New Hampshire Spotlight

New Hampshire

Spring 2017

SPOTLIGHT As we see 2016 disappearing into our rearview mirror, we are looking forward to what 2017 will bring. While we are busy planning for this year, it’s always a good time to reflect on the last twelve months! TRID continued to be a hot topic last year for our agents and us. We facilitated many educational offerings to agents, REALTORS® and lenders throughout the state. Carrie Cote, Maine Senior Underwriting Counsel, is our northern New England point person on this issue and she will continue to keep you apprised of any updates and changes as they occur. In addition to Carrie, Ruth Dillingham develops and presents educational programs for agents and their employees to keep them informed of new developments in lending, compliance and conveyancing practices and regulations. Ruth was promoted in 2016 to Senior Underwriting Counsel for our Corporate Underwriting Department, and in her new role, she provides a national perspective on compliance and regulatory topics. On the educational front, we held a variety of roundtable meetings throughout the state and hosted our Annual Agent Seminar in May in Bedford. Cyber fraud education was a high priority item for us, as we witnessed new scams being discovered on a regular basis. In addition to the email bulletins we’ve distributed to agents, we also have many resources available to our agents to educate their staff and customers about cyber fraud. As we plan for our 2017 educational events, we welcome your input and feedback to ensure we are providing valuable and timely information for you and your staff.

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In This Issue Introduction from Lori Rice On the Road with Regional Counsel

Helpful Sites

New Hampshire Producer License Renewal

4 5-6 7 8

Save the Date Top 5 Underwriting Questions Did You Know? New Hampshire Procedures Manual

Making a Lender’s Report Card Work for You

Pass-Thru Marketing Program

AgentNet® - Easily Reset Passwords and Obtain Forgotten User IDs

First American: Financial Position of an Industry Leader

Make Sure You Are Using the Updated 1099-S

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News Brief New Hampshire Contact List

We are very appreciative of your business and thank you for choosing First American Title as your underwriter. We look forward to working with you in 2017! Lori Rice, VP, Area Manager - Maine, New Hampshire and Vermont

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. ©2017 First American Financial Corporation and/or its affiliates. All rights reserved. NYSE: FAF

ON THE ROAD

WITH REGIONAL COUNSEL By: Carol E. Willoughby, VP, New England Regional Counsel, First American Title

As Regional Counsel, I have the unique opportunity to have involvement in the goings on of each of our six New England States, and to liaison with other Regions and Divisions within First American Title, as well as Home Office. To say that our Company is diverse and far-reaching is an understatement. Narrowing things down a tad, I will chat a bit about a couple issues we are all dealing with. First, I’ll briefly discuss an enhancement to AgentNet® that will hopefully prove useful to you and the Company – linked requests for underwriting in excess of an agent’s issuing limit. Second, I’ll discuss what I see as possibly our most important industry challenge – cybersecurity. AgentNet has a direct link to your favorite First American Title underwriter, by which you can request underwriting assistance, including approval for those deals in excess of your issuing contract authority. We’ve had this functionality for a while, but it has recently been improved to flatten out the request submission – fewer clicks and more intuitive communication. In addition, use of this function connects the policy jacket you create in AgentNet to the underwriter’s actual approval of the deal. Because the approval is tied to the policy jacket, and obtained prior to closing, this documents that you are working within the issuing contract. I encourage you to try this functionality in AgentNet, and provide feedback. For training on use of this functionality, contact your Agency Representative, or select the User Guides tab in AgentNet and choose Create New Underwriting Request found under Training Videos.

And now for the big topic of the day: Cybersecurity. One of our most important challenges our industry faces is cybersecurity. First American Title and its agents hold large sums of other peoples’ money, and a large amount of customers’ non-public personal information. We are each obligated to safeguard those funds and that data. On a weekly basis, if not more frequently, I am presented with a story of misdirected funds or an electronic hack into data. With respect to funds misdirection, sometimes the buyer has been tricked into sending purchase proceeds to a fraudster, sometimes the settlement agent has been tricked into sending seller proceeds or payoff funds to a fraudster. Sometimes, the root of the hack, enabling the fraudster to penetrate the communication circle is a Gmail or other open type email account. Sometimes, I hear about an agent’s network being ransomed, the malware having been set when an employee was surfing or shopping on line. No matter the nature of the hack, who is the source of the hack, or who has responded fatally to the fraudster’s email, all parties to affected transactions are in for some difficult conversations. In the case of misdirected funds in response to a fraudster’s email, the funds are seldom fully recovered. If the settlement agent, or an employee thereof, sent the funds in response to a fraudster’s email, the settlement agent’s professional liability policy does not always provide coverage. The agent, whose network has been held hostage, is paying the ransom. The customer data that has been compromised results in years of credit monitoring and reporting expenses. First American Title has sent out numerous advisories to its agents counseling caution in these situations. But there are a few consistent takeaways. I’ll identify the big five I’ve been taught – with emphasis on #1 and #5. Cont. on next page

First American Title | New Hampshire Spotlight | Spring 2017

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ON THE ROAD WITH REGIONAL COUNSEL

Never, ever disburse funds based on an email. When I say “never” - I mean the type of never we use when we refer to jumping from an airplane without a certified parachute. Never. AB-SO-LUTE-LY NEVER! Why? Because the probability of completely stopping all hacks is a little like the odds of winning the Powerball jackpot. But if we NEVER disburse funds on an email – the risk of misdirected funds based on a fraudster’s email disappears. I know of more than one agent that only wires funds based on an in-person, signed direction.

We should always and only use dedicated hardware for banking. Why dedicated hardware? When you or your employee surf the internet, you unwittingly bring back malware bugs. If you only use dedicated hardware, that is not networked, to do your banking – then you are far less likely to let a fraudster into your banking business.

No one person should be in the position of being unchecked. This is nothing new. We’ve long preached that no one person be able to wire or transmit funds without the approval of another person.

We should all use multi-factor/complex logins whenever possible, change our passwords regularly, and never save passwords to a given website. Use of simple passwords, or single level authentication, or not changing passwords regularly, or saving passwords on the applicable website for ease – each pose a significant risk. There are

First American Title | New Hampshire Spotlight | Spring 2017

CONT.

software products readily available to break such passwords, and these have long been used with great success by criminals. Use of 12-character passwords, comprised of letters, numbers and special characters are far more difficult to break than the typical eight letter word. Multi-factor authentication, which refers to the use of more than one password, further complicates the ability to hack. Multi-factor authentication is common with the use of a password and an additional method of authentication – such as the thumb print to access your Starbucks app on your iPhone. If your customers are logging into your system to interface with you, consider multi-factor authentication.

Finally, and perhaps most importantly, be insured against these types of cyber-crimes. We’ve already discussed the near inability to stop all cybersecurity breaches. A cybersecurity incident can invoke different types of losses; loss of funds through misdirection due to a fraudster’s email, loss arising from the unauthorized access of customers’ non-public personal information, or loss from extortion in the context of ransomware. Often these losses are not covered by E&O or other professional liability type coverage. Cybercrime and cyber liability insurances are available to assist our agents and their customers in such instances. While these products are available from a variety of providers, First American Property & Casualty Insurance Agency, Inc. offers products that speak to these types of losses as well. I encourage you to evaluate your existing coverages against these types of losses immediately. And with that bit of insight, I’m off on the road again.

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H E L PF U L S IT ES First American Title has a number of online resources available to our agents. Here are a few sites to visit for training information, marketing materials and industry information. AgentNet® (https://agency.myfirstam.com): AgentNet isn’t just for obtaining back title policies and closing protection letters. »» Content Library: You can find training materials, webinar recordings, the New Hampshire Procedures Manual by performing a search in the Content Library. »» Pass-Thru Marketing Program: More than 100 professionally designed marketing pieces that you can customize with your logo and contact information! Select Pass-Thru Marketing Program from the Agent Resource Center tab. »» Discownts: As a First American Title agent (or an employee of the agent), you are eligible to sign up for discount plans with 30+ vendors through the discownts.com link found under Helpful Links tab. »» TARA Resource Center: If you’re looking for training on our TARA program, visit the TARA Resource Center found under the Helpful Links tab. If you’d like more information about what is available in AgentNet, please contact your sales representative. First American Home Ownership Information Center: If you’re looking for information about owner’s title insurance, this site provides a wealth of informative and easy-to-understand materials to answer your customers’ questions and guide them through the title and closing process. Feel free to share this public site with your business partners and customers: http://firstam.com/ownership. The First American Economic Center provides economic insights and research about the real estate market and mortgage risk. Follow the economic blog for the latest information: http://firstam.com/economics/.

NEW HAMPSHIRE PR ODU C ER LIC ENSE RENEWAL New Hampshire Producer License renewals take place every two years. Since January 2015, the New Hampshire Insurance Department has sent out courtesy renewal reminders by email only. Notices are sent approximately 60 days prior to your license expiration. The Department no longer sends notifications to physical mailing addresses. It is imperative that email addresses be kept up to date with the New Hampshire Insurance Department. RENEWAL NOTIFICATION - www.nh.gov/insurance/producers/documents/renew_notif.pdf The New Hampshire Insurance Department emphasizes NON-RECEIPT OF AN EMAIL REMINDER DOES NOT NEGATE YOUR RESPONSIBILITY TO RENEW YOUR LICENSE.

SAVE THE DATE MAY 9TH New Hampshire Spring CLE Seminar Bedford, NH

To verify or edit your email address, visit www.statebasedsystems.com/EmailAddressMaintenance.htm. First American Title | New Hampshire Spotlight | Spring 2017

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TOP 5

UNDERWRITING QUESTIONS

By: Carol E. Willoughby, VP, New England Regional Counsel and Timothy Boucher, Senior Underwriting Counsel

I know there were some changes to the requirements in a notice of foreclosure under RSA 479 after January 1, 2016, requiring additional notice to the borrower, notice of address for service of process for the lender, and contact information for NH Banking Department as well as the statement and required phone number, but my notice is missing some of the required information. The notices and sale all took place in 2017. Is it okay to insure? The answer is maybe. NH RSA 479:25 was amended effective January 1, 2016, to change the timing of notice for some parties and the form of notice broadened to include additional information when dealing with a residential mortgage. As far as notice to the mortgagor, notice must be provided at least 45 days prior to the sale under the new rule. The requirements relating to the form of notice were broadened to include a requirement to include: a) the address of the mortgagee for service of process and the name of the mortgagee’s agent for service of process and b) contact information for the NH Banking Department along with the required statement “For information on getting help with housing and foreclosure issues, please call the foreclosure information hotline at _____________ (insert toll-free telephone number). The hotline is a service of the New Hampshire Banking Department. There is no charge for this call.’’ The Banking Department has provided the number which needs to be in the notice where there is a blank in the statute. The revisions to notices over the last year have been interesting to watch. The 45day notice provision to the mortgagor has not been an issue for the most part and the address of lender for service of process has not been a great issue either. Many of the foreclosures brought to us for review do not include the contact information for the NH Banking Department. The statute states, “Contact information for the New Hampshire Banking Department, along with the statement” (recited above). A plain reading of the statute has two requirements: a) contact information and b) required statement.

Many of the foreclosures reviewed by us have the required statement but not the contact information. Please understand, we only review foreclosures with questions so many notices are fine. The good news is that if the notice is incomplete relating to the above requirements, the savings provision under the statute will kick in to cure the notice deficiency in one year and one day (NH RSA 479:25 II-a). There have been some situations we have assumed risk and insured over a notice issue, but it was limited. If you have questions, please call. One other point - the new changes are required when foreclosing on a residential mortgage which is defined under the statute to mean a mortgage on a dwelling, as defined in RSA 397-A:1, VI-c. The language is broad enough to reach what is intended to be a commercial mortgage secured with a dwelling, or a mixed use property with commercial and residential use, so extra caution is required.

My Seller is an REO lender. It foreclosed its mortgage on a residential condominium unit and took title following the sale. The Condominium Association has terminated services to the unit demanding payment of all past-due assessments. Some of these assessments accrued prior to the foreclosure. The Condominium Association appears to have been properly notified of the foreclosure, upon review of the Affidavit of Sale. The Condominium Association has tendered a statement of assessments due that includes preforeclosure assessments. The seller (REO Lender) is pressuring me to close, but refuses to pay all sums indicated as due on the association’s statement of assessments due. The seller is referring to a recent NH Supreme Court case saying that it doesn’t have to pay the pre-foreclosure sums. What do I do?

Bottom line – the Association and the REO lender have to work this out. This dispute has been going on for a long time in New Hampshire. The condominium statute provides that a first mortgage has priority over unpaid condominium assessments, with some exceptions. The foreclosure statute indicates that a properly noticed foreclosure will wipe out the pre-foreclosure

assessments. The condominium statute, as well as many associations’ declaration of condominium, allow for the association to terminate services to a unit until “all” unpaid assessments are paid. In September of 2016, the New Hampshire Supreme Court issued its decision in New Hampshire Housing Finance Authority v. Pinewood Estates Condominium Association, NH Sup Court No. 2015-0514 (2016) (“NHHFA v. Pinewood”). In NHHFA v. Pinewood, NHHFA held a first mortgage on a unit in Pinewood’s association. The mortgagor died and sometime thereafter NHHFA undertook to foreclose the equity of redemption as against the mortgagor’s estate. NHHFA noticed Pinewoods, completed the foreclosure, and took title to the unit. Pinewood demanded pre- and postforeclosure assessments. NHHFA paid the post-foreclosure assessments but disputed the pre-foreclosure assessments, claiming that the foreclosure wiped out Pinewood’s claim. Pinewood, which had terminated services to the unit under RSA 356-B:46, IX, asserted that it did not have to reactivate services to the unit until all assessments were paid, including those incurred pre-foreclosure. Ultimately, the Supreme Court sided with NHHFA that a recorded resolution regarding termination of services would not survive foreclosure and NHHFA could not be compelled to pay the mortgagor’s debt for preforeclosure unpaid assessments. To rule otherwise would contravene the language of the Condominium Act and undermine the willingness of lenders to provide mortgage financing on condominiums. While this appears to be a “win” for the lending community, it does not translate into a different procedure for title insurance underwriting purposes. We continue to require that a statement of assessments due be obtained and paid at closing. To the extent the seller and condominium association disagree over those amounts, they must resolve same, or an exception for the unpaid assessments claimed must be taken on the policy. Similarly, a recorded notice of termination of services need not be a Schedule B exception to the policy, if the association provides a statement of unpaid assessments and that sum is paid at closing. Cont. on next page

First American Title | New Hampshire Spotlight | Spring 2017

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TOP 5

UNDERWRITING Q U E S T I O N S C O N T.

I have a party to my transaction located out of the US. What is the proper signature and acknowledgment format? When a party to a transaction is physically outside the United States, the authentication of signatures gets a little tricky. If the seller’s location is within a country that is a member of the Hague Convention of 5 October 1961 Abolishing the Requirement of Legalisation for Foreign Public Documents, the (“Convention”), proper execution and authentication is typically simple through use of an apostille certificate. In order to determine a country’s membership in the Convention, consult the status table for same at the Hague Conference of Private International Law Website - www.hcch.net/index_ en.php?act=conventions.status&cid=41. Note that certain nations have only subjected specific territories of the nation to the Convention, so take caution in reading the table, or consult with the State Office of First American Title for assistance. If the nation has signed on to the Convention, simply prepare your acknowledgement as you would normally, and attach an Apostille certificate to it. A sample apostille may be viewed at: www.hcch.net/upload/apostille.pdf, or obtained from the State Office. The apostille certificate serves to certify that the signature is authentic and the person who has taken the acknowledgment is duly authorized to do so under that nation’s laws. Record the Apostille as part of the deed. Under New Hampshire law the apostille creates a conclusive presumption of a valid acknowledgment. See NH RSA 456-B:6, II. If the party is not located in a country that has adopted the Convention, the next best option is a consular certificate. The party can take any documents that require notarization to the United States Consulate, and execute them there. The consulate is considered US soil and our laws recognize the jurisdiction of the Consul to take acknowledgments. Similar to the apostille, a consular certificate creates a conclusive presumption of a valid acknowledgment. See RSA 456-B:6, III. If a visit to the US Consulate is not an option, then you’ll need to consult with the State Office of First American Title for underwriting authority. For guidance, we

look to NH RSA 456-B:6 regarding notarial acts being undertaken in a foreign nation. While RSA 456-B:6,I indicates that an acknowledgment undertaken in a foreign nation by a notary public, notary, judge, clerk, deputy clerk of court or record, or other party authorized under the laws of said nation to perform notarial acts, we seek presumptions of legal validity when analyzing the risk. Subsections IV and V speak to prima facie evidence of authority of an identified notary. Subsection VI speaks to a legal register or digest that identifies duly appointed notaries. In the event that we elect to rely on RSA 456-B:6, IV, V, or VI, we typically require some additional evidence of the validity of the notarial act. This could include, for example, an opinion of counsel. This is a more useful tool in heavily documented commercial transactions, where there is substantial additional evidence of the transaction and agreements of the parties.

My client is purchasing a manufactured home located on land, NOT within a park. The current owner purchased the land and placed the manufactured home on the land. The owner did not get a deed but since it is affixed to the land can’t we just describe it now as the “land together with the buildings and improvements thereon”. Do I need a deed for the manufactured home?

Well, you need a deed to establish the chain of title to the manufactured home. Once the source of title is established a future conveyance including the buildings thereon will be sufficient to transfer the title. See NH RSA 477:44 and Title Standard 5-35. As of August 17, 1983, NH law recognizes a manufactured home as real estate once permanently affixed to the land upon which it sits. So if the unit is pre-83, we look for different evidence of ownership than if the unit was acquired 8/17/83 and after. For pre-83, call the NH state office to discuss what is available to cobble together evidence of ownership. For 1983 and after, we look for a deed from a dealer or manufacturer. After that initial deed, title can be conveyed by deed of land with improvements thereon, or including a specific description of the unit. It is best to include a specific description of the unit for clarity. If it has been conveyed by “land with improvements thereon”, we typically look for some

First American Title | New Hampshire Spotlight | Spring 2017

certification or affidavit to be kept in the file as to the presence of the unit, and for the unit to be described therein, or other confirmation of its presence.

I have a title with a “Notice of Decision” recorded July 8, 2010. The docket or case number includes the court indicator “SC” in it, “123-2009-SC-00789” for example. It is signed by the Clerk of Court on June 16, 2010. Do I need a release for this? When does this expire? This question is repeated from the Spring 2015 New Hampshire Spotlight and is worth revisiting since NH RSA 524:13 and NH RSA 503:12 have been amended to broaden the use and expiration of recorded judgments. Prior to the statutory change effective January 1, 2017 an analysis of several statutes was necessary to determine expiration. Once that analysis was done, we concluded that a “Notice of Decision” relating to a small claim judgment recorded prior to January 1, 2017 expires six years from date of judgment so long as nothing further is recorded attempting enforcement. The analysis is not repeated here but is reflected in the February 2015 newsletter. Effective January 1, 2017, a creditor can record a judgment from a New Hampshire court to create a lien on real estate but the option is no longer limited to small claims judgment – it can be from any NH court. Further, the lien no longer expires after six years but remains in force so long as suit may be brought under the judgment. Pursuant to RSA 508:5 it may last as long as 20 years. Title Standard 9-44 has been revised as follows: 9-44. Judgment Liens. Effective September 5, 2008, the recording of a certified copy of a small claims judgment creates an attachment against real estate of the defendant located in the county of recording. RSA 503:12, II. Effective January 1, 2017, the recording of a certified copy of any judgment entered by a court in New Hampshire, along with an affidavit attesting compliance with RSA 524:13, II creates a judgment lien against real estate of the defendant located in the county of recording. RSA 524:13. The lien remains in force for as long as a suit may be brought on the judgment (20 years pursuant to RSA 508:5). Page 6

DID YOU KNOW By: Elizabeth Roosa, Agency Representative and Sandy Eldon, Agency Consultant

TARA Users: If you are looking for a Notice of Availability (NOA) for an owner only policy, you do not use the Notice of Availability button. Instead, once you calculate the premium in the commitment screen, the premium will automatically go to the Notice of Availability-Owner Only form in the Documents tab. Using the NOA button requires you to enter a lender policy to calculate the additional premium for an owner.

E-Closing: The Policy Rate Type and Jacket Type in the Title Policy screen do not match in e-Closing.

The default screen is pictured above. If you want EAGLE policies, you have to change the Policy Rate Type to reflect EAGLE Loan or Owner. If you want standard policies, you have to change the Jacket Type to reflect ALTA Loan or Owner Policy. You can have an EAGLE Ownerâ&#x20AC;&#x2122;s policy and a standard loan policy, however, the Policy Rate Type and the Jacket Type under the respective sections must match.

First American Title | New Hampshire Spotlight | Spring 2017

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FIRST AMERICAN TITLE

NEW HAMPSHIRE PROCEDURES MANUAL The New Hampshire Procedures Manual can be found online! If you have access to AgentNet® and need to either update your manual or reference a chapter, instructions for searching the Content Library to locate the New Hampshire Procedures Manual are below:

The New Hampshire Policy Preparation and Underwriting Manual has been completely reviewed, revised and renamed and is now posted in the AgentNet Content Library as the First American Title New Hampshire Procedures Manual.

SEARCH: NH MANUAL

If you would like to view all the Chapter headings on your screen, click on the Bookmark symbol in the Navigation Pane on the left side of the screen. If the Adobe Navigation Pane does NOT appear on the left side of your screen when you open the pdf of the Manual: »» Hover at the bottom of the first page of the pdf. »» A rectangular box will appear with options to print, save, etc. »» Click on the far right icon - the triangular Adobe symbol. »» This should bring up the Navigation Pane with the Bookmark option.

First American Title | New Hampshire Spotlight | Spring 2017

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Making a Lender’s Report Card

WORK FOR YOU By: Ruth Dillingham, VP, Senior Underwriting Counsel – Corporate Underwriting

Most of us recall getting report cards with a mixture of excitement and dread. Excitement if we really enjoyed the learning experience, mastered the topic and felt a bond with the teacher; dread if the class was tough, the material was murky, and the grade had to be at or above some level. Of course, school report cards are behind us now. But we are beginning to see a reemergence of them in our professional careers as lenders are sharing their objective analysis of their settlement agent/title agent business partners in the form of a scorecard. For many title and closing professionals, this scorecard produces conflicting emotions and some anxiety. Conflicting emotions because in general, we love to do closings, we are confident that our title work is firstrate and our staff is well trained. So we expect a ‘good grade.’ But then, what happens? The scorecard arrives, and we learn we haven’t met the lender’s expectations. And, we need a good grade to keep getting work from this client. So how can this blend of excitement and dread be turned into a positive experience? At a recent American Land Title Association (ALTA) seminar, industry experts gave some guidance on that topic. First, find out exactly what benchmarks the lender is using to score your firm. Is it turn times on the title policy? Accuracy of the recording fees? A post-closing customer satisfaction survey? Number of days postclosing for the return of the closed file? If these items are not the ones you consider the most important part of your role in the transaction, at least recognize their importance to the lender. Just as we caution the kids not to get lost in how many little people are in the diorama of the first Thanksgiving or the use of elaborate costuming effects in the presentation on Shakespeare’s Taming of the Shrew, keep an eye on the purpose of the exercise. (Which I will presume to be understanding the importance of a fairly successful first harvest and discussing the roles of men and women in other societies contrasted with today.) If your lender is

First American Title | New Hampshire Spotlight | Spring 2017

not scoring you on how many hours you spent tracking down an undischarged mortgage or that you drove 10 miles out of your way to notarize documents for a stay-athome parent with a sick child; do not be upset that those acts are not recognized. You know you did your job and then some. But, make sure you are watching the things that are rated on the scorecard carefully. Second, ask the lender about the components on the scorecard. Which office keeps sending title policies in late? Is there a certain file that was an outlier last month and skewed the whole process? If the scorecard doesn’t lay all this out, ask who can explain the underlying information, and then have a conversation with them. Needless to say, this is not a time for saber rattling; this conversation is intended to improve mutual relations. Third, use the scorecard as a management tool. In your firm, who receives the email with the scorecard? An office manager? The paralegal who does most of that bank’s work? Or worst case scenario, is the scorecard being sent to the email address of a former employee who hasn’t been purged from the system? The scorecard should go right to the boss. Once the scorecard is in the right hands, use it to improve your firm’s performance. Communicate with the right employees about what the scorecard shows. Find out why there are deficiencies, if they exist. Do some training. Consider an incentive program to reward improvements over time. Finally, stay abreast of the challenges your lenders are facing. If they send a newsletter or other communication, read it. Be alert to what they are telling you are their concerns and be prepared to work with the lender to resolve them. If they are telling their closing agents too many files are coming back without a [space] between the words “Title – Service” on the Closing Disclosure, go check your software and make sure you are not a culprit, regardless of how you feel about a federal agency dictating grammar rules.

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FIRST AMERICAN TITLE

Pass-Thru Marketing Program First American Title agents have access to over 100 pieces of professionally designed marketing material that you can use to secure your position as a valuable resource and industry expert.

Since its launch in 2011, the Pass-Thru Marketing Program has helped thousands of First American agents across the country educate their business partners and consumers about a wide-range of topics. From first-time homebuyers and the value of an Owner’s Policy to FIRPTA, TRID and cyber fraud, the PassThru Marketing Program has what you need. Material can be customized with your company logo and contact information then downloaded for print, posting online or distribution by email. • Consumer education • Agency education/job-aids • Industry reference material

• Bi-lingual marketing/education • Activity sheets/coloring books for children

• Holiday and note cards • And so much more!

Log into AgentNet® and access the Pass-Thru Marketing Program today! Program not available in CA

First American Title | New Hampshire Spotlight | Spring 2017

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AgentNet

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Easily Reset Passwords and Obtain Forgotten User IDs A recent enhancement to AgentNet enables users to change their password and obtain forgotten User IDs without having to contact the Agency Service Center (ASC) for assistance. Retrieve Forgotten Password From the login page, click I Forgot My Password. Enter your User ID, click Submit, and a security question will appear for you to answer. When you answer the security question correctly, a temporary password will be emailed to you.

Retrieve Forgotten User ID From the login page, click I Forgot My User ID. An email containing your User ID will be sent to the email address on file.

Change Password Select the Profile tab from the AgentNet home page. Select Change Password at the bottom of the page. You will be prompted to enter your current password then create and confirm your new password. Note: Passwords need to be reset every 365 days.

Note: An AgentNet account will be locked after five unsuccessful attempts to enter a password. If you do get locked out, contact the Agency Service Center at 866.701.3361 for assistance.

First American Title | New Hampshire Spotlight | Spring 2017

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Billions

$6.2 $5.7

$5.6B

REVENUE CAGR: 7.85%

$5.2

$5.1B

$4.7 $4.2 $3.7

$3.8B

INVESTMENTS CAGR: 14.23%

$3.2 $2.7

$2.6B

$2.2

2011

First American Title | New Hampshire Spotlight | Spring 2017

2012

2013

2014

2015

2016

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Make Sure You Are Using the Updated 1099-S Title agents and attorneys closing certain reportable transactions could face fines of $250 per incident if they are not using the updated IRS Form 1099-S. The new 1099-S form went into effect Jan. 1 and added a new checkbox to report the transfer of real estate by a foreign person. The IRS has provided instructions for the 1099-S, which is used to ensure that sellers report the full amount of capital gains on each year’s tax return. The penalty for filing an incorrect form is $250 per failure and up to $3 million per calendar year. Penalties can be reduced if the correct 1099-S is filed before certain dates. Title agents and attorneys will want to ensure their title production software has been updated with the new form. Generally, transactions must be reported that consist in whole or in part of the sale or exchange for money, indebtedness, property or services of any present or future ownership interest in any of the following:

1. Improved or unimproved land, including air space 2. Inherently permanent structures, including any residential, commercial or industrial building 3. A condominium unit and its appurtenant fixtures and common elements, including land 4. Stock in a cooperative housing corporation 5. Any non-contingent interest in standing timber The following is a list of transactions that are exempt from being reported: • If the seller certifies that the sale price is for $250,000 or less and the property is for their principal residence • If the “transferor” (seller) is a corporation or a government unit • Any transaction that is not a sale or exchange including a bequest, a gift and a financing or refinancing that is not related to the acquisition of real estate • A transfer in full or partial satisfaction of a debt secured by the property. This includes a foreclosure, a transfer in lieu of foreclosure or an abandonment • If the total money, services and property received is less than $600

First American Title | New Hampshire Spotlight | Spring 2017

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Residential

Commercial

HOUSELOGIC HELPS HOMEOWNERS GET THE MOST FROM FILING THEIR TAXES

COMMERCIAL REAL ESTATE OUTLOOK: 2017.Q1

After all the paperwork that comes with buying a home, few think about the ultimate paperwork – filing taxes. However being a homeowner comes with many benefits, including the opportunity for an increased tax refund. By: National Association of REALTORS®, Press Release, February 24, 2017 Read more: http://www.prnewswire.com/news-releases/houselogic-helpshomeowners-get-the-most-from-filing-their-taxes-300413311.html

TOP AMENITIES FOR 2017, FROM MILLENNIALS TO BOOMERS

There is a lot of talk about what Millennials want in multifamily amenities—and it usually involves speed, ease and the latest technology—but of course, they are not the only ones to consider this year. By: Cindy Wick, Multi-Housing News, February 17, 2017 Read more: https://www.multihousingnews.com/post/top-amenities-for-2017-frommillennials-to-boomers/

CROOKS, LIKE BORROWERS, FLOCK TO ONLINE LENDERS

Speed and ease of use have made online lenders increasingly popular with consumers, but those same qualities have put them in fraudsters’ cross hairs. By: Bryan Yurcan, American Banker, February 15, 2017 Read more: https://www.americanbanker.com/news/crooks-like-borrowers-flock-toonline-lenders

LIMITED INVENTORY MEANS QUICK SALES FOR HOMEOWNERS

There is good news for people who want to sell their homes this month. By: Sandra Lane, MReport, February 23, 2017 Read more: http://www.themreport.com/headline/02-23-2017/limited-inventorymeans-quick-sales-home-owners

WHAT THREATENS YOUR CLOSINGS THE MOST

NAR’s latest Commercial Real Estate Outlook offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. By: National Association of REALTORS®, February 23, 2017 Read more: https://www.nar.realtor/reports/commercial-real-estate-outlook

LANDLORD SUES AIRBNB IN SPAT OVER SUBLETTING

One of the nation’s largest owners and operators of apartment homes is trying to halt Airbnb listings of its units. By: Daily Real Estate News, REALTOR®Mag, February 21, 2017 Read more: http://realtormag.realtor.org/daily-news/2017/02/21/landlord-sues-airbnb-inspat-over-subletting

RISING HOME PRICES FREEZING OUT SOME INVESTORS

Real-estate investors carried housing and distressed markets through the Great Recession, but their success could spur the rental boom and higher home prices at the expense of critical homebuyer groups, a new report has found. By: Ryan Schuette, DSNews, February 24, 2017 Read more: http://www.dsnews.com/news/02-24-2017/rising-home-prices-freezing-investors

INCREASED EMPLOYMENT, PENT UP DEMAND DRIVING DEVELOPMENT IN U.S. MIDWEST

In an unusual shift, jobs in the Chicago area are moving where the talent is rather than the other way around: companies are relocating from the suburbs to downtown seeking to attract millennial workers and spurring the development of multifamily and office projects in the city. By: Mike Sheridan, Urban Land Institute, February, 24, 2017 Read more: http://urbanland.uli.org/development-business/special-section-midwest-3/

SIX KEYS TO DESIGNING & DEVELOPING A DYNAMIC COMMERCIAL REAL ESTATE WEBSITE

The majority of contracts settle on time, but more than a quarter of practitioners are citing delays due to common culprits.

Your commercial real estate website is the digital front door to your business, and if location is the key to the commercial real estate business, then technology is the key to a successful commercial real estate website.

By: Daily Real Estate News, National Association of REALTORS®, February 24, 2017 Read more: http://realtormag.realtor.org/daily-news/2017/02/24/what-threatensyour-closings-most

By: ML Jordan. February 24, 2017 Read more: https://mljordan.com/6-keys-designing-developing-dynamic-commercialreal-estate-website/

First American Title | New Hampshire Spotlight | Spring 2017

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H A M P S H I R E

contac t

lis t

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MAILING ADDRESS First American Title 6 Loudon Road, Suite 406 Concord, NH 03301

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First American Title | New Hampshire Spotlight | Spring 2017

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