Official New HUD-1 Fill-in Form

For those who may have difficulty in accessing or using the Scribd form below:

HUD has moved its new official fill-in form from a separate page to its complete list of forms. It can be downloaded by clicking here.

New HUD 1 on Scribd

Example-New HUD 1

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Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis

Land Use Prof Blog: White on Shame, Fear, and the Social Management of the Housing Crisis

Brent T. White (Arizona) has posted Underwater and Not Walking Away: Shame, Fear and the Social Management of the Housing Crisis.  The abstract:

Despite reports that homeowners are increasingly “walking away” from their mortgages, most homeowners continue to make their payments even when they are significantly underwater. This article suggests that most homeowners choose not to strategically default as a result of two emotional forces: 1) the desire to avoid the shame and guilt of foreclosure; and 2) exaggerated anxiety over foreclosure’s perceived consequences. Moreover, these emotional constraints are actively cultivated by the government and other social control agents in order to encourage homeowners to follow social and moral norms related to the honoring of financial obligations – and to ignore market and legal norms under which strategic default might be both viable and the wisest financial decision. Norms governing homeowner behavior stand in sharp contrast to norms governing lenders, who seek to maximize profits or minimize losses irrespective of concerns of morality or social responsibility. This norm asymmetry leads to distributional inequalities in which individual homeowners shoulder a disproportionate burden from the housing collapse.

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Download the entire article here.

Pandora–Holiday Pre-Mixed Stations

Want to try a pre-mixed holiday station? Here are a few stations created by The Pandora team. Enjoy, and Happy Holidays!

Listen to Classical Christmas Radio
Listen to Rockin’ Holidays Radio
Listen to Swingin’ Christmas
Listen to Hanukkah Radio
Listen to Jazz Holidays Radio

New York Legislative Bill Overlooks Necessary Business Costs in Public-Option for Land Title Insurance Proposal

For Immediate Release

 

Legislators fail to account for the preventive work done by the land title industry to protect consumers’ interests in property

Washington, D.C., November 7, 2009 — The American Land Title Association contended that hasty efforts in New York to create a government-run title insurer and displace the private sector in the real estate closing process would not produce the results asserted by proponents. Land title agents in New York go through labor-intensive steps to ensure homebuyers have “good title” before a land title insurance policy is written. The cost of these preventative steps are left unaccounted for in the proposal, potentially leaving New Yorkers “holding the bag” when the assumed revenue is not realized.

“Stable land title agents and insurers understand the volatility of the real estate market, planning for a business cycle that includes years of revenue loss, such as the industry has experienced in this current recession,” stated Kurt Pfotenhauer, CEO of the American Land Title Association. “It is dangerous for a state government to look to a highly cyclical industry to fund critical infrastructure needs such as roads and bridges. What will the state do when their state-run title insurer needs money from the state instead of providing funding for key projects?”

Assemblyman Richard Brodsky and Sen. Eric Adams proposal will have serious consequences for New York’s economy. Any discussion of reforming New York’s land title insurance system must be based on knowledge of the costs involved for the state. Unfortunately, the legislators’ proposal is based on assumptions; primarily that the land title insurance system is similar to property and casualty insurance instead of understanding that the business provides a preventive, assurance product. Through the industry’s hard work, the United States enjoys the fastest closings in the world, which ultimately saves consumers tens of billions of dollars annually in additional interest costs because long rate locks are not needed on mortgage commitments.

From procuring the legal description and ownership to performing a title search on a property and curing any title issues, there are many detailed steps needed to issue a title insurance policy. This work must be performed, whether a state or private entity insures the title. It is unlikely to produce little to no savings for consumers when this work is taken into account within any proposal by the state to displace private title insurance.

Any revenue from a public land title insurer would be offset by considerable costs not spelled-out in the legislative proposal. Governments would be required to invest substantial upfront costs to: hire experienced and trained staff in every county to conduct title searches, resolve title issues and underwrite title risks; establish operations and systems; and hold money that could otherwise be used for other budget priorities to meet the requirements of an extensive regulatory framework which requires substantial capital and reserve holdings, statutory premium reserves and investment restrictions to protect insurer solvency and prevent consumer loss. Assumptions that a single rate schedule exists in New York eliminate price competition fail to recognize that insurance regulators set rates so that no title insurer becomes insolvent – a regulatory structure designed to protect consumers.

In addition to these upfront costs, the state would lose additional revenue in the form of $15 million in premium taxes paid by title insurers in 2008 alone. Local government also would lose significant revenue from recording fees. Nationally, the title insurance industry spends $170 million per year to purchase copies of public documents. New York’s share of this would be lost with the advent of a government-run title insurer.

Opponents of the current system make accusations that the title insurance industry pays little in claims. Title insurers seek to eliminate the risk to consumers of being subject to loss and having to file a claim. When a consumer is hit with a title claim, it means that their right to their home and property is challenged. Title insurers understand that being faced with the possibility of losing what is likely to be the largest investment a family will ever make deserves the strongest protection possible.

There are claims that this legislation will help create jobs. In reality, the legislation would result in lost jobs. A government-run title system would eliminate more than 2,750 title abstracters and examiners in New York and would impact many of the 60,000 attorneys in the state that provide title insurance services among their practice.

The current government-operated system in Iowa is often cited as an alternative to traditional title insurance, however, the Iowa model is not transferable to other states. The title system in Iowa was implemented at a time when there was no established industry in the market. States looking to implement a similar system in an existing real estate practices would be anything but quick and effective.

A congressional study concluded a government-run system would not make buying a home or business any easier or cheaper because of other costs consumers must pay associated with the real estate transaction.

“Furthermore, while premium rates for Iowa Title Guaranty might be lower, although not the lowest, than rates in many other states, the total costs that consumers pay for title searches, examinations, and clearing of any title problems might not differ substantially. Iowa’s total costs were about the same as those in Maryland, Nebraska, South Dakota, Washington State, and West Virginia, where private title underwriters are free to do business.

ALTA urges legislators in New York to visit their local land title agent or abstracter to gain a better understanding of the preventative work and service the industry provides homebuyers.

About ALTA

The American Land Title Association, founded in 1907, is a national trade association representing more than 3,000 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. With more than 8,000 offices throughout the United States, ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles. ALTA member companies employ well over 100,000 individuals and operate in every county in the U.S., and several countries around the world.

“Operation Bad Deeds”

The United States Department of Justice – United States Attorney’s Office

OPERATION BAD DEEDS CHARGING DOCUMENTS

Six lawyers were among 41 defendants charged in New York yesterday for allegedly using fraud to obtain over $64 million in mortgages on more than 100 properties. U.S. Attorney Preet Bharara announced the multi-agency effort, dubbed “Operation Bad Deeds,” at a news conference yesterday, saying the 41 were charged in eight separate cases representing a “smorgasbord of scams”

Read entire article.

Pilots N Paws

Crated Labrador-mix puppies await a flight from Montgomery, Ala., to Tampa, Fla., on Sept. 3, 2009. The charity Pilots N Paws flew the dogs from a shelter to a waiting rescue group in Florida, saving them from euthanasia. (AP Photo/Mitch Stacy)

LowCountry PawsPets! has the complete story here.

Visit the Pilots N Paws website for more information on the program and what you can do to help..

Don’t Skimp On Title Insurance!!

Don’t skimp on title insurance

Why one-time charge is worth the cost

By Dian Hymer, Inman News

Most people are trying to cut costs these days. Some even wonder if it’s necessary to… Read More

Bundled Mortgages Pose Problems for Housing Program – ProPublica

Bundled Mortgages Pose Problems for Housing Program – ProPublica

by Karen Weise, ProPublica – August 6, 2009 4:18 pm EDT

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This article provides an explanation in plain language of the problems involved with modifying securitized mortgages, despite federal program efforts.

Law.com – Insurer Blames N.J. Lawyer for Blot on Title

Law.com – Insurer Blames N.J. Lawyer for Blot on Title

Suit shows that rubber-stamping title commitments can be dangerous
Henry Gottlieb
New Jersey Law Journal
June 16, 2009

A venerable title insurance company has done something unusual in New Jersey, and lawyers aren’t likely to applaud.

Chicago Title Insurance Co. filed a malpractice claim against a homebuyer’s attorney, saying he acted without diligence and owes a piece of the $300,000 the company paid to save a policyholder’s home.

The Bergen County suit charged Albert Birchwale, of Basile, Birchwale & Pellino in Ridgefield, N.J., failed to investigate a previous sale in the chain of ownership to make sure there was no potential federal estate tax lien.

Veteran real estate lawyers say that they’ve heard of suits by title insurers against lawyers who weren’t diligent but that this is the first they know of to allege an attorney failed to research previous sales in the property’s history — a job usually thought to be the role of title professionals.

Chicago Title, founded in 1849, is part of a conglomerate with 30 percent of the national title insurance market.

On Friday, Chicago Title said through its lawyer that the company had decided to voluntarily dismiss the case, Chicago Title Insurance Company v. Birchwale, Ber-L-483-09, but didn’t backtrack from the position that the claim has merit.

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Read the full text of this article here.