November 26, 2008
Dear Real Estate Professional:
Federal/DC: LandAm. LandAm filed for bankruptcy protection this morning and reported that the Commonwealth and Lawyers operations were acquired yesterday by Fidelity. Notification from Landam . The proposed purchase of LandAmerica (which included Commonwealth Land Title and Lawyers Title) by Fidelity had been halted on Friday, pursuant to Fidelity's unilateral right to terminate that agreement. Washington Post Article . LandAm closed its 1031 exchange operation and has posted a notice on the internet. Click here for LandAm's posting. Agents should pay very close to directives from individual lenders regarding this situation. Note that there are two sets of cases to be considered: i) cases that have settled for which policies have not yet issued and ii) cases in the pipeline that have not closed.
DC: Jackson & Campbell, P.C. makes available a Chart of Pending D.C. Legislation . Of special interest: the DC Opportunity to Purchase (giving DC a first right similar to TOPA), Inclusionary zoning, and the Omnibus Tenant Protection Act. Links to copies of all acts may be found in the Chart. A good analysis of the new DC Accrued Sick and Safe Leave Act can be found HERE .
DC: Unpassed Legislation will expire: A representative from the DC Council reminds us: "Council Period 17 will expire this December. Any permanent legislation that has not gone through 2 readings by the holiday recess would need to be re-introduced in January 2009 and go through the entire legislative process again (with the possible exception of a hearing, if “a hearing on the same or a similar bill was held in a prior Council Period,” Council Rule 501). There are two legislative meetings left this year, and we expect to have just one last Committee meeting/markup – November 21. "
General: RESPA Reform:The final rule on RESPA has been issued. Some provisions are effective immediately, but, for example, the new HUD1 and new GFE become effective January 2010. Key provisions are:
- the elimination of the "closing script"
- disclosure of the title insurance premium split between agent and underwriter
- elimination of description of homeowners title insurance as “optional”
- grant lenders a 30- day right to cure, which means a loan can still close for consumers even if there is a few dollars worth of discrepancy around the tolerances
The ALTA issued a good synopsis of the rule: ALTA synopsis of RESPA Rule. Another resource: HUD Analysis of RESPA Rule.
General: Class Action Lawsuits: There has been a spate of class action lawsuits against title companies by parties who claim that duplicate wire and reconveyancing fees were charged. Another recurrent theme is that a "release tracking fee" was charged that is 3 times what "release tracking companies" regularly charge.
General: FDIC Warning: The FDIC has circulated a warning about a scam directed at title companies alerting the victims in the Subject Line that "Funds Wires into your account are stolen" and urging the victim to open a link for more information. While the email looks like it came from the FDIC, it is spam with a malicious code embedded in an exe. file and should not be opened.
General: Mortgage Rates have lowered: Lenders are reporting that, this morning, rates have generally lowered. One, for example, is offering 30-year at 5.5%, no points for loans under $417,000 and 5.625% no points up to $625,500.
General: FDIC Coverage increases: Most interest checking accounts are classified as Negotiable Order of Withdrawal (NOW) accounts. Such accounts pay an interest rate within the guidelines set by the FDIC through December 31, 2009 and Citibank's Interest Checking Accounts have current and continuing coverage with unlimited insurance under the US Transaction Account Guarantee Program. Other accounts at FDIC insured institutions have protections raised from $100,000.00 to $250,000. For examples (i.e. retirement accounts) see: FDIC posting re: Protection for Retirement Accounts.
Virginia: US Dist Court: Liens against an Individual attached to property owned by that individual as trustee: In a rare occurrence, The Court analyzed a title policy and its coverage, taking a position different that that taken by other state's courts. Murnan v. Stewart Title .
DC: DHCD Has New Search Site for Housing: DC Department of Housing and Community Development announced DCHousingSearch.org which is a free service allowing housing providers to list properties for sale or rent.
DC: Tenant/Housing Voluntary Agreement Working Group: There is an active Tenant and Housing Provider working groupt that meets to discuss Voluntary Agreements under 14 DCMR § 4213. For information, you can contact vivian.portis@dc.gov.
DC: Basic Business License: DCRA seems to be using new nomenclature: "General Business License". This seems to be the Basic Business License ("BBL"). This new "animal" appears in a web-site posting, reminding all that, effective November 1, 2008, ALL businesses that pay business taxes must have a BBL. DCRA BBL Posting. Reminder: housing accommodations need a BBL, even a basement unit in a home. There are a few exemptions from the requirement of having a BBL: 1) having a professional or occupational license and 2) all business activities are covered under another BBL. Telephone number for information: (202) 442 4311 (on two occasions this phone rolled over to an answering machine).
Maryland: New Bankruptcy Court Rules: Effective December 1, there are new Local Rules in effect. Please see the Court's web page at www.mdb.uscourts.gov.
DC: Tax Sale Foreclosure Complaints: Judge Hedge of DC Superior Court recently sent out a memo indicating that the Court was considering mandating the e-filing of these complaints. To prepare for that possibility, contact Tammie.Carter@cfxpress.com.
Maryland: Proposed DLLR regs for recording deeds of trust/mortgages: Jim Cosgrove, Legislative Chair of the MLTA reports that there are issues of concern to the title industry the proposed DLLR regulation that would mandate the inclusion of a lenders' name/license number/affidavit in lieu on deeds of trust/mortgages as a prerequisite for recording. One issue he raises: If a document is submitted for recording without the requisite information, can a Clerk ignore this fact (presuming that it will be taken care of by a "subsequent filing") and record the instrument?? Or since the instrument in not in compliance with RP3-104.1, must the Clerk reject the recording?? The fact that proposed regulation 09.03.11.02 (C)(2) allows for a "subsequent filing" only begs the question of compliance at the time of submission for recording." For input, you might contact jcosgrove@comcast.net (although it appears the time for public comment may have passed).
DC: DC filed Suit Against Bank of America related to OTR/Harriet Walters Debacle: The digest reads: The District of Columbia v. Bank of America NA; Bank of America Corporation; Jayrece Turnbull; Harriette Walters; Walter Jones Jr.; Does, 10/31/2008 08ca7763; Conspiracy and fraud action. Defendants conspired to defraud plaintiff DC by creating false tax refund vouchers that produced fraudulent tax refund checks that were deposited and cashed at defendant Bank of America's banks. Plaintiff seeks $104 million in compensatory damages and punitive damages to be determined at trial.
Upcoming Seminars of Interest to the Real Estate Community:
Wiring Buildings: Next steps for the communication and real estate industries. DC Bar. December 3, 2008 at 12:00 p.m., at 1250 H Street NW, Washington. The Federal Communications Commission has recently taken action regarding the wiring and provision of communication services in multiple dwelling units, multi-tenant environments and home owners associations. This panel will provide an overview of the Commission’s recent decisions, and look at the future regulatory needs and interests of building owners, communication providers, and consumers. www.dcbar.org and go to "For Lawyers", Events to register. Registration is open to people who are not members of the Bar.
Like Kind Exchanges – When to consider an exchange, the process, the red flags, and the benefits (especially relevant given the events of yesterday and today). DC Bar. December 10, 2008 at 12:30 p.m. www.dcbar.org and go to "For Lawyers", Events to register. Registration is open to people who are not members of the Bar.
Troubleshooting Title and Title Insurance Problems. National Business Institute ("NBI") seminar set for December 10, 2008 at 9 a.m., in Fairfax, VA. Panelists include Russell Drazin, Esq. and Jason Pardo, Esq. of Jackson & Campbell, P.C. Click HERE for link to NBI Seminars.
Please feel free to circulate this newsletter to others in the industry, both within and outside your office.
Sincerely,
Roy L. Kaufmann of the Real Property and Asset Management Group
Jackson & Campbell P.C.
email: Roy L. Kaufmann at rkaufmann@jackscamp.com
voice: (202) 457-1600
web: www.JacksCamp.com
The contents of this Update are intended for general informational purposes only and should not be relied upon as legal advice or as a substitute for consultation with a qualified attorney. Moreover, the mailing hereof is not intended to create nor does it constitute an attorney-client relationship.
If you wish to not receive these mailings, click here or reply to this message.
.gif)
.gif){kind=small}