Posted by Dennis_IN on 3/4/08 9:50pm
Msg #238102

Question: IN State Specific Document

How would you handle a situation where the title company or Lender fails to include a state specific document in the loan package? Indiana requires that the borrower/ Buyer receive a copy (printed on Yellow or Gold paper) of the Indiana Property Tax Benefits Form. It outlines all the property tax breaks allowed. The two main deductions are the Homestead Credit and the Mortgage Credit as well as others such as being Blind, Disabled, WW1 Veteran or spouse (not to many can claim that one), among others that meet the eligibility requirements. Can I provide this form? Would that be UPL? It is a State Form that is available on their web site. What do other Indiana Signing Agents handle this. You wouldn't believe how many borrowers say they were never told about the tax breaks. What would you do?

Reply by PAW on 3/4/08 11:32pm
Msg #238105

Florida also has state specific and required documents for homeowners and borrowers. However, is it not the signing agents responsibility to ensure that the homeowners receives the mandated documents. That's either the title company's or lender's responsibility.

Providing the document may be considered UPL, as it is not within your province to determine what documents are or are not included in a package. (The lender may provide the notification and disclosure separately.)

Whenever I "think" there are missing documents in the package, I make a note of it and let the title company and/or lender know my thoughts. It is up to them to determine what's needed and to ensure delivery of the documents.

Reply by Dennis_IN on 3/4/08 11:49pm
Msg #238106

PAW

Would it be UPL if you mentioned the exemption to the borrower? If no one tells them they have to reapply for the mortgage exemption their taxes will go up. There are a couple of title companies/ Lenders that do include the form in their pkg.

Reply by Lee/AR on 3/5/08 2:46am
Msg #238112

UPL... I don't think so.

I'm sure there must be some state site that has this info. Copying it from that site & providing it isn't UPL. It's just common knowledge stuff (which maybe not everyone actually knows) that's shared among neighbors over the back yard fence. As we are well aware, out of state TCs don't know every nuance of what's going on in your state. I would, however, not lift this TCs information & include it with docs from another TC. Heck, I'd probably say 'compliments of me' and footnote my source(s).

Reply by Lee/AR on 3/5/08 7:49am
Msg #238125

Another thought..tell the TC about it. n/m

Reply by Dennis_IN on 3/4/08 11:49pm
Msg #238107

PAW

Would it be UPL if you mentioned the exemption to the borrower? If no one tells them they have to reapply for the mortgage exemption their taxes will go up. There are a couple of title companies/ Lenders that do include the form in their pkg.

Reply by Glenn Strickler on 3/5/08 2:59am
Msg #238115

Re: PAW

In the county where I live, when you purchase a home, the county sends out the form to apply for the exemption. Damn nice of them ......

Reply by lindab on 3/5/08 7:33am
Msg #238123

I generally mention that they need to file their mortgage exemption as a courteousy to the borrowers. A majority of them seem to be unaware that they must refile.

Reply by MikeC/NY on 3/5/08 9:00am
Msg #238135

Not UPL

You're talking about general information that is available to everyone. It may not be your responsibility to provide the information, but you can certainly tell them where to get it or give them a copy of it if you have one available at the time.

UPL happens when a non-lawyer tries to apply the law to a specific set of circumstances; providing general information, like you would be doing here, isn't UPL.

Reply by Sherri_IN on 3/5/08 9:28am
Msg #238136

As a Closer in Indiana if the title company does not provide it you are required to supply the information to the customer. Here is the Indiana Code. Take note of (2) and what they define as a closing Agent.

IC 6-1.1-12-43
Information provided by closing agents to customers in residential financing transactions; penalty; compliance
Sec. 43. (a) For purposes of this section:
(1) "benefit" refers to:
(A) a deduction under section 1, 9, 11, 13, 14, 16, 17.4, 26, 29, 31, 33, or 34 of this chapter; or
(B) the homestead credit under IC 6-1.1-20.9-2;
(2) "closing agent" means a person that closes a transaction;
(3) "customer" means an individual who obtains a loan in a transaction; and
(4) "transaction" means a single family residential:
(A) first lien purchase money mortgage transaction; or
(B) refinancing transaction.
(b) Before closing a transaction after December 31, 2004, a closing agent must provide to the customer the form referred to in subsection (c).
(c) Before June 1, 2004, the department of local government finance shall prescribe the form to be provided by closing agents to customers under subsection (b). The department shall make the form available to closing agents, county assessors, county auditors, and county treasurers in hard copy and electronic form. County assessors, county auditors, and county treasurers shall make the form available to the general public. The form must:
(1) on one (1) side:
(A) list each benefit;
(B) list the eligibility criteria for each benefit; and
(C) indicate that a new application for a deduction under section 1 of this chapter is required when residential real property is refinanced;
(2) on the other side indicate:
(A) each action by; and
(B) each type of documentation from;
the customer required to file for each benefit; and
(3) be printed in one (1) of two (2) or more colors prescribed by the department of local government finance that distinguish the form from other documents typically used in a closing referred to in subsection (b).
(d) A closing agent:
(1) may reproduce the form referred to in subsection (c);
(2) in reproducing the form, must use a print color prescribed by the department of local government finance; and
(3) is not responsible for the content of the form referred to in subsection (c) and shall be held harmless by the department of local government finance from any liability for the content of the form.
(e) A closing agent to which this section applies shall document

its compliance with this section with respect to each transaction in the form of verification of compliance signed by the customer.
(f) A closing agent is subject to a civil penalty of twenty-five dollars ($25) for each instance in which the closing agent fails to comply with this section with respect to a customer. The penalty:
(1) may be enforced by the state agency that has administrative jurisdiction over the closing agent in the same manner that the agency enforces the payment of fees or other penalties payable to the agency; and
(2) shall be paid into the property tax replacement fund.
A closing agent is not liable for any other damages claimed by a customer because of the closing agent's mere failure to provide the appropriate document to the customer.
(g) The state agency that has administrative jurisdiction over a closing agent shall:
(1) examine the closing agent to determine compliance with this section; and
(2) impose and collect penalties under subsection (f).

Reply by Dennis Sullivan on 3/5/08 10:11am
Msg #238139

Thanks for the info. I knew there was a $25 fine for not providing the form, but was unsure that I, as the closing agent (closing the loan) was the responsible party. I do supply the form, on the colored paper, if I get edocs or if it is not included in the overnighted docs. I will make it part of my list of questions when accepting a job from now on. But most of my jobs are edocs so I do provide the form and information to the borrower. They are very appreciative when I tell them that if they do not refile the mtg. exemption their taxes will go up. Thanks for the feedback.

Reply by Susan Fischer on 3/5/08 11:18am
Msg #238145

""closing agent" means a person that closes a transaction;"

We are not "closing agents" here. We do not generate the documents, or sign off that all of the instructions were completed correctly, we do not disburse the funds. We do not "close" the transaction.

We identify borrowers, facilitate their signing of the docs, notarize where applicable, and return packages. The loan is not "closed" until the loan is funded.

I do not believe we are responsible for providing any documents outside the package (with the excepotion of appropriate copies of the RTC, perhaps.) In this case, as others have said above, providing extraneous information readily available to the public is not UPL, and is a great courtesy to the borrowers.

MHO.

Reply by sue_pa on 3/6/08 7:34am
Msg #238254

I also don't think this is UPL HOWEVER, you don't supply any paperwork or info the borrowers, no matter how innocent or how well meaning you are or how available it is to everyone. You are paid to get signed what your clients tells you to get signed. If it's such a common tax break, they will know about it from the newspaper, their neighbors,coworkers, etc. It is not your place to "inform" them of anything outside of their loan documents.

Reply by sue_pa on 3/6/08 7:35am
Msg #238255

forgot

as for the one who says YOU are responsible for supplying the document, I absolutely disagree. We supply NOTHING on our own.