What Is The Ideal Texas Title Company?

The following story reminds me of a “priest, rabbi and a minister” joke, but it is a true story about Texas title companies and how they differentiate their very commoditized products and services nonetheless. However, it shed new light on what the ideal Texas title company does or should be doing for its clients within the highly regulated framework created by the Texas Department of Insurance.

A mortgage company is having their weekly meeting in which they invite current and prospective vendors in to solicit the mortgage company’s business. On this occasion, three Texas title company representatives are there to try to earn the mortgage company’s business for their respective title company. When the first Texas title company representative has the opportunity to give his spiel, he states, “The price of Texas title insurance is fixed by the Department of Insurance, so the bulk of the fees charged by all Texas title companies is the same generally, so the way we differentiate our title company is in our customer service”. The second Texas title company representative has his chance next, and asserts, “The first Texas title company representative is correct in what he says that there are very little differences in what Texas title companies charge, and so customer service is what sets us apart. And that is why our title company’s customer service is second to none”. It was now the third Texas title company representative’s turn to give his pitch. The loan officers are waiting for him to say something—anything—interesting and different from what the first two said. Instead, the third Texas title company representative says, “The first two Texas title company representatives have said it best. I have nothing further to add”.

In my head, this story is comical, but the reality. I actually agree with all three Texas title company representatives that it all comes down to customer service: they are all correct. But how are mortgage and real estate professionals supposed to see the difference between Texas title companies and their varying degrees of “good customer service”? I ask myself this question constantly because differentiation is always important when clients have a choice in who they use.

At Griffin Law Firm, which is a fee office for a major Texas title company, we know we haven’t thought of everything and every tool we can be providing for our clients. There will always be more ideas to come. We also know that the ability to fulfill the needs of our clients comes from engaging with them and building strong relationships with them in order to know what voids could be filled. That being said, we have some very clear ideas of what sets us apart from other Texas title companies that goes beyond the usual dog and pony show. This may not be the silver bullet that meets all your needs, but I believe it gives us a good foundation from which to start. We are always willing to listen and always asking why. We want to be the Texas title company that is on your team.

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Happy Thanksgiving from Your Texas Title Company!

I know that with all the hustle and bustle of the new RESPA rules, end of month, end of year coming things can be rushed and everyone seems to focus on the subject at hand, which is to get as many loans closed as possible by the end of the month; be prepared for the New Year RESPA Rules (so you can continue without slowing your closing pace); and somewhere in between try to make a few bucks.

Okay, now it’s time to breathe. All of the matters at hand are important, and I realize there are dead lines in all situations, but there is something even more important coming your way—and that is Thanksgiving. I know we are all thankful for our jobs, especially in this market. But how about that son or daughter that tugs on your pants while he or she looks up to you? Or how about the wife that waits patiently while you work the long hours to make sure they are cared for adequately? Or how about the brothers, sisters, mom and dads that you haven’t really had time to see because of all the time restraints and challenges with your career?

I would like to challenge you to set aside some time, maybe a day or two to reflect on what REALLY matters in life. Then once you have decided, tell someone how much you love them, why you are thankful and how thankful you are that they are part of your life.

In this day and time, love can be lost in translation.

Make this Thanksgiving true and sincere.

Happy Thanksgiving from all of us at Griffin Law Firm!

RESPA's Changed Circumstances: A Texas Title Company That Can Help Get You Through It

Effective January 1, 2010 RESPA states that once the Good Faith Estimate has been disclosed to your client, it’s pretty much written in stone. But what if something does need to be changed? There are certain circumstances that you may change the numbers on your GFE.

If the following occurs, you may change your GFE:

1. Acts of God, war, disaster, or other emergency.
2. Info particular to the borrower or transaction that was relied on in providing the GFE and that changes or is found to be inaccurate after the GFE has been provided, which information may include information about the credit quality of the borrower, the amount of loan, the estimated value of the property, or any other information that was used in providing the GFE.
3. New information particular to the borrower or transaction that was not relied on in providing the GFE.
4. Other circumstances that are particular to the borrower or transaction, including boundary disputes, the need for flood insurance, or environmental problems.

In addition to these rules, RESPA goes further to say:

None of the information collected by the loan originator prior to issuing the GFE may later become the basis for a “changed circumstance” upon which a loan originator may offer a revised GFE unless the loan originator can demonstrate that there was a change in the particular information or that it was inaccurate, or that the loan originator did not rely on that particular information in issuing the GFE.

In addition, the loan originator is presumed to have relied on the borrower’s name, the borrower’s monthly income, the property address, an estimate of the value of the property, the mortgage loan amount sought, and any information contained in any credit report obtained by the loan originator before providing the GFE. The loan originator cannot base a revision of the GFE on this information unless it changed or is later found to be inaccurate.

GOOD RULE OF THUMB: GET IT RIGHT THE FIRST TIME!!

We are a Texas title company that will help you get it right the first time. Use our Texas Title Insurance Premium Calculator to determine your title fees to the penny. So many times, mortgage lenders and mortgage brokers leave money on the table when filling out their GFE because they did not include the credit the Texas title company has to deduct from the basic Texas title insurance premium. Check it out!

Does your Texas Title Commitment Insure Mineral Rights?

As of this year, a rule was passed allowing Texas title insurance companies to insure mineral rights on a residential property. The insurance comes in the form of a blanket policy and certain criteria must be met before issuing the T-19.2 aka Minerals and Surface Damage Endorsement.

Note that this is not an endorsement that will be automatically issued. In order for the owner or lender of the property to be insured, the endorsement will need to be requested directly with the Texas title company insuring the transaction.

There is still some uncertainty as to the pricing of the T-19.2 and if credits such as the R-8 refinance credit, apply, but the Texas Department of Insurance presumably will clear this up in the next few weeks.

For timing’s sake, it will be important to notify your Texas title company if this endorsement is going to be requested as soon as possible. Mineral right researches require more work than a normal title search and, thus, much more time. Some mineral right researches can take weeks depending on issues such as how far back the deed was taken out, were the minerals ever severed from the surface, were there any deaths, were the rights transferred, etc.? And once the research is completed, the information gathered concerning the mineral rights being insured by your Texas title policy will need to be reviewed by the appropriate underwriter or attorney. Only upon their approval will the endorsement be issued.

The point I’m trying to drill into your rock is there will be many steps to obtaining this endorsement and may require time. If you need this endorsement or you think you may need it, request it up front from your Texas title company to save your closing from being prolonged.

This new endorsement may not be a big deal in the Houston area where typically, residential owners do not own the minerals to their property. However, in areas like the Dallas-Forth Worth metroplex, it is quite common for residential owners to still retain the minerals to their property. It is worth taking the time to ask your borrower if they would like this endorsement to show them you are the smartest mortgage specialist in the room.

How To Handle Proper Disclosure of the Texas Title Insurance Premium and Other Title Fees on the New Good Faith Estimate

The lender‘s Texas title insurance premium is part of the new GFE’s Block 4—Title services and lender‘s title insurance. The difference between the new and old GFE is that the new GFE requires the mortgage originator to lump in the Texas title insurance premium along with any fees for title searches, examinations, endorsements and all charges associated with the title services and settlement (closing) agent services as one single cost, whereas the old GFE required an itemization of all of these fees.

Within this lump sum cost, a mortgage originator should include the Texas title company’s delivery fees, notary fees and settlement fees since these fees are included in the definition of title services. The term “title services” is defined to include any service involved in the preparation and issuance of the title insurance policies. See 24 C.F.R. § 3500.2.

It is common practice for the title company to charge both the borrower and seller a fee for conducting the settlement. Only the charge to the borrower must be included in the total for Block 4 of the GFE. Charges that the seller pays as a matter of common practice and experience are not disclosed on the GFE.

However, the owner’s Texas title insurance and recording fees to the county will still be listed separately from the “Title services and lender‘s title insurance” lump sum cost.

Is this simpler for the borrower to understand than the way in which the old GFE addressed title fees? There is an argument that it makes Texas title insurance fees more opaque to the borrower. Come January 2010, these arguments will not necessarily matter anymore because the new GFE will be the mandated method of disclosure.

Is your Power of Attorney Powerless?

It’s down to the wire and your loan is ready to close. Your title is ready, your underwriting conditions are met, and the appraisal and survey have been approved. This is it! You are finally going to close this transaction. You call your borrower to schedule the closing only to find that one of the borrowers decided to take a two month vacation to Zimbabwe! Of course, the lock expires in three days….what do you do? The light bulb goes off in your head. I will use a Power of Attorney!

As brilliant as a Power of Attorney sounds as your silver bullet solution at this point, there is still a lot that goes into the use of one. The mortgage underwriter has to review the POA, but also the title company has to review and approve the POA as well. It seems the latter part is overlooked 99.9% of the time, so please keep in mind that surprising an escrow officer with the use of a POA will stop your closing!

Today title insurance company underwriters examine everything a little closer, and it makes the rules for approval a little tighter on a POA. For example, a medical power of attorney may negate a letter from a medical doctor stating that the patient is competent enough to execute the POA. Or a military POA may require a notary by a commissioned officer and a letter stating the principal is alive and well. If a Power of Attorney is used in a home equity transaction, it has to be specific to the transaction detailing lender, loan amount, etc.

If you are using a power of attorney, have the title company review it IN ADVANCE and BEFORE closing to avoid delays; otherwise your Power of Attorney may be deemed powerless!

The Best Texas Escrow Services? Really?

If you Google the words “Texas escrow services,” many links of title company information will pop up for your viewing. Of course, every title company from large to smallest promises their company’s service is the best. In all reality, if you do your homework, you will find that several of these companies have been penalized or fined for various errors by the Department of Insurance, or the reviews from consumers are not up to par. With the internet being a plethora of information, how do you know who you can trust?

When scouting a title company with which to place your order, you may want to consider several items. For example: size of the title agency, number of escrow officers, how many departments, how long has your escrow officer been licensed, what is their knowledge level, how easy can you contact their attorneys or higher-ups for those tough files, etc. Depending on your company’s needs, these questions may be answered differently; however, they should definitely be considered.

At Griffin Law Firm, we go as far as to invite our customers into our office for a visit. If you do not know who you are working with personally, then you are working with a file number and possibly an email address. We believe in relationships. By building a rapport with our clients, we have found the process and transaction is smoother and expectations are met quickly. Our goal is not only to have the best “Texas Escrow Services” but to service our clients by meeting their individual needs.

If you are looking for a different experience, please stop by or give us a call at 817.520.6000. We look forward to hearing from you.

Our Arlington Location Central To All DFW Real Estate Closings

Griffin Law Firm's office is located in Arlington, Texas between Dallas and Ft. Worth, placing us in a central area to conduct title insurance and escrow closing services for real estate transactions in the Dallas-Ft. Worth metroplex. Unlike many metropolitan areas, DFW is a cluster of many cities like Arlington, Irving, Hurst, Euless, Bedford, Plano, Saginaw, Frisco--and not just Dallas or Ft. Worth. Our location is even central to Weatherford, Crowley, Burleson, Joshua and Cleburne. Much of the DFW metroplex's housing and commercial growth has occurred in these smaller surrounding cities, making our office a prime location for handling title insurance and escrow closing transactions.