Wednesday, October 29, 2014

Title Topics: Who are Fannie and Freddie?

Who are these well-known names and why are they important? Fannie and Freddie have a huge role in the mortgage industry, so, let’s meet them!

Fannie Mae
The Federal National Mortgage Association is officially known as Fannie Mae and is a United States Government-sponsored corporation insured by the Federal Housing Administration (FHA). Fannie Mae was created prior to Freddie Mac and is a competitor to the similar corporation. Fannie Mae’s role in the mortgage lending process is to buy mortgages from lenders and sell them to investors on the open market. This process is essential in replenishing the supply of lend-able money available for new home purchases.
Freddie Mac
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a government sponsored enterprise of the United States federal government. Freddie Mac was created in 1970 to expand the secondary market for mortgages in the US. Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases.

Now that you are introduced …
Now that you know more about these corporations, you understand that Fannie and Freddie do not issue mortgages but buy them from banks. Then, they guarantee the securities and bundle them for resale on the secondary mortgage market. 

Any Questions or Comments?  Let us know!

Thursday, October 16, 2014

Title Source Dunks and Slams for Making Strides

Raising money for charity can be a tedious deed, but recently a brave bunch of Title Source team leaders in Detroit took it to a whole new level. On Friday, September 5th, leaders rallied team members to support them while sitting in a dunk tank or wrestling in a sumo match. For a one dollar donation to Making Strides, team members received a Sumo sticker that featured their favorite sumo wrestler and a throw for the dunk tanks. The proceeds from the sales were donated to the American Cancer Society’s Making Strides Against Breast Cancer.

According to The American Cancer Society, nearly 300 Making Strides walks take place each year. Making Strides Against Breast Cancer invites participants to register, collect donations and walk in a movement to end breast cancer. Funds that are collected go towards cancer research, providing free services and information to people who are dealing with breast cancer, and making certain women who need mammograms have access to them.

The American Cancer Society  hosted their Making Strides Against Breast Cancer walk in Detroit on Saturday, October 11th, 2014. Title Source team members huddled together prior to the walk to enjoy all of the exciting activities and to take some group pictures. The 5K walk began at the corner of Brush Street in between Comerica Park and Ford Field. The beautiful fall day was the perfect set-up to raise awareness, make a difference, to celebrate the women who have survived breast cancer, honor those who have lost their battles to it, and thank the families that supported them. A huge thank you to Title Source team members who came out to walk in the Making Strides Against Breast cancer event. There was a total of 17,000 participants who came together to raise over 1 million dollars!

For more information about how our donations help create a world with more birthdays, click here.

To visit Title Source’s team page, click here.

Friday, September 19, 2014

Title Topics: Who pays for Title Insurance?

Title insurance is necessary in any mortgage transaction, but who is responsible for paying for it?
First, you should get to know the basics of title insurance. There are two types; a Mortgage Policy and an Owner’s Policy. To understand the difference, click here.

Purchase Transactions

In a purchase transaction, a homeowner needs both a Mortgage Policy of title insurance and an Owner’s Policy of title insurance. With most title procedures, it depends on the state and local customs. In the state of Michigan, for example, the seller will pay for the new homeowner’s title insurance policy. However, in Georgia, the buyer of the home will usually pay for both the mortgage policy and the owner’s policy of title insurance. Who pays for the owner’s policy insurance in a purchase transaction can always be negotiated. And that’s typically done by your realtor, real estate agent, or through the contractual obligation of the purchase agreement. 

Refinance Transactions

For a refinance transaction, the homeowner only needs to acquire a Mortgage Policy. An Owner’s Policy of title insurance insures the homeowner for the entire time that they own the property, therefore, the homeowner does not need a new one while refinancing.  The homeowner usually always pays for the mortgage policy during a refinance transaction.

So, to answer our initial question, our response is that it always works in your favor to have title insurance, no matter who’s paying for it! To learn more about how title insurance protects homeowners from potential losses, click here.
Any questions or comments? Please let us know!

Tuesday, August 26, 2014

Title Topics: How to transfer Real Estate

Transferring title in real estate can be a simple process. It is most commonly accomplished by the execution and recording of a deed. Depending on your situation, you need to decide on the deed that can be used to convey title.

Warranty or Quit Claim Deed?
Although each state has its differences, the deeds most commonly used are warranty and quit claim. A warranty deed is one where the grantor conveys good and clear title to the real property. A quit claim deed conveys whatever interest, if any, the grantor has in the property. For example, as part of an estate plan and in order to avoid probate, parents might use a quit claim deed to add their children to the title of their home. Always seek the advice of an experienced estate planning attorney before adding additional parties to title.

Can Title Insurance be transferred?
A title insurance owner’s policy is only valid as long the insured party owns the property, therefore, the policy cannot be transferred to a subsequent buyer or owner. If the property is sold or transferred, the new owner would need to purchase their own individual owner’s policy.

If you are thinking about transferring the title to your real estate, make sure to speak with a real estate attorney before making any decisions.

Any Questions or Comments? Please let us know!

Friday, August 22, 2014

Walk to End Alzheimer's Detroit

Be an all-star; help advance Alzheimer’s research, care, and support

According to the Alzheimer’s Association, Alzheimer’s is a type of dementia that causes problems with memory, thinking and behavior. There are over five million Americans suffering with Alzheimer’s disease and two-thirds of them are women. This annual event takes place in communities nationwide to spread awareness and to help raise funds to defend the disease.
This year’s Walk to End Alzheimer’s Detroit takes place on August 23rd, 2014. The two mile walk will start in front of Ford Field and bring together many different groups of people such as friends, family, co-workers, teams, etc. They will walk together to help raise money and put an end to Alzheimer’s disease.

Interested? Registration is free! 

Thank you to the team members who are participating  to help Title Source reach its goal of 12,000 community involvement hours this year! 

Monday, August 11, 2014

Superheroes or Super Team Members?

Have no fear, T-Source Force is here! Do you or your team members need a pick-me-up every now and then? Well, that’s what Title Source T-Source Force is for. With active members in Detroit, California, Pennsylvania, and Texas, their job is to focus on fun and show appreciation for our team members and all the hard work they do. The glass-half-full team strives to spread their contagious attitude to everyone, including clients and vendors. So what kinds of things does the T-Source Force do to help create a happy distraction? President of the T-Source Force, Lisa Thomas,  gives us the scoop, “Once a month T-Source Force hosts contests to commemorate non-traditional holidays and help put a smile on team members faces.” Recently, they passed out friendship bracelets for Friendship Day and hosted a Socks and Sandals Day where team members wore wacky socks with funky sandals. So, what’s next for T-Source Force? They will be hosting a corn-hole tournament starting Tuesday, August 12th- Friday, August 15th.

Thanks T-Source Force for all that you do to keep us working hard and playing hard!

Monday, July 21, 2014

Title Topics: Title Insurance and Reverse Mortgages

What is a reverse mortgage?

The easiest way to understand the reverse mortgage is to immediately eliminate the concept that it is different than a traditional mortgage.
There are a few difference yes, but the same concepts remain true.
The homeowner is getting a loan, but they are only getting a loan on the equity available in the home. If there is equity in the home, the borrower will receive cash payouts. The borrower can pay down that loan if they choose, unlike a traditional mortgage where it’s a requirement. The homeowner must be over 62 years of age and must reside on the property as their primary residence to obtain a reverse mortgage.

Do I need title insurance for a reverse mortgage?

The Title Policy process is the same as with any traditional mortgage. The Owner’s Policy is valid during the entire time that the homeowner owns their property. However, the reverse mortgage lender will require a new Title Mortgage Policy during the loan transaction.

Any Questions or Comments?  Let us know!