this company publicized how great its security was but failed to actually follow its own procedures! Lenders will want to protect themselves and their customers from potential liability or losses resulting from poor cyber security by requiring settlement agents to have robust cyber security policies and practices.

Consider the following three scenarios that could occur when your cyber security procedures fail to protect consumers’ NPI or money: 1. Breach of computer system, allowing or causing misdirection of funds from a title agent’s escrow account (e.g. employee is deceived by an email request and wires funds to a fraudulent account) 2. Breach of computer system, allowing theft of consumers’ NPI (which may or may not result in a monetary loss to the individual whose NPI was stolen) 3. Breach of computer system, allowing electronic theft of funds from a title agent’s escrow account (e.g. employee clicks on hyperlink letting a virus into the computer system which allows hacker to access bank account directly and wire out funds) WHAT INSURANCE POLICIES COVER YOU UNDER THESE SITUATIONS? Overlaps and Gaps Between Fidelity and Cyber Liability Policies A typical fidelity insurance policy (what you may know as a “fidelity bond” or “crime policy”) covers loss or damage from employee dishonesty and third party theft, such as someone breaking into your office and stealing the computers. Stealing information from the computers, however, may not be covered. If I don’t say it a million times here, I need to: Read your insurance policies and ask your insurance agent if you have any questions!

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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Rumor or Reality?

Cyber Liability Insurance To insure against loss from a data breach, a fidelity policy could include an additional type of coverage, called “social engineering fraud.” This coverage applies when an employee is deceived into transferring funds to a fraudulent bank account – a very prevalent type of fraud in today’s world. A fidelity policy, with a Social Engineering Fraud endorsement, would cover scenario #1, above. However, a fidelity policy would not typically cover the data theft described in scenario #2, and that is where a cyber liability policy enters the picture. A typical cyber liability policy covers data breach, loss of income due to system damage, privacy liability, and fines and penalties that a company may have to pay for regulatory violations. It can also include coverage for “cyber-crime,” which would include theft of money and wire transfer fraud, as described in scenarios #1 and #3.

YOUR NEXT STEPS? Questions like the ones we reviewed indicate that lenders are becoming more aware of cyber liability insurance and may require this type of coverage for all of their settlement agents. Call your insurance agent now to discuss cyber liability insurance and how available policies would best work with your fidelity policy. Thank you to Bruce Lucas of First American Property & Casualty Insurance Agency, Inc., for providing information for this article. If you have any questions about cyber liability insurance, please contact Bruce at: 866-215-7814 or blucas@firstam.com. Next issue – Cyber Liability Insurance: How Your Actions May Void Coverage!

Cyber Liability Policy Coverages Not only can your fidelity policy coverages differ, but different cyber liability policies also provide different coverages. Some cyber liability policies include payments to fix the cause of the breach, but others don’t. Some cyber liability policies include paying for the costs necessary to notify the individuals whose information was stolen. This coverage is very important, as Florida Statute 501.171 requires that notice be sent to affected individuals following unauthorized access of data in electronic form containing personal information. Some cyber liability policies include payments for credit monitoring for the individuals whose information was stolen; others don’t. Several cyber liability policies I’ve seen even include payments to fix your company’s reputation! Fidelity and cyber liability policies might overlap, but they may also provide different types of coverages. To be sure you are fully covered, but not paying for double coverage, talk to your insurance agent. One possibility is to have a cyber liability policy excluding crime (employee dishonesty and wire fraud), which still covers the majority of cyber threats and makes it very affordable, and then adding a fidelity crime policy with funds transfer fraud and social engineering fraud coverage. A combination of these two types of policies should be investigated. In addition, I have heard that at least one insurance company requires the purchase of a fidelity policy before it will issue a cyber liability policy.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

“Rumor or Reality?” is a new section of The Florida Legal Eagle, written by the First American Title Agency-Southeast Region Education Team. Sue Dutcher, Education and Special Projects Director, leads the team which includes Bridgette Houck, Agency Consultant, and Barbara Burke, Legal Education Specialist. We will discuss questions from agents about issues arising from the settlement process, such as TRID, ALTA Best Practices, and management of escrow/trust funds. As a reminder, First American Title Insurance Company may not provide legal advice to its policy-issuing agents about the settlement process, but we hope that reviewing these issues will raise awareness of what is happening in the field and prompt conversation among all of you. Please join the conversation by sending questions or comments to Barbara at bburke@firstam.com. We’ll try to incorporate your ideas in the next issue.

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CASE LAW UPDATES Mortgage foreclosure Condition Precedent – Substantial compliance, rather than strict compliance, is required based on the default terms in the mortgage, and the default notice given was in substantial compliance with provisions of mortgage. Bank of America v. Cadet, No. 3D15-669, 2016 WL 231890 (Fla. 3d DCA 2016).

Service of Process – Defendants did not waive insufficiency of service of process by failing to assert it in their initial motion to dismiss because they amended the motion to include insufficiency of process prior to the court ruling on motion. Cepero v. The Bank of New York Mellon Trust Co., N.A., No. 4D15-1162, 2016 WL 519542 (Fla. 4th DCA 2016).

Condition Precedent – Complete dismissal of foreclosure proceedings, rather than judgment of foreclosure for past due amounts, was the proper remedy when lender did not send borrower proper notice of intent to accelerate as required by mortgage prior to bringing suit. Miller v. The Bank of New York Mellon, No. 4D15-36, 2016 WL 805313 (Fla. 4th DCA 2016).

Notice of Default – Hearsay – Trial court abused its discretion by allowing testimony regarding a business record not in evidence; case was remanded to allow Plaintiff to produce evidence to establish that Plaintiff complied with mortgage’s pre-foreclosure notice requirements. Helton v. Bank of America, N.A., No. 5D14-2632, 2016 WL 264553 (Fla. 5th DCA 2016).

Standing – Involuntary dismissal was proper when bank attempted to proceed as holder of the note, rather than non-holder in possession, and did not introduce evidence that it held the note at time complaint was filed. Angelini v. HSBC Bank USA, N.A., No. 4D14-216, 2016 WL 519533 (Fla. 4th DCA 2016). Standing – While incorporating the terms of a mortgage into a promissory note renders the note non-negotiable, the note in this case merely referred to the mortgage but did not incorporate its terms and thus was negotiable, so assignee of note had standing to foreclose. Onewest Bank, FSB v. Nunez, No. 4D13-4817, 2016 WL 803542 (Fla. 4th DCA 2016).

Business Records – Bank was not entitled to admit business records into evidence where affidavit failed to demonstrate familiarity with mortgagee’s record–keeping system and failed to address whether bank verified the accuracy of mortgagee’s documents and compliance with industry standards. Hidden Ridge Condo. Ass’n, Inc. v. OneWest Bank, N.A., No. 5D14– 3727, 2016 WL 347321 (Fla. 5th DCA 2016). Res Judicata – Dismissal of a foreclosure action for lack of standing does not operate as an adjudication on the merits for purposes of res judicata. Brown v. M & T Bank, No. 5D15– 1397, 2016 WL 347183 (Fla. 5th DCA 2016).

LEGAL NEWS AND INDUSTRY UPDATES Bank of America Will Offer Mortgages for 3% Down By: Kathryn Vasel, CNN Money | February 22, 2016 Low down payment mortgages aren’t exactly new. But borrowers won’t have to pay private mortgage insurance with this loan.

Lenders Are Getting Choosier When It Comes to Risky Real Estate Deals By: Sarah Mulholland, Bloomberg | March 15, 2016 Lenders are getting stingier when it comes to funding risky U.S. real estate developments, putting pressure on landlords in need of fresh funding to keep their projects afloat.

Homestead Exemption Forced Sale – It was a denial of due process for the trial court to refuse to hear the argument that the property was protected from forced sale by homestead exemption. Hayes v. Norman Harris Servs., Inc., No. 2D15– 1838, 2016 WL 358950 (Fla. 2d DCA 2016). Submerged Lands City’s denial of permit to build structures on submerged lands was proper because any riparian rights once incident to property now bordered by a public street separated from a navigable waterway by a large public seawall had been, in the absence of an express reservation, impliedly dedicated by property owners’ predecessor in title as an incident to dedication of a portion of the property for public street. Whetstone v. City of St. Augustine, Florida, No. 5D14-3628, 2016 WL 542870 (Fla. 5th DCA 2016).

NAR Reports Glaring Need for More Single Family Housing Supply in U.S. By: World Property Journal Staff | March 16, 2016 According to the National Association of Realtors (NAR) new quarterly consumer survey, over three-quarters of surveyed households would purchase a single-family home if they were to buy in the next six months.

The Young and The Restless: Millennials Ditch Cities for Suburbs By: Diana Olick, NBC News | March 9, 2016 As millennials grow older, get married, have children, they are seeking out bigger houses and better schools. That means the suburbs. They are also getting tired of paying higher urban rents and watching those rents rise.

Home Builder Sentiment Sits Tight at 58 By: Diana Olick, CNBC| March 15, 2016 Confidence among the nation’s home builders held steady in March, although a majority of analysts had expected it to improve slightly.

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

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FLORIDA STATEWIDE UNDERWRITERS Represents locations of FL underwriters

REGIONAL AND STATE UNDERWRITING COUNSEL TEAM Alan McCall

Leonard (Len) Prescott

VP, SE Division Underwriting Counsel D: 407.618.7935 | M: 407.312.9132 amccall@firstam.com

VP, FL State Counsel D: 305.908.6252 | M: 305.900.8427 lprescott@firstam.com

Patricia (Trish) Ladan

Michael Altes

Sr. Underwriting Counsel FL Associate State Counsel D: 407.691.5333 | M: 407.618.4205 pladan@firstam.com

Underwriting Counsel D: 904.858.9206 | M: 904.349.9435 maltes@firstam.com

John Balberchak

Greg Blomeley

Jennifer Bloodworth

William (Bill) Boyce

Charles (Chip) Koval

Pat Newton

W. Wade Wallace

Sherri Wedesky

Sr. Underwriter D: 850.296.3084 | M: 850.445.9323 jbalberchak@firstam.com

Sr. Underwriting Counsel Winter Park: 407.691.5296 Sunrise: 954.839.2959 M: 407.790.2057 jbloodworth@firstam.com

Underwriting Counsel D: 352.415.4765 | M: 352.240.2519 ckoval@firstam.com

Underwriting Counsel D: 239.676.3747 | M: 239.961.2110 wawallace@firstam.com Rapid Response Team: FloridaUW@firstam.com

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

VP, Underwriter D: 407.691.5210 | M: 850.445.9320 O: 407.691.5200 | gblomeley@firstam.com Rapid Response Team: FloridaUW@firstam.com Sr. Underwriting Counsel D: 727.549.3312 | M: 727.501.3454 wboyce@firstam.com Rapid Response Team: FloridaUW@firstam.com

Sr. Underwriting Counsel D: 239.330.3328 | M: 239.272.1856 pnewton@firstam.com

Underwriter D: 850.296.3170 | M: 850.766.7792 swedesky@firstam.com

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FLORIDA STATEWIDE AND CENTRAL FLORIDA REGIONAL UNDERWRITERS

CENTRAL FLORIDA UNDERWRITING TEAM Michael Cullinan

Jim Dyer

Gregory Sauls

Operations Senior Manager D: 727.549.3280 | M: 407.252.1851 mcullinan@firstam.com 7360 Bryan Dairy Road, Suite 200 Largo, FL 33777

VP, Underwriter O: 407.691.5200 | D: 407.691.5202 jdyer@firstam.com 2233 Lee Road, Suite 110 Winter Park, FL 32789

Underwriter, Ocala Title Operations Supervisor D: 352.282.4859 gsauls@firstam.com 2201 SE 30th Avenue, Suite 402 Ocala, FL 34471

Larry P. Deal

Robin Patterson

Matt Sullivan

VP, Agency Area Director D: 407.691.5201 | M: 407.312.5340 ldeal@firstam.com 2233 Lee Road, Suite 101 Winter Park, FL 32789

Senior Title Examiner D: 352.282.4860 rpatterson@firstam.com 2201 SE 30th Avenue, Suite 402 Ocala, FL 34471

Senior Commercial Title Examiner D: 352.415.4762 | M: 352.514.1046 masullivan@firstam.com 2770 NW 43rd Street, Suite N Gainesville, FL 32606

UNDERWRITING ASSOCIATES AND SUPPORT Jeffrey Dorough-Lewis

Carolyn (JoJo) Grove

Underwriting Associate D: 407.691.5295 jdorough-lewis@firstam.com

Underwriting Associate D: 352.415.4757 cgrove@firstam.com

Brenda Yashinsky

Underwriting Assistant D: 407.691.5270 byashinsky@firstam.com

ADDITIONAL RESOURCES Palma Collins

VP, Division Underwriting Counsel D: 703.480.9515 | M: 571.643.2136 pcollins@firstam.com

John LaJoie

VP, Corporate Sr. Underwriting Counsel D: 850.296.3081 | M: 850.445.9303 jlajoie@firstam.com Lee Ann Henning, Assistant D: 850.402.4101 ext 3082 lhenning@firstam.com

First American Title | Florida Legal Eagle | Volume IV, April/May/June 2016

Wayne Sobien

SVP, Vacation Ownership Services Division D: 407.754.1320 | M: 407.312.6313 wsobien@firstam.com

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