TAK I N G F L I G H T
S U M M E R 2015
A Quarterly Publication for the Chicago Metro Area in this issue
page
From the Top ............................................................... 1-3 Ask the Title Officer .................................................... 4-5 What’s New at First American Title ......................... 6-14 Items of Interest ........................................................... 15 Your Point of View ........................................................ 16
Visit us online at www.il.firstam.com
F R O M T H E TO P... Three Things By: John Hollenbeck EVP, Corporate Business Director Wow - just weeks away from the implementation of TRID, the TILA RESPA Integrated Disclosure Rule. As we approach October 3rd, here are three personal observations to consider as you prepare to implement the new rule: 1. Notwithstanding the constant drumbeat to the contrary, the new Closing Disclosure is not exactly a replacement for the existing HUD-1 Settlement Statement. 2. Most lenders will produce and deliver the initial borrower’s Closing Disclosure. Most lenders will also produce later versions of the Closing Disclosure but may rely upon the settlement agent to deliver an amended Closing Disclosure at closing. 3. Doing our work early will be important. Borrower’s Closing Disclosure is not a replacement for HUD-1 Settlement Statement. The existing HUD-1 Settlement Statement is mandated by Regulation X, the federal regulation implementing the Real Estate Settlement Procedures Act, or RESPA. It requires the settlement agent to issue the final HUD-1, which reflects what happened at closing. The key here is the HUD-1 is a settlement statement.
©2015 First American Financial Corporation and/or its affiliates. All rights reserved. | NYSE: FAF First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume 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.
IL - 08/2015
Conversely, under the new rule, the lender, not the settlement agent, is obligated to issue the borrower’s Closing Disclosure three days prior to consummation. Sure, the lender may delegate responsibility to the settlement agent, but the lender remains liable for its content, and the basic character of the disclosure remains the same-that is, the borrower’s Closing Disclosure is a lender’s pre-closing disclosure, dare I say an estimate, even an approximation, of what will take place at closing. Continued...
Continued...
F R O M T H E TO P... Three Things By: John Hollenbeck EVP, Corporate Business Director
So, point 1 is that the borrower’s Closing Disclosure is a lender disclosure, not a settlement agent accounting. Point 2 is that the borrower’s Closing Disclosure is pre-closing by its very character, and not a representation of what actually happened at closing. Point 3 is that the Closing Disclosure does not necessarily accurately account for the funds passed through the settlement agent’s escrow trust account, nor does it properly reflect charges to buyers and sellers in all instances. Here are three examples: -T he Closing Disclosure requires the real estate commission to be shown as one fee. Fair enough, but what if the settlement agent’s payment of the real estate commission nets out an earnest money deposit held in a broker’s trust account? This should be reflected on a settlement statement but will not appear on any Closing Disclosure. - The rule requires title insurance premiums to be oddly reported on the Closing Disclosure for reasons not discussed here. The Closing Disclosure is not reliable for reflecting the accurate charges to the buyer and seller for title insurance in a clear and easily understandable way. -T he Closing Disclosure does not adequately provide for reflecting the charges for the various documents that may be recorded in the transaction. It provides for the recording charges for a deed, a mortgage and a total. What about other documents: releases, assignments, subordination agreements, and so forth? CFPB may not have intended this outcome, but the reality is that while TRID ushers in new forms, it leaves a gaping hole. It did not replace the settlement statement; rather it required new disclosures of lenders while vacating a federal mandate that a settlement agent issue a settlement statement in most loans. Settlement agents will nevertheless continue to issue settlement statements, in my opinion. I don’t see another alternative. Buyers
and sellers are entitled to an accounting from their settlement agent. What happened to all of the money? Who was charged for what, and so forth? Many states’ statutes require settlement agents to issue a settlement statement. These statutes are still on the books. On First American’s part, we will continue to issue settlement statements when we act as settlement agent, although it’ll be a different form than the existing HUD-1. ALTA recently promulgated model settlement statements that may be used by any settlement agent. These forms will be voluntary, of course, but will likely be adopted on a wide spread basis. Lenders may even require their use. Most lenders will produce and deliver initial borrower Closing Disclosure. Many large and midsized lenders announced their intention to assume complete and total control for the preparation and delivery of the borrower’s Closing Disclosure, although the settlement agent may be utilized, not to produce but to deliver any amended Closing Disclosure at closing. Why are lenders thoughtfully reaching this conclusion? From a lender’s perspective, it makes complete and perfect sense. Remember that under the law, the lender is 100% responsible for the contents and timely delivery of the borrower’s Closing Disclosure. If the lender outsources this responsibility to the settlement agent but the settlement agent makes errors by either fat-fingering the wrong fees into the form or delivering it too close to closing, the lender could suffer losses. The risk is too big. Further, the lender is responsible to maintain evidence of compliance in its records for a variety of facets of the Closing Disclosure, including timely delivery. Unless the lender controls delivery, it’s hard to see how that evidence can be produced and efficiently maintained. Continued... Summer 2015 | PAGE 2
I am perfectly fine with this arrangement. It does not hurt settlement agents in the least. Lenders still need settlement agents, and so do buyers and sellers. The fact that lenders will take charge of the borrower’s Closing Disclosure is not the camel’s nose under the tent, as the metaphor goes. Lenders will not next want to take over the entire closing. It’s not a realistic scenario. Challenges are in front of us, however. If the lender will produce every version of the Closing Disclosure, lenders must be ready to make changes as the settlement agent makes changes at or near closing. Conversely, settlement agent will never be able to make last minute changes at the closing table without the lenders involvement. Last minute changes involving the borrower must be communicated to the lender, and the lender, if it has decided to do so as a matter of company policy, must produce a new Closing Disclosure. It’ll be interesting to see how all of this plays out. Doing our work early will be important. By now you know that the lender must deliver the borrower’s Closing Disclosure three days prior to “consummation”-think of this, loosely, as three days prior to signing. At least in the early days of implementation, many if not most lenders will deliver the Closing Disclosure via the United States mail, which adds another three days because the rule provides for “deemed delivery” three days after mailing. Add another three days for right of rescission if it’s a refinance, and a day or two in escrow states since signing occurs prior to closing. I think you get the point-the lender must deliver the borrower’s Closing Disclosure well before closing. Lenders will compete based upon getting deals closed on time. It follows that lenders will want to find the optimum point to mail the Closing Disclosure. This may well be 10 days or so before the scheduled closing date. In order for this to occur, lenders need the settlement agent’s figures early, much earlier than is generally available today. That leads me to this point: Settlement agents should vigorously work files early. Once an order is placed, our processes should be organized so that, at the earliest practical time, we’ve accumulated all of the information we need to close-payoff demands, HOA demands, tax information, etc.-and input the information into our production software. No longer will we be able to time things so that we are doing most of the work at the tail end of the closing. We need the information in our system early so that the information can be given to the lender when they need it.
Summer 2015 | PAGE 3
ASK THE TITLE OFFICER QU E S T I O N
What are some of the questions First American Title has been asked regarding the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosure rule implementation? ANSWER What is this really? Just a new HUD-1? No, it is not a new HUD-1. The CFPB has created two forms that combine the current Truth in Lending (“TIL”) disclosures with the current RESPA disclosures, (the Good Faith Estimate, and HUD-1 Settlement Statement). The two new forms under TRID are: 1. The Loan Estimate Form: Given by the lender to the loan applicant 3 days after application, and 2. The Closing Disclosure Form: The borrower must receive 3 business days before consummation. But, this is more than just new forms, it is not like the 2010 change from one HUD-1 form to another. The rule requires new timelines, imposes new tolerance categories, creates new forms, establishes new liabilities for lenders in the event of non-compliance which will change the work flow between lender and settlement agent and will necessitate some management decisions by title/settlement agents and attorneys to deal with the changes.
ASK THE TITLE OFFICER
Is this new TRID rule affecting all transactions?
Continued... This rule applies to most closed-end consumer credit transactions secured by real property. Consumer Credit is defined as, “Credit offered or extended to a consumer primarily for personal, family or household purposes”.
Transactions that are not currently covered today by RESPA, but which can require use of the new forms if the loan proceeds are for personal, family or household use, include: - Construction loans, - Loans secured by vacant land, - Loans secured by 25 or more acres, - Credit extended to certain trusts for tax or estate planning. Transactions that are exempt include: - Cash Purchases, - HELOCs, - Reverse Mortgages, and - Mortgages secured by a Mobile Home or by a Dwelling that is not attached to Real Property. Why are the Lenders so concerned about the new forms being correct? For two reasons: 1. Due to the requirements of the Ability to Repay/Qualified Mortgage rule that started in January 2014, lenders have to know much more about the financial terms of both the mortgage transaction and the purchase transaction, and more information about the property. For example, an adjustment made between a buyer and a seller (such as a seller credit for a betterment that changes the loan to value ratio) can impact the ‘salability’ of the loan on the secondary mortgage market. Lenders are already feeling the costs of non-QM loans and looking to tighten controls around changes to the settlement costs without their consent, and 2. W ith regard to the TRID rule, the lender, and only the lender, is responsible for the accuracy of the Closing Disclosure (CD), which contains components of both the RESPA and TILA disclosures. This differs from the current pre-October 3, 2015 situation, where the settlement agent is responsible for the HUD-1 and the lender is responsible for the TIL. This rule was issued pursuant to TILA, which changes the financial liability dramatically. What does that financial liability mean? Currently, if there is an error on the HUD-1 (for example, an incorrect tax adjustment, the wrong amount of a payoff figure), it is a violation of section 4 of RESPA – but there is no penalty for non-compliance. While the statute does allow for administrative actions against a violator (such as by HUD or the CFPB) there is no private right of action. Under TILA, if there is a violation, the borrower can sue the lender for statutory damages ($4,000), as well as bring a private lawsuit for actual damages. The penalties in an administrative action under Dodd-Frank can range from $5,000 to $1 million per day.
Summer 2015 | PAGE 4
What don’t we know yet? We do not yet know the impact of this rule on potential CFPB actions against lenders and the potential for private lawsuits. But this is why lenders are taking the issue of who prepares the Closing Disclosure so seriously. We do think that some lenders will use this change in the rule about conducting a closing to re-visit who they use for closing services and their controls over them, and that it may also cause some to incorporate vendor management criteria (such as ALTA Best Practices) into their decision-making. When will it impact me? The TRID rule goes into effect with new loan applications received on or after October 3, 2015. Two examples of the impact are: 1. Lenders will need all numbers from Attorneys anywhere from 10-14 business days in advance. It’s appearing throughout the industry that we won’t need all figures initially – just earnest money, tax prorations, commissions, monthly HOA amounts, any other buyer credits and buyer attorney fees. 2. Final seller numbers may be re-submitted closer to closing. The Settlement Agent is responsible for the delivery of the seller CD at closing. May figures be revised at the closing table for last-minute changes? Yes – only 3 types of changes would require an additional 3-day disclosure period: addition of prepayment penalty, loan product change, APR becomes innacurate by more than 1/8 or ¼ of a point. If the CD is changed for any other reason, for example if the tax proration changed by one day or the termite fee is $85 instead of $65, or the hazard insurance premium comes in for $10 more, the borrower must be given the right to inspect the corrected CD at least one business day prior to consummation. As to repair credits, many lenders are unable to allow repair credits today due to other lending rules which they must follow. We are not yet sure how this issue will be handled. Who will now be responsible for scheduling the closing? We do not see any immediate change as to who will schedule the closing. HOWEVER, communication will become imperative as a seller’s attorney may not choose the final closing date without confirming whether the buyer’s lender may meet the CD delivery timing requirements. Issues like these may be cleared up in the lender’s closing instructions. Since the buyer and seller will be acknowledging different CDs, will the two be shared with each other or any other closing party? Ultimately, this will be up to the lender and the lender will probably follow the laws of the state in which it is conducting business. The Rule states that the seller and buyer need to know parts of each other’s information (such as items that cause prorations) but that IF the creator of the CD wants to omit some information relevant to only one party they can. And the rule
states how to do it. So, just as today, if they want to, the creditor will be able to do a full CD with everyone’s information and give it to everyone. Or the creditor might interpret Gramm-Leach-Bliley requirements about NPI to mean that the seller should not see some borrower information and vice versa (but that would be their interpretation, not a CFPB rule). Will First American Title require any other Settlement-type statement to be signed at closing besides the Closing Disclosure? First American will adopt the standardized Settlement Statement form developed by ALTA and provide it to the borrower at signing. A copy will be provided to the lender within the executed Closing Package. The Settlement Statement will reflect all actual charges to the borrower including the final payoff information. First American will review the CD before the final Settlement Statement is issued and communicate any updates to the lender. The Settlement Statement will be used on all transactions, with the exception of Texas where the Texas Disclosure form will be used. Lenders should provide a point of contact to receive the Settlement Statement and any communication regarding changes that will impact the information on the CD and re-disclosure to the borrower. What about non-TRID transactions? Will First American be issuing HUD-1s on cash transactions? We will follow lender direction as to which form(s) should be used on lender transactions. We will issue Settlement Statements on cash transactions. Will Attorney Agent Compensation be disclosed on the new CD? Yes, it is our belief agent compensation will be disclosed on a seller CD in Section H. It will also appear on the Settlement Statement under the Miscellaneous section. Will it be possible to close in 30 days? How far out should a contract closing date be chosen? Due to the disclosure periods, 45-60 days would be a more realistic timeframe since it could possibly be 22 days just for TRID timing requirements. Is there anything I should communicate with Realtors? Completing the real estate contract in its entirety including monthly HOA amounts and license numbers and NMLS i.d. or I.D. numbers for agents and brokers should be the standard practice for realtors.
Legal advice or other expert assistance is required to prepare mortgage disclosures, and the service of a competent professional should be sought by agents and any other third parties. First American expressly disclaims any representations or warranties that agents’ or third parties’ use of the information presented will satisfy any statutory or regulatory obligations, or will assist with, guarantee or otherwise ensure compliance with any applicable laws or regulations, including but not limited to the legality or propriety of the use of the information in any geographic area, the gramm-leach-bliley act of 1999, the sarbanes-oxley act of 2002, or other federal or state statutes or regulations. Agent and third parties are solely responsible for ensuringthat their use of the information presented is in accordance with applicable law. It is the agents’ and third parties’ responsibility to review changes in laws, regulations and accounting practices that affect their business.
Summer 2015 | PAGE 5
AT F I R S T A M E R I C A N T I T L E ?
Employees Promotions
Jeneen Simich joined First American Title in May of 2015, becoming our newest Title Officer in Warrenville, IL. She has spent the majority of her career in the title industry and has progressed from her start as an administrative assistant to a sales assistant, claims assistant, residential closer, and both residential and commercial examiner. She lives in Bartlett with her husband and is looking forward to seeing her son graduate from Concordia University, Wisconsin, in the spring of 2016. Jeneen is excited to be part of the First American Title family. Her motto is: “Title is my life, and escrow is my inspiration.” Welcome Jeneen!
First American Title welcomes Erin Corley to our Aurora office as an Escrow Officer. Erin joins our family with 15 years’ experience and brings a vast amount of industry knowledge. We are excited she has joined our team and look forward to her being with us for many years to come. Erin’s family are “huge sports fans” and spend much of their time at sporting events almost every weekend in the spring/summer months. She adds that “my husband and I are kept very busy with our 2 children”.
We welcome Lindsay Lehman to the First American Family as a Escrow Officer in the St Charles office. Lindsay has 15 years of mortgage, real estate and title experience combined. She is “excited to learn new things and meet new people while working at First American Title.” Her hobbies include participating in Roller Derby for 8 years and she enjoys watching our Chicago Blackhawks and is hoping for another Stanley Cup this year!
We are pleased to welcome back Sue (Susan) Grant to the First American team, she comes to us with a wealth of knowledge and experience. She has been in the industry 25 plus years and most recently worked with an agent of First American Title. She is returning to the industry after a short break - she missed the excitement of being a closer. Sue is a great addition to our closing team and will be based in the Bensenville office. Sue enjoys sitting around a camp fire with family and friends. She recently rescued her dog named Daisy, a black lab mix, and enjoys taking her to the doggy park.
Since retiring from the First American Title Sales Department in January 2014, Nancy Geitner has taken a few trips that were on her “bucket list”. She has also done some long overdue household projects and she is currently helping her daughter with wedding plans. She still is waking up a 5:30 a.m. (apparently you cannot break old habits). She decided she needed to be busier and when the St. Charles branch was in need of a part time escrow receptionist, Nancy came to mind. Nancy says “I could hardly say no. Working with wonderful people, a great company and so many customers I’ve known and enjoyed, from all perspectives, definitely a WIN-WIN….and WIN!”
Sylvia Ksiazek has recently joined our Illinois direct operations as a Title Examiner. She originally joined First American in March of 2013 as an escrow assistant for our Agent Solutions Division within First American Title. She is trained in HUD-1 preparation, wire approval & disbursements and has a BA in Management and Organization Behavior from Benedictine University. Sylvia enjoys running and completed the Chicago Marathon in 2012. She loves home improvement shows and closely follows the ever-changing real estate market trends. We welcome her past escrow experience as she now focuses on title matters. Congratulations Sylvia!
We are excited to announce the promotion of Maria Rosales to Escrow Officer in our Elgin Office. Maria joined the First American family in 2013 as Receptionist in the Arlington Heights office. Maria speaks fluent Spanish and brings a wealth of knowledge to her new position. Her customer-first attitude and professional demeanor make her a tremendous addition to the Elgin Team.
Summer 2015 | PAGE 6
Internships are a two way street. The intern gains education and insight in a particular field, helping them to achieve scholastic and/ or career goals. For First American Title, we are afforded the opportunity to help an individual move closer to these goals and hopefully develop future First American Title talent!
Summer Intern Yvette Cancelliere joined First American Title as an underwriting intern in the Warrenville, Illinois office this Summer. She completed her undergraduate studies in 1988, at Columbia University in New York City, majoring in Spanish Literature. Currently, Yvette is a third-year law student and a Graduate Assistant at Northern Illinois University. Prior to attending law school, Yvette worked as a licensed Illinois real estate agent for Coldwell Banker and a certified substitute teacher for the Plainfield, Illinois public school district. In addition to completing her first-year legal doctrinal courses, Yvette has completed courses in Real Estate Law, Property Law, Secured Transactions, Administrative Law, Federal Courts, Landlord/ Tenant Law, Evidence, and Statutory Interpretation. This Fall she will be enrolled in upper level Federal Tax, Criminal Procedure, Bankruptcy, and Legal Technology courses. She looks forward to graduating in May of 2016 and beginning her career as an Illinois Attorney. Yvette has lived in Illinois for the past 20 years with her three children, who are now college students. Yvette is excited to be a part of the First American Title team this summer and looks forward to learning about the title insurance business.
Summer Intern The First American Title Sales Department took on a marketing intern this summer. Nick Simich, a marketing major getting ready to enter his senior year at Concordia University in Wisconsin, has brought a fresh pair of eyes and research skills to assist our sales effort. Along with gaining experience riding along with the sales representatives, Nick has assisted inside operations and provided insight on the use of social media and its impact on marketing efforts. We look forward to a few more weeks of having Nick around and are grateful for the work he has done!
Summer 2015 | PAGE 7
SCHEDULE OF RESIDENTIAL FEES AND SERVICES ILLINOIS COUNTIES OF
Effective August 15, 2015, First American Title will publish a new rate card for the Chicago Metro area. The new rates will apply to orders placed on or after the rate card effective date. We will continue to begin our rate schedule at $100,000.00. You will note we have removed the email delivery fee and the overnight delivery fee on the buyer’s side of the transaction.
EFFECTIVE 8.15.15
Please review the new rate schedule below for all of the details. If you would like a new schedule, please ask your sales representative or visit our website at www.il.firstam.com.
COOK, DUPAGE, GRUNDY, L AKE, K ANE, KENDALL , MCHENRY, WILL
BASIC R ATE FOR TITLE FEES A M O UNT
PREM I U M
100,000 - OR LESS
$1,400
320,001 -
A MO U N T 330,000
P R E M IU M $1,860
550,001 -
560,000
$2,370
780,001 -
790,000
$2,830
100,001 - 110,000
$1,420
330,001 -
340,000
$1,880
560,001 -
570,000
$2,390
790,001 -
800,000
$2,850
110,001 - 120,000
$1,440
340,001 -
350,000
$1,900
570,001 -
580,000
$2,410
800,001 -
810,000
$2,870
120,001 - 130,000
$1,460
350,001 -
360,000
$1,920
580,001 -
590,000
$2,430
810,001 -
820,000
$2,890
130,001 -
140,000
$1,480
360,001 -
370,000
$1,940
590,001 -
600,000
$2,450
820,001 -
830,000
$2,910
140,001 -
150,000
$1,500
370,001 -
380,000
$1,960
600,001 -
610,000
$2,470
830,001 -
840,000
$2,930
150,001 -
160,000
$1,520
380,001 -
390,000
$1,980
610,001 -
620,000
$2,490
840,001 -
850,000
$2,950
160,001 -
170,000
$1,540
390,001 -
400,000
$2,000
620,001 -
630,000
$2,510
850,001 -
860,000
$2,970
170,001 -
180,000
$1,560
400,001 -
410,000
$2,020
630,001 -
640,000
$2,530
860,001 -
870,000
$2,990
180,001 -
190,000
$1,580
410,001 -
420,000
$2,040
640,001 -
650,000
$2,550
870,001 -
880,000
$3,010
190,001 -
200,000
$1,600
420,001 -
430,000
$2,060
650,001 -
660,000
$2,570
880,001 -
890,000
$3,030
200,001 -
210,000
$1,620
430,001 -
440,000
$2,080
660,001 -
670,000
$2,590
890,001 -
900,000
$3,050
210,001 -
220,000
$1,640
440,001 -
450,000
$2,100
670,001 -
680,000
$2,610
900,001 -
910,000
$3,070
220,001 -
230,000
$1,660
450,001 -
460,000
$2,120
680,001 -
690,000
$2,630
910,001 -
920,000
$3,090
230,001 -
240,000
$1,680
460,001 -
470,000
$2,140
690,001 -
700,000
$2,650
920,001 -
930,000
$3,110
240,001 -
250,000
$1,700
470,001 -
480,000
$2,160
700,001 -
710,000
$2,670
930,001 -
940,000
$3,130
250,001 -
260,000
$1,720
480,001 -
490,000
$2,180
710,001 -
720,000
$2,690
940,001 -
950,000
$3,150
260,001 -
270,000
$1,740
490,001 -
500,000
$2,200
720,001 -
730,000
$2,710
950,001
960,000
$3,170
270,001 -
280,000
$1,760
500,001 -
510,000
$2,270
730,001 -
740,000
$2,730
960,001
970,000
$3,190
280,001 -
290,000
$1,780
510,001 -
520,000
$2,290
740,001 -
750,000
$2,750
970,001
980,000
$3,210
290,001 -
300,000
$1,800
520,001 -
530,000
$2,310
750,001 -
760,000
$2,770
980,001
990,000
$3,230
300,001 -
310,000
$1,820
530,001 -
540,000
$2,330
760,001 -
770,000
$2,790
990,001
1,000,000
$3,250
310,001 -
320,000
$1,840
540,001 -
550,000
$2,350
770,001 -
780,000
$2,810
For amounts over $1,000,000 please add $1.50 per thousand.
FEE S FOR R E S I D E N T I A L C L OS I NG & ES CRO W S ER VI CES
A M OU N T
P REM IU M
A M OU NT
P REMI UM
MISCELLANEOUS FEES
PO L I C Y AM O U N T: $100,000 or Less
Accommodation Recording Service
$25
$1,100
Annual Escrow Maintenance
$120
$100,001 - $150,000
$1,150
Chicago Water Bill Payment Only Service
$10
$150,001 - $200,000
$1,200
Chicago Water Cert. Process & Payment Service
$75
$200,001 - $250,000
$1,250
Chicago Zoning Process & Payment Service
$75
$250,001 - $300,000
$1,300
Investment
$75
$300,001 - $400,000
$1,350
Joint/Sole Order Escrow
$300
$400,001 - $500,000
$1,400
Lender Required Hold Back Service
$50
$500,001 - $600,000
$1,500
Policy Update Search
$125
$600,001 - $700,000
$1,600
Commitment Update Search
$125
$700,001 - $800,000
$1,700
Overnight Delivery Service
$25
$800,001 - $900,000
$1,800
PLDP Compliance Processing
$50
$900,001 - $1,000,000
$1,900
Tax Payment Service
$50
Postponed Disbursement
$150
Title Indemnity Processing
$175
After-Hours Closing
$150
Wire Transfer
$40
Simultaneous Second Mortgage Closing
$225
Chain of Title
$250
Stand-Alone Second Mortgage Closing
$225
M OR T G AG E P O L I C Y A N D C O MMO N ENDO RS EMENTS Simultaneously-Issued Mortgage Policy
$500
Simultaneously-Issued Second Mortgage Policy
$225
Endorsements: Revolving Credit, Location, ARM, EPL, ALTA 4 (condominium), ALTA 5 (PUD)
$180 Each
FEES FOR RESIDENT IAL REFINANCES Policy Amount of $1,000,000 or Less For amounts over $1,000,000 please add $0.50 per thousand.
$450
Rates effective on qualifying transactions closed on or after 8/15/15 First American Title Insurance Company, and the operating divisions thereof, make no express or implied warranty respecting the information presented and assume 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. This is not a complete Schedule of Fees. All fees subject to State sales tax as applicable. Above pricing does not include recording fees, mortgage registration tax or conservation fee. As with any insurance contract, the insuring provisions express the coverage afforded by the title insurance policy and there are exceptions, exclusions and conditions to coverage that limit or narrow the coverage afforded by the policy. Also, some coverage may not be available in a particular area or transaction due to legal, regulatory, or underwriting considerations. Please contact a First American representative for further information. The services described above are typical basic services. The services provided to you may be different due to the specifics of your transaction or the location of the real property involved.
Summer 2015 | PAGE 8
O U R W E B S I T E H A S A N E W LO O K ! Every once in a while we all need a little boost. The customer website for First American in Illinois, www.il.firstam.com just underwent some “cosmetic surgery” in order to remain young and beautiful. The goal of re-facing any website is to make it easier to maneuver and to keep it as intuitive as possible. As you will see, we have added tiles to make it easier to identify and access the portions of the site that are most important to you. Users are able to identify their sales representative, locate our branch offices or access our fee calculators with a single click! These are just a few of the features. Please give it a “test spin” to see all of the features. Also, we would be happy to hear from you if you have ideas to further enhance our site. Let us know at takingflight.il@firstam.com We look forward to hearing from you!
Our Chicago-Irving Park location at 4230 West Irving Park Road is very popular with many of our customers, primarily due to our team members, but also due to the convenient location just off the expressway. We even have free parking in our lot. Our attorneys, realtors, and loan officers have told us that the office can be easy to miss when driving, and many have driven right past. We listened, and have added a bright blue awning and parking lot signs to reduce confusion. Our Chicago Irving Park office is now much easier to spot for guests coming to our office. We think the awning looks terrific!
LO C A L T R I D H E R O E S T R A I N S TA F F A N D C U S TO M E R S In preparation for the changes impacting our industry due to the TILA/RESPA Integrated Disclosure (TRID) rule, we at First American Title not only have been conducting seminars to educate our customers on the impact of the new rule, but have also been conducting internal training for our employees. A few leaders in our state attended a two day Train the Trainer seminar with the intention of further educating our staff. All internal personnel were required to attend a full day of interactive training led by our local TRID heroes. Topics included an overview of why the training is important, a review of both the Loan Estimate and Closing Disclosure forms and their rule requirements and title premium quoting under TRID. Our goal at First American Title is to educate our employees on the new rules and their impact on closing transactions. If you have any questions about our TRID preparation, please reach out to either Mojca Anaya, Illinois State Escrow Lead, mmagajne@firstam.com, Ryan Pettengill, Chicago Metro Area Manager, rpettengill@firstam.com or Kelli Winsky, Sr. Escrow Operations Manager, kwinsky@firstam.com.
From L to R: Kelli Winsky, Mojca Anaya, Ryan Pettengill (Local TRID Heroes)
Summer 2015 | PAGE 9
First American Title’s Northbrook Office celebrated its grand re-opening with a Cinco de Mayo themed open house.
Guests were treated to lunch featuring traditional Mexican fare such as tamales, chips and salsa, corn relish, guacamole and Mexican soda pop. The Northbrook office is located at: 40 Skokie Blvd., Suite 420, Northbrook, IL 60062 and can be reached by phone at 847.272.5945, by fax at 847.272.6275 or email at escrow.northbrook.il@firstam.com.
From L to R: Attorney Michael Samuels and Janis Hartshorne
From L to R: Sarah Harvey, Debbie Cook, Janis Hartshorne, Jennifer Mahoney, & Kimberly Furtek
From L to R: Marc Price, Melissa Poppenger and Gary Mages from Mages and Price, Deerfield,IL
C A R I N G F O R O U R CO M M U N I T Y: At First American Title we pride ourselves on giving back to the community. Recently, the teams from our Crystal Lake and Elgin offices spent a Saturday at “Feed My Starving Children” in Libertyville. Feed My Starving Children (FMSC) is a non-profit organization committed to feeding hungry children in body and spirit. The approach is simple: volunteers pack meals specially formulated for malnourished children, which are sent to partners around the world where they’re used to operate orphanages, schools, clinics and feeding programs to break the cycle of poverty. Gloria Peetz and Hazel Schiller poured the mixture, Debbie White and Marilyn McGuire weighed them and Ella Russel sealed them. Kathy Becker tracked the filled bags and reported a grand total of 101 cases, each with 36 packets, which is enough to feed 60 children for a full year!
From L to R: Gloria Peetz, Debbie White, Hazel Schiller, Ella Russel, Marilyn McGuire, and Kathy Becker
First American Title was proud to be a Grand Slam sponsor for the 12th annual rooftop Party at Brixen Ivy. Over 250 friends and supporters of this great organization came to celebrate the progress and impact they have achieved in helping people rise up and beat homelessness. The group enjoyed good food and friends while watching the Cubs battle the Pittsburgh Pirates from the rooftop venue. The night was made even sweeter by witnessing the Cubs win the game! Goldie’s Place is a support center for people who are homeless. For over 18 years they have helped their participants transform themselves into healthy, hopeful, and productive members of the community by offering a unique combination of services, including employability training, free dental care and job placement. The Employment Program uses a rigorous approach emphasizing accountability and secures jobs for over 100 men and women each year, addressing unemployment as the root cause of homelessness. The Dental Program utilizes a corps of 25 volunteer dentists and, through a ground-breaking partnership with the UIC College of Dentistry, hosts the nationally recognized student-run dental clinic providing hands-on experience in the field of public health dentistry to 75 students a year.
From L to R: Jim Stucker, Ryan Pettengill, Pat Weinstein, Paul Garver, of Hawbecker and Garver, and a Board Member of Goldie’s Place, Tenishia Valentine and Kelli Winsky Summer 2015 | PAGE 10
The 2015 Three Rivers Association of Realtors Annual Golf Outing was held on June 9 at Whitetail Ridge Golf Club in Yorkville. First American Title was a sponsor at hole #3. The golfers enjoyed beverages, snacks & First American Title golf ball stress balls. From L to R: David Wiles, Bob Vergo - Karges Realty Joliet, Jeanette Grenke, Rick Veigelt, guest of Bob Vergo.
Will County Bar Golf Outing In spite of occasional passing thunderstorms (somehow we are getting pretty used to that this summer!), the Will County Bar Golf Outing was a huge success. The golfers braved the ever changing weather to compete in the scramble held at Heritage Bluffs Golf Club in Channahon on June 12th. In between the drops, First American Title offered support with beverages and snacks at the 7th hole. After the round of golf, everyone enjoyed the company and dinner served in the clubhouse! From L to R: Erin O'Sullivan, Joliet attorney, Chantal Host & Lisa Holloway, associates at KGG, LLC, David Wiles & Ragan Freitag, associate at KGG, LLC
The Illinois Mortgage bankers Association (IMBA) held their Annual Golf Outing on June 4th The weather cooperated nicely and the event, held at Silver Lake Country Club in Orland Park was well attended. First American Title helped sponsor the outing and after the golfing was complete, the group enjoyed drinks, dinner, and music. The evening was capped with awards and raffle prizes. If you would like information on joining the IMBA or participating in their events, you can contact them at IMBAInfo@att.net. Mike Redding from Diamond Residential Mortgage in Lake Forest juggling 4 of our stress ball giveaways.
From L to R: Kimberley Crum Klein, Jamie Mosser, Alice Henrikson and Diane Lundbeck, all from Klein & Mosser, LLC
First American Title was a sponsor at the Kane County Bar Association’s annual golf outing. The outing was held on Thursday, July 30th at the Elgin Country Club.
From L to R: Nick Simich, Cindy Vacek, Program Coordinator for the Kane County Bar Association, Joe Pratt
As usual, the event was filled to capacity. Guests enjoyed a scramble format and dinner was served after the golfing was complete.
First American Title was a proud sponsor of the Annual Lake County Bar Association Golf Championship. The event took place July 9th at Thunderhawk Golf Club in Beach Park, IL. While taking home the Championship Trophy remains an elusive dream, we are thankful for the opportunity to support our attorney partners and look forward to participating again next year! Summer 2015 | PAGE 11
F I N D U S O N FAC E B O O K
at www.facebook.com/FirstAmerican.ChicagoMetro Like our page to receive industry news, local real estate events as well as updates and information regarding your favorite First American Office. Check in at your next closing to let your friends know you’re here!
M R E D PA LO OZ A First American Title manned a booth at the annual MRED Palooza, Chicagoland’s largest real estate tech expo. Over 4,400 real estate professionals attended the event at the Donald E. Stephens convention Center in Rosemont, which included a multitude of vendor offerings and valuable training for the members in attendance.
C A R G LO B A L R E A L E S TAT E
Networking Event
On May 27th First American Title participated in a networking event host by the Chicago Association of Realtors (CAR). The round table forum addressed the topic of Global Real Estate and Emerging Markets. Multiple subjects were covered including “International Financing”, “Cultural Nuances” and “How to Find International Land”.
First American Title presented a wide variety of products which included CostsFirst™ (net sheet calculator), myFirstAm® (property profiles and farming tool), and DigitalDocs (cloud storage and marketing). If you would like information on these or any other of our offerings, please contact your local sales representative or reach out to us at: takingflight.il@firstam.com. From L to R: Amanda D’Anna and Tyler Tosch
The event supported CAR members who do business with global markets and also helped foster strong relationships with local organizations representing diverse ethnic and cultural communities in Chicagoland. First American Title’s support and contribution of our Strategic Markets materials were warmly received. From L to R: Maureen Dahlgren, Attorney Katie Hadda, Tyler Tosch Summer 2015 | PAGE 12
Live Offering T H E N E W FAC E O F H O M E O W N E R S H I P : F O R E I G N N AT I O N A L B U Y E R S The settlement process for this growing buyer segment has specific nuances. Come learn and become aware of these unique transaction characteristics.
Presenter: Darryl Freeman Market Integration Manager, First American Title MCLE Credit: 2 hours
Tuesday, August 11, 2015 9:00 am – 11:00 am CDT
Webinar Offering CFPB WEBINAR - HOW THE AT TO R N E Y ’ S R O L E I S A F F E C T E D W I T H THE UPCOMING CHANGES WITH R E S P E C T TO C F P B R U L I N G S This presentation focuses on upcoming changes with respect to CFPB rulings and directives and how the attorney’s role within the closing transaction will be affected. Among other issues, this seminar will include the new CFPB mandated closing disclosure forms which become effective October 3, 2015 and ALTA Best Practices.
Presenters: Martin Cann, IL State Underwriting Counsel and Mojca Anaya, IL State Escrow Lead MCLE Credit: 1.5 hours
Registration begins at 8:30 The Village of Gurnee – Village Hall Council Chamber Auditorium 325 N. O’Plaine Road, Gurnee, IL 60031-2636
Wednesday, August 12, 2015 1:30 pm – 3:30 pm CDT
Thursday, September 10, 2015 10:00 am – 11:30 am CDT Click on the link below to register for the online event. https://attendee.gotowebinar.com/ register/4882909516894192897
Registration begins at 1:00 First American Title – Park Ridge Conference Center 1300 West Higgins Road, Park Ridge, IL 60068 RSVP to Amy Gregory agregory@firstam.com
Summer 2015 | PAGE 13
D I D YO U H E A R ?
Wally Lesus has retired! His last day of work was July 31, 2015.
Wally started in the title industry in 1972 with a competitor and worked for six years in the recorded instruments department before joining another company to start a title plant. This is where he learned to search, examine and first became a title officer. Next, Wally worked at several small agencies as either a title officer or a title manager. Just shy of 15 years here at First American Title, this is Wally’s longest stint at any one title company; just short of 43 years in the industry. Despite this range of experience, Wally said he still came across things he had never encountered before. While some people think examining and underwriting may be somewhat dry, Wally has enjoyed the problem solving aspect of his job.
He recently was told by a customer: “You are a living god. You don’t realize how you have made it possible for me to be a real estate lawyer. I will never be able to repay you for all the help you have given me.” After retirement, Wally hopes to spend more time on his true passions of art and photography. With all the extra time on his hands, he also may be looking for a rewarding part time job or performing some volunteer work. Wally has never taken more than one week off at a time! First America Title thanks Wally for his years of service and wishes him all the best in his well-earned retirement. Wally will be sorely missed by both his colleagues and customers alike.
First American Economic Center is now on FirstAm.com First American is proud to announce the addition of a new page to our main website – The Economic Center. This page will be the home for First American’s Chief Economist, Mark Fleming, to share his perspectives and economic research with real estate professionals, the media, government agencies, and more. Mark Fleming serves as the Chief Economist for First American Financial Corporation. In his role, he leads an economics team responsible for analysis, commentary and forecasting trends in the real estate and mortgage markets. Fleming’s research interests primarily include real estate and urban economics, applied econometrics and mortgage risk. He has published research in the American Journal of Agricultural Economics and Geographic Information Sciences. His research has also been published in the book, “Advances in Spatial Econometrics,” and he is a U.S. patent author. As a trusted and influential voice with 20 years of experience in the mortgage and property information business, Fleming is frequently quoted by national news outlets and industry trade publications such as The Wall Street Journal, The New York Times, and Housing Wire and he is a regular guest on high-profile broadcast news channels, including CBS, CNBC, Fox Business News and NPR. In the Recent News section you will see a roundup of media placements and news coverage. In the near future, we will also start releasing new data and reports that will give visitors to the site an even better understanding of the economic trends and forces driving the real estate and housing market.
Please take a moment and check out the new Economic Center http://firstam.com/economics/ Summer 2015 | PAGE 14
First American Title will be closed
Monday, September 7 th in observance of Labor Day.
Items of Interest The City of Chicago Department of Finance-Water Billing and Customer Service Division is transitioning to a new Online Full Payment Certificate system. If you are ordering the Full Payment Certificate (FPC) yourself, be prepared to submit additional paperwork (see below) to obtain a FPC for all transfers of real property, whether such transfers are exempt from the City of Chicago Real Property Transfer. If you order the FPC through First American Title, the current process will remain, but a title order must already be placed with us. Please note: Unless First American Title will order/process the FPC directly with the Water Billing Division for your closing, we will be UNABLE to pay and certify new FPC applications through the closing due to the way these applications will be administered with the Water Billing Division. Only the person ordering the FPC is given the authority to ‘certify’ the paid FPC which is required to purchase Chicago Transfer Stamps. Therefore, if you order your own FPC, only the certified copy showing paid will be accepted at closing. More information regarding this new process may be found on the City of Chicago Department of Finance-Water Billing and Customer Service website (see link below). Should you have any questions related to a First American Chicago property closing, please contact our Water & Zoning department at: chicagowatercert.il@firstam.com, 877.295.4328. http://www.cityofchicago.org/city/en/depts/fin/provdrs/water_ division/svcs/_apply_for_watersewerfullpaymentcertificate.html Required Documents - One of the following will be required to ensure a complete application: - A Copy of the Executed Deed for the intended transaction (required if requesting an exempt FPC transaction) - T itle Commitment Schedule A disclosing the correct names for the buyer and seller - Signed Sales Contract
Items of Interest P R E SS R E L E ASE dated July 21, 2015
CFPB Finalizes Two-Month Extension of Know Before You Owe Effective Date WASHINGTON, D.C. – The Consumer Financial Protection Bureau (CFPB) today issued a final rule moving the effective date of the Know Before You Owe mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures rule, to October 3, 2015. The rule requires easier-to-use mortgage disclosure forms that clearly lay out the terms of a mortgage for a homebuyer. The Bureau issued the change to correct an administrative error that would have delayed the effective date of the rule by at least two weeks, until August 15, at the earliest. The Bureau is finalizing Saturday, October 3 as the effective date. The Bureau believes that moving the effective date may benefit both industry and consumers with a smoother transition to the new rule. The Bureau further believes that scheduling the effective date on a Saturday may facilitate implementation by giving industry time over the weekend to launch new systems configurations and to test systems. A Saturday launch is also consistent with industry plans tied to the original effective date of Saturday, August 1. The final rule issued today also includes technical corrections to two provisions of the Know Before You Owe mortgage disclosure rule. A copy of the final rule is available here: http://1.usa.gov/1CTPS2o
Note: - Legal description or plat or survey may be also be required for Commercial, Mixed Use, Corner Property, Condo Conversion, Multiple PINs, Apt Bldg with 6 or more units, New Construction, Industrial, Vacant Land, Railroad and Other. - Additional proof of ownership may be requested if the seller listed on the application is not currently listed on the active water account. Summer 2015 | PAGE 15
John Denver – because I just really want to know if he crashed into that mountain on purpose or if it was an accident
Your Point of View
Cari Pettengill, Regional Production Manager Guaranteed Rate 1699 E Woodfield Rd Ste 320 Schaumburg IL 60173
W H O W O U L D YO U L I K E TO H AV E J O I N YO U F O R D I N N E R ? One goal. John McDonough. I am not the world’s biggest hockey fan. In fact, I freely admit that I jumped on the bandwagon during the playoffs in 2010. All that said, it would be great to sit down with the president of the Blackhawks. I am sure he could tell a few stories about the team that only a true insider would know. It could also be a chance to get business advice from someone who has been pivotal in one of the greatest turnarounds in team sports. And...it would be even cooler if he could bring the Stanley Cup with him. Ryan Krueger, Attorney Law Office of Ryan Krueger 4747 W Peterson Avenue, Suite 300, Chicago IL 60646
Billy Joel - because he’s among my favorite musicians & he gives off a very cool, unassuming, blue collar vibe. We would then play music together after dinner. Adam Kamarat, Divisional Production Manager Guaranteed Rate Mortgage 1699 E Woodfield Rd Ste 320 Schaumburg IL 60173
Being a lifelong Cubs fan and having my heart broken in 1969 (while working there as an Andy Frain Usher) and countless other years that I would prefer not to remember, I would invite Tom Ricketts, owner of the Cubs since 2009, to my dinner table. I would like to know his thinking on any number of facets of the operation. Afterwards, he would invite me to his suite to catch a game or throw out the first pitch and maybe even sing the 7th inning stretch. Ron Ogorek, Title Services Manager First American Title Warrenville IL
Having Chess Grandmaster and World Champion Bobby Fischer at my dinner table would be quite a treat. Known for being a recluse, I would like to find out what made him tick, why he gave up playing tournament chess when he was at the top of his game, and what he did while he was in seclusion. Benjamin W. Wong, Benjamin W. Wong & Associates, Ltd. 2 615 North Sheffield Avenue, Chicago, Illinois 60614
I would love to have Renee Bradford, owner of C’est Si Bon Catering located here in Chicago at my dinner table. I have never met her, but have experienced her delicious delicacies and wonderful ambiance. I would like to have her over for dinner so I can gain more knowledge on the process of owning and operating an establishment and see if she would share any of her secrets. Mary J. Perkins, Receptionist First American Title Chicago Loop IL
Summer 2015 | PAGE 16
We would love to hear from you! If you are interested in submitting an article to be considered for our newsletter, please contact your First American Account Representative.
Would you like to receive the Taking Flight Newsletter via email? Please send your email address to: takingflight.il@firstam.com if you would like us to send you a copy of this newsletter to your inbox. Summer 2015 | PAGE 17
Illinois Summer 2015 Taking Flight Newsletter (REV 08/2015)