A Shot at the Title

A Shot at the Title

By James Macklin
Secure Document Research

The Title Companies are scrambling right now to try to verify the ability to have issued title insurance.  After all, they sent the Notes and Deeds (allegedly) to the “lender” with a stamp of approval and clear title…right?

Along with the original mortgage loan file, these critical documents may evidence the beginning of the lack of disclosure that occurred in most of the loans written between 1999 and 2009.

Borrowers may want to contact the original title Company that handled their transaction and request a copy of the wire transfer of funds as received by the Title Company.

This document may evidence the use of a warehouse lender, from whom a wire transfer of funds was received.  If a warehouse lender was utilized, the chances of a securitized loan being in place are very high, if not certain.

1. Was this warehouse lender named at closing?
2. What fees were paid outside closing to this entity and by whom?
3. From where were the funds derived that were wired by this “warehouse lender”?
4. If the funds were derived from yet another source as principal, does not the Borrower have the right, under consumer lending and Truth in Lending, to know the character of their loan and the principal source of capital?

These types of internal audits need to be discovered and chased down by someone with experience and knowledge of the consequences of this type of transaction.