THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.
Bulletin: SLS00247
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Bulletin: SLS00247
Dear Associates;
You should be aware of potential fraud schemes involving an alleged "Trustee" of the mortgagee or deed of trust attempting to file a release, discharge or reconveyance of a valid mortgage or deed of trust by the "Trustee" on behalf of the mortgagee. These practices have occurred in a number of states, including Florida, Ohio, California, and Texas . Most schemes involve refinances.
A web site tells a homeowner that he or she can remove a mortgage or deed of trust from the title to the home by quitclaiming the home to a trustee of a family trust. The trustee then files for record a "Notice of Intent to Correct Title" that purports to demand or require the lender to produce loan documents and accounting records. The trustee then files for record a "Discharge of Mortgage" pursuant to which the trustee purports, on behalf of the named lender, to certify that the mortgage or deed of trust has been fully paid and the lien is released, discharged or reconveyed. (See Exhibits 1 and 2)
You should not remove an exception to a mortgage or deed of trust based on these filings. You should continue to show the mortgage or deed of trust, and secure a proper pay-off.
If you have any question, please call our underwriting personnel.
EXHIBIT 1
Recording Requested By 2005R012345
John Doe, Grantor Blackacre County Ohio
Jane Doe, Grantor Recorded On
____________________________ 04-01-2005 8:46 AM
And when recorded mail this deed and tax Jane Jones
1111 Buena Vista Dr. Blackacre County Recorder
Toledo, OH 12345 Rec. Fee: 28.00
Pages: 2
----------------------------------------Space above the line is for Recorder's Use ----------------------------------------------------
QUITCLAIM DEED
John Doe and Jane Doe, Husband and Wife, for a valuable consideration, receipt of which we hereby acknowledged; do now hereby remand, release and forever quitclaim to Scott Jones and Judy Johnson, Trustees of the Doe Family Trust, the following real property in the County of Blackacre, State of Ohio;
Lots 2, 3 and 4, as shown by the recorded plat in Volume Z of Maps, Page 33 of Blackacre
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EXHIBIT 2
NOTICE OF INTENT TO CORRECT TITLE
IMPORTANT NOTICE
ANY INTEREST IN THE LAND DESCRIBED HEREIN MAY BE FORFEITED WITHOUT ANY COURT ACTION FOR FAILURE TO PROVIDE FULL AND COMPLETE DISCLOSURE OF ALLEGED CONTRACT, ss a 10 day demand has been made upon HAPPY SAVINGS AND LOAN ASSOCIATION hereinafter SAVINGS AND LOAN, Its Agents and/or assignees, to remedy possible negligence where the Trustees of the DOE FAMILY TRUST, hereinafter Trustees, allege on behalf of the Grantor that all of the material facts of the mortgage contract may not have been present at signing. Trustees have made demand upon SAVINGS AND LOAN, its Agents and/or assignees, to provide full disclosure of said mortgage contract. Trustees have demanded as part of the full disclosure the production of the promissory note with all fronts and backs complete with endorsements and the accounting general ledger of SAVINGS AND LOAN to be provided for audit where such audit shall be performed by a Certified Public Accountant. SAVING AND LOAN'S failure to produce the accounting general ledger for audit within the time prescribed herein, will result in a fault and stipulation among parties for one of the following actions to be taken by the Trustees to correct title:
1. The removal of any and all security interest(s) of SAVINGS AND LOAN from the land within ten (10) days of receipt of notice. SAVINGS AND LOAN consents and agrees by and through its wet-ink signature or assents and agrees by its fault and through the legal doctrines of agency by silence and equitable estoppel to activate a Specific Power of Attorney for Trustees to remedy title as agents.
2. The filing of a UCC financing Statement, where SAVINGS AND LOAN the account holder is named as debtor, the Trustees as Secured Party and mortgage contract and all related interest therein be listed as collateral.
SAVINGS AND LOAN, assents and agrees by and through its fault to the terms and conditions of the Specific Power Attorney, copy held by parties for reference, should SAVINGS AND LOAN fail to respond to the Trustees demand within the time prescribed. SAVINGS AND LOAN, assents and agrees by and through its fault to appoint Trustees as within the time prescribed. SAVINGS AND LOAN, assents and agrees by and through its fault to appoint Trustees as Attorney-in-fact, Agent for SAVINGS AND LOAN to effect any and all corrective action to title.
SAVINGS AND LOAN, assents and agrees by and through its disclosure to make a claim on Trustee's bond, copy held by parties for reference; if the claim of Trustees proves to be without merit. Original bond evidenced to be in the possession of SAVINGS AND LOAN via U.S.P.S. Mail Receipt 123456789.
SAVINGS AND LOAN, assents and agrees by and through its fault to the filing of a UCC Financing Statement, where the account holder is named as debtor, the Trustees as Secured party having a superior claim over any and all indebtedness incurred by the account holder, including that of SAVINGS AND LOAN unless SAVINGS AND LOAN can produce evidence by and through the general accounting ledger all the material facts consistent with the claims of SAVINGS AND LOAN'S mortgage contract.
Situated in the County of Blackacre and State of Ohio : and known as Lots 2, 3 and 4, as shown by the recorded plat in Volume Z of Maps, Page 33 of Blackacre
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EXHIBIT 3
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2005R012345 |
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RECORDING REQUESTED BY: |
BLACKACRE COUNTY OHIO |
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JOSEPH ROE, TRUSTEE |
RECORDED ON |
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C/O 123456 Bad News Blvd. |
1-01-2005 12:01 AM |
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VACANT CITY, CA 99999 |
SUSAN R. JONES |
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BLACKACRE COUNTY RECORDER |
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REC. FEE: 0.00 |
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PAGES: 1 |
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SPACE ABOVE THIS LINE FOR RECORDER'S USE |
Assessor's Parcel Number: 987654321
DISCHARGE OF MORTGAGE
JANE DOE AND JOE DOE, WIFE AND HUSBAND, Borrower(s), with an address of 111 PRETTY DRIVE, DUFFAU, OH 44444, the sole owners and holders of a mortgage dated May 1, 2003, in the amount of $100,000.00, and executed by HAPPY SAVINGS AND LOAN ASSOCIATION, lender, with an address of 123 BROADWAY AVENUE, DUFFAU, OH 44444 which mortgage was recorded by HAPPY SAVINGS AND LOAN ASSOCIATION on May 2, 2003, does hereby:
1. Certify that the above mortgage and the debt secured by such mortgage are fully paid, satisfied and discharged, and that the mortgage is fully and forever released from the property described therein;
2. Release to the person or persons legally entitled thereto all right, title and interest that the undersigned may have acquired in and to the property by reason of such mortgage; and
3. authorize and direct the Register of Deeds of said county to discharge and cancel the mortgage of record recorded as Document Number 2003R012345.
4. The undersigned is executing this document on behalf of HAPPY SAVINGS AND LOAN ASSOCIATION through a Specific Power of Attorney executed by and through the legal doctrines of agency by alliance and equitable estoppel.
IN WITNESS WHEREOF, this discharge of Mortgage is executed under seal on November 30, 2004.
Executed in the Presence of:
HAPPY SAVINGS AND LOAN ASSOCIATION
JOSEPH ROE, Attorney-in-Fact
Signature fixed in accordance with UCC §§ 1-201(39), 3-401(b)(II)
Witness 1 Witness 2
STATE OF OHIO )
) SS ACKNOWLEDGEMENT
COUNTY OF BLACKACRE )
On , 2004, before me a notary Public of County
personally appeared,
personally known to me or proved to me on the basis of satisfactory evidence to be the person(s) whose name is/are subscribed to the within instrument and acknowledged to me that He/She/They executed the same in His/Her/Their authorized capacity, and that by His/Her/Their signature on the instrument the person, or the entity upon behalf of which the person acted, executed the instrument.
WITNESS my hand and notarial seal, this day of , 2004.
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Notary Public
References
- Bulletins Replaced:
- None
- Related Bulletins:
- Underwriting Manual:
- Exceptions Manual:
- None
- Forms:
- None