News

Title Insurance: What is it and why do I need it?

When purchasing a home, buying title insurance is very important.  In fact, it is so standard that if you are getting a loan on that home, your lender will most likely require it.

So I’ve told you that you need it, but before understanding why it’s important you must first understand what it is.  The Wikipedia definition of title insurance is “A form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage loans.”

In summary, if anyone makes a mistake, misses something, or there was just an unforeseeable issue in the process of searching the records of your property, with title insurance you have protection in case of a loss.

A loss resulting from a title defect could be as much as the value of your home.  Because of the potentially large dollar amount of the defect, many homeowners would be unable to financially cover the loss.  Even if one could afford it, no one would want to.  For most people, their home is the most expensive purchase they can make and having the peace of mind of title insurance is a must.

You are probably thinking “If the Title Company made an error that led to a title issue with my home, then shouldn’t they be responsible?”  That is a natural question to ask, but human error is always present and title fees aren’t that much.  No title company could charge you $300-$400 for the processing of your transaction and be able to afford a mistake in the hundreds of thousands of dollars. One mistake would put them out of business.  It is because of this, that title insurance not only exists but is the right decision for most, if not all homeowners.

If you have questions about title insurance or anything related to the title of the property you own or are considering buying, let the experts at 7 Title give you the answers you need.

Chris Outland

President

7 Title

Title Insurance: What is it and why do I need it?

http://en.wikipedia.org/wiki/Title_insurance 

Giving Back is Contagious

At 7 Mortgage, we understand the importance of giving back to our local communities.  In fact, investing in our communities is one of our core beliefs.  Spending time helping those in need, engaging with local volunteer organizations, and making our region a better place to live is critical to our success.  To that end, we award 8 hours of paid volunteer time off to our employees to encourage participation in the volunteer activity of their choosing.  Today we would like to share the story of Jane one of our Mortgage Loan Coordinators who volunteered at the Good Samaritan Center in Lenoir City, TN.  The Good Samaritan Center of Loudon County (GSC) is a private, non-profit assistance ministry serving the emergency needs of those in Loudon County, Tennessee.

Jane helped bag groceries as orders came in, attended a staff meeting, helped with paperwork and did some housecleaning.  She even went so far as to purchase dog food with her own money since the organization would not receive donated funds until the following week.  Jane hopes that her volunteer spirit helped inspire her grandson Alex.  At his recent 8th birthday party Alex insisted that friends not bring gifts, but instead bring bags of dog food and treats for the local animal shelter.  Because of Alex’s generosity, the Loudon County Animal Shelter received approximately 600 pounds of food and treats.  Great job Jane and Alex!

This is just one example of the countless opportunities our fantastic employees take to make the communities we serve be the best they can be.  We invest in our communities, so TOGETHER WE THRIVE!

Wendy Robinson

AVP Mortgage Services

7 Mortgage

Wendy Robinson goes to GAC!

Wendy is the AVP of Mortgage Services for 7 Mortgage and oversees the processing and underwriting teams. She has been with 7 Mortgage for over 5 years and has a passion for the credit union movement.

What is the GAC?

  • It is a fun-filled, action-packed conference attended by thousands of credit union professionals and Board members in Washington D.C.
  • You learn about issues facing the industry, and get the inside scoop on new and innovative products/services, visits with members of Congress and the Senate, and best of all network with other credit union professionals!

What did you take away?

  • It was rewarding and enlightening on several fronts. First, we got to come together with 5,200 people representing 1,000 credit unions all working to make a difference. I have seen how regulations can affect credit unions and their ability to grow, and how this especially impacts the smaller ones. Realizing that 50% of credit unions have 30M or less in assets was eye opening.  When statistics show that credit unions must dedicate 1 out of every 5 employees to work on compliance, it really limits their options because many cannot afford to absorb those costs.
  • There were many great speakers, visits with different vendors, and some really fantastic meals all over the District. This opportunity to network helped us all learn about the key topics that are concerning to credit unions and how we can all be better advocates.

Name the top 3 things to do in D.C.

  1. Homemade Pop Tarts at Ted’s Bulletin
  2. Monuments by Moonlight Tour
  3. Trump Hotel Observation Deck

7 Title’s Product Offerings: ACE Report

 What is the ACE Report?

  • This product is designed for smaller loan types such as HELOC’s which may not require full title insurance.
  • It allows loan originators to focus on the origination process while the title work is cleared by title professionals.

What is included in the  ACE Report?

  • Full service current owner property report
  • Prompt delivery
  • Assistance provided in solving title issues
  • Certificate of Lien Position

What is the cost and turn time?

  • $125.00 for the ACE Report
  • Delivered back in 3-5 days

**Recording Service also available**

Please let us know if you have questions or would like more information about this product or any other 7 Title products or service!

EMPLOYEE CORNER

 

GET TO KNOW JANE SLAUGHTER

How long have you worked at 7 and what is role?

I have worked for 7 for almost 2 years (May 27th will be my anniversary) I am a Mortgage Loan Coordinator which is another term for Mortgage Loan Processor, but because we now do it all (processing and closing) we are called coordinators.

What keeps you working at 7 and motivates you every day to come into work?

The people I work with, both within my department and in 7 Title!! This job is difficult and sometimes very stressful, at best, and working with incredibly warm, fun, knowledge people make it all worthwhile. I have a manager who I know has my back  and technology to help do my job but seriously it is the people I work with on a day to day basis…”my work family”!!!

What does your perfect weekend look like?

Winter…..staying in, cooking, catching up on TV shows I have dvr’d, reading,  going to Saturday morning breakfast with my daughter Sara, her husband Scott, and my wonderful grandson Alex!!  Summer……going to breakfast with “my kids” listed above, cooking, going to the pool, reading…..this is perfect reality!!! Perfect dream weekend….going to the mountains staying in Gatlinburg, good happy hours and great food…throw in a massage or facial and it would be nirvana!!!

Are you a dog or a cat person? Do you have any pets?

YES!! NO

What is your go-to meal that you make when you are at home?

Mushroom & cheese omelet, crisp bacon, and 12 grain toast during the week. On the weekend baked salmon and sautéed scallops with asparagus and a baked sweet potato!

 

 

Fannie May Updates

UPDATES

Feb 27, 2018
Expanding HomeStyle Renovation Mortgage for purchase and renovations of homes to 97% LTV.

Jan 30, 2018
Monthly federal income tax payments can now be added to Liabilities instead of being required to be paid off prior to closing.

Expand condo project-related minor litigation criteria to provide more flexibility for condo project approval.

DU Ver 10.2 coming on Mar 17, 2018 with updates on:
Homestyle Renovation loans, PIW messaging, and updates to align with the Selling Guide.

Dec 19, 2017
Allow lenders to underwrite loans for borrowers who have frozen credit at only 1 of 3 credit repositories.

Nov 28, 2017
New FNMA Loan Limits Increase: $453,100 for 1 unit, $580,150 for 2 units, $701,250 for 3 unit, and $871,450 for 4 units.

New limits went into effect for loans sold after Jan 1, 2018.

Oct 31, 2017
Exclude the full monthly housing expense from DTI ratio when paid on-time by someone other than the borrower.

Sept 26, 2017
Offer property inspection waivers (PIW) on some purchase transactions.

Extend DU Refi Plus and Refi Plus options through 12/31/18 as part of the Home Affordable Refinance Program.

HMDA 2018

LEI & ULI     
  • Each financial institution obtains a unique LEI (Legal Entity Identifier) and each HMDA reportable loan application requires a ULI (Unique Loan Identifier)
  • LEI is a 20 digit alphanumeric identifier and is annually renewed by Lender
  • ULI is a maximum of 43 alphanumeric identifier consisting of LEI, loan application number and a 2 character check digit
  • HELOC applications are now required to be reported – previously was optional
  • Home Improvement applications not secured by real estate are no longer reportable
  • Application Channel & Initially Payable to financial institution indicators
  • Loan Purpose now includes refinances as being cash-out or refinance (replacing existing mortgage and include closing costs only)
  • Subject Property Address
Required data points increased                        
  • Loan Originator NMLS Identifier Number
  • Construction Method (Site Built, Manufactured Home)
  • If manufactured home, additional information required
  • Secured Property Type – MH and Land or MH and not Land
  • Land Property Interest – direct, indirect, paid leasehold, unpaid leasehold
  • Property Value
    • Total Units
    • DTI
    • CLTV
    • Credit Score Information
    • Automated Underwriting System (AUS) information
    • Interest Rate & Introductory Rate if an ARM
    • Contractual Features – Balloon, Negative Amortization, Interest-Only, Other
    • Total Loan Costs, pursuant to Closing Disclosures (CD) on Line D
    • Borrower Paid origination charges, pursuant to CD Line A
    • Discount Points
    • Lender Credits, pursuant to Line J on CD
    • Loan Term – in months
    • Occupancy Type  (Principal, Second, Investment)
Changes to Borrower Government Monitoring Information (also referred to as Demographic Information)                               
  • Ethnicity now has aggregate categories in addition to Hispanic or Latino
  • Race now has additional categories and aggregate categories
  • Only when application is taken face-to-face is Lender required to make selections if Borrower “Does Not
  • Wish To Provide This Information”
  • If borrower indicated do not wish to provide and application is face-to-face, Lender is required to inform borrower they have responsibility to make selections based on visual observation
  • Note that if member/borrower comes into Lender office after initial application taken other than face-to-face, the rule that Lender to make selection applies, same as if application was taken face-to-face
  • Borrower may select as many categories as desires/applies and Lender to report up to five of selected categories
  • Lender should not deleted/change any borrower selection, just that up to five can be reported on LAR
Type of Purchaser – now has a N/A value if loan is not sold to a GSE or private investor or financial institution or affiliate
Disclosure Statements & Modified LAR will be available on the CFPB website

What is TRID 2.0?

What is TRID 2.0?What is TRID 2.0?

It’s the final rule issued by CFPB containing several clarifying amendments and technical corrections to TRID
When was the final rule issued?
  • July 7, 2017
Who does it apply to?
  • All credit unions that originate covered transactions under TRID
  • For purposes of TRID, a covered transaction is defined as a closed-end consumer credit transaction secured by real property or a cooperative unit. However, the following transactions are exempt from TRID:
    • HELOCs
    • Reverse mortgages; and
    • Mortgages secured by a mobile home or dwelling that is not attached to real property
Effective Date(s)?
  • The final rule is effective 60 days after publication in the Federal Register
  • The mandatory compliance date is October 1, 2018