Conestoga Title Insurance Co. WAGON LODE · you ready now ? To help now , Conestoga dedicates this issue of the WagonLode to TRID and related matters. If this is a rehash of actions

Conestoga Title Insurance Co.

WAGONLODE

A Land Title Update

2015, Vol. III, No. 2

Summer 2015

Hello summer! Ah, but is this the summer of our Discontent? August first brings the enforcement date for the Integrated Mortgage Disclosure Rule

of CFPB. Oh, the angst, the trepidation. But, “Wait!” you say: CFPB has delayed enforcement until October 3, 2015 (and may continue its

‘sensitive approach’ to enforcement after that date). Then, as October third approaches – the angst, the trepidation. Maybe the lenders will

continue to flirt with disaster, but a recent ALTA survey indicated that better than 90% of

settlement service providers expected to be ready for TRID (TILA and RESPA integrated disclosures) by August 1, 2015. No need to stand down; are

you ready now? To help now, Conestoga dedicates this issue of the WagonLode to TRID and related matters. If this is a rehash of actions

you have already taken, then consider this a re-TRID. If not, you will find our usual columns with

a closing disclosure

(CD) theme. Included is a contribution from outside Conestoga on

cyber security insurance and past voices sounding off on those

blasted regulators. Enjoy! – Ed. Table of Contents President’s Message p. 2 Agency/Audit Dept. p. 3 TRID Center p. 5 Marketing: Optional p. 6 Underwriting Topics p. 7 Claims Department p. 9 Underwriting Topics p.11 Cyber Security Ins. p.13 Underwriting Classics p.15 Industry News p.17 Underwriting Topics p.21 Employee Spotlight p.24 Corporate Data p.24

Conestoga Title Insurance Co. WagonLode Vol. III, No. 2

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From the President’s Desk A Time to Prepare John M. Nikolaus, ALTP

As you are likely aware, the CFPB has issued an amendment to delay the effective date of the TILA-RESPA Integrated Disclosure (TRID) Rule to October 3, 2015. With the summer real estate market heating up, the title industry let out a huge sigh of relief. Why the CFPB originally targeted August 1, the height of the annual real estate market, is a mystery to many. While January 1, 2016 would have made more sense to me personally, I am in favor of the October 3 delay. The new implementation date will be October 3, 2015; however, we must continue to be diligent with our preparations for the change. The additional time will allow for more education and training. Software systems need to be put in place. Title Agents and Approved Attorneys need to communicate with lenders to determine exactly how each of them plans to administer the TRID forms. The delay in the effective date allows time to become familiar with the new ALTA settlement statements and plan for their systematic use. Please be sure to take advantage of Conestoga’s TRID Resource Center. The TRID Center was developed to assist Agents and Approved Attorneys become familiar with the new forms and procedures that they will need to understand when the new regulations are in effect. The TRID Resource Center contains guidance from the CFPB, American Land Title Association, Residential Mortgage Lenders, and Conestoga. Let’s not forget about Best Practices compliance! Some lenders are requesting that Best Practices manuals be submitted and set deadlines for the submission of the manuals. Industry leaders believe that Best Practices certification by third party vendors will evolve. The best advice that we can provide at this time is that Title Agents and Approved Attorneys need to be prepared. Conestoga has worked diligently to establish the Agent Resource Center, a tool to assist in the preparation of such a manual. Title Agents that are appointed by Conestoga have access to the TRID Resource Center and Agent Resource Center through the use of our “Agent Extranet” system. Approved Attorneys have been provided with access information. If you have any questions, or need assistance gaining access to the tools that we have assembled to assist you, please contact us at [email protected] (https://arc.contitle.com/TRID-Resource-Center) or contact or Agency Department. Good luck with the busy real estate season, TRID preparations, and your Best Practices manual. Have a great summer and, as always, we appreciate your business!


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Agency Admin and Audit 10 Things You Must Do Now (If You Haven’t Already)

Don Delgado, Vice President, Agency Administration

1. Register with Closing Insight. (http://www.bkfs.com/RealEC/DivisionInformation/SettlementAgents/Pages/default.aspx) Many lenders require that you collaborate with them through this technology platform in order to close their loans after October 3, 2015.

2. Talk to your settlement software vendor to find out:

when their update will be ready to handle the new Closing Disclosure; when training will be provided; what the update and training will cost; if you need to upgrade any hardware or other software; if they are integrated with Closing Insight; what other new software and technology platforms with which they are

integrated.

Everybody’s talking at me, I don’t hear a word they’re sayin’ – Only the echoes of my mind.

3. Talk to your local lenders to find out: if you need to use any special software or web portal to work with them; if there are any requirements you need to meet in order to close loans for

them after October 3, 2015; if they will rely on you in any way to help complete and deliver the

borrower’s Closing Disclosure; how post-closing changes will be handled.

4. Visit Conestoga’s TRID Resource Center (https://arc.contitle.com/TRID-

Resource-Center) and review all of the information and material on it. You will find much helpful material, including recorded webinars.

5. Prepare your sales pitch for “optional” owner’s title insurance. Since the

Closing Disclosure requires the Owner’s Policy Premium to be labeled “optional,” you will face more questions from buyers and need to explain to them the importance of purchasing owner’s title insurance.

6. Talk to your realtor and builder clients to make sure they understand the Closing

Disclosure’s Three Day Rule. Day of closing changes will be much more difficult


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to make. All parties need to agree to final figures before the Closing Disclosure is issued three days prior to closing. Final walkthroughs will need to be completed prior to the completion and delivery of the Closing Disclosure.

7. Create a complete and accurate list of your standard fees and provide it to

lenders. Lenders will no longer be able to wait until a day or two before closing to obtain these numbers. They will need that information to be complete and accurate when they complete their Loan Estimates (as well as CDs) for the borrowers. Ask the lender if any of your fee names need to be changed.

8. Talk to your peers in the industry to learn what they are hearing and what they

are doing. You may be able to pick-up some helpful information or knowledge from them.

9. Take advantage of all seminars and webinars that are available by ALTA,

technology vendors, underwriters, lenders, etc. between now and October 3, 2015.

10. Complete your Best Practices Manual. Many lenders are tying the October 3,

2015 TRID implementation together with regulations related to third party vendor oversight. There is increasing demand from lenders for agents to exhibit their compliance with ALTA’s Best Practices. Please visit Conestoga’s Best Practices Resource Center in the Agent Extranet for tools and materials that can help you complete your own Best Practices manual.

And then there were none…

Many of the above Ten Things are covered in other articles in this issue of the WagonLode. This, too, can be one of your TRID and Best Practices resources.


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May 1, 2015 (Original Publication Date)

TILA–RESPA Integrated Disclosure (“TRID”) Resource Center

Conestoga is happy to announce the launch of its TRID Resource Center (“TRID Center”) for Agents and Approved Attorneys. It can be accessed by clicking on the following link: CONESTOGA TRID RESOURCE CENTER [https://arc.contitle.com/TRID-Resource-Center] It can also be accessed by Conestoga agents through the Agent Extranet. The new TRID rule is effective for most closed-end residential mortgage applications that are made on or after October 3, 2015. The TRID Center was developed to assist Agents and Approved Attorneys prepare for the new forms and procedures that they will need to understand when the new regulations are in effect. The TRID Center contains guidance from the CFPB, American Land Title Association, Residential Mortgage Lenders and Conestoga. It is very important that settlement agents take steps now to prepare. Not only are there new forms and procedures to learn, there will be new technology to learn for certain lenders. All Conestoga Agents and Approved Attorneys are encouraged to take the time now to review the resources and material compiled in the TRID Center. A good starting place is the Official CFPB Guidance area. The Summary of the Final Rule and Small Entity Compliance Guide contain answers to many initial questions.

We will continue to update the TRID Center with material as it becomes available. New items will appear in the “What’s New” box in the lower left hand corner of the home page. Please be sure to visit the site frequently to look for new material. We hope that you find this new resource helpful as we all prepare for the changes ahead. Feel free to send your questions and comments to [email protected]. Thank you for your loyalty to Conestoga. We look forward to continued success with you.


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Marketing Minute Educating the Value of an Owner’s Policy Jonathan Markel, Regional Agency Representative

Sticking with our theme of TRID, I wanted to look at the new disclosures and changes in the title industry coming up October third from a marketing perspective; in particular, looking at the owner’s title insurance policy and the value of title insurance to the consumer. While the integrated forms make improvements in the way information is provided to the consumer, they fall short in disclosure of title-related fees. In the final rule, owner’s title insurance must be labeled ‘optional’ on both the Loan Estimate and Closing Disclosure integrated forms. Telling a consumer that owner’s title insurance is ‘optional’ may dissuade homebuyers from purchasing the same protection that lenders receive, while denying financial protection of one of the larger – if not the largest -- investments of someone’s life. This is a challenge that title agents will face starting October 3, 2015. So how do we as title agents handle this situation? Drum-roll, please … EDUCATION! Agents need to learn how to educate the consumer on the value-added proposition of an owner’s title insurance policy.

A survey conducted last year by ALTA of 1,000 homebuyers revealed that consumers want information about title insurance earlier in the process. This is a great opportunity for title agents to contact the homebuyer/borrower directly and explain how title insurance protects the consumer. I think we can all agree that many consumers (especially first time home buyers) are unfamiliar with what title insurance actually is or against what it protects. I cannot tell you how many times I have told someone that I work for a title insurance underwriter and been met with a blank look. I usually get the same response: “What is title insurance?” I am sure we all have had similar experiences. But given the consumer’s unfamiliarity with what title insurance actually is gives you the opportunity to explain directly to them its benefits to them.

Likewise, it is very important to educate realtors, builders, and lenders, with whom you work, about owner’s title insurance policy and its value proposition to their customers. They can take your message to potential customers you have not even met. Social media is a good resource to use for educational purposes. Also, consider a detailed section on your website devoted to the value of title insurance. While the ‘optional’ modifier is a challenge, it is also an opportunity. Educating consumers about your product should be a priority of your business.


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Underwriting Topics CD Disclosure of Owner’s Title Insurance William J. Parker, Claims & Underwriting Counsel

We all know that in 99 and 44/100% of your transactions there will be a lender’s policy. The big difference as to the title insurance premium for potential buyers with the new closing disclosure statement and its accompanying guidance is in providing disclosure of the owner's policy and simultaneous issue costs. The new CFPB "know before you owe" guidance contains one sentence: "You may want to buy an owner's title policy which protects your financial interest in your home". Then its guidance to settlement service providers is simply show it is as "optional." This brings up to two dilemmas for title agents: First, should we try to convince buyers that they should purchase an owner's policy and, second, how do we list the itemized costs on the new closing disclosure (CD). Jonathan Markel addressed the first question in his article. So let's discuss how to list all this on the CD. The loan policy premium should be disclosed in the “Services you can shop for category.” The loan policy should be calculated as the full premium without any adjustment that might be made for the simultaneous purchase of an owner’s title insurance policy and whether the buyer or seller is paying. Figures for an extended coverage loan policy or endorsements to a loan policy may be included if the lender knows in advance (at time of loan estimate?) that these products will be purchased. So, if that is a product you routinely issue, be sure that your lenders are aware of that to avoid costly delays.

Meanwhile, disclosure of the owner’s policy premium gets a bit more complicated. The owner’s policy should be disclosed in the “Other” category. It should be calculated by adding the simultaneous issuance premium to the full owner’s title insurance premium and then deducting the full premium for the lender’s coverage. The owner’s policy amount so calculated must be listed as “optional” on the Loan Estimate and Closing Disclosure forms.

Along with owner’s title insurance, other items listed as “optional” include credit life insurance, debt suspension coverage, debt cancellation coverage, warranties of home appliances and systems, and similar products. Homeowners/hazard insurance is not listed as “optional,” because the lender requires the consumer to obtain and maintain this coverage. Other items that are not loan related but that the consumer must purchase pursuant to another agreement such as the real estate agent commission, homeowner’s association fees, and fees for inspections would not be listed as “optional” either.


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You should also realize that in many cases the required title premium number shown on the CD will not reflect the actual cost of title insurance listed on your settlement sheet. The amounts disclosed on the Loan Estimate and CD would not correlate to the title insurance rates quoted by title insurance agents in accordance with state law or the common practice in a particular geographic area. The CFPB stated in the final rule that it intends to address issues surrounding title insurance, including the differing technical manners in which title insurance premiums are calculated, as part of updates to the special information booklet prescribed by RESPA. The Bureau plans to revise the booklet prior to the effective date of this final rule. The Bureau also indicated it may provide additional guidance to consumers about the nature of title insurance, its potential benefits, costs, and the manner in which premiums are calculated.

Fear not, in most cases these items are not considered for the tolerances nor are they a change which would call for a recalculation of the three day rule. (There is more on the three day disclosure rule in this issue.) All other title fees or costs must be listed separately and preceded by "Title [description of fee]," which includes endorsements. Please note that RESPA and state laws have not changed, so anything that you can charge separately for now will be the same once the CD is rolled out.

If you approach this part of the disclosure and calculation (which many agents have been utilizing under their state laws for some time) as an opportunity to have a frank discussion with your potential buyer, you will likely find that you may even provide more owner's policies than you currently do.


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Claims Corner Comments from a Claims Manager on the TRID Forms:

The Search for Green October Joseph John Kambic, Claims & Recovery Manager

Text to Homeowner: “Your castle is burning!” Note: Not a title claim

I was asked by the Editor to write an article entitled the “Search for (environmentally) Green October” and to comment on the challenges of going paperless in a written disclosure heavy environment (TRID). My research included reading the September 2014 TRID Small Entity Compliance Guide put out by CFPB and various TRID related articles I found on the ALTA web site. I also reviewed articles on electronic closings. Although I came away from those readings with a super migraine, I also came away with some thoughts that I want to share with you. THIS ARTICLE DOES NOT STAND AS LEGAL ADVICE NOR DOES IT EXPLAIN ALL OF THE INTRICACIES WITHIN TRID.

Contemplating all of the apparatchik’s paperwork

Associated with TRID electronic closings are the Uniform Electronic Transaction Act (UETA) and the Electronic Signatures in Global and National Commerce Act (ESIGN). It is now possible to eliminate hundreds,

perhaps thousands, of paper pages of documents that used to be provided to buyers, sellers, brokers, lenders, underwriters, recording offices, etc. It is not an unreasonable expectation that buyers can now walk away from the settlement table with a CD or other storage device with all of the documents that used to be provided in paper form.

Captain! It’s a biologic signature

There are two documents that are of import under TRID -- i.e., the Loan Estimate and the Closing Disclosure. Generally, the CFPB Rule requires that the creditor deliver to the consumer, by hand or by mail, the Loan Estimate form within three business days after receipt of the consumer’s loan application. Generally, the Loan Estimate must also be delivered or placed in the mail no later than the seventh business day before “consummation” of the transaction. Consummation occurs when the consumer becomes contractually obligated to the Creditor on the loan.


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The CFPB Rule also requires that the Creditor deliver the Closing Disclosure to the buyer at least three days prior to consummation of the loan. The Creditor can contract with the Settlement Agent to provide the Closing Disclosure to the consumer. Please note that the use of electronic delivery methods is subject to the consumer’s consent and certain provisions of ESIGN. There is more about the three day rule in an article later in this issue.

Remember, Jack, never put it in writing

Also, the Settlement Agent can improve its marketability as a value-added resource to a Creditor by having the capacity to deliver the Closing Disclosure and conduct closings electronically. A successful Settlement Agent will need more than the capability of electronically delivering a Closing Disclosure to a Seller or a consumer. He or she should have the capability for electronic storage of documents, electronic filing of documents, electronic signatures, electronic acknowledgments, etc. The software technology is out there for you to conduct electronic closings while complying with TRID. Do your homework in finding the correct software and make sure that your key employees are trained in its proper use. Make sure that there are security elements built within the software to prevent not only human errors but fraud as well.

Prepare to be boarded by CFPB

Tales from the Underwriting Trail Latest on Cons, Scams & Frauds

Honus Waggoner

Remember that you have to be secure beyond your own internal e-mail. Agents have reported a complex scam in which hackers have obtained valid e-mail and other communications data from third parties to a real estate transaction – e.g., buyer, seller, realtor, etc. With this information they have redirected wire transfers of disbursements or changed what would have been in-hand check disbursements into wire transfers directly to the scammer’s account. A law firm in North Carolina, with two-level confirmation practice in place and utilized for a wire transfer, is nonetheless out potentially $ 200K from its closing accounts after wiring the seller’s proceeds to a hacker of the seller’s e-mail account. An ALTA Blog on June 23, 2015, offered some red flags that may identify valid or suspicious e-mail accounts:

Misspellings or poor grammar

Lack of company logo, plain text/not HTML

Urgent request for personal information

Suspicious attachments

Links in the e-mail

Avoid use of work e-mail on social media sites


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Underwriting Topics The Three Day Delivery of Disclosure Rule(s)

R. Michael Smith, Underwriting Counsel Adopted in January 2014 and effective for loans applied for on and after October 3, 2015, the CFPB’s TILA-RESPA Integrated Mortgage Disclosures Rule (“the Rule”) includes numerous compliance issues for title companies and closers of consumer mortgage loans. Among these issues are the revised loan estimate and final closing disclosure forms, how to disclose optional charges (particularly owner’s title insurance), and who is responsible for the content of the Rule’s forms. This article focuses on another key sub-rule, the requirement for three days advance delivery of the final closing disclosure prior to ‘loan consummation.’ (There is also a three day rule applicable to the loan estimate but compliance with it does not impact settlement service providers.)

Three Days rule

The first issue to resolve is responsibility for delivery of the closing disclosure (“CD”) to the consumer which is not the same issue as responsibility for its content. (The latter may be shared between lender and settlement service provider.) The Rule is clear that the creditor (nee lender) must deliver the CD to the consumer at least three days in advance of closing. A settlement service provider may undertake this task on behalf of the lender, but, in so doing, assumes a liability that it does not have under the Rule. The lender must still make sure that the provider complies with the Rule’s timeframes. 12 C.F.R. § 1026.19(f)(1)(v). [Note that most Code of Federal Regulations cited here are not effective until October 3, 2015, including this one.] This would be another issue of lender oversight of your compliance with regulations for which it has responsibility. If you undertake the delivery of the CD, be sure that your Best Practices-compliant policies and procedures manual documents how you will perform this task. The delivery of the CD must occur at least three business days ahead of closing. That is three calendar days (not 72 hours) in which the creditor is routinely open for business. This is different than the TILA rescission rule which counted Saturday automatically. Under the Rule, it is reasonable to exclude Saturday from any three day calculation, and, of course, Sundays and Federal holidays are excluded (even if the creditor is open). [Note that some state holidays would also be excluded if the creditor closes its offices on those days.]

This door is now closed; no deliveries accepted


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The rule treats delivery as an actual event. That is, delivery is effected when the CD is placed in the hands of the consumer/borrower in fact. This is stated in reverse language: “If any disclosures required under paragraph (f)(1)(i) of this section are not provided to the consumer in person, the consumer is considered to have received the disclosures three business days after they are delivered or placed in the mail.” 12 C.F.R. § 1026.19(f)(1)(iii). In other words, if the CD is sent by regular mail, add three days to the requisite time required by the Rule. Deemed delivery and receipt (three days after mailing) must precede the loan consummation by three days. That means six business days before closing are needed for disclosures sent by mail. Proof of delivery is not necessary but having such will defeat a claim of non-compliance with the rule. Not clear from the rule but probably true is that actual delivery, acknowledged by the consumer’s signature to a delivery receipt even through the mail, will begin the three day clock at the time of acceptance of delivery even if the mailed item sub-rule would have been in effect. [Note that electronic forms of delivery may be used essentially providing instantaneous delivery. The big caveat here is that the consumer must agree to such delivery in advance, provide an e-mail address, and provide other affirmations under law other than the rule itself. Should there not be consumer acceptance of electronic delivery, then such delivery works just like the use of the mail system. 12 C.F.R. § 1026.17(a).]

Going postal? Add three days

If something changes going into the closing that affects the CD already delivered, there may have to be re-disclosure. If so, the three days delivery sub-rule is fully back in play. However, most of the old-day tolerances/variances are matters that affect the lender’s initial loan estimate and it has to be revised and redisclosed. Permitted variances may be corrected at closing. These three items, however, do require a revised CD and a new three day delivery period: (1) The annual percentage rate becomes “inaccurate” (varies by more than one-eighth of a percentage point from original calculation, § 1026.22(a)); (2) The loan product changes (e.g., the loan changes from variable to fixed rate); or (3) A prepayment penalty is added. 12 C.F.R. §1026.17(f)(2)(ii). [Note that these three items would generally be included among the original CFPB disfavored loan terms with the original ‘Know Before You Owe’ program.] As a final word, the devil is in the details. If in doubt, be sure you seek advice from a trusted source who is also knowledgeable. It is easy to find one or the other, but you need someone who is both.

Knowledgeable and untrustworthy


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Special Feature Article Cyber & Privacy Liability and Insurance:

What the Heck Is That? Kaitlin Kelly, Fran Kelly Professional Liability LLC

As more of our work moves to the digital world, there is a lot of chatter around protection and liability in cyber space. As a title professional, you are not only entrusted with your client’s personal information, but most often, with their life savings. That is a huge obligation! Let’s take some time to really dig in and learn what’s at risk, how it affects title agents, and what’s out there to help protect you.

Have you recently found yourself saying “I just can’t get enough of the Best Practices?” Well, you’re in luck! This goes hand in hand with Pillar #3 (protecting non-public personal information) and Pillar #6 (appropriate insurance policies).

By now, you might have most of your security policies in place to comply with Pillar #3. All of your employees are working diligently around the clock to make sure your agency doesn’t suffer a security breach (right?). They are getting gold star stickers for having clean desks, they know better than to click on links in e-mails that may even look legitimate, etc. Then, boom!, you receive a phone call from an ever-trustworthy employee saying that they misplaced their laptop. Your first thought is probably somewhere in the vicinity of “what did that machine cost me and what will it cost to replace it?” Well that’s certainly one thing to consider, but let’s go a step further. What about the customer files stored on the laptop? What about those customers’ personal information contained in those files? What regulations are in place for you to comply with? What fines are out there if you don’t comply? According to the Ponemon Institute, the cost of data breaches has risen to an average of $174 per record. If you’re not the new kid on the block, you may have compiled thousands of customer records over the years. Ask yourself: Do you have the money to pay the notification costs and credit monitoring that some states require? Remember, these are state regulations, not federal. If you have clients in multiple states, you will have to comply with the laws set forth

by each individual state. Sheesh! You might want to think about hiring an attorney for legal assistance. You might also want to think about hiring a public relations consultant to help you stay in business after word gets out about your security breach.

Is your head spinning yet? I hope not! I didn’t even have a chance to break into the scary part – unauthorized transfer of funds. Recently, title agencies have become a target for hackers. The cat’s out of the bag that you are handling and disbursing hundreds of thousands, if not millions, of dollars on a daily basis. What’s more intriguing than that? I’ll tell you, most title agencies are small shops. They don’t have an internal IT department that can constantly keep up with the latest anti-virus software and computer updates. This seems like the perfect storm! The hackers are able to get into your system and sit there for months at a time without you ever knowing. They read your e-mails, familiarize themselves with your transactions and clientele. From there, it’s pretty simple. They can easily learn your bank account login information and transfer the funds themselves (hopefully, you have beefed up security on your bank account). What we’ve seen even more often than that, is the hackers creating a false identity and posing as a client or a fellow title agent. They then send you the “revised wire instructions” for the funding and there goes the money! Wired directly from your employee to the thief’s own account of choice.


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Hopefully, I’ve successfully frightened you into reading on to the next paragraph… How can I protect myself? We’ve finally arrived at Pillar #6. You’ve got so many insurance policies, one of them has to have some coverage for this. Please say yes, please say yes! Don’t count on it. Your E&O policy is intended to cover errors & omissions, not theft or fraud. As a matter of fact, unauthorized computer access (including the breach of personally identifiable information) is specifically excluded on some E&O policies (and I am sure the rest will quickly follow suit). There goes that deep pocket. Maybe you are one of the diligent agency owners that carries a fidelity policy. While I commend you on your thoroughness, a majority of the fidelity policies only provide coverage if the thief is an employee. I think we are all hoping that your trusted employees are not the problem here. So where does that leave us? Let’s consider a Cyber & Privacy Liability Policy. It’s actually intended to cover these exposures! It’s not even that expensive, most policies range between $500-$1,500 (subject to underwriting). Here’s a few things you can get out of a cyber insurance policy, assuming you buy the right one:

- Damages and regulatory fines you

become legally obligated to pay

- The cost for a public relations

professional to diminish reputational

damage

- Notification costs and legal fees

- Costs to restore your computer

systems

- LOSS OF MONEY

- Payment of an extortion demand

- 3rd party (client) financial damage

resulting from a breach

What’s the takeaway here? Do everything you can to mitigate the risk of a privacy or cyber security breach. Then, when you’re ready to sleep at night, buy a cyber & privacy liability policy.

Copyright © 2015 By: Fran Kelly Professional Liability, LLC The contents of this publication are intended for general information only and should not be construed as legal advice or a legal opinion on specific facts and circumstances.

Fran Kelly Professional Liability is a family

owned and operated, completely independent insurance agency. Our agency has specialized in the insurance needs of the title industry alone for over 20 years. We can assist you with E&O insurance, surety bonds, fidelity/crime, and cyber liability coverage. The Best Practices require you to maintain appropriate levels of these insurances. Having access to over a dozen different carriers gives Fran Kelly Professional Liability the ability to find you the right coverage at the best price available. We pride ourselves in customer service. When you call, you will speak to a knowledgeable member of the family who has the ability to assist you with anything you may need. We make the dreaded E&O process as easy as it can be. You can even submit a competitor’s application, along with your declarations page, for a quote without additional paperwork. Please give us a call to see how we can assist you.

Fran Kelly, Owner Emeritus Alicia Kelly, Member Kaitlin Kelly, Member


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Underwriting Corner Underwriting … as Told in the Classics

Thoughts on Government and Regulation – Angst Is Not New Thomas Paine, Collator

Do you ever think you are alone in the pain that you feel due to government’s intervention in your business? Trust me; your pain is neither unique nor recent. The first governed civilizations in history have recorded complaints about the bureaucrats. Even in relatively unregulated times in our own 239 year old country, there were comments being written or said about the sloth, inefficiency, wastefulness, and irrelevance of regulation. What, then, do the thinkers of old tell us that we can apply to the situation our industry faces with TRID, RESPA, TILA, G-L-B, et al.? The more things change, the more they stay the same. Consider these comments:

Plato: [T]he truth is that the State in which the rulers are most reluctant to govern is always the best and most quietly governed, and the State in which they are most eager, the worst. Aristotle: [H]e who bids the law rule may be deemed to bid God and Reason alone rule, but he who bids man rule adds an element of the beast; for desire is a wild beast, and passion perverts the minds of rulers, even when they are the best of men. The law is reason unaffected by desire. Voltaire: The art of government consists of taking as much money as possible from one party of citizens to give to the other.

It is dangerous to be right in matters on which the established authorities are wrong. Let the laws be clear, uniform and precise; to interpret laws is almost always to corrupt them.

Darrow: Laws should be like clothes. They should be made to fit the people they serve.

First and last, it's a question of money. Those men who own the earth make the laws to protect what they have. They fix up a sort of fence or pen around what they have, and they fix the law so the fellow on the outside cannot get in.

The law does not pretend to punish everything that is dishonest. That would seriously interfere with business. Twain: The government is not best which secures mere life and property -- there is a more valuable thing -- manhood.

The mania for giving the Government power to meddle with the private affairs of cities or citizens is likely to cause endless trouble, through the rivalry of schools and creeds that are anxious to obtain official recognition, and there is great danger that our people will lose our independence of thought and action which is the cause of much of our greatness, and sink into the helplessness of the Frenchman or German who expects his government to feed him when hungry, clothe him when naked, to prescribe when his child may be born and when he may die, and, in fine, to regulate every act of humanity from the cradle to the tomb, including the manner in which he may seek future admission to paradise. Reagan: The most terrifying words in the English language are: I’m from the government and I’m here to help. Augustine: In the absence of justice, what is sovereignty except organized robbery?


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Rand: Government ‘help’ to business is just as disastrous as government persecution … the only way a government can be of service to national prosperity is by keeping its hands off. Tzu: Governing a great nation is like cooking a small fish – too much handling will spoil it. Confucius: An oppressive government is more to be feared than a tiger. Washington: Mankind, when left to themselves, are unfit for their own government. Wilson: The government, which was designed for the people, has got into the hands of the bosses and their employers, the special interests. An invisible empire has been set up above the forms of democracy. Goethe: The best government is that which teaches us to govern ourselves. Allen (Gracie): This used to be a government of checks and balances. Now it’s all checks and no balances. Camus: By definition, a government has no conscience. Sometimes it has a policy, but nothing more. Allen (George): We should favor innovation and freedom over regulation. Tankian: If you allow for a purely capitalistic society, without any type of regulation at all, you will get one monopoly that will eat all of the smaller fish and own everything, and then you'll have zero capitalism, zero competition - it would just be one giant company. Mencken: Democracy is the art and science of running the circus from the monkey cage. For every complex problem there is an answer that is clear, simple, and wrong.

Democracy is the theory that the common people know what they want, and deserve to get it good and hard.

The strange American ardor for passing laws, the insane belief in regulation and punishment, plays into the hands of the reformers, most of them quacks themselves. Their efforts, even when honest, seldom accomplish any appreciable good. Rogers: Be thankful we’re not getting all the government we’re paying for. People are getting smarter nowadays; they are letting lawyers, instead of their conscience, be their guide. The only difference between death and taxes is that death does not get worse every time Congress meets. I don’t make jokes. I just watch the government and report the facts. Ancient Rome declined because it had a Senate, now what is going to happen to us with both a House and a Senate? Never blame a legislative body for not doing something. When they do nothing, that don't hurt anybody. When they do something is when they become dangerous. If we got one-tenth of what was promised to us in these acceptance speeches there wouldn’t be any incentive to go to heaven. Einstein: Nothing is more destructive of respect for the government and the law of the land than passing laws which cannot be enforced. Paine: Government, even in its best state, is but a necessary evil; in its worst state, an intolerable one.


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Circling the Wagons Industry News

Hall & Oates and The Village People The July 2015 ABA Journal has good news for ‘80s music fans: Hall & Oates turned back a possible violation of one of their trademarks when convincing a granola company to change the name of one of its treats – Haulin’ Oats. It did not help the company’s defense to a law suit that it offered a discount coupon with the code SAYITISNTSO. Meantime, in a California jury trial, Victor Willis, the ‘cop’ in the Village People was restored to his copyright to some of the group’s songs, including its biggest, “YMCA.” https://www.youtube.com/watch?v=3HO2UVdgmYw or https://www.youtube.com/watch?v=JsntlJZ9h1U.

Glass-Steagall and Other Lesser Relevant Legislative and Caselaw News Senators Elizabeth Warren (D-MA) and John McCain (R-AZ) have recently introduced legislation to reenact Glass-Steagall, a 1930s financial reform law, the repeal of which during the Clinton Administration is said to have had some effect on the financial crisis of 2008. The law’s provision for the separation of traditional banking from investment banking disappeared before 2000. Without that limitation, it has been argued by many, including Sen. Warren and other proponents of the CFPB and Dodd-Frank, the biggest banks and investment houses were able to avoid scrutiny on derivatives, credit default insurance, hedging credit bets, and mortgage backed securities. The bill is likely going nowhere. If anything, consumer financial protection legislation is more likely to be rolled back.

The Supreme Court rejected second lien stripping in Chapter 7 bankruptcies, but stripping is still alive in Chapter 11 proceedings. Be aware of the issue if a seller says the court has removed a second lien; ‘Trust, but verify.’ Bank of America v. Caulkett, ____ U.S. ____, No. 13-1421 (June 1, 2015). There continues to be much reform talk in Congress – reform of the Affordable Care Act (although that issue is much quieter since King v. Burwell, ____ U.S. ____, No. 14-114 (June 25, 2015), reform of the GSEs, reform of Dodd-Frank, reform of the CFPB, reform of the tax code, etc. – but it is mostly still talk. Tax reform is going nowhere at the present because we are heading into an election cycle (but with Representatives facing reelection every two years, are we not always in an election cycle?). With litigation by investors against FNMA and FHLMC having some success and with both continuing to be ‘profitable,’ it is a difficult matter to find a way to reform and improve them. There is much handwringing about impending doom, but there are strong arguments in favor of do not break what is working and wait for the court rulings. One thing that will probably get fixed is a tiny matter: Nevada and DC courts have worried the lenders with startling decisions giving super-priority to six-months of HOA liens. The decisions are so super, in fact, that the liens of the mortgages have been foreclosed by actions to enforce the HOA liens. The FHFA has issued a statement that it does not consent to such treatment of HUD guaranteed mortgages. The consent issue is found in federal statutes and the denial of consent to be so abused would protect FNMA and FHLMC loans with guaranties. It is likely a state judge will not cross that divide, but doing so (at least in Nevada) may require contorted, distinguishing language. What concerns


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me (not about Nevada) is the REO lender who insists on indemnification and/or insure against the effect of such in a post-foreclosure sale.

LandCastle Title: The Never Ending Story Remember when there was a defalcation and all the (bad) actors disappeared? Not so, insofar as LandCastle Title and its relations are concerned. After the resignation of Nat Hardwick, the morphing of the Atlanta-based East Coast law firm into Morris-Schneider-Wittstadt, the investment of $ 20M+ into LandCastle Title by Fidelity, and the suits and counter-suits among the parties (including pro golfer Dustin Johnson and his foundation), things only got weirder. One item to know, however, is that Fidelity remains positioned in LandCastle with its own employee as company President and title insurance apparently remains in place on all properties for which the agency issued policies. The rest of the parties – except golfer Johnson, who was a factor at the British Open – have otherwise actually or effectively disappeared: In January 2015, MSW sold its ‘default assets’ to Butler & Hosch, a major foreclosure firm centered in Florida. Ostensibly, this would give new life to both firms. B & H had expanded nationally during its 35 years of existence and made this major move as foreclosures declined dramatically everywhere. Then, in May, B & H filed an assignment for the benefit of creditors in Florida state court, an insolvency proceeding akin to a bankruptcy filing. Six hundred employees immediately lost jobs. Technically, MSW was still standing as the contemplated de facto merger was undone. Attorneys at both firms had to assure clients of coverage at scheduled court dates even though pay was unlikely due to ethical considerations. Reports out of Florida indicate that a Pennsylvania foreclosure firm, Stern & Eisenberg, has acquired some of the physical assets of B & W and may have hired a number of its former personnel. Meantime, MSW, which alleged serious discrepancies in representations made to it by B & H for the acquisition, faced its own reality and filed a Chapter 11 bankruptcy on July sixth. LandCastle Title was not involved in either debtor proceeding as it was substantially (or may have become wholly) owned by Fidelity. And yet the story is not over: Dustin Johnson (remember him?) has vowed to continue litigation against Hardwick and MSW despite the latter’s bankruptcy stay. And, finally, no doubt not the last asset to fall, the exclusive condominium of Nat Hardwick is on the foreclosure block. The unit at The Residences at The St. Regis Atlanta is valued at about three million dollars. Take a look: http://www.atlantafinehomes.com/eng/sales/detail/258-l-1486-rkb76b/incredible-opportunity-at-the-prestigious-st-regis-residences-atlanta-ga-30305

Scam, Scammer, Scammest MSH, BH, et al. may be the biggest, but it is not the only sad and ugly story in the real estate industry. There are still tales of scamming and conning that turn up everywhere, including regularly on American Greed. Truly, everywhere: Florida (and Brazil) – Lana Kaye Dargai of Global Title Co. embezzled seven hundred thousand dollars of customers’ escrow funds, and Raul Enrique Quintana of Title Closing Partners of Brickell LLC, and others, falsified docs of Bank of America, Chase, etc. on nine million worth of loans; Nevada – Las Vegas lawyer Gerry Zobrist was disbarred and sentenced to 87 months for wire and bank fraud; Kansas (Kansas!) – Brian Harrison, former loan officer at Farmers Bank and Trust pled guilty


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to one count of bank fraud due to his fraudulent handling of TARP money received by his employer; Connecticut – a state welfare fraud investigator, Lynwood Patrick, has been charged with wire fraud in falsifying pay stubs for his own HARP modification application; California – a good-old-fashioned flipping scheme that cost more than $ 20M has Benny Chetcuti serving more than four years at Club Fed, and, not to be out done, a husband and wife team (Alan Tikal and Tamara Tikal) bilked non-English speaking, struggling homeowners out of more than $ 5.5M in a foreclosure rescue scam, with the pair receiving 24 years and 45 months, respectively, for mail and wire fraud. The Mid-Atlantic is not squeaky clean: Pennsylvania – a former Hazelton City Council candidate and local realtor, Ignacio Beato, is being investigated for falsifying titles and selling properties he did not own; Maryland – four different events have surfaced recently being prosecuted by federal and state officials and you may know some of these names, Carole Tilghman a/k/a Carole Hicks, Client 1st Title, Shannon A. Lee, Qiana Johnson, Shamika Staggs (this trio culled foreclosure lists and advertised properties for rent on craigslist), Edgar Tibakweitira (and aliases), et al., Destiny Property Management LLC, and Edward Dacy; Virginia – Cary McEntee of Virginia Beach pled guilty to federal criminal conspiracy charges for defrauding a Michigan bank over loans it made on Newport News property, and Susanne Helbig received eight years in federal corrections for a Ponzi scheme involving Smith Mountain Lake properties and her construction company, Genesis Mansions; New Jersey – Abbe Edelman is serving eleven years for his own real estate Ponzi scheme, Ania Nowak of A. N. Title Agency LLC, after pleading guilty to federal conspiracy to commit wire fraud, has been ordered to prison for more than five years, and Timothy Ricks got seven years for another mortgage fraud case. Finally, while not a traditional mortgage scam, a couple in New Jersey has sued their sellers, Chicago Title, and A Absolute Escrow Settlement Company, alleging fraud in the transaction in that the group failed to reveal information that a hostile and dangerous person was writing threatening notes and otherwise effectively acting as a stalker of the owners of the home which they had just bought. The unknown perp uses the pseudonym “The Watcher.” The couple is seeking reimbursement of the entire sales price plus retention of title to the property free of liens. Read more at www.courthousenews.com and search ‘creepy letters.’

Mortgage Industry News Goldman Sachs is looking to put the unresolved allegations of unlawful conduct in the sales of mortgage backed securities in the lead up to the financial crisis of 2008 to the tune of two to three billion dollars. Wells Fargo is cutting 1000 mortgage servicing jobs (but it does have 265K employees). This is happening because defaults and delinquencies of mortgage loans have sharply declined. The good performance of borrowers has an adverse effect on line employees. Although at a lesser scale, Bank of America has reported similar layoffs. Elsewhere, Ocwen has continued to sell off its mortgage servicing rights and is getting healthier. It might even survive. Freddie Mac has sold off about one billion of


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deeply delinquent non-performing loans. You heard it here first: You will see them soon as foreclosures brought by new MBS trusts. The mindset of the pool purchasers is to double or triple their investment quickly and pass the title problems off to unsuspecting real estate investors. While foreclosure activity is noticeably down, be aware that the financial piece of what remains may be riskier to purchasers and their insurer. Remember your due diligence when reviewing a foreclosure. See 10-ALL-06 which remains Conestoga’s guidance on foreclosures.

New York, New York: Recent anti-inducement regulations and state-mandated reductions in refinance title premiums are expected to save consumers up to sixty-five percent of the cost of title insurance according to NYDFS officials. For the industry, the mandates are probably not as onerous as the reported outcry. The May 12, 2015 opinion of the New York Times (“The Title Insurance Scam”) was particularly loud: “It is no secret, for instance, that many borrowers are overcharged for title insurance.” While the generality may have truth, its implication of widespread abuses is unsupported. Such language is unusual from a news organization that prides itself on reporting or editorializing with integrity of its factual basis. ALTA replied with a letter to the Editorial Board that same day.

Title Insurance If you need some good news to cite to bolster the need for the purchase of title insurance, look at one or more of these articles: “Realtors and Lenders Confused About Value of title Insurance, Says ALTA,” Inman News, 3/24/15; “Uh-Oh: Most Millennials Don’t Know About Closing Costs,” HousingWire, 3/25/15; “Title Insurance Protects Your Biggest Investment for Not a Lot of cost,” Washington Post, 4/8/15; “Top 25 Reasons You Need Title Insurance,” Title Lab, 4/15/15; “Title Insurance: A Friend in Deed,” The Wall Street Journal, 6/3/15.

Tales from the Underwriting Trail Some Final Thoughts Honus Waggoner

On the Fourth Anniversary of the birth of the CFPB, Sen. Ted Cruz (R-TX), claiming it did nothing

to protect consumers and harkening to others who have called it a rogue agency, introduced legislation to abolish it.

PRIA, the Property Records Industry Association, has adopted a best practice for redaction procedures for documents submitted to local recording offices.

Clark Howard, TV financial advice personality, has posted seven habits of financially successful people. For consideration when contemplating your personal situation:

� They have a good relationship with money � They live frugally � They understand what their values are � They look for positives (and learn from failure) � They create their own opportunities � They set goals � They ask questions


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Underwriting Topics Re-TRIDS: Random Notes on the Integrated Mortgage Disclosure Rule, TRID Forms, and Best Practices

R. Michael Smith, Underwriting Counsel As the title suggests, this article will address TRID and related miscellany. Consider these bulletin point type offerings. This topic will lend itself to supplementation as events require. Here we go.

Do not forget about Best Practices. Although TRID implementation has been delayed to October third, the major lenders (Wells, B of A, etc.), that are expecting third party vendor compliance with the 2012-03 Memo from CFPB, completion of a policies and procedures manual, and (if required) compliance certification, have not yet rescinded the ‘need to complete by date’ of August first. In fact, several lenders, including SunTrust, are requiring Best Practices certification of a settlement agent before continuing the loan closing relationship. If you have not done this part yet, finish it. Now. Review Don Delgado’s article above on things to do now; do them. Now.

There is actually a requirement placed upon the settlement agent to disclose to the

seller in a purchase transaction. Most of the lenders who have reported so far indicate that they will only prepare the buyer’s side of the closing disclosure (CD) and deliver it. Some, however, will use the CFPB’s combined buyer-seller CD. The settlement agent will continue to perform those functions in connection with closing the transaction that affect the seller – loan payoff, etc. – and populate the seller CD or provide the numbers to the lender for the combined buyer-seller CD. If there are changes that affect only the seller’s side of the transaction, the settlement agent can make those changes and deliver the seller only CD as late as loan consummation. Even though it seems that the lender has no interest in the seller’s side of the transaction, expect that all lenders will require

advice about changes to the seller’s side between the required CD disclosure and consummation. All will require a copy of the final seller-only CD as part of the closed loan package. Variances still exist but ‘bucket lists’ are not the scourge of settlement service

providers as in the past. Variances are a problem for the creditor (lender or loan broker) in order to keep a loan within qualified mortgage guidelines. Changes that occur to specific charges after delivery of the CD and consummation should neither delay loan closing nor require a new CD, although the likelihood of such changes ought to be remote. There is more on this above in the three day disclosure rule article. On a point sensitive to the title industry, so long as a lender denominates owner’s title insurance as ‘optional,’ if the borrower chooses an owner’s policy, the charge does not fall in any of the three variance boxes even if written by the lender’s affiliated business.

Do not certify preparation of the CD

just because it is on the form. Given that the national lenders who have addressed the issue so far have unanimously said they will prepare the CD, you may feel uncomfortable signing the FHA required certification that will replace the current HUD-1 addendum. The language of the new certification: To the best of my knowledge, the Closing Disclosure which I have prepared is a true and accurate account of the funds which were (i) received, or (ii) paid outside closing, and the funds received have been or will be disbursed by the undersigned as part of the settlement of this transaction. I further certify that I have obtained the above certifications which were executed by the borrower(s) and seller(s) as indicated.


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By way of response to an FAQ for its Single-Family Handbook, FHA has stated that a settlement agent may delete or strike out the language in bold above if, in fact, the CD was prepared by another party, most likely the lender. This may seem trivial and an item of great relief, but be aware that, to date, FHA has not made this matter a policy statement. Further, it does not resolve the problem of relationship with the lender who has prepared the CD which contains this statement. You can probably not change the CD in any way without the creditor’s approval. Be sure that you have communicated with the lender-preparer before you change the certification. On the other hand, do not sign the certification if you did not prepare the CD. Remember that, if you use a separate settlement statement for your internal disbursement processes, the certification on it will be correct with your certification of preparation. The world as we know it does not end on October 3, 2015. In fact, that day little will happen and not just because it is a Saturday. The new CD is not to be used for loan closings that occur that day. The existing 2010 format HUD-1 continues in use for loans originated prior to October third. The new CFPB CD forms (there are three, borrower only, seller-buyer combination, seller only) are to be used with loans that are originated on and after October 3, 2015. Given the average span between contract and closing with financing is around 45 days, most closings using the new forms will likely not occur until November. Between October third and full implementation, both old and new closing forms may be used by lenders. You have to be able to respond to either set of forms. Remember also that the CD forms are not required for commercial loans, cash transactions, and other specific loan types. Individual lenders may choose to use the CD forms or other forms of their own.

The CD forms do not have signature lines nor do they contain a statement by

borrower/buyer or seller acknowledging the figures and authorizing disbursement. Adding a page for signatures and such a statement is likely as software providers and lenders work through formatting. The CD, though, is a disclosure form first and foremost, and not a closing statement. CFPB is concerned that delivery of the form on a timely basis can be established. It is not so concerned with whether you have the borrower’s approval to disburse funds. ‘Roll-ups’ are not permitted. A single entry for all title policy endorsements required by the lender, for example, may not be done on the CD. Each separate endorsement must be accounted for by a separate line item. This probably does not mean that estimates of costs (e.g., release fees, overnight services) may not be used, but they will have to be disclosed specifically and perhaps disclosed as estimates.

Most of the major title software providers have upgraded their settlement

programs to accommodate the new forms. If you have not been in touch with yours to assure seamless transition, do so now. Also, most of the major lenders have indicated they are ready to interface with settlement providers via online communication. Closing Insight has been a portal of choice for Wells Fargo and Bank of America. As indicated in Don Delgado’s article above, you can register with that company and facilitate your future communication with those and other lenders. These lenders have announced

requirements for you to meet to continue to service their loan transactions. This list is not exhaustive: Wells Fargo, Bank of America, Chase, SunTrust, USAA, Freedom Mortgage, Citi. Note that local community and regional lenders are not on that list. You may find that your neighborhood bank is less ready for TRID than you are. You may


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be able to use your industry knowledge as a marketing tool, but do not become a legal adviser. On the Closing Disclosure, the really important stuff is upfront. On the first page you will find the loan amount, interest rate, monthly principal and interest, whether or not the loan has a prepayment or balloon payment feature, the estimated monthly payment (PITI), and the cash needed to close. There is no longer a TILA statement to explain (or try to explain).

ALTA has offered form settlement statements for use in connection with the CD

or, in appropriate circumstances, in place of the CD (e.g., cash transaction). If you do not have direct access to the ALTA settlement statements because you are not a member, you might check with your software provider or consider an ALTA special license in order to access the forms. Wells Fargo and Bank of America have already approved the use of the ALTA forms. An advantage to you is that such forms will probably work with your accounting and disbursing software more readily than the CD. Note, however, that use of the CD is not excused. As Wells Fargo said in its Settlement Agent Communication of June third:

If a settlement statement in any form is provided to the borrower (in addition to the CD provided by Wells Fargo), a copy must also be provided to Wells Fargo with the closed loan documents. A review will be performed to validate consistency with the content in the CD.

Note how nicely this dovetails with the need to get lender approval on all change items after the CD is delivered to the borrower.

Even if it is not, it is all about the ‘Title’ charges. By now you know that the new CD does not have the convenient line item numbering system of the traditional HUD-1 settlement statement. Every item (whether Box B – Services Borrower Did Not Shop For – or Box C – Services Borrower Did Shop For) must be entered on a separate line preceded by the word “Title.” CFPB requires that the items so listed must have consistent terminology between the Loan Estimate and Closing Disclosure forms. One lender has proposed the following eight designations:

� Title – Closing/Settlement Fee � Title – Lender’s Title Insurance � Title – Title Exam/Search Fee � Title – Deed Preparation � Title – Closing Protection Letter � Title – Courier/Wire � Title – Tax Report � Title – Doc/Processing Fee

Even for the lender the list ignores endorsements and binder fees, frequently required items by a lender. What about required legal services in a state such as New York? Fortunately, the staffs at ALTA, the Mortgage Bankers Association, several software providers, FNMA, and Freddie Mac have been working on standardized designations. They are working this through modifications to the Uniform Closing Dataset drafted by the GSEs to support the CD, a part of MISMO v.3.3 Reference Model. MISMO is the Mortgage Industry Standards Maintenance Organization. Obviously, this is an ongoing project. Stay alert for additional information on this issue and stay in touch with your software provider. Again, your being ahead of the learning curve here may put you in good stead with your local lenders. Bill Parker’s article above goes into some detail about how to enter the ‘optional’ owner’s title insurance. The problems about showing simultaneous issue and additional amounts for owner’s insurance and endorsements are best addressed with your software provider and your local lender. In June, CFPB did issue guidance on disclosing title premiums in scenarios in which the seller was paying part of or the buyer’s entire title premium. See 12 C.F.R. §§ 1026.37 and 1026.38.


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Employee Spotlight Rebecca (Becky) Breault

Becky Breault is Conestoga’s Paralegal in the Legal Department. Her primary duties are

assisting the Claims Counsel with file set-up, tracking deadlines, investigating, legal research, and communicating with insureds and agents. Since joining Conestoga in 2004, Becky has received an education in title insurance before, during and after the closing. Before coming to Conestoga, she learned about the real estate industry in much the hands-on way she now works. Beginning as a legal secretary for a local Lancaster County attorney (and what could make more sense for a local Lancastrian than a practice so local that everyone in town knew for whom she worked and pressed her for legal assistance), she went to school while working to obtain an Associate’s degree in paralegal studies. Although not her first choice of legal work, she learned real estate the old-fashioned way as she did the settlement statements with pencil in hand and carbon paper in the typewriter. Becky continued her schooling at the same time and obtained a B.A. in Sociology from Lebanon Valley College in 2002. After further OJT experience with York and Lancaster real estate gurus, William Hoffmeyer and Kenelm L. Shirk, Jr., Becky joined a local underwriter’s closing subsidiary and worked shoulder-to-shoulder with lenders and realtors as well as title underwriters. Now at Conestoga she enjoys working with the company’s title agents. Even though she knows hearing from her is not good news, agents quickly understand Becky needs their help in handling a claim and, in most cases, she can make that claim go away but only with their help. The relationships she has developed both personally and professionally are invaluable. We have found that her institutional knowledge of which former title agent or lender has reappeared on the scene in an altered state to be an invaluable aid in claims resolution. Becky and her husband (and high school sweetheart) have three kids at home (although the oldest just left for military service) along with five cats, two guinea pigs, two fish, and three salamanders. After the kids’ dance classes and Taekwondo, you might find Becky hiking while reading and cross-stitching.

Conestoga Title Personnel Contact Information Position Direct Dial Direct Free E-mail Adam Kossove Direct Dept. Account Executive 717-431-2775 800-257-9414 [email protected] Alan Shumate Regional Agency Representative 804-586-3076 [email protected] Bill Parker Underwriting & Claims Counsel 717-735-7083 800-861-9414 [email protected] Colleen Sheerin Marketing Assistant 717-431-2764 800-272-6535 [email protected] Don Delgado Vice President/Agency Admin 717-431-2752 800-724-0935 [email protected] Doug Riggin Sales Manager 717-431-2781 800-257-4176 [email protected] Jill Funk Agency Support Administrator 717-431-2788 800-672-2985 [email protected] Joe Kambic Claims & Recovery Manager 717-431-2783 800-257-5217 [email protected] Joel Angelo Agency Audit Manager 717-431-2784 800-830-9031 [email protected] John Nikolaus President 717-431-2763 800-272-3570 [email protected] Jonathan Markel Regional Agency Representative 717-431-1260 844-509-0490 [email protected] Michael Smith Underwriting Counsel 717-735-7082 800-861-9352 [email protected] Patti Reese Executive Assistant 717-431-2755 877-502-5157 [email protected] Rebecca Breault Claims Paralegal 717-286-2347 800-478-8630 [email protected] Robin Wolbert Senior Accountant 717-431-2772 800-257-1966 [email protected] Sheryl Childs Policy Administrator 717-431-2785 800-257-7921 [email protected] Susan Anderson Paralegal 717-431-2757 877-502-5158 [email protected]

Documents

Conestoga Title Insurance Co. WAGON LODE · you ready now ? To help now , Conestoga dedicates this issue of the WagonLode to TRID and related matters. If this is a rehash of actions