Posted by firegirl on 3/20/08 8:52pm
Msg #240105
For MD TP's - Interesting Reading....
From MD Land Title Assn.-- There is actually a disclosure being produced by a very large and reputable lender trying to skate around the TPL requirement in Maryland--
To MLTA Membership:
It was recently brought to the attention of the Board of Directors of the MLTA that there may be unlicensed individuals conducting closings in Maryland, where title insurance is issued.
While we are not a policing agency, the MLTA has always maintained that we are a trade organization. As such, we are often asked to address issues that arise in the title and title insurance industries, especially those that directly impact the ability of our members to conduct business within the State of Maryland. Accordingly, we have submitted to the Maryland Insurance Administration and to the Division of Financial Regulation of the Department of Labor, Licensing and Regulation a request that they review the attached "Maryland Settlement Provider Disclosure Notice".
While we are not accusing or passing judgment on the particular practice of this or any mortgage lender, the inference is that this Notice could be taken as an attempt to "work-around" the requirement that a licensed title agent conduct closings where title insurance is issued.
Specifically, we are concerned about Paragraph 2, which reads, in part:
... This witnessing will be scheduled with a real estate notary public or real estate signing agent that may or may not be a licensed title insurance producer in the state of Maryland. ...
... By execution of this disclosure form, you, the Borrower/Applicant, are acknowledging that you are fully aware that the witnessing of the loan documents is being performed by the real estate notary public or real estate signing agent that may not be a licensed title insurance producer for the state of Maryland and that any issues or questions that arise will be addressed by the representative for the Settlement Provider. ...
Should you have any questions, or have other issues that you would like us to review/address, please do not hesitate to contact me.
Thank you.
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Reply by WDMD on 3/21/08 5:51am
Msg #240129
Re: next step...Maryland is an 'attorney only' state,, cont.
Just read the complete e-mail from MLTA. I should have stated that form is from a lender and not an out of state title company. Although I believe I have seen a similar form from an out of state title company included in their title docs.
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Reply by Loretta on 3/21/08 11:15am
Msg #240159
Re: next step...Maryland is an 'attorney only' state,, cont.
After working with attorneys in Maryland for the last 12 years, the majority would like nothing more than to see Maryland an attorney only state. It may come sooner than anyone thinks.
This goes way past the MIA or MLTA.
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Reply by WDMD on 3/21/08 4:08pm
Msg #240195
Re: next step...Maryland is an 'attorney only' state,, cont.
"After working with attorneys in Maryland for the last 12 years, the majority would like nothing more than to see Maryland an attorney only state. It may come sooner than anyone thinks.
This goes way past the MIA or MLTA."
No doubt about it. But I doubt MLTA will help them achieve it.
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