Best Practices Manual 2013

Transcription

1 Best Practices Manual

2 Missin Statement This Best Practices Manual has been develped by Res/Title, Inc. (Residential Title & Escrw Services, PC) in accrdance with the guidelines set frth by the American Land Title Assciatin and in cmpliance with bth the Gramm Leach Bliley Act and the Cnsumer Financial Prtectin Bureau established under the Ddd Frank Act. The gal f this manual is t utline the plicies and prcedures set frth by Res/Title, Inc. in ur cmmitment t prtect the security f the cnsumers and cntinue t prvide prfessinal quality service t ur clients. Intrductin Res/Title, Inc. s Best Practices Manual fllws the guidelines f the American Land Title Assciatin which was develped in rder t help members illustrate t cnsumers and clients the industry s prfessinalism and best practices t ensure a psitive and cmpliant real estate settlement experience. 1 The cmpilatin f this manual draws frm previusly designed plicies and prcedures active within Res/Title including ur third party certified Infrmatin Security Plicy Manual. In further cmpliance with the new regulatry envirnment, Res/Title, Inc. is als an apprved settlement agent with Secure Settlements, Inc. 1 Best Practices Manual Page 1

3 Best Practice One Licensing Definitin: Establish and maintain current license(s) as required t cnduct the business f title insurance and settlement services. Res/Title Plicy and Prcedures: All Res/Title licenses are maintained thrugh the Administrative Department. Currently Res/Title is active and in gd standing in 27 including the District f Clumbia. A listing f current license numbers is available in Appendix A. Licenses are renewed based n state regulatins and at the earliest pint that renewal becmes available (typically 90 days in advance) Annual Reprts are filed and cmpleted yearly with all applicable fees Where applicable, cntinuing educatin credits are credited fr agent licensing Best Practice Tw Escrw Accunt Cntrls Definitin: Adpt and maintain apprpriate and effective escrw cntrls t meet client and legal requirement fr safeguarding f client funds. Res/Title Plicy and Prcedures: All escrw funds are maintained in separate designated accunts which are reviewed fr recnciliatin discrepancies n a daily basis. These accunts are mnitred under the fllwing cntrls: Daily recnciliatin f debits and credits t the accunt as well as available balances using the latest Rhyn Sftware Psitive Pay and ACH Debit blcks setup n all accunts Open escrw balances and utstanding checks reviewed by management n a weekly basis Three Way Recnciliatins cmpleted n a mnthly basis and reviewed fr accuracy by management Apprpriate authrizatin levels are set and maintained Recipient f tp underwriter ratings in yearly audits Best Practices Manual Page 2

4 Best Practice Three Infrmatin and Data Privacy Definitin: Establish and maintain a written privacy and infrmatin security prgram t prtect Nn Public Persnal infrmatin as required by lcal, state and federal law Res/Title Plicy and Prcedures: Res/Title, Inc. has a cmprehensive security prgram designed t insure that all necessary infrmatin security safeguards are in place and adequately address GLBA requirements. All emplyees f Res/Title are expected t cntribute t this prgram and reprt any incidents that may affect the security f the rganizatin s infrmatin systems. The fllwing plicies are addressed within Res/Title s Infrmatin Security Plicy Manual which has been reviewed and apprved by a third party IT Cmpany. Cntrlled access t physical and electrnic strage as well as secure destructin f physical dcuments Secure transmissin f infrmatin Mnitring f third party service prviders access Physical entry cntrls t prevent unauthrized access Netwrk guidelines and access cntrls including restrictins n user authenticatins and authrizatin Remte access cntrls and restrictins Up t date virus management sftware and firewall cntrls against malicius sftware, viruses and unauthrized websites Real time disaster recvery imaging f all servers with additinal nsite backup Business cntinuity Plan fr disaster preparedness Security Incident Reprting and Reslutin Backgrund checks n all persnnel Training f emplyees t ensure cmpliance with prgram Restrictins and the apprpriate uses f Res/Title systems Best Practices Manual Page 3

5 Best Practice Fur Settlement Plicies and Prcedures Definitin: Adpt standard real estate settlement plicies and prcedures that ensure cmpliance with Federal and State Cnsumer Financial laws Res/Title Plicy and Prcedures: Res/Title s use f sftware and technlgy allws us t track a file thrugh each step f the clsing prcess and prvide cmplete transparency f the wrk being dne n each file. As such we are able t verify that each part f the clsing prcess adheres t accurate cmpany prcedures and that checks and balances are in place t mnitr these prcedures. A full listing f settlement prcedures is attached as Appendix B. These include: Obtaining prper infrmatin required prir t clsing Up t date access t premium rate infrmatin Cmplete review f clsing instructins Prper prcessing f mrtgage payffs Accurate disbursement f prceeds and handling f escrw funds Timely and accurate recrding guidelines Best Practice Five Title Prductin Definitin: Adpt and maintain apprpriate prcedures fr the prductin, delivery, reprting and remittance f title insurance plicies designed t meet bth legal and cntractual bligatins. Res/Title Plicy and Prcedures: Res/Title, Inc. s plicy is t deliver all plicies t custmers within the guidelines set frth by the underwriters agency cntracts (generally by the end f the first full mnth fllwing clsing). Plicies are prepared and delivered fllwing review that all terms and cnditins f the title insurance cmmitment have been satisfied and all clsing dcuments and necessary releases have been recrded. Best Practices Manual Page 4

6 Best Practice Six Errrs & Omissins and Fidelity Cverage Definitin: Maintain apprpriate levels f prfessinal liability and fidelity cverage t ensure the financial capacity t stand behind the prfessinal services prvided Res/Title Plicy and Prcedures: Res/Title, Inc. cnsistently maintains all levels f insurance as required by underwriters and lenders and that is cmparable t the cmplexity, nature and scpe f ur peratins. Cverage is held fr prfessinal liability, fidelity cverage (including emplyee theft, frgery & altercatin, cmputer and funds transfer fraud) as well as surety bnd cverage in any states that it is required. Expiratin Type Plicy # Date Cverage Limit Cmmercial Umbrella B /25/14 $3,000, Cmmercial General Liability B /25/14 $1,000,000/ccurrence $2,000,000/aggregate Wrkers Cmp WC /25/14 $1,000,000 ERISA Pensin Fund Bnd /27/14 $10,000 FL Cmmercial Blanket Fidelity Bnd /06/14 $150,000 VA Title Settlement Agent /06/14 $100,000 TN Title Ins Prducers Bnd /23/14 $25,000 FL Title Agent Bnd /06/14 $35,000 VA Ind Atty Settlement Agent Bnd /06/14 $200,000 Prfessinal Liability (E&O) PFP /03/14 Fidelity Bnd /19/14 $1,000,000/claim $2,000,000 aggregate Emplyee Theft $1,000,000 Frgery $500,000 Cmputer Fraud $500,000 Cmputer Restratin $100,000 Funds Trans Fraud $500,000 Claim Expense $5,000 Best Practices Manual Page 5

7 Best Practice Seven Cnsumer Cmplaints Definitin: Adpt and maintain prcedures fr receiving and addressing cnsumer cmplaints s that any instances f pr service r nn cmpliance d nt g undiscvered. Res/Title Plicy and Prcedures: Res/Title is very sensitive t any cmplaints that are made. Any and all cmplaints received by an emplyee are t be frwarded t ur Chief Operatins Officer fr immediate reslutin. This reslutin will always include a fllw up t nt nly the cnsumer but als their lans fficer t ensure that it is agreed that the issue has been fixed. In certain cases, the cmplaint will als result in a verbal fllw up with an emplyee regarding the circumstances causing the cmplaint and a review f Res/Title s plicies and prcedures. Further infrmatin regarding Res/Title s Best Practices can be btained by ing us at cmpliance@res title.cm. Best Practices Manual Page 6

8 APPENDIX A LICENSING RES/TITLE, INC. State Licenses and Surety Bnds STATE AGENCY LICENSE & EXPIRATION DATE (Agency Res/Title, Inc.) AGENT LICENSE & EXPIRATION DATE (Agent James V. Palin) Arizna License # Exp. 04/30/2015 Nt Required Clrad License # Exp. 02/01/2015 License # Exp. 12/31/2014 Cnnecticut N/A N/A Delaware **License # Exp. 02/28/2015 **License # Exp. 02/28/2015 District f Clumbia Basic Business License # / 65128XXXX Exp. 05/13/2014 License # Exp. 12/31/2014 Flrida #P N Expiratin (fr Title Agencies) #P N Expiratin (as lng as in Gd Standing with Hme State) Gergia License # Exp. 12/31/2014 License #784367; Exp. 12/31/2014 Illinis Certificatin Issued 5/30/2007 (Only Authrizatin Required; N Expiratin) Nt Required Best Practices Manual Page 7

9 STATE Indiana AGENCY LICENSE & EXPIRATION DATE (Agency Res/Title, Inc.) License # Exp. 04/30/2014 AGENT LICENSE & EXPIRATION DATE (Agent James V. Palin) License # Exp. 03/31/2015 Kentucky Nt Required (Title Insurance is nt a licensed line) Nt Required (Title Insurance is nt a licensed line) Maine License #AGN *Exp. 4/1/15 License # PLN N Expiratin (as lng as in gd standing in hme state) Maryland #NPF Exp. 6/5/14 # Exp. 12/31/14 Massachusetts N/A N/A Michigan License # (n expiratin) License # (n expiratin) Minnesta License # Exp. 10/31/2014 License # Exp. 12/31/2013 New Hampshire License # Exp. 05/31/2014 License # (Debra J. Thmpsn, Esq.) Exp. 09/30/2014 New Jersey License # Exp. 05/31/2014 License # Exp. 12/31/2013 New Yrk Nt Required Nt Required Nrth Carlina License # Exp. 3/31/2014 License # (N Expiratin) Best Practices Manual Page 8

10 STATE Ohi AGENCY LICENSE & EXPIRATION DATE (Agency Res/Title, Inc.) License # /30/2013 AGENT LICENSE & EXPIRATION DATE (Agent James V. Palin) License # /31/2014 Pennsylvania License # Exp. 7/17/2014 License # Exp. 12/31/14 Rhde Island License # (Eff. 7/1/2007 N Expiratin) License # Exp. 12/31/2014 Suth Carlina License # *1/1/14 License # /5/14 Tennessee License # /01/2015 License # Exp. 12/31/2013 Vermnt Nt Required License # Exp. 03/31/2014 Virginia License # Exp. 06/30/2014 License # (N Expiratin) Wiscnsin Nt Required License # Exp. 12/31/2013 Best Practices Manual Page 9

11 APPENDIX B SETTLEMENT POLICIES & PROCEDURES Sftware SftPr Enterprise (upgrading t SftPr Select in 2014) Green Flders (Paperless Management System) SharePint (Marketing/Sales Team Management) General Guidelines We acknwledge that Lenders expect full disclsure f all receipts and disbursements in accrdance with written mutual instructins. All sets f Clsing Instructins are cllected and reviewed prir t clsing. If any ne set f Clsing Instructins is adverse t anther set f clsing instructins we btain in writing frm all parties cnsent t the changes made t crrect the adverse matters prir t clsing. The clsing is perfrmed in accrdance t all instructins frm: a) Lender Clsing Instructins b) Title Cmmitment c) Purchase Agreement d) Any ther misc. agreements (Escrw Agreements, etc.) Fllw all HUD Regulatins in preparatin f the HUD Settlement Statements and be sure that ALL disbursement checks MATCH EXACTLY as t what is shwn n the HUD Settlement Statement. Specific Detailed Guidelines Disbursement f Buyer/Brrwer Prceeds: Any amunt shwn n line 303 f the HUD 1 Settlement Statement (funds due frm Buyer/Brrwer) must cme int yur escrw/trust accunt frm the brrwer r be disbursed t yur brrwer as shwn in Sectin D. Any funds received by any ther party must reflect n a separate line in the 200 series designating the surce f funds. Brrwer prceeds frm a refinance, if any, are nly be paid in strict cmpliance with the written clsing instructins prvided by the funding lender. Pre clsing cnsent is btained frm the lender n any request t pay additinal parties. If such cnsent is paid, the changes are listed in the 1300 sectin f the HUD 1. We d nt rely n apprval f the mrtgage brker. Additinally, the funder s apprval f the HUD 1 r clsing statement is nt sufficient. Best Practices Manual Page 10

12 Disbursement f Seller Prceeds: Seller prceeds are nt assigned r therwise and are disbursed t Seller, as defined in the Lan Clsing instructins and HUD 1. Where the Seller requests the prceeds t be paid therwise, pre clsing clearance is btained by us. Multiple disbursements t the same payee are nt acceptable especially when asked t disburse in increments f $10,000 r less as this may be perceived as participatin in a mney laundering scheme. If a lender disapprves f any requested disbursement the seller r brrwer, as apprpriate, is ntified in writing. Where directed r allwed by Lender, we will accept written instructins: Depsit prceeds directly int a bank accunt n behalf f the principals. Cut separate checks r send a wire in the name f each individual seller r brrwer. Mrtgage Payffs: Payff Statements shuld nly be accepted directly frm the lender being paid ff NEVER frm an individual wh delivers it t yu (it culd have been altered). Must be in writing and shuld reference lan number and prperty address in additin t brrwer s name. Watch hme equity lines f credit and btain a signed clsing letter frm the brrwer t the lender requesting that the credit line be clsed. Put sufficient detail n the payff check t identify the prperty and brrwer. If prperty is in freclsure, make certain yu have accunted fr any attrney s fees and ther curt csts. Sellers are never t deliver their wn payff check. Payff checks must be delivered in a manner in which the date and time f receipt f the check can be dcumented. Escrwed Funds Disbursement: Apprvers and/r check signers respnsibilities n external disbursements are t ensure the payment amunts are supprted, prper vendrs are paid, and disbursements have been prperly authrized by the escrw fficer. A check that has been issued, prcessed in the accunting recrds, but subsequently lst, stlen r returned t the Cmpany are vided. If the riginal check has been returned, mark it Vid, remve the signature prtin f the check and frward it t accunting fr adjustment t the apprpriate recrds. Vided checks, if fund, must be retained. If the check has been lst r stlen, first determine if the check has cleared the bank. Best Practices Manual Page 11

13 The accunting department shuld cntact the bank t verify that the check has nt cleared the bank. If it has nt cleared, the bank shuld be advised t place a stp payment n the check and cnfirmatin number shuld be received. N check may be reissued until it has been determined that it has nt cleared the bank and yu have received authrizatin frm the accunting department. If the riginal check is subsequently fund, it shuld be frwarded t the accunting department with a nte acrss the face f the riginal check stating that a stp payment was issued n this check and indicating the date f the stp payment. Wire transfer authrity is t be centralized within a limited number f management, accunting r administratin emplyees. Custmers are t cmmunicate all wire transfer requests in writing and each Settlement Agent is then t cmmunicate the wire transfer infrmatin t ne f the authrized emplyees in writing r by fax and cnfirmed in writing. In all cases f initiatin f a wire transfer by a Settlement Agent, a reasnable security prcedure must be used t validate the transfer. Once a check has been tendered it is nt allwed t be wired until at least 24 hurs has passed and it can be cnfirmed that the check was nt cashed. Pricing Prcedures On a cnsistent basis, the Rates and Remittances language in the Issuing Agency Cntract is reviewed with all persnnel respnsible fr rate and split calculatins, plicy issuance and plicy reprting. When rate change bulletins are issued, the reviews are immediate in rder t insure that prper rate changes are made. When rate change bulletins are issued, SftPr Crpratin (escrw sftware) is cntacted t cnfirm that they have been ntified by the underwriter and will have the prper updates made t the sftware. On each title rder, nline calculatrs are used t ensure crrect fees are being charged fr plicy premiums, state specific fees, and endrsements (cpy f rate sheet is in each file). Recrding prcedure Dcuments are submitted r shipped fr recrding t the prper recrding ffice within 3 business days f Settlement. Where available, electrnic recrding is used. Shipments f dcuments fr recrding are tracked and a lg is kept. We verify that recrding actually tk place and maintain recrding infrmatin fr each dcument in each file, as well as a separate lg f all recrdings. Best Practices Manual Page 12

14 When ntice is received that a dcument has been rejected, the dcument is treated as a new clsing and all effrt is made t reslve the prblem and submit fr re recrding within tw days. If a slutin is nt frthcming, we cnsult with ur underwriter and develp a strategy t mitigate immediately. Title Plicy Prductin and File Maintenance Title insurance searches and exams will be made with due regard t recgnized title insurance underwriting practices and in accrdance with ur Underwriter's bulletins, manuals and ther instructins, including any state r federal applicable requirements. Each plicy issued n behalf f yur Underwriter is issued upn a determinatin f insurability f title which includes, but may nt be limited t: (i) a search frm earliest public recrds r in accrdance with applicable state law and/r Underwriter's written instructins; and (ii) an examinatin f all dcuments affecting title t the subject prperty. Each title rder r transactin is maintained and cntains all dcuments upn which we relied t make ur determinatin f insurability, including, but nt limited t: affidavits, maps, lien waivers, surveys, title reprts, searches, examinatins, tgether with a cpy f each cmmitment, plicy, endrsement and ther title assurance issued. We als maintain in ur clsing file fr each transactin withut limitatin; clsing statements, disbursement wrksheets, cpies f all checks disbursed and receipted, depsit slips, escrw agreements and any ther instruments r dcuments executed r created at Clsing. We keep the physical file as well as a cpy in ur electrnic filing system that allws tracking and future review. Cpies f clsing files are preserved in accrdance with applicable State dcument retentin requirements (10 years), r in the case f a legal hld rder, in accrdance with instructins f ur Underwriter(s). In the event that we destry r disseminate the files fr any reasn, it is dne s securely and in such a way that we shall maintain and prtect any cnfidential/private infrmatin cntained in such files in accrdance with applicable State and Federal law. We maintain a plicy register in a frm apprved by ur Underwriter shwing the dispsitin f all plicies and ther pre numbered frms furnished. Differences are prperly identified as vided plicies r therwise. When claims are filed and the underwriter requests a cpy f the file in questin, r when files are requested fr ther reasns, we prmptly search fr and prvide the requested dcumentatin. These include all dcuments received by Agent in which Underwriter is a party t any administrative and/r judicial prceedings; all written cmplaints r inquiries made t any regulatry agency regarding transactins invlving title insurance plicies, endrsements, cmmitments r ther title assurances f a particular Underwriter; Best Practices Manual Page 13

15 any infrmatin alleging a claim invlving a plicy, cmmitment, endrsement r ther title assurance f an Underwriter r a transactin fr which an Underwriter may be liable; and All riginal dcumentatin and wrk papers assciated with the transactin r cnduct giving rise t any examinatin, claim r cmplaint. Best Practices Manual Page 14