First American Title Chicago Metro Taking Flight Newsletter - Winter 2015

TAK I N G F L I G H T

W I N T E R 2015

A Quarterly Publication for the Chicago Metro Area in this issue

page

From the Top ............................................................... 1-2

F R O M T H E T O P. . .

Ask the Title Officer .................................................... 2-3

By: Michael T. Koors

Best Practices .............................................................. 4-5

Senior Vice President, Direct Division - East Region First American Title

Whats New at First American Title ............................ 6-9 The Practice of Marketing ...................................... 10-11 Items of Interest ........................................................... 12 Your Point of View ................................................... 13-15

Visit us online at www.il.firstam.com

First American Title Insurance Company traces its roots back to 1889 in Southern California. Having celebrated our 125th anniversary this past year it is a great time to reflect on the company and the title insurance industry. You might say that if one has been in the title insurance and settlement services industry for while you have seen a lot of changes. Actually, it is continually changing, so let’s take a look at the recent past and what we might expect for the coming year.

I think we would probably all agree that the challenges since around 2007 have been some of the most trying. The real estate market and lending environment have been tested time and again. Those that provide quality service and reinvest in the industry that we enjoy so much are the ones that have survived and even thrived during these past years. First American is one of these companies. We remain focused on our employees, our customers and the long-term health of our industry and those associated with it.

After a very successful 2013, the many dedicated employees at First American were poised to repeat in 2014. Unfortunately, a simmering economy and something called a polar vortex changed the game. You can’t live or die with one quarter; however the first quarter definitely got our attention and caused a few bumps and bruises.

After getting through the first quarter, 2014 turned out to

©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 - 03/2015

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F R O M T H E T O P. . .

ASK THE TITLE OFFICER

be a good year overall for First American. We were able to do this by remaining committed to our employees, customers and those we interact with in the real estate and lending communities while staying true to our conservative, compliant, service oriented culture. If you are committed to long term success and the health of our industry I am certain you have seen the same success.

QUESTION

Having closed out 2014, and looking forward in 2015, we have a new challenge on the horizon. It involves the CFPB (Consumer Financial Protection Bureau), with upcoming changes involving: disclosure and notice requirements, lender management of vendor activities and other unknowns. In August, many of these changes will be required. Do you know what the landscape will be? Do you know how the changes will impact your business?

Many of these questions are still unanswered. Expect the conversations to increase in earnest in 2015.

For many, the CFPB and what they regulate is still a bit of an unknown. From their own information they state: Our mission is to make markets for consumer financial products and services work for Americans - whether they are applying for a mortgage, choosing among credit cards, or using any number of other consumer financial products. What the CFPB will regulate, among other things, are credit cards, mortgage transactions, bank accounts, credit reporting, money transfers and debt.

Stay engaged to learn what will be expected and how you may be impacted by going to the CFPB website www. consumerfinance.gov, or follow them on twitter (@cfpb) or Facebook. First American will also be sharing critical information throughout the process through informational videos, handouts, and seminars. Stay tuned or contact your local First American team member for the most up to date information.

Thank you and good luck Creating Success in 2015 and for years to come.

What are the requirements to insuring title through a transfer on death instrument with the amendment of the Illinois Residential Real Property Transfer on Death Instrument Act by Public Act 980821 effective January 1, 2015?

ANSWER The Illinois Residential Real Property Transfer on Death Instrument Act (“Act”) became effective on January 1, 2012 through Public Act 097-0555.

The Act provides a method for transferring residential real estate upon the owner’s death to designated beneficiaries, without probate. The method is through the recording of a Transfer on Death Instrument (“TODI”).

The Act applies to a transfer of residential real estate by means of a transfer on death instrument made before, on, or after January 1, 2012, by an owner dying on or after that date. Entities such as corporations, limited liability companies or trusts cannot create a TODI. Joint owners can, provided there is a right of survivorship. It does not apply to tenants in common.

The TODI only applies to “residential real estate” which means real property improved with not less than one nor more than 4 residential dwelling units, a residential condominium unit and any parking units allocated to the unit, or a single tract of agriculture real estate consisting of 40 acres or less which is improved with a single family residence.

Requirements The TODI: (1) must substantially contain the essential elements and formalities of a properly recordable inter vivos deed; (2) must state that the transfer to the designated beneficiary is to occur at the owner’s death; (3) must be recorded before the owner’s death in the public records in the office of the recorder of the county or counties in which any part of the residential real estate is located; (4) shall be signed by the owner; (5) shall be attested in writing by 2 or more credible witnesses; (6) must contain the witnesses signatures along with the owner’s signature and shall be acknowledged by a notary public; (7) shall have the witnesses attest in writing that on the date thereof the owner executed the transfer on death instrument in their presence as his or her own free and voluntary act; and (8) must reflect that at the time of the execution the witnesses believed the owner to be of sound mind and memory.

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Winter 2015 | PAGE 2

The failure to substantially comply with any of the requirements will render the transfer on death instrument void and ineffective to transfer title to the residential real estate at the owner’s death. An owner may transfer residential real estate by a transfer on death instrument to one or more beneficiaries as owners, concurrently or successively, and upon any contingency, effective at the owner’s death. This could cause a problem for the title insurance company insuring a sale or refinance if the title company cannot determine the beneficiary or there is any doubt as to the contingencies. If so, an affidavit of heirship, indemnification agreements and deeds signed by all the heirs, legatees under a Will and TODI beneficiaries and an additional risk premium will be needed to insure.

Beneficiary Rights The designated beneficiary has no rights or interest in the property during the owner’s lifetime and during an owner’s life, a transfer on death instrument does not: (1) affect the right of the owner, any other owner, or an agent for the owner to sell or encumber the residential real estate; (2) affect an interest or right of a transferee, lienholder, mortgagee, option holder or grantee even if the transferee, lienholder, mortgagee, option holder or grantee has actual or constructive notice of the instrument; (3) affect an interest or right of a secured or unsecured creditor or future creditor of the owner, even if the creditor has actual or constructive notice of the instrument; (4) affect the owner’s or designated beneficiary’s eligibility for any form of public assistance; (5) create a legal or equitable interest in favor of the designated beneficiary; or (6) subject the residential real estate to claims or process of a creditor of the designated beneficiary.

Revocation The TODI is always revocable during the owner’s lifetime even if a contrary provision exists in the TODI or other instrument, but a revocation must be recorded.

An instrument is effective to revoke a recorded transfer on death instrument, or any part of it, only if it is: another transfer on death instrument that revokes the instrument or part of the instrument expressly or by inconsistency; or an instrument of revocation that expressly revokes the instrument or part of the instrument; and it is executed, witnessed, and acknowledged on a date that is after the date of the acknowledgment of the instrument being revoked; and recorded before the owner’s death in the public records in the office of the recorder of the county or counties where the prior transfer on death instrument is recorded.

Upon the owner’s death, the property will transfer to the designated beneficiary of the last recorded TODI. Ownership of the property becomes retroactively effective on the date of the owner’s death. The title company must still review the owner’s death certificate to check the date and time of death, confirm the cause of death as natural and review for any evidence of incapacity. The amendment removes the requirement that the beneficiary come forward and claim the property by recording a Notice of Death Affidavit and Acceptance of Transfer on Death Instrument.

Effect At Owner’s Death Subject to the beneficiary’s right to disclaim, the interest in the residential real estate is transferred to the beneficiary in accordance with the instrument. If a designated beneficiary fails to survive the owner or is not in existence on the date of the owner’s death, then the residential real estate shall pass to the owner’s estate with the exception that unless the owner provides otherwise, if the designated beneficiary is a descendant of the owner who dies before the owner, the descendants of the deceased designated beneficiary living at the time of the owner’s death shall take the residential real estate per stirpes. If the designated beneficiary is one of a class of designated beneficiaries, and any member of the class dies before the owner, the members of the class living when the owner dies shall take the share or shares which the deceased member would have taken if he or she were then living, except that if the deceased member of the class is a descendant of the owner, the descendants of the deceased member then living shall take per stirpes the share or shares which the deceased member would have taken if he or she were then living.

A transfer on death instrument transfers residential real estate without covenant or warranty of title even if the instrument contains a contrary provision.

Joint Owners One or more joint owners may execute a transfer on death instrument. If all of the joint owners execute a transfer on death instrument, then an instrument of joint owners is revoked only if it is revoked by all of the then living joint owners. A transfer on death instrument is revocable by the last surviving joint owner notwithstanding any contract or agreement between the joint owners to the contrary.

If less than all of the joint owners execute a transfer on death instrument, the transfer on death instrument will be governed by the designation of the joint owner who is the last to die of all the joint owners. If the last to die joint owner did not execute a transfer on death instrument, the designation of any prior deceased joint owner is ineffective. A transfer on death instrument shall not sever a joint tenancy or tenancy by the entirety. In a divorce situation where one party is granted the property, a court order will be required to sever the tenancy.

Bona Fide Purchaser A purchaser or mortgagee for value and without notice before the recordation of a lis pendens for an action to set aside or contest the transfer on death instrument for any reason shall take free and clear of any such action or contest.

This was added by the recent amendment which previously made it nearly impossible to insure within two years of the owner’s death when the beneficiary wanted to sell to a third party. The requirements to insure through a TODI from the beneficiary to a bona fide purchaser are: 1. a copy of the death certificate of the owner or owners; 2. a warranty deed with the TODI beneficiary as grantor identifying the beneficiary of a transfer on death instrument recorded on the date as document number of the recorded TODI; and 3. if a probate estate was opened, a payoff letter from the personal representative of any claim for reimbursement for maintaining the property.

If the conveyance is not to a bona fide purchaser, the title company will default to requiring an affidavit of heirship, indemnification agreements and deeds signed by all the heirs, legatees under a Will and TODI beneficiaries and an additional risk premium to insure.

Winter 2015 | PAGE 3

BE S T PR AC TICE S...E L D E R M E D I AT I O N B Y: D E N N I S J . M C N I C H O L A S , AT T O R N E Y AT L A W 425 S. Main Street, Lombard, IL 60148 www.dennisjmcnicholas.com What is elder mediation and who can benefit from it? Elder mediation is similar in concept to other forms of mediation including, but not limited to, divorce mediation and mediation of civil disputes. The federal government has the Federal Mediation and Conciliation Service that deals with mediation and arbitration of contract negotiations and labor disputes. It is safe to say that most if not all civil mediations and mediations conducted by the Federal Mediation and Conciliation Service do not involve family members. Even divorce mediation involves people who are trying to legally terminate a relationship. However, in elder mediation the number of potential participants greatly exceeds the husband and wife in a typical divorce mediation.

Furthermore, no matter how often we experience the urge, we cannot divorce our immediate and extended families. Therefore, the elder mediator must be conscious of the need to assist in the creation of an agreement that will allow for some semblance of peace in the family with a focus on the needs of the elderly or impaired person rather than on the parties who are in dispute.

Therefore, the elderly or impaired person can benefit along with all other individuals or family members who may be participants in or affected by the elder mediation process.

However, I want to frame my initial comments in the context of the practicing attorney. As practicing attorneys we can be confronted with a number of different situations that can easily lend themselves to elder mediation. I will set forth some common examples but feel free to use your imagination and/or experience as to the myriad of possibilities.

1.

You are the attorney in a real estate transaction. Mom owns the house.

That is 10% of the iceberg. However, let us now look at the 90% that is not so easily seen.

A. Mom lives alone in the home and is perfectly competent.

B. M om lives with an adult son, Darrell, who is age 49. Darrell is still evolving and struggling to find himself, the remote and the last six-pack of beer in the house. He is nesting and does not want the house sold.

You know what they say about the real world. It is a jungle out there.

Will he cooperate with the listing and sale of the property?

C. D arrell is the agent under a Property Power of Attorney which was effective immediately when signed by his mother at the office of Darrell’s attorney.

D. Dudley, as in Do-Wright, is a good son, who did not leave home with his share of the inheritance. He is the trustee of the trust that holds title to the real estate where his Mom lives. Darrell is the agent under the terms of the Health Power of Attorney. As such, he does have a say in where Mom lives.

E. Mom is selling the home to buy a larger home with her timid daughter, Trudy, and her aspiring husband, Olaf. Olaf sells machines that clean bowling balls. He too is evolving and cannot alone move up in the housing market from the doublewide that they presently live in. He has a dream and Mom has the cash.

You are the attorney for Mom in A and B. Who is your client in examples C, D and E? Mom proceeds to buy the house. You represented Mom in her sale and all three parties in the buy.

F. Daughter Trudy has trouble receiving incoming calls from her siblings but is able to text them reassuring them that Mom is okay but unable to come to the phone for the rest of her life.

G. The siblings feel that Mom should be living in a community or in assisted living. Trudy and her husband do not agree.

H. Trudy is on Mom’s checking account. She knows effectively nothing of Medicaid, the five year look back period and the problems with cash withdrawals from Mom’s account all of which would jeopardize Mom’s ability to qualify for Medicaid when and if that situation presents itself.

I. Mom initially got along well with Trudy and Olaf. However, after the first week of living together, it becomes clear that Olaf is not the man that Mom thought he was. Mom wants to move. How does Mom recover her funds from the newly purchased home? Who is your client?

The elder or object of the passionate negotiations may be conflict avoidant or simply so insecure that he or she is desperate for some sense of security. Not knowing who will win the war, they may tell different family members or friends what they think that those people need to hear from time to time.

How does any of this affect the attorney? How do you avoid any conflict of interest and save the client and the transaction? What if you are not a litigator and will have to refer the case to another attorney?

Then there is the somewhat rare breed, in my view, that thrives on conflict.

Clearly I do not. Imagine as a litigant setting forth your legal positions in a simple and straight forward way without the pressure of court deadlines and the constraints of court rules and court Orders. Imagine having the equivalent of multiple pre-trial conferences while utilizing elder mediation rather than waiting many, many months before that would ever happen in a litigation setting. But what really is elder mediation?

Before I answer that question and by way of contrast, let us look at Court appointed Guardians.

Guardianship deprives a person of most of their rights as an adult. Those rights include, but are not limited to, the right to choose where to live, to vote, to marry, to make gifts, to have input into matters of finance and management of assets, medical care and end of life decisions.

Courts have limited options when dealing with guardianship cases. There is either full guardianship, limited guardianship or dismissal of a Petition for Appointment of a Guardian. In addition, the guardianship case is often simply a skirmish in an on-going war rather than a permanent resolution of the matters at hand.

It is true that in many cases the need for a guardian will be obvious. The person may have had a stroke, have been injured in an accident, or in full blown dementia or Alzheimer’s. However, with the ever growing segment of our population over the age of 65, many of whom are striving to take better care of themselves, the passage to full disability for many will be like our experience with the phases of the moon. It will be a gradual process rather than an event.

Often one court Order begets another. Circumstances can change. The guardian can have changes in their circumstances that will necessitate Winter 2015 | PAGE 4

withdrawal from the position of guardian. The burdens of care will introduce more stress on the individual’s life and on their relationships. The diligence required while others wait for failure or mistakes on the part of the guardian becomes exhausting. There are no degrees in guardianship. People are not generally well prepared for the job. Even if they are, the fast moving parts of human relationships require constant adjustment.

If one court Order does not work, another court Order is needed to address the issue. The interested parties have learned nothing about effective negotiations during the litigation process. They have only learned the emotional and financial attrition of litigation and what it feels like to win and/or lose.

Elder mediation is an informal, non-binding process that often involves many individuals, including family members and interested parties. The participants in mediation must be agreed upon prior to the beginning of the process.

Although not required, many mediations are conducted without the presence of attorneys. Some mediations are conducted as shuttle mediations as the participants are unable or unwilling to be present with each other in the same room. Perhaps unlike many guardianship cases, the person who is the object of the contest can be encouraged to participate in the process either directly or through another individual or agent under a Power of Attorney. The factors such as the location of the mediation, the time of day, lighting and sound for the elderly who may have hearing impairments are some of the many considerations of the mediator prior to the commencement of the process. The mediation sessions are time limited so as to avoid exhaustion on the part of the parties. The process will continue for so long as any or all of the participants are willing to remain engaged. The recess and rescheduling allow the participants to discuss what has transpired in mediation with their attorneys without their attorneys having to be physically present. This makes the process more economical and yet gives the parties input from their attorneys to bring to further negotiations.

Since the mediator will caucus and meet privately with the individual participants prior to the commencement of the process, the mediator is better able to try to generate options or alternatives that will address the particular needs of each of the participants. The participants themselves are encouraged in this non-binding setting to make proposals in order to test the reaction and response from others. Given the opportunity for real time feedback, it is not uncommon for parties to realize that they are not as far apart as they may have assumed on many issues.

In a successful mediation, every person who participates in the process is able to feel that they realized something of value. This process focuses on issues rather than individuals, does not lend itself to the mutually assured destruction that often occurs among individuals and particularly family members as they

fight in Court over issues which in many cases are not legal in nature but rather peculiar to human nature and families. Since participants are required to adhere to the rules, name calling and talking over tends to be less frequent or nonexistent. Once the parties feel they are participating in a safe and respectful process, have their positions heard and actually have a say in the outcome, the parties tend to have a high respect for the agreement. The participants also come to understand that the agreement is not permanent in nature. If circumstances change, the parties can come together in mediation to negotiate to a new agreement to address the current circumstances rather than those that existed months or even years ago. The parties can actually set a date for a review of the agreement to determine whether it is working as everyone expected. Actual experience with the many working parts of an agreement is generally much more productive than arguing abstract positions and striving to achieve a goal that may prove to be an empty victory.

Another by-product of a successful mediation, even if the participants only respect each other afterwards but still do not feel “the love”, may be to save families too. Often in contested cases with family members and siblings fighting, the end result of the contest is a disintegration of the family. The descendants of those in conflict and their families are often cut off from other family members whose ancestor came from the “winning side”. Further communication from anyone would be considered a betrayal of the lead parties in the litigation. This is not only a disservice to the descendants and their families but also, in many cases, has the party that was the object of the contest cut off from loving family members or prohibited from being in a comfortable setting with family members present for what amounts to visitation. Some believe that as human beings we should strive to provide physical and emotional peace and security for our elders as they move to the last phase of their life. Mediation has that potential.

Finally, unlike litigation that often seems to go on literally for months or years, mediation often tends to be a rather short term process. If all of the options have been explored and the parties are not near an agreement, the mediation is generally terminated by one of the participants or by the mediator. This certainly does not mean that the process provided no benefits. In those cases that do not result in an agreement, the participants and their attorneys have a much better view of the position taken by each side and where there may be common ground that did not seem to be previously present. Furthermore, if the parties are engaged in protracted litigation, they will not at some point, deep into the process, wonder whether there was not some other way that could have been explored that may have assisted them in avoiding the horrors that have befallen them.

Printed by permission of Dennis J. McNicholas, Attorney at Law Winter 2015 | PAGE 5

WHAT’S NE W

AT F I R S T A M E R I C A N T I T L E ?

W E L C O M E T O T H E FA M I LY Jessica Lopez joined First American Title in June of 2014 to work in the Document Processing Unit. She brings three years of title insurance experience with her. Jessica enjoys working for First American because she says that “First American seems to really care about their employees.” She received both her Bachelor degree in Criminal Social Justice with a minor in Psychology and also her Master Degree in Criminal Social Justice at Lewis University. In her spare time she enjoys spending time with family and friends.

Rosey Bhasin joined the First American Scheduling Dept. in August 2014. Rosey enjoys her role here interacting with our attorneys and lenders as she schedules their closings. She enjoys networking with people and has a passion to learn more about the industry.

Rosey is married, has 2 grown children and recently became a grandmother. Her hobbies are cooking and shopping. She loves to cook different ethnic foods including Italian, Mexican, Green, Chinese and Indian. She enjoys shopping anytime and any day!

MOV ING UPWARD Irene Chase has been promoted to the position of Underwriting Counsel. Irene received her Juris Doctor from Chicago-Kent College of Law. She joined First American in July of 2011 as a Title Officer.

After a stint in Warrenville, Irene moved to our Chicago Loop where she works on a variety of closing transactions with attorneys and lenders. Congratulations, Irene!!

IMBA CLOSER OF THE Y E AR AWARD Congratulations to Valerie Salzbrunn from the Aurora office who was voted "Title Company Closer of the Year” at the Illinois Mortgage Bankers Association (IMBA) awards banquet held in October. First American has won this honor 2 years in a row with David Robles from the Lombard office winning the award last year.

Valerie Salzbrunn with Mrs. Jim Trausch

Valerie has been with First American Title since 2001. She started as a closing officer in the Warrenville office. Within 2 years she was promoted to branch manager of the Bolingbrook office and Yorkville offices respectively. In 2008 she became the Senior Closing Officer in the Aurora office and is currently leading the area for closing the most transactions this year. Valerie always has a smile on her face and is very helpful to all her co-workers. She is also known as the "techy person" within the office. Her dedication and loyalties to her job and the company make her not only a stand out individual but a stand up employee. She is the "perfect employee" that any manager would dream to have on their team!

Winter 2015 | PAGE 6

I S I T W O O DRIDG E OR IS IT LEMONT? Some would argue that we are located in Lemont, but our official address is located in Woodridge! Our Woodridge office is conveniently located South of I-55 on the SW corner of Lemont Road and International Parkway. We have been at this location for over 2 years now and people are still discovering this unknown gem. Frequently we hear someone say "I did not know this location existed�. So, now you know! Please come and pay us a visit!

TOYS FOR TOTS First American Title was a proud sponsor of Heartland Realtor Organization’s annual Toys for Tots toy drive. The primary goal of Toys for Tots is to deliver, through a new toy at Christmas, a message of hope to less fortunate youngsters that will assist them in becoming responsible, productive, patriotic citizens. Over its life span, the Marine Toys for Tots Program distributed over 469 million toys to over 216 million less fortunate children. All toys collected were distributed to needy children in McHenry County.

FIRST AMERICAN TITLE NOVEMBER FOOD DRIVE First American Title proudly celebrated 125 years of service this past November! A local initiative chosen to help celebrate this milestone was to give back to the community. One of the most effective ways to feed those who are in need is to run a food drive, and Northern Illinois Food Bank was the perfect partner.

Northern Illinois Food Bank distributes all donations through a network of 800 nonprofit food assistance sites in the Chicago Metro. In a humbling experience, our Illinois teams and customers came through in a major way by donating 589 pounds of assorted food items throughout November. All donations were delivered the first week of December to this worthy cause.

We would like to thank every employee & client that participated for the amazing support & generosity.

Winter 2015 | PAGE 7

S TAT E O F T H E S TAT E

MEE TING

First American hosted a State of the State meeting for all of our Illinois Direct Division employees on Veteran’s Day this past November.

Over 185 employees gathered at the Northern Illinois University Extension Campus in Hoffman Estates for a day of meetings, networking and fun. The theme “It’s All About You” focused on providing information to our staff on a number of topics aimed at celebrating their importance to our company and enriching their knowledge about what our company has to offer them.

The general sessions and breakout groups covered changes in health care benefits; investing in our 401k program, planning for retirement; the upcoming changes with CFPB in 2015; how to deal with technology and the internet for the company and personally; there was even a fun “Family Feud” style game about claims.

Throughout the day, we also recognized 22 employees for their outstanding customer service!

The day created a lot of energy and camaraderie and the response from our employees was very positive.

Group Participation FIRST AMERICAN TITLE SPONSORS

Martin Cann with his Richard Dawson outfit & wig moderating the Claim Game

Patricia Weinstein and John Paku announcing an outstanding customer service moment

THE NORTHERN ILLINOIS COLLEGE OF L AW

C A SINO NIGHT First American sponsored the Northern Illinois College of Law Casino Night in October this year. The event is a way for the Student Bar Association to raise funds for their organization which are used to pay for future events and other school organizations. Attendees played various casino style games and at the end of the evening were able to cash in their chips for prizes!

Winter 2015 | PAGE 8

UPCOMING EVENTS - MCLE Please join First American Title at our upcoming MCLE seminars. There will be two topics discussed within each program and you can choose to attend one or both. The first part of the MCLE seminar will focus 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 August 1, 2015 and ALTA Best Practices. (1.5 hours) The second part of our MCLE seminar on fraud will inform you on what scams the industry is currently experiencing and what you can do to protect yourself and your clients. This seminar will also be credited for 1.5 hours.

Wed, March 4th NIU Naperville Conference Center 1120 E. Diehl Rd., Naperville, IL 60563

Wed, March 11th NIU Hoffman Estates 5555 Trillium Blvd., Hoffman Estates, IL 60192

Wed, April 15th Moraine Business & Conference Center 9000 W. College Parkway Palos Hills, IL 60465

12:30 Registration 1:00 - 2:30 CFPB 2:30 - 2:45 Break 2:45 - 4:15 Fraud

8:30 Registration 9:00-10:30 CFPB 10:30-10:45 Break 10:45 - 12:15 Fraud

12:30 Registration 1:00 - 2:30 CFPB 2:30 - 2:45 Break 2:45 - 4:15 Fraud

Presenters: Martin Cann, IL State Underwriting Counsel and Mojca Anaya, IL State Escrow Lead.

To Register: Please contact your sales rep or Amy Gregory at agregory@firstam.com or 630.799.7283 Winter 2015 | PAGE 9

T H E PR ACTICE O F MARKETING… By: Kristen Galaudet Marketing Research & Development Specialist First American Title - Strategic Markets Department

Multicultural America:

What You Need to Know to Reach the Evolving Hispanic Market In the last three years alone, Hispanics accounted for over a third of all homeowneroccupied housing growth across the U.S. - the highest of any multicultural group.

With a relatively young demographic, rapidly increasing educational attainment, more Hispanics entering and advancing in the workplace, and an anticipated $1.6 trillion in buying power by 2018, this trend will only continue.

But today’s Hispanic-American homebuyers may be different from those we worked with as little as ten years ago. We are now serving 2nd, 3rd, and 4th+ generation Hispanics who were born here in the United States yet still retain much of their Hispanic culture. So, what do you need to know about each of these generations to facilitate a smooth transaction?

Source: National Association of Hispanic

Real Estate Professionals, State of Hispanic In every culture there are both external and internal characteristics that affect our Homeownership Report, 2013 daily lives. Examples of external elements would be the way we dress, the food we eat, how we celebrate, etc. Internal characteristics are an invisible dimension of culture that lies in the core of our being: values, beliefs, and assumptions. First generation Hispanics will exhibit both external and internal characteristics while 2nd and 3rd generations tend to only retain the internal. 4th generation Hispanics may be more likely to give up both. Let’s take a closer look at two specific differentiating factors between generations that may affect your transaction.

Language Dominance

Defining Generations

1st Generation First generation Hispanics may speak English, but Spanish will likely be their dominant language.

1st Generation

Born outside the United States

2 Generation

U.S. born with at least on foreign-born parent

3 + Generations

Born in the United States to U.S.-born parents

nd rd

2nd Generation Because their parents spoke it at home, Spanish is generally their first language they learned. However, because they were educated in the United States, they will also speak English.

3rd+ Generations Most 3rd+ generation Hispanics speak English as their first language and may speak some “social Spanish.” Business will almost always be conducted in English. In recent years, we have seen a trend of Hispanic Americans from these generations retro-acculturating by learning Spanish.

Keep in mind that even though your customer may have an accent, that does not not mean they prefer to speak in Spanish.

The simplest way to determine language preference is to ask.

Winter 2015 | PAGE 10

Individualistic vs. Collectivistic Decision Making 1st Generation In general, the Hispanic culture is collectivistic and group-oriented. First generation Hispanics are the most likely to put the good of the group above the good of the individual. For many years, we have seen families live together, sometimes in small quarters, to pool their funds to purchase a home. They will then live together in the new home and again pool funds so that other members of the family can purchase a home. This is the ultimate example of collectivistic spirit.

2nd Generation While second generation Hispanics still embody the group-oriented spirit, they nevertheless tend to be more individualistic than their parents. When making important decisions such as buying a home, they will include family members at some point in the decision making process.

3rd+ Generations Because their acculturation levels tend to be higher, 3rd+ generation Hispanics are considerably more individualistic and are more likely to make important decisions based on their own personal needs and desires.

Many times, Hispanic homebuyers will bring several family members along to view homes. An individualistic view would stand that only parties to the transaction need to be present. On the other hand, someone with a collectivistic viewpoint would feel that all family should be included because they will all have input into the final decision. Keep in mind that most Americans lay on the individualistic side of the scale; we need to remember that many of our Hispanic customers are collectivistic and will want to include multiple family members. Plan ahead. Ask your customers how many people will be joining you for a showing so you can prepare accordingly.

For Hispanic-Americans, the American dream of homeownership is still alive and growing. With 20 million Hispanics between the ages of 25 and 49 – the target home-buying market – exhibiting a surging buying power, this segment is and will continue to be integral to the U.S. housing market.

First American Title’s Strategic Markets Department puts cultural education first by offering tools and resources in 20 languages to address the needs of the increasingly diverse U.S. market. The newest tool is our Multicultural Resources website which contains information on the home-buying process, title, and escrow in 6 different languages: Chinese, Japanese, Korean, Spanish, Vietnamese, and English. Included on the site are videos explaining different aspects of the transaction - also available in all six languages.

Visit us today at www.FirstAmMulticultural.com.

Chicago Metro Area Population - 2015 Total Population

9,613,313

Caucasian Population

5,105,193

African-American Population

1,629,839

Asian Population

588,947

Hispanic Population

2,133,792

Source: Geoscape, 2015

Winter 2015 | PAGE 11

ITEMS OF INTEREST RELEASE WRIT TEN BY BEN L ANE OF HOUSINGWIRE

Homeowners who had short sales in 2014 can now breathe a giant sigh of relief, as the Mortgage Debt Forgiveness Act was signed into law by President Barack Obama.

Under the Mortgage Debt Forgiveness Act, any mortgage forgiveness achieved in a short sale is not counted as income for homeowners whom banks allowed to sell their homes for less than the amount of their mortgage.

The Act was due to expire in 2014, but was extended by recent votes in Congress.

The Mortgage Debt Forgiveness Act passed by a wide margin in the House of Representatives three weeks ago (http://www.housingwire.com/articles/32265-short-sale-tax-breakpasses-in-house) and passed 76-16 in the Senate two weeks ago (http://www.housingwire.com/articles/32371-senate-approves-short-sale-tax-break).

But the Act wasn’t made official until President Obama signed it into law, which he did last week.

The extension only applies to short sales conducted in 2014. Any further extension of the short sale tax break would need to be taken into consideration by the newly elected members of Congress when the Congress begins its 2015 session in January.

According to a recent estimate from RealtyTrac, the average short sale has an estimated mortgage forgiveness of $88,456.

And according to a further data provided by RealtyTrac, there have been more than 121,700 short sales through October of this year, with a total mortgage debt forgiveness of nearly $10.8 billion.

RealtyTrac also estimated that the potential taxes on the average short sale to be $22,114, which would have brought the total tax liability to $2.7 billion.

When the Senate passed the Mortgage Debt Forgiveness Act, the National Association of Realtors hailed the vote.

“NAR applauds Congressional leaders in both chambers for their effort to pass this legislation before adjournment,” NAR President Chris Polychron said.

“Realtors strongly supported the bipartisan Mortgage Forgiveness Tax Relief Act, which was included in the package to prevent underwater borrowers from paying taxes on any mortgage debt forgiven or cancelled by a lender in a workout or after their home was sold for less money than was owed,” Polychron added.

“We are grateful to Sens. Debbie Stabenow, D-Mich., and Dean Heller, R-Nev., and Reps. Tom Reed, R-N.Y., and Charlie Rangel, D-N.Y., for championing the provision.”

Winter 2015 | PAGE 12

YO U R P O I N T O F V I E W

W H AT I S Y O U R FAV O R I T E W I N T E R E S C A P E ?

My winters are a little bit different than the typical Midwesterner. I work for First American’s direct operations in Illinois, but I live in Florida. My favorite winter escape happened one of the first years we moved here from Indiana. I was only about 7 or 8, so Christmas without snow was a really big deal. I was really bummed, because Christmas just wasn’t the same that year. My dad, being the jokester that he is, decided to make fun of the situation. He took our big plastic light up Santa and put him in the boat in the front yard. We decorated the boat in Christmas lights, and had the reindeer on water skis behind Santa.

On Christmas morning my sisters, brother and I woke up at the crack of dawn like always. We opened our presents and then went outside to play with our new toys. Even by Florida standards, it was very warm that year. We were not used to that kind of weather, especially not on Christmas day. My mom stopped us from playing and called us inside. She had us change into our swimsuits and took us to the beach for Christmas day! We made sand castles instead of snow angels and collected sea shells instead of throwing snow balls. It was so much fun and made us feel better about living in Florida.

Jennifer Cruz, HUD Specialist First American Title Warrenville Myself and my husband love to spend as much time as possible in our home in Southern Florida.

We both can work from our computers while enjoying the warm Florida weather and getting in some Golf.

Truthfully I would drag him out to Golf everyday if I could get him to go that much. Love to have my children and grandkids visit with us also!!

Hope a Good Winter to All!!!!

Patricia Lolmaugh, Co-Owner Modern Homes, Inc. 850 E. Grand Ave., Suite 1A, Lake Villa, IL 60046 pattil@modern-companies.com I have 4 children so it was rare we had the money to take a family vacation. Especially since my husband was self-employed and owned a small Asphalt Paving Business. If we went anywhere it had to be in the winter when he wasn’t working. So everyone was ecstatic when we were able to plan and go to that Magical place called Disneyworld for a week of Happy, happy fun in the sun. Never having been on a plane before, the children were in varying degrees of excitement and trepidation. At the time flying was not one of my favorite things either and having all of us on the plane at once made me more than a little nervous. We had been up in the air a short time and my oldest said she didn’t feel well and started to throw up. If you haven’t guessed it within minutes all 4 kids were vomiting faster than the Flight Attendants could bring bags. People were actually passing them down to us like a water brigade. The flight attendant brought a metal tub, something like you would expect a bomb squad to bring to a scene so we could deposit our bags. I finally leaned over the seat to my husband and said. “I am not worried about this plane going down - it would be a blessing.”

That was the start of the ONLY family vacation we ever took by air. We have since gone to Disney World in a motor home and the whole experience was much more pleasant.

Ella Russel, Field Manager First American Title Crystal Lake, Elgin It is great to get away from the cold and go somewhere warm like Florida. A week of nice weather makes the winter go by a bit faster.

Jacob Eckburg Herbert & Eckburg, LLC 200 West Galena Blvd., Aurora, IL 60506 Winter 2015 | PAGE 13

YO U R P O I N T O F V I E W

W H AT I S Y O U R FAV O R I T E FA L L T R A D I T I O N O R M E M O R Y ?

I was asked to write about my favorite winter escape. I just returned from climbing Mt. Kilimanjaro with my two teenage sons (Max (17) and Ben (14)), and while not a normal winter escape, I thought I would share our adventure. Mt. Kilimanjaro is located in Tanzania and is the highest mountain in Africa, standing at 19,341 feet.

We climbed Mt. Kilimanjaro for several reasons. First, it has been a dream of mine for a long time. Second, my sons and I have spent four (4) years planning, training and preparing for this adventure. And finally, we have used our Kilimanjaro climbs to raise awareness of and funds for Magen David Adom (the Israeli Red Cross equivalent). We have raised more than $32,000.00 with the intention to purchase an ambulance to serve in Israel. You can learn more about our campaign which we call “Operation Climb MDA” at www.opclimbmda.com. Below I share with you a modified excerpt from my blog post.

BEN

MAX & H OWA R D

This was our second attempt to climb Mt. Kilimanjaro. Two (2) years ago (after two (2) years of training) and one day from the summit, we had to abort when I felt ill. The boys were extremely disappointed, and I knew, if at all possible, that I needed to give them a second opportunity to summit. Thus, we continued to train. Then a year ago, Ben’s collar bone was broken in a soccer game in November, which ended our plans to go last winter break. We continued to train. Finally, this year, we were able to go and give it a second try. To date, we have been in intensive training for four years.

The only other climber with us on this trip was our guide’s son, George. George is the same age as Ben (14-years-old), and he has never left Tanzania. However, he goes to school where they teach in English even though his native language is Swahili. Max and Ben met George two years ago and have kept in contact via email. During the ten days they spent together, they shared stories about their homes, the foods they eat and their religious beliefs. For instance, we celebrated Hanukkah on the mountain and lit a menorah each night even at the highest elevations. The boys explained the story of Hanukkah to George. Throughout the ten days, I heard them teaching each other words in English, Swahili, and Hebrew. It was amazing to watch these three young men from completely different cultures share this life-altering experience. By the way, while George lives within one (1) hour of Kilimanjaro, he has never climbed it and told me he knows of no other friend of his who has ever climbed it either.

I am pleased to tell you that Ben summited the mountain and made it all the way to Uhuru Point, 19,341 feet. This is the highest point in all of Africa. Max and I made it to Stella Point, the second highest point, at 18,885. Here is the back story.

There are about nine routes on Kilimanjaro, and they range in difficulty. However, they all converge and in the end there are basically three (3) routes to the summit. Locals have given these nicknames: Coca Cola (easiest), Whiskey (middle difficulty), and the Double Whiskey (most difficult). The Double Whiskey route involves what is called the western breach. All other routes involve only a steep hike. I am told that the western breach is attempted by less than ten percent of all climbers and requires a special waiver form to be signed. The reason for this is because of its difficulty, high risk and the fact that there have been many deaths along this route. The western breach is a portion of the climb that runs from about 15,000 to 18,000 feet. It is a vertical rock face that requires a steep hike, turning to scrambling, bouldering and then rock climbing. This is all done in heavy winter gear; you start this portion of the climb at 4:30 A.M., and the temperature is about 10 degrees Fahrenheit. The western breach is also prone to high winds and rock slides. Several years ago, while camping at the camp where you start this assault, Arrow Glacier, three climbers were crushed by a rock slide.

We started our climb on what is known as the Lemosho Route. However, after three days on this route we then headed toward the western breach, rather than following the normal Lemosho route. From this point until our descent, we saw no one else. The next day brought us to Lava Tower (14,500 feet) and the area where we turned around on our first attempt. From Lava Tower, we climbed the following day to Arrow Glacier (15,500 feet). These are both very remote. Arrow Glacier sits close to the base of the western breach. It has a strange feel to it because you sense you are sitting under the summit and are facing a vertical rock face. The winds can be very high here and as soon as it got dark, the temperature dropped quickly. We had dinner and made our final plans for our summit attempt the following day. We then climbed into our sleeping bags and tried to sleep. Around midnight, I awoke to a sound I had not heard on the mountain before. It was a large rock slide. It sounded like the earth was just moving and falling. This was even stranger as it broke the silence of the quiet night.

With this background, here is how our summit day unfolded. We arose very early and at 4:30 A.M., in full winter gear with our backpacks and seven (7) liters of water each; we began our assault. It was very cold and as dark of a night as you have ever seen. The stars of the southern hemisphere filled the cold crisp sky. I was in awe of the night sky. The climb started with a steep hike, and then turned to more of a scramble and bouldering. As we rose from 15,000 feet, a few hours later the sun came up, and the ice that covered many of the rocks began to melt. The plan was that the western breach would take us four to five (4-5) hours, and then we would rest on the crater rim, eat and then make the final assault on the summit which would have been another 1,000 feet steepclimb. Within a few hours, we began to shed some layers and were making good progress, on what was now a rock climb. Due to the nature of this section there are no harnesses or ropes to assist. Spirits were all high, and we all felt that it was only a matter of time until we all made the summit. However, around 17,000 feet, Max advised me he had a slight headache. Max had these during the trip from time to time, but they were usually resolved by drinking more water. By the way, on the mountain, you need to drink six to nine (6 - 9) liters of water a day in order to handle the altitude. So our guide and I consulted and we agreed Max would drink some water, rest for a few minutes and take some Ibuprofen.

Winter 2015 | PAGE 14

We then pressed on. At 17,500 feet, Max told me he was nauseous, and the headache had worsened. We stopped on a rock ledge, and then Max became sick and vomited. Our guide and I consulted one another about our options. Descending along the western breach would be dangerous and would pose a high risk of falls. We agreed that finishing the breach was the only option, and at that time, we could determine if Max could continue or if a rapid descent would be necessary. After being sick, Max felt better, and we continued our climb up the rock face. This was very slow due to the nature of the rock face, winds, and slickness of the rocks. At 17,700 feet, Max told me while drinking water that he wanted to close his eyes and go to sleep. This is a dangerous sign that can accompany High Altitude sickness. The problem with being at this high altitude is that the high altitude sickness can progress very quickly (as short as one to two (1-2) hours) to a life-threatening situation (HAPE or HACE), and thus descending quickly is necessary. Due to Max’s condition it took us almost two more hours to finish the breach from this point.

We made it into the crater at about 18,300 feet. Both the entry point to make an assault on the summit and also the location for a rapid descent require crossing the crater. The crater looks like a desert on one side, and there is a glacier on the other side. As we crossed the crater, we hiked into a blizzard with a hard driving snow. As we crossed the crater, Max vomited twice more. At high altitude, circumstances change very rapidly, and the wrong decision or failure to be decisive in your decision-making can lead to death quickly. Both our guide and I knew at this point that Max’s well-being and life required a rapid descent. As you cross the crater the route to the summit, came first. Max and our guide wanted me to go to the summit, and they would descend.

Max’s condition was so dangerous, I insisted that I forgo the summit and descend with him and the guide. So I told Ben he would go to the summit with George and the assistant guide, and I would descend with Max. Ben and I spoke quickly, and it was extremely emotional for both of us. I then gave him a hug and a kiss, and he turned toward the summit. He disappeared into the snow within a minute, and I could no longer see him.

In order to get Max down, we had to climb up and through Stella Point at 18,885 feet. In the snow, we did this as quickly as possible and then began our rapid descent. This was a slope with crushed lava, and we began almost a skiing action through this area. Within about forty (40) minutes, we had descended to about 16,500 feet. Max’s color and level of consciousness were improving as we descended. I was having difficulty keeping up with them, and felt I was slowing them down. So I sent our guide and Max ahead, as I knew the faster he descended, the better Max would feel and that the risk to his life would be decreased. We agreed I would wait in a small cave at 16,500 feet until our summit group came down, and I would descend with them. Max and the guide then disappeared into the snow. About 1.5 hours later, Ben came casually walking down the mountain with a big smile on his face. We hugged on the side of the mountain and began to descend together. We talked about his great accomplishment and shared our feelings of what has just taken place. We passed through a camp at 15,500 feet about one and a half (1.5) hours later and were told Max passed through earlier and was feeling better. He continued on to high camp at 12,500 feet. Max knew that by going lower he would decrease his risks of an adverse outcome.

We eventually reunited with Max at high camp at 8:30 P.M., sixteen (16) hours after we started our summit attempt. Max was feeling well. The next day we finished our descent in about eight (8) hours and Ben received a certificate from Tanzania for reaching the highest point in Africa and Max and I each received one for reaching the second highest point.

I am so very proud of both of them. This is one of the most difficult things I have done in my life. Max and Ben never complained about the training, the route, the cold, or the long days. They were focused and embraced this with their souls. When fast decisions had to be made, they both did what had to be done. Max never gave up. He never cried. He understood that he had to finish the breach, climb even higher, and then descend as fast as possible to save his life. High altitude sickness not only is physically debilitating, but psychologically it is devastating too. When it strikes there is an overall feeling of despair that causes many people to give up and die. Max did not give up. He persevered and did what had to be done.

Ben was amazing. He was focused the entire climb. Our guide said he has never seen a boy Ben’s age be so strong both physically and emotionally. To reach the summit, you have to be willing to give one thousand percent. Ben did this and more, as in the end, he had to finish the last 1000 feet without us by his side. He had to climb on even when he knew Max was physically in trouble. To remain focused in this situation is unbelievable.

I titled the original post “Love, Respect and Perseverance”. Early in the climb as we hiked through the foot hills of Kilimanjaro and over a plateau at 12,500 feet, which was formed when another volcano exploded millions of years ago, I had time to think about many things. What kept going through my mind over and over again is how lucky I am to have a family who embraced my dream and who agreed to live it with me...twice. In this very dangerous place, the love I share with my family made me stronger and better. Not only were Max and Ben with me, but so were my wife and daughter.

I use the term respect for two reasons. Max and Ben were focused throughout and never lost sight of our goals. They have my respect because this was very difficult. Hiking one day or sleeping in freezing temperatures for one night is difficult, but doing it day after day is an entirely different situation. The way they handled themselves on the mountain impresses me and for that and about a million other reasons, I respect them. I also use the word respect because the mountain is something that is beautiful, enormous and dangerous all at the same time. On the mountain, things change very quickly. The weather changes by the second and your body changes that quickly as well. One minute you feel great, and within minutes you feel terrible and debilitated. So for these reasons, I respect the mountain.

Finally, I use the word perseverance because that is what it takes to reach a large goal. Max and Ben have shown they have perseverance, and this makes me so proud. Perseverance also comes into play with our MDA campaign. We have received a lot of support, and I know that we will reach our goal of purchasing an ambulance for MDA. Finally, many people, including my wife, have asked me why we climbed the western breach and not one of the easier routes. My answer is simple.

We climbed the Western Breach because we could! It was an amazing adventure that I shared with my two sons and I feel privileged to have had the opportunity to be with them in this amazing place.

Howard M. Zavell, Esq. Dickler, Kahn, Slowikowski & Zavell, Ltd. 85 W. Algonquin Road, Suite 420 , Arlington Heights, Illinois 60005 Winter 2015 | PAGE 15