Making the Connection

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1 TITLE AND ESCROW SERVICES Making the Connection Expanded 2015 Lender Protections Approved Florida Settlement Services Provider

2 2015 EXPANDED LENDER AND CONSUMER PROTECTIONS Dana R. Ward, Owner Secure Title and Closing Services Real Estate Closing Solutions, LLC has been aggressively implementing new lender and consumer protections driven by the Dodd-Frank Act and the creation of the Consumer Financial Protection Bureau (CFPB.) Because of our initiative, our team received the American Land Title Association s (ALTA) and Secured Settlement, Inc. s (SSI) certification for enhanced title and closing protections. Third-Party Lender Liability We take our responsibility to protect the lender s transaction, regulatory and service reputation risks very seriously! Today we are reaching out to our lender customers to ensure they are comfortable with our combined expertise and internal controls. Your transactions are safe, compliant and pleasurable when dealing with our company! In 2014, our company was named by Inc. magazine as one of American s Fastest Growing Private Companies. More important to our lenders is we achieved this growth as an independent title agent with NO affiliated REALTOR, builder or lender ownership, shared revenues or Marketing Agreements. We think this is a unique title and settlement characteristic and further minimizes the lender s regulatory and CFPB investigative risks and liabilities in this challenging environment. Dynamic Year Ahead This year is unique in that ALL parties in the real estate transaction will be affected by the implementation of the new Closing Disclosures August 1st. REALTORS, title and settlement companies, consumers and mortgage lenders will all need to be educated and ready for the enormous change in the transaction workflow. 1

3 Getting Ready Our company has been a market leader in educating REALTORS in these new rules, timelines and forms. The Florida Real Estate Commission (FREC) approved our three hour REALTOR Continuing education course on How New Government Consumer Protections Impact Real Estate Transactions in January. We are coordinating with lenders to offer the course to as many REALTORS as possible to ensure a smooth 2015 transition. In addition, we are aggressively driving new system and software enhancements to ensure lender and consumer connectivity and security for the new combined Closing Disclosures. Trusted and Secure Third Party Settlement Services Provider Included in this package is detailed information on our team s expertise, company resources, financial strength and internal controls. See the Table of Contents and list of exhibits on the next page. We need two things from our valued mortgage lenders today: 1. Per Regulation X guidelines, add Real Estate Closing Solutions, LLC to your written list of settlement service providers for the state of Florida. We feel confident that this will enable consumers to shop for competitive settlement service providers early in the application process, enhance market competition and lower service costs for consumers. 2. Add Real Estate Closing Solutions, LLC to your company s Approved Settlement Service Provider lists and data base for the State of Florida to ensure timely and efficient delivery of disclosures and closings. Strategic Partner in Growth Also go to our website at and review our Rate Quoter tool. It is the industry s only 24/7 calculator that will give your Loan Officer s real time title, settlement and recording costs at time of application. You get quicker turn-times on your applications, meet your three day disclosure requirement and we stand by the quoted fees eliminating the lender s tolerance risks. We appreciate your business! Let me have your questions and comments. Dana R. Ward dward@recsfl.com 2

4 APPROVED PROVIDER DOCUMENTS TABLE OF CONTENTS Florida Department of Financial Services Letter of Certification American Land Title Association s (ALTA) Best Practices Guidelines and Implementation o ALTA Best Practices Certification o ALTA Certificate of License Secured Settlement, Inc. Approval and Company Reference Good Standing for National Title Insurance Underwriters Letters of Good from National Title Insurance Underwriters o Old Republic National Insurance Company o Stewart Title Title Guaranty Company o Title Resources Resources Guaranty Company 2014 Internal Underwriter Audits and Results Summary of Insurance Coverage and Added Lender Protections o Certificate of Liability Insurance Professional Liability/Errors and Omissions Escrow Security Bond/Fidelity Bond Cyber Liability Coverages Office and Personnel Contact Information Key Personnel and Office Contact Information Page

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6 7575 Dr. Phillips Blvd. Suite 140 Orlando, FL Phone: (407) / Fax: (407) Date: January 1, 2014 Subject: ALTA Best Practices Certification We are providing this letter in connection with the ALTA Best Practices Framework ( Framework ) dated July 19, We intend that it be considered by any consumer, mortgage originator or mortgage servicer doing business with our company during the 24-month period following the date of this letter. Real Estate Closing Solutions, LLC has implemented the ALTA Title Insurance and Settlement Company Best Practices ( Best Practices ) dated July 19, 2013, listed in the attached ALTA Best Practices Certificate. As of the date of this letter, we comply with the Best Practices in all material respects. We represent that, during the 24 month period commencing on the date of this letter, we will remain in material compliance with each of the Best Practices. Attached to this letter, please find (i) an ALTA Best Practices Certificate issued to us pursuant to the Framework. Sincerely, Dana R. Ward Owner/Manger 5

7 Certificate Issued to: Real Estate Closing Solutions, LLC the Company Real Estate Closing Solutions, LLC performed the assessment procedures enumerated in the ALTA Best Practices Framework: Assessment Procedures dated July 19, 2013 ( Procedures ). These Procedures were agreed to by the Company to assist it in evaluating compliance with the ALTA Title Insurance and Settlement Company Best Practices, dated July 19, 2013 ( Best Practices ), as of January 1, Procedures executed related to the following ALTA Best Practices: 1. Licensing 2. Escrow Accounting Procedures 3. Privacy and Information Security 4. Settlement Procedures 5. Title Policy Production & Delivery 6. Professional Liability Insurance Coverage 7. Consumer Complaints Our performance of such Procedures rendered a resulting grade of: PASS This certificate is intended solely for the use of the Company. It is not intended to be relied upon by anyone other than the Company itself. Use of or reference to this certificate other than by the Company is at the user s sole responsibility and risk. 6

8 Real Estate Closing Solutions, LLC

9 100 Lanidex Plaza / Suite 1201 / Parsippany NJ / RE: Registered and Approved Title and Settlement Services Agent; Real Estate Closing Solutions, LLC hereby represents and warrants that we have completed the quality control and quality assurance steps to protect the lender and the consumers from risk of loss from errors and fraud. In Witness Whereof, the undersigned agent has completed the Quality Control application and approval process with the understanding that the lender is relying upon the truth and accuracy of same in connection with its risk management and consumer protection obligations. Signature PRINT NAME: Dana R. Ward, Owner/Manager DATE: February 13,

10 Date: January 26, 2015 To: Whom it may concern Re: Letter of Good Standing Real Estate Closing Solutions, LLC 7575 Dr. Phillips Blvd., Suite 140 Orlando, FL We are pleased to present this letter to you verifying that Real Estate Closing Solutions, LLC, our agent since March 20 th, 2009, is currently in good standing w ith Old Republic National Title Insurance Company. The agent is authorized to issue commitments, endorsements and policies of title insurance on behalf of Old Republic Title Insurance Company. We value our business relationship w ith this company and are pleased to have them as our agent. Sincerely, TANYA CARLSON Agency Administrator Assistant 9

11 Stewart Trusted Provider Pledge of Protection Real Estate Closing Solutions, LLC hereby pledges to protect our customers by: Operating in accordance with the Stewart Trusted ProviderTM Standards Following the American Land Title Association Best Practices Providing consumers with timely access to closing documents Communicating effectively with consumers throughout the transaction process Protecting consumers non-public personal information Providing consumers with a means to provide feedback and to register complaints Complying with all applicable federal and state consumer financial laws Our agency pledges to maintain the highest ethical and service standards in all aspects of our business. Signed this 28th day of January 2015 Dana R. Ward Owner Real Estate Closing Solutions, LLC 10

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13 2014 Internal Underwriter Audits and Results Underwriter Date Results Old Republic 8/21/14 Satisfactory Terri Lane Stewart Title Guaranty Company 10/8/14 Satisfactory Susan Furman Deloitte & Touche Title Resource Guaranty Company 8/26/14 National Title Contact Satisfactory Al Thacker 12

14 7575 Dr. Phillips Boulevard Suite 140 Orlando, FL Phone (407) Fax: (407) Website: Summary of Insurance Coverage and Added Lender Protections Real Estate Closing Solutions provides expanded lender protections through higher insurance coverage s that exceed state and underwriter minimums. Included in the next few pages are the Certificate of Liability Insurance forms. Errors and Omissions (E&O) Liability o o o Escrow Security Bond/Fidelity Bond o o o Term 3/24/15 3/24/16 Coverage - $1 million per claim; $1 million aggregate Policy applies to wrongful acts in the insured s performance of professional services for others for a fee as title agent, abstractor and escrow/closing agent. Term 2/1/15 2/1/16 Coverage - $500,000 aggregate Additional protections against theft of settlement funds due to fraudulent activities that may not be covered under the E&O policy. Cyber Liability Consumer Data Security o o o Term 2/1/15 2/1/16 Coverage - $250,000 aggregate Additional coverage s should someone steal customer s identities using information gained from the closing company 13

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18 Key Personnel and Office Contact Information Dana R. Ward Owner (407) Rori Whittington Director of Operations (407) Tanin Teston Central Florida Manager (407) Martha Ward Accounting Manager (407) Headquarters and Southwest Orlando Office 7575 Dr. Phillips Boulevard, Suite 140 Orlando, Florida Office (407) Fax - (407) Downtown, Winterand Park and College Park Office Downtown, Winter College Park Office 1217 N. Orange Avenue, Suite A Orlando, Florida Office (407) Fax - (407) Lender Documents to secure at: closings@recsfl.com 17