New RESPA rules may simplify mortgage documents

The Consumer Finance Protection Bureau has proposed revisions to the financial disclosure forms that are included in loan packages in order to simplify the process. The redesigned Good Faith Estimate and Closing Disclosure forms attempt to make it easier for the borrowers to understand there loan terms. The two forms required currently in all loan packages are the Truth and Lending Disclosure Statement (TIL) and the Real Estate Settlement Procedures Act (RESPA), currently contain simmular information but often times are confusing for the borrowers. By using plain language and reducing redundancy, these forms should make the loan process and signing much easier to understand. The CFPB is seeking public comments regarding these proposed revisions until November 6, 2012. Sincerely, Lisa Scanlon, CSA 941-447-7130 www.scanlonsigningservices.com

The National Mortgage Settlement

The recent $25 billion National Mortgage Settlement is likely to have a significant impact on the entire mortgage industry as well as law firms, document processing companies and notaries. For companies, the terms target the kinds of policies and practices that created the "robo-signing" assembly lines. For notaries and there supervisors, the settlement terms focus on the need to comply with state notary laws and obtain adequate training to carry out there duties. In October 2010, a coalition of state attorneys general and federal agencies launched an investigation of the financial industry following revelations the "robo-signing" affidavits were being used in foreclosure proceedings around the country. In february, five major banks reached an agreement with state and federal officials not only to pay $25 billion in relief to homeowners who were improperly foreclosed on but also to change the way they deal with mortgage documents. The terms of the settlement require banks to provide state-specific training for all empolyees who regularly prepare or execute forecloser-related documents. The banks also are required to keep records of all forclosure-related notarizations performed on there behalf. Banks who violate the reform terms can face stiff penalties (up to $5 million for repeat offenders) In the end this means we must not ignore notarial laws. Signers must personally appear before the notary with proper identification and all notarizations must adhere to state laws. Lisa Scanlon, CSA www.scanlonsigningservices.com 941-447-7130

Feds push for E-Records

One of the biggest challenges to the widespread use of electronic notarizations is the slow pace of government agencies adopting digital recordkeeping technologies.But that may soon change as the federal goverment speeds up its plan to use e-records to replace the mountains of papers. The Obama Administration recently issued a memo directing federal agencies to start using electronic technologies to replace paper options. They must submit a plan outlining there efforts to adopt digital recordkeeping technologies. As more agencies embrace electronic recording and documents, the closer we are to electronic notarizations.

More counties utilizing electronic recording.

The number of counties capable of recording documents electronically is growing across the Unitied States. In the past five years these numbers have tripled. Electronically recording documents helps speed up the recording process and is more accurate and secure. This also brings us closer to the growth and adoption of electronic notarization. The benefits of E-Recording include an improvement in data quality, a reduction in turn around time for processing documents, and a significant savings when compared to the manual process. It is beneficial to companies that process a high volume of documentation, such as title companies, banks, law firms and helps pave the way for eNotarization.

VA loan fees

Some last minute confusion regarding legislative changes to VA loan fees has some lenders and prospective homeowners scrambling for clarity with home closings on the line. But the Department of Veterans Affairs sought to calm fears by pledging to cover additional costs while waiting for President Obama to act on a bill that would keep VA funding fees in place thru mid-November.

The fees are mandatory charges applied to every VA purchase and re-finance loan. They help keep the program running and help ensure service members can continue to purchase a home with no money down or private mortgage insurance. The bill now is awaiting the presidents signature and would stave off the rate drop until Nov. 17.

Government officials expect the VA funding fee issue to be resolved within days. I will keep you updated on this issue.

Sincerely,

Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.comk

Florida's New Power of Attorney Act

Last week Florida enacted a new "Power of Attorney Act" in order to protect its elderly population from exploitation. This new act states a power of attorney must be signed by the principal and two subscribing witnesses and be acknowledged by the principal before a notary public.

Floridians are being warned that if they don't comply with the new laws there power of attorney will be invalid. Power of attorney's that were entered prior to 10-1-11 will still be valid if they followed the current laws that were in place at that time. Individuals should update there current power of attorney in order to be up to date with the new regulations to avoid any potential problems in the future.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com

NFIP may get temporary extension

The National flood Insurance Program (NFIP) is expiring on September 30,2011 unless congress approves a temporary extension. If approved it would extend program until November 18,2011.

The NFIP provides low cost flood insurance to home owners whose properties are located in an area with special flood hazards. Also the NFIP provides disaster relief funds to states effected by hurricane Irene.

If this program expires new home loan applicants requiring flood insurance would be held up pending extension of the program. Other bills floating around congress seek to extend the program for five more years. The NFIP provides flood insurance to 5.6 million homeowners.

Sincerely,
Lisa Scanlon, CSA
941-447-7130
www.scanlonsigningservices.com