Pillar 3: Securing Electronic Data

The core of Pillar 3 involves maintaining the safety of electronic information. As title agents, we collect Nonpublic Personal Information (NPI) from our clients and other involved parties, including Social Security numbers and drivers license copies. Protecting this sensitive data is crucial, and any title agency you consider working with should willingly share their methods for doing so. Here are five primary ALTA Best Practices for settlement agents:

Background Checks for Anyone With Access to NPI

Our stringent hiring practices ensure the trustworthy nature of our employees. In addition to thorough credit and criminal background inquiries, a trained professional performs a personal character assessment on each candidate. We repeat background assessments every three years to uphold our high standards, and we also develop relationships with all our staff to know them beyond facts and figures.

Only Authorized Employees Have Access to NPI

We have numerous security protocols to protect NPI:

•Employees follow "clean desk" policies to prevent casual observance of NPI documents.

•All paper documents are scanned for storage and then shredded.

•Access to sensitive information requires a username and a complex password, which is changed frequently.

•Systems to detect and prevent network intrusions, anti-virus software and other security controls protect our internal network.

Have a Thorough Disaster Recovery Plan

We have a detailed recovery plan to return to full operations within 24 hours of any emergency situation. Documentation is available for review upon request.

Regularly Seek Out and Identify Risks to NPI

Our quarterly reviews of potential internal and external threats allow us to update procedures and protocols at the first sign of vulnerability.

Ensure That Outsourced Services Meet the Company's Own Standards

When outsourcing services, such as tax or county searches, we ensure that subcontractors follow our rigorous standards and have evidence available for client review.

Alpha-Omega Title, by God's grace, is one of the most trusted title agencies in Florida, having a 99.99% accuracy rate. Perfection doesn't exist for any company, but it's a standard we always strive for and have an impeccable track record because of it. 

Title Insurance for Distressed Properties

 

With convoluted processes and stacks of documents to sign, purchasing a home can prove to be a complicated matter. Even more complex are the closings of foreclosures and short sales.

With every challenge the closing process presents, it's important that everyone involved, from the lender and title agent to the buyer and investor, understands the soundest industry methods for guaranteeing a smooth closing. An accurate handle on industry practices helps all parties involved avoid the headache and expense of title insurance claims down the line. This is particularly true of distressed properties.

If you decide to invest in a distressed property, it's essential to have a deep understanding of how title insurance works. It starts out simply enough, like any real estate transaction with a buyer and a seller. A price is negotiated for the property, and contract terms are set in place. The buyer then purchases title insurance to protect the lender. After the contract is negotiated in a short sale, a mortgage lender must approve it before it becomes a solidified deal.

If the property in question is bank-owned, the homebuyer presents an “as is” real estate purchase contract to the lender representative. The listing agent then submits it to the bank who typically puts forth a counter-offer. In particular instances such as these, it's important to have a title agent oversee all of the details during the closing. The title agent communicates with the purchaser, real estate agent, the bank and the mortgage lender.  The most significant function of the title agency is to research the property's ownership history. This includes looking into the “chain of title,” which includes previous owners, as well as any liens, encumbrances or claims.

Purchasing a distressed property carries a higher risk to the buyer and title company insuring purchase. A buyer should always consider obtaining title insurance at the time of purchase and never afterwards. The owner's title insurance policy is an indemnity against loss or damage up to the insured price (which is almost always the purchase price) according to the terms of said policy. 

Title insurance is a great value. It is a one-time purchase and lasts as long as the buyer owns the property according to the terms of the policy. Alpha-Omega Title, by God's grace, is one of the most trusted title agencies in Florida, having a 99.99% accuracy rate. Perfection doesn't exist for any company, but it’s a standard we always strive for and have an impeccable track record because of it.

 

Closing Document Basics

Closing Document Basics

The following is a list of the most common documents that the SELLER will be required to sign at closing:

1. The Settlement Statement (also called "HUD - 1"): Itemizes the fees paid by both the Buyer and the Seller and gives the bottom line figure due to/from each party.
2. Tax Proration Agreement: An acknowledgment by both the Buyer and the Seller that taxes have been prorated between them using the best available information, and contains an agreement to recalculate the tax proration when the actual tax bill is available.
3. Seller's Affidavit: A statement certifying that the Seller is the true and lawful owner of the property, that there are no liens against the property other than those disclosed, and that there are no other matters which would adversely affect title to the property.
4. Payoff Statement: Issued by the lender being paid off, this shows the principal balance, accrued interest due, and any fees required in order to satisfy the loan.
5. Notice to Seller: General information for the Seller regarding insurance, the payoff, the survey and termite inspections, and typographical errors.
6. Warranty Deed: The document which is recorded in the Public Records and transfers legal ownership of the property.
7. 1099-S Exemption Form: States that the criteria exempting the requirement for reporting to the IRS have been met; if this is not the case, a 1099-S form will be issued. Please note: each transaction is different, and as such, additional documentation may be required.

The following is a list of documents generated by the Title Company that the BUYER will generally be required to sign.

1. The Settlement Statement (also called, "HUD - 1"): Itemizes the fees paid by both the Buyer and the Seller and gives the bottom line figure due to each party.
2. Tax Proration Agreement: An acknowledgment by both the Buyer and the Seller that taxes have been prorated between them using the best available information, and contains an agreement to recalculate the tax proration when the actual tax bill is available.
3. Notice to Buyer: General information concerning the survey and termite inspection, and clerical errors.
4. Purchaser's Affidavit: A statement that the Buyer has no knowledge of any matters that would adversely affect title.

Each Lender will have different documents for the BUYER to sign; however, almost all residential loan packages will contain the following:

1. Note: The promise of the Borrower to repay the loan, and the basic terms of the repayment.
2. Mortgage: The document which is recorded in the Public Records granting the lender a lien on the property to secure the loan. This document gives the lender the right to foreclose if the Borrower defaults on the Note.
3. Truth-In-Lending Statement: A required disclosure to the Borrower stating the annual percentage rate (this rate contains the fees charged by the lender and adds them to the note rate) and the total cost of the loan over its life.
4. Anti-Coercion Statement: An acknowledgment from the Borrower that the lender did not require the homeowner's insurance to be purchased from a particular company.
5. IRS Forms W-9 and 4506: The W-9 enables the lender to report the interest paid annually to the IRS; the 4506 is used in the event of an audit by HUD and allows the lender to obtain copies of tax returns directly from the IRS.
6. Payment Letter: Gives the amount and due date of the first payment.
7. RESPA Servicing Disclosure: Discloses to the Borrower that the lender has the right to transfer the loan on the secondary market.
8. Compliance Agreement: An agreement by the Borrower to correct clerical or typographical errors.
9. HUD - 1 Addendum: A statement that the HUD - 1 Settlement Statement is a true, accurate, and complete statement of the transaction.
10. Loan Application: A typed copy of the Borrower's Loan Application.

Click HERE to learn more about Alpha-Omega Title!

Contact us for more information -- 

 

Alpha-Omega Title Services, Inc.

14001 North Dale Mabry Highway

Tampa, FL 33618

813-963-3009 (office)

813-963-5336 (fax)

www.alpha-omegatitle.com

lwilson@alpha-omegatitle.com

[This blog is maintained by our social media manager, C.J. Johnson. He can be reached at cjjohnson@alpha-omegatitle.com.] 

FAQs

FREQUENTLY ASKED QUESTIONS

Q. What is title insurance?
A. Insurance which protects the lender and the homeowner (when an owners title insurance policy is issued) against loss resulting from any defects in the title or claims against a property that was not uncovered in the title search, and that are not specifically listed as exceptions to the coverage on the title insurance policy.

Q. What is a title?
A. A title is evidence of the right that a person has to the ownership and possession of land. It is possible that someone other than the owner has a legal right to the property. If that right can be established, this person can claim the property outright or make demands on the owner as to its use.

Q. What is a title search?
A. A title search is a detailed examination of the historical records concerning a property. These records include deeds, court records, property and name indexes, and many other documents. The purpose of the search is to verify the sellers' right to transfer ownership, and to discover any claims, defects, and other rights or burdens on the property.

Q. What problems can a title search reveal?
A. A title search can reveal several types of defects and liens, as well as other encumbrances and restrictions. These include unpaid property taxes, unsatisfied mortgages, judgments against the seller, and restrictions limiting the use of the property.

Q. What can make a title defective?

A. Several problems could remain undisclosed, even after the most extensive search of the public records. These hidden defects are dangerous, because it could be months or years before they become known. Yet the owner could be forced to pay large sums of money to defend these claims. When you purchase a title insurance policy, you receive protection from these and a host of other hidden defects.

• Forged deeds
• Mistakes in recording of documents
• Creditor claims
• Undisclosed heirs
• Incorrect legal descriptions
• Errors in tax records
• Incorrect or misrepresented marital status

 

Q. What does title insurance costs?

A. A lot less than you probably think. Fees vary in different parts of the country, but generally the cost of title insurance (including search, exam and related services) amounts to about 1% or less of the cost of the property.

 

Q. What is a closing?

A. Closing, which is also known as settlement or escrow, is the event where the title to the property is transferred from seller to buyer. Closing is typically held in an office, such as the title company or attorney and involves the completion of all of the forms or paperwork to finalize the agreement between seller and buyer. Also, all financial issues are settled at closing. Once the title is successfully transferred, the necessary documents are prepared, signed and filed with the local authorities.

 

Click HERE to learn more about Alpha-Omega Title!

Contact us for more information -- 

 

Alpha-Omega Title Services, Inc.

14001 North Dale Mabry Highway

Tampa, FL 33618

813-963-3009 (office)

813-963-5336 (fax)

www.alpha-omegatitle.com

lwilson@alpha-omegatitle.com

[This blog is maintained by our social media manager, C.J. Johnson. He can be reached at cjjohnson@alpha-omegatitle.com.] 

"Apple’s New Products Are Impressive, But Game Changers For Real Estate? Not Yet" - News You Can Use From Alpha-Omega Title

By Erica Tafavoti - Inman News

Apple held its long-awaited product launch this Tuesday in Cupertino, California. The event was one of Apple’s most hyped product releases in recent history, complete with giant, white cube buildings it created just for the event.

There had been speculation over what products Apple would choose to launch this week; the iPhone 6 was a given, but what about a watch? Apple didn’t disappoint, giving CEO Tim Cook the chance to say the magic words that Steve Jobs had said years before. After debuting the iPhone 6, 6 Plus, iOS 8 and Apple Pay, Cook said simply, “We have one more thing …” before unveiling the Apple Watch. So what should you expect from all of these new products? Here’s a run-down of all the new and improved features:

The iPhone 6 and 6 Plus:

 Apple is finally giving the people what they want: a larger screen size. The new iPhone 6 will have a 4.7-inch screen, compared with the 4-inch screen of the iPhone 5 and 5S. Apple also launched an answer to the Samsung Note. The iPhone 6 Plus will feature a 5.5-inch screen, a size often referred to as a “phablet” (somewhere in between a phone and tablet). This large screen size could potentially replace your tablet and allow you to do more business from your phone.
Both of these phones will feature new hardware changes, including a new M8 co-processor that is designed with fitness and activities in mind. This processor allows your phone to better measure motion data, without placing as much strain on your battery life. The new iPhones can also detect changes in elevation, with a new barometer feature that monitors changes in air pressure. These features all relate directly to the iPhone Health app, which tracks your motion. If you’re showing condos and climbing a lot of stairs, the new barometer feature will track that in your Health Dashboard, along with other metrics from your daily movement.

Your listings are going to love the new and improved 8-megapixel camera, which auto-focuses twice as fast as before. The panorama size has increased, and the True Tone flash will better adjust to surrounding lighting. These features mean your Instagram sneak previews of listings will look better than ever. If you frequently record video on your iPhone, you know there’s room for improvement. The iPhone 6 and 6 Plus bring just that, coming with increased stabilization features like the iSight sensor, which continually auto-focuses during video recording. Plus, you can now record in full 1080p HD.

There are also additional features for improved slow motion. If you only use your iPhone for selfies, don’t worry, Apple improved that, too. The front-facing camera now has a burst mode, allowing you to rapidly take dozens of pictures with one push of a button.

Apple Pay:

 

Though mobile payments have been around for a while, the user experience left adoption rates low. If anyone can simplify and improve user experience, it’s Apple. The company is doing just that with Apple Pay, a feature that will allow one-touch checkout in person and in apps on your phone. In person, you’ll be able to place your phone in front of a reader while placing your finger over your phone’s fingerprint sensor to confirm it’s you making the payment. In apps, you can do the same by choosing Apple Pay as your payment type. Your credit card information is stored within a chip called the Secure Element, which is dedicated to keeping your payment information secure.

Apple Pay will be available in October 2014 following a software update. Stores that will begin utilizing Apple Pay include Starbucks, McDonald’s, Macy’s, Disney, and many more.

Apple Watch:

If you were able to watch Tim Cook unveil the Apple Watch, you know that this is a product that Apple is particularly proud of. He called the product the company’s “most personal device ever,” a product that seeks to revolutionize the wearable technology device. Cook ensured patrons that the watch is not simply just a shrunken iPhone, but in fact a completely innovative form of communication.

The watch interface is based upon a digital crown, which is a small button on the side of the watch much like the time adjustment piece on your everyday watch. This button allows you to scroll through apps and navigate through its many features. The most practical element of the watch is called “Glances,” a single swipe that lets you see your most important apps, like the weather or your calendar. The watch is also compatible with the soon-to-be-released Apple Pay, giving it an advantage over other smartwatches. The Apple Watch is chargeable with a magnetic charger and will start at $349 in a variety of colorful wristbands. It will debut early next year.

So what do these super cool new tech gadgets mean for the everyday real estate professional? The most obvious thing you’ll actually use is the iPhone’s improved camera. Your property photos and video should definitely look better (unless you’re currently paying a professional), and that’s a good thing. With the announcement coming just yesterday, it remains to be seen just how the real estate industry can benefit from these technological advancements, but it’s probably safe to say it won’t magically boost your business. Stay focused on producing useful content and providing stellar service, and you can’t go wrong.

Click HERE to read this article in its entirety on Inman News website.

 

Contact us for more information -- 

 

Alpha-Omega Title Services, Inc.

14001 North Dale Mabry Highway

Tampa, FL 33618

813-963-3009 (office)

813-963-5336 (fax)

www.alpha-omegatitle.com

lwilson@alpha-omegatitle.com

[This blog is maintained by our social media manager, C.J. Johnson. He can be reached at cjjohnson@alpha-omegatitle.com.] 

A Little Information About Us...

After 30 years of award-winning service, we continue to serve as one of the largest independent title insurance agencies in Tampa Bay. We have closed and insured billions of dollars of real estate transactions, and we are the title agent for some of the largest and most financially sound title insurance underwriters in the country. We know what it takes to ensure smooth closings.

Alpha-Omega Title believes that each client is important and unique, and we understand the needs of realtors, lenders, builders, and homeowners. Our staff works closely with you, and we guarantee to offer you the high-quality service you deserve. Our promise is that we will meet your needs and exceed your expectations.
 
Click HERE to learn more about Alpha-Omega Title!

Contact us for more information -- 

 

Alpha-Omega Title Services, Inc.

14001 North Dale Mabry Highway

Tampa, FL 33618

813-963-3009 (office)

813-963-5336 (fax)

www.alpha-omegatitle.com

lwilson@alpha-omegatitle.com

[This blog is maintained by our social media manager, C.J. Johnson. He can be reached at cjjohnson@alpha-omegatitle.com.] 

Why 2014 Is a Great Year to Buy a House - News You Can Use from Alpha-Omega Title

By John Maxfield, The Motley Fool

Right now is a great time to buy a house.

To understand why, I encourage you to spend a moment contemplating the chart above. What it shows is that the interest rate you pay on a mortgage matters a lot when it comes to the ultimate price of the American dream.

Let's assume you buy a $250,000 house by making a 20% down payment and financing the rest with a 30-year fixed-rate mortgage. At the average historical mortgage rate since 1971 -- 8.52% -- the house would end up costing you $604,760 in interest and principal payments. By contrast, at the rate prevailing today -- 4.13% -- the total cost of the house comes out to only $399,200.

As you can see, buying a house this year could save you more than $200,000 in interest expense alone if mortgage rates ever revert back to their long-run average.

Housing affordability

When mortgage and housing industry experts discuss this, they refer to affordability -- more specifically, to the National Association of Realtors' housing affordability index.

This widely followed metric factors in mortgage rates, housing values, and income data to determine whether a typical American family can afford to purchase a median-priced home. The higher the index value, the higher the affordability.

For example, a reading of 145 indicates that a family with a median income has 45% more earnings than necessary to afford a median-priced home. By contrast, a reading of 80 suggests that a typical family earns 20% less than needed to shoulder the cost of the same dwelling.

Where are we right now? According to the most recent preliminary reading, the current index value is 159.3. By this measure, homes are 27% more affordable now than they've been on average over the last 33 years -- the mean since 1981 is 124.8.

Affordability is heading down

It's important to appreciate that this situation won't last forever.

In the first case, it seems safe to assume that mortgage rates will head higher over the coming years. This follows from the fact that the Federal Reserve is scaling back its support for the economy -- which, almost by definition, means long-term interest rates are bound to trend higher.

We got a taste of this in the middle of last year. After Fed Chairman Ben Bernanke intimated that the central bank would begin to taper its third round of quantitative easing, the average rate on conventional 30-year mortgages went from less than 3.5% up to nearly 4.5%.

That might seem nominal, but rest assured it's not. Take our scenario from the chart at the top of this article. In one fell swoop this uptick increased the total cost of a $250,000 house by 16% or $41,400 (again, this assumes a 20% down payment with the remainder financed by a mortgage).

Adding insult to injury is the fact that home prices are heading up as well. In its latest estimate, the S&P/Case-Shiller 20-city home-price index posted an annual gain of 10.8% in April. Some cities -- namely, Dallas and Denver -- are even above their pre-crisis peaks.

The good news for homebuyers is that the rate of home-price appreciation is beginning to slow down. At this time last year, home values in the sunbelt cities were posting year-over-year gains of 30%. Now, they're all below 20%.

At the same time, however, they're still moving higher. According to David Blitzer, chairman of the Case-Shiller index committee, "Near term economic factors favor further gains in housing."

The bottom line on home buying

My point is that these two forces -- rising mortgage rates and increasing home prices -- will continue to work against housing affordability. And as housing affordability decreases, it stands to reason that it'll become more challenging for people to realize the American dream of homeownership.

Does this mean you should immediately go out and buy a home today? Obviously not. But what is does mean is that if you were on the fence about doing so before, then now may be a good time to go ahead and pull the trigger.

Click HERE to read this article in its entirety on the USA Today website.

 

Contact us for more information -- 

 

Alpha-Omega Title Services, Inc.

14001 North Dale Mabry Highway

Tampa, FL 33618

813-963-3009 (office)

813-963-5336 (fax)

www.alpha-omegatitle.com

lwilson@alpha-omegatitle.com

[This blog is maintained by our social media manager, C.J. Johnson. He can be reached at cjjohnson@alpha-omegatitle.com.]