Kentucky Housing Corporation Closing Agent Agreement

Transcription

1 Kentucky Housing Corporation Closing Agent Agreement Kentucky Housing Corporation ( KHC ) has established required standards of performance and conduct for any closing agent ( Closing Agent ) conducting business on behalf of KHC. The Closing Agent will act as KHC s agent in closing loans for KHC and the performance and conduct standards ( Standards ) emphasize that the Closing Agent will be directly responsible to KHC for the correct and proper closing of such loans. In order for a Closing Agent to be eligible for KHC s Closing Agent List, the Closing Agent must agree to abide by those Standards. Those Standards are set forth fully below. Accordingly, in consideration of KHC agreeing to engage the undersigned Closing Agent with respect to any mortgage loan to be funded by KHC, Closing Agent, by its execution below, agrees to abide by the following Standards with respect to any closing that Closing Agent undertakes in Kentucky with respect to any such mortgage loan. Standards 1. Comply With Closing Instructions. Closing Agent shall close the mortgage loan in full compliance with the written closing instructions (the Closing Instructions ) provided by KHC to Closing Agent. Closing Agent shall be fully responsible for the full and satisfactory performance of any tasks outsourced to third parties by the Closing Agent. 2. Satisfy Conditions to Disbursement. Closing Agent shall not disburse to any third party any funds received from KHC except upon satisfaction of all conditions to closing set forth in the Closing Instructions, including without limitation all conditions to the issuance of title insurance as specified in the Closing Instructions. 3. Have Industry Standard Documents. Closing Agent shall have all necessary software to produce industry standard documents. Software system must be updated for all regulatory changes to ensure compliance with all requirements of state and federal law, including but not limited to the Real Estate Settlement Procedures Act ( RESPA ) and the Truth in Lending Act ( TILA ). 4. Handling of Closing Documents. Closing Agent shall exercise reasonable diligence in reviewing the form and content of the closing documents (the Closing Documents ) received from KHC. All closing documents must be approved by KHC, including Power of Attorney forms for both seller and for buyer. Prior to loan consummation, Closing Agent shall inform KHC of any irregularities identified by Closing Agent in the Closing Documents and shall resolve those irregularities to KHC s satisfaction. Closing Agent shall not alter the Closing Documents without written authorization from KHC. Closing Agent shall be responsible for proper completion, execution and notarization of the Closing Documents to KHC via reliable overnight courier. Closed loan packages are due to KHC within 24 hours of closing. 5. Deficiencies in Closing Documents. The Closing Agent will bear the costs of remedying any deficiencies in the Closing Documents which arise from or are caused by the Closing Agent. Closing Agent shall promptly upon notification, and in no event later than 30 days, correct any deficiencies in the proper completion, execution and notarization of the Closing Documents subsequently identified by KHC. 6. Handling of Funds. All funds received by Closing Agent from KHC shall be held by Closing Agent in trust for KHC until disbursement in accordance with the Closing Instructions. Closing Agent shall notify KHC immediately if any funds are not disbursed on the day received from

2 KHC, and Closing Agent shall immediately return such funds in accordance with wiring instructions approved by KHC. 7. Deviations from Standards. Any deviation from these Standards first must be approved by KHC in writing. However, the Closing Agent may, in good faith, rely on a facsimile transmission or message reasonably believed by Closing Agent to be an authorized communication from KHC. Such facsimile or message must provide clear approval of the deviation from standards before such deviation can be taken. If Closing Agent has questions or concerns regarding Closing Instructions, the Closing Agent must call KHC for clarification. However, such verbal communications cannot authorize any deviation from Standards. 8. Handling of Recorded Documents & Original Title Policies. Final Security Documents and Original Title policy are due to KHC within 45 days of closing. Any and all mortgages are to be recorded within 7 days of closing. If mortgage is not recorded within this time frame KHC may request a title update at no cost to KHC. 9. Comply With Laws. Closing Agent shall be and shall close the mortgage loan in compliance with all applicable state and federal laws and regulations. Any Closing Agent who is an attorney shall remain a member in good standing of the Kentucky Bar Association. 10. Handling of ed Closing Documents. If Closing Agent is willing to receive Closing Documents via , Closing Agent s address is set forth below, and Closing Agent shall be responsible for ensuring that all Closing Documents received via are properly printed and otherwise handled in accordance with the Closing Document handling requirements set forth above. All documents sent to KHC by must be encrypted in order to protect the borrowers identity. Any Closing Agent who does not have the encryption capability, should send documents to KHC via regular mail, or overnight shipping. 11. Title Policies. Closing Agents must have a valid contract with title insuring agency and provide to KHC a blanket insured closing protection letter from each agency in which they are approved. Title Policies are to be issued by Closing Agent and not third party. KHC only accepts short form Title Policies. Title commitment can be no more than 30 days old at the time of mortgage recording. Title commitments must include property tax information and current assessed value of the property. Title commitment must list KHC as the proposed insured and must use MERS language. Insured closing protection letter required for each individual borrower with title commitment. 12. Errors and Omissions Insurance. Closing Agent shall maintain in full force and effect errors and omissions insurance coverage in an amount not less than $1,000,000 per claim and $1,000,000 in the aggregate and otherwise in a form and issued by a carrier acceptable to KHC. Closing Agent shall name Kentucky Housing Corporation as a Certificate Holder for said policy and provide KHC with satisfactory written evidence of such coverage as part of this agreement and application. 13. Fidelity Bond. Closing Agent shall maintain in full force and effect a Fidelity bond for liability in an amount not less than $1,000,000 issued by a carrier acceptable to KHC. Closing Agent 2

3 shall name Kentucky Housing Corporation as a Loss Payee for said Fidelity bond and provide KHC with satisfactory written evidence of such coverage as part of this agreement. 14. Indemnification. Closing Agent shall indemnify and hold KHC harmless from and against all liabilities, obligations, losses, damages, penalties, claims, actions, suits, costs, charges, and expenses, including reasonable attorney fees, which may be imposed upon or incurred by KHC as a result of Closing Agent s breach of this Agreement. 15.Suspension / Revocation of Agreement. KHC may at anytime and at its sole discretion, suspend or revoke Closing Agents approval. Such suspension or revocation shall be with or without cause. Cause for suspension and revocation includes, but is not limited to: a. Failure to : i. deliver closed loan packages in a timely manner and in required documentation order. ii. deliver final recorded documents within time frame requirements. iii. timely correct deficiencies identified by KHC after closing. iv. follow the Closing Instructions provided by KHC b. Not responding to KHC s requests. Revocation by KHC shall be effective immediately upon receipt by the Closing Agent. Service Area: Closing Agent will identify all service areas in Kentucky that they are willing to conduct closings in. Closing Agent certifies that all areas identified are currently being served by the Closing Agent and that the Closing Agent is proficient with obtaining final recorded documents from the local court house and with obtaining corrections to legal documents when warranted. KHC will identify all Closing Agents by service area, on a county by county basis. The originating lender will select the approved Closing Agent in the county the property is located in and obtain all estimates for fees and charges to the homebuyer along with an estimate for the cost of home owner title insurance policies. Service Area Covered: Acknowledged and agree to this day of, 200. [Printed Company Name] [Signature of Authorized Representative] [Closing Agent s Physical Office Address] [Closing Agent s Telephone Number] 3

4 [Closing Agent s Fax Transmission Number] [Closing Agent s Address (es)] [Closing Agent Contact Person] Kentucky Housing Corporation s approval signature: Authorized signature/title Date Required Attachements: 1. Blanket letter from all Title Companies you are approved with. 2. Errors & Omissions Declaration page or Fidelity Bond Insurance Policy. 3. Provide Wiring Information. 4. Complete attached contact information sheet. 4

5 Closing Agent Information Company Name Street Address Mailing Address(if different) City, State and Zip Office Phone Number Office Fax Number Owner/Member Contact name Main Contact name Main Contact address Recorded Doc s Contact name Recorded Doc s address Title Policy Contact Title Policy Contact address Post Closing Contact name Post Closing Contact address Main contact Receives general correspondence from KHC. Recorded Doc s contact Receives notices from KHC for outstanding documents needed. Title Policy Contact Receives notices from KHC for outstanding policies and/or corrections needed. Post Closing Contact Received notices from KHC for any items missing in closed loan package or any documents that were not signed at time of closing. 5