|
|
|
|
|
The Title Tip of the Week this week explains what a
closing protection letter is and why a lender should always ask for one
when closing a loan with a title company. Closing protection letters are routinely requested by lenders
when a title agent closes on a transaction which involves a mortgage. A
closing protection letter, sometimes called an insured closing letter, is a
document issued by a title insurance underwriter that sets forth the
underwriter's responsibility for negligence, fraud and errors in closings
performed by the closing agent. It provides the lender with
indemnification against loss or damage arising from a breach of fiduciary
duties owed by the closing agent to the parties to the transaction. Most often the duties of the closing agent are spelled out in
the closing instructions provided by the lender. The closing protection
letter is necessary because the agency/principal relationship between an
underwriter and a policy issuing agent covers only policy issuance and does
not cover the escrow functions provided by a closing agent. If a
problem arose out of the closing through error or fraud, the parties would
normally only be able to look to the closing agent for recovery. In
response to this concern the closing protection letter evolved, giving the
lender and homeowner greater security when closing with an agent. The
letter, when addressed to a lender, is also considered to apply to the
homeowner/borrower and thus covers the homeowner as well as if he had
received the letter. Benchmark Title Company, as one of the Metro East's largest
independently owned title companies, is underwritten by three national
underwriters -- Commonwealth Land Title Insurance Company, Stewart Title
Guaranty Company, and First American Title Insurance Company. With
offices in St. Clair County, Madison County and Monroe County we are able to
serve you and your customer wherever you may be. Our specialties
include title and closing services for residential resale, refinance,
new construction including construction disbursement services, and commercial
resale, refinance and development. With over 250 years combined
experience under our belts, you can rest assured that you are getting the
best possible service when you close at Benchmark Title Company.
|
Upcoming Title Tips Surveys on Commercial
Property Did you say free? Be the first in your
office to try out SureClose.com,
Benchmark Title's new FREE online transaction management system. Why waste
time making status phone calls or standing by the fax waiting for your title
commitment when you can get what you need instantly from your own computer.
Visit SureClose.com for more
information or call April
Tolan, our SureClose Specialist, at 618-239-3750 for your sign-on so you
can start saving yourself time and money today. We'll even give you and your
clients a free CD at closing containing copies of their closing documents. Give me my policy! Did you know that
lenders and home buyers now receive their title policies at the closing
table? Call Michelle
Null, VP Escrow Operations, to learn more about this exciting new program. Ready to refi? Lenders and
homeowners will want to hear about our fantastically low new refinance rates.
Call today for a quote! Why wait? You can place your
next title order now by clicking here. Becky
Rouch, Escrow Officer / Closer in our Shiloh office, has been with
Benchmark Title for two years. Becky started off in banking as a data
entry clerk and worked her way to construction disbursing agent and then loan
closer. She has worked as a processor and closer of residential
loans at a variety of banks before venturing into title insurance
as a commitment typist for a local title insurance agency. Upon joining
Benchmark in April 2005, Becky quickly advanced through the escrow department to
become a Closer in our main office in Shiloh. Becky lives
in Belleville with her husband, Kevin and son Zack, 4. Becky can
be reached at 618-239-3750 or by email at rrouch@benchmarktitle.net. |
||||
|
We send special notices and tips to customers who have given
us their |
|||||
