Posted by Louisiana33 on 1/26/12 4:26pm
Msg #409953

Signing/Title Companies should know state laws

Got a call yesterday from a signing service out of texas. Lender is out of Oklahoma. I told her I need alternate contact numbers for the borrowers in case they did not know they were required to have two witnesses present. She told me "I have never heard of that before. How long have you been doing closings? The lender says he has never heard of that either. Is that something new?" Borrower was NOT aware and we had to arrange an another location where her relatives live since she has no neighbors in the "sticks".

These lenders should make themselves aware of Louisiana Civil Code requirements that certain documents are required to be done in "authentic act". At the very least, the signing companies should not argue with the notary.

Any thoughts?

Reply by Frenchie/TN on 1/26/12 8:09pm
Msg #409972

Napoleonic laws..Lots of people don't realize Louisiana still uses them. Even though Title cos and Signing Services should know.

Reply by BobbiCT on 1/27/12 7:31am
Msg #410013

Out-of-State Title Companies issuing local policies ...

This goes along with why a class action suit was brought by CT title insurance company agents (who are CT attorneys) against the "nationals."

If the lender uses an in-state title company with an in-state agent issuing and signing the policy, 99% chance the lender's title policy is prepared correctly.

If the lender goes for the "national" out-of-state title company that doesn't have any in-state contacts, SNAFU. (Politely said for the youngsters, Situation Normal All Fouled Up.)
Risk v Reward: The borrower pays for the lender's insurance policy, no claims during the lifetime of the loan, lender and national insurer get "rewarded" for sloppy work.

Reply by Louisiana33 on 1/27/12 7:58am
Msg #410016

Re: Out-of-State Title Companies issuing local policies ...

Louisiana attorneys are trying to do the same; block out of state title companies from doing business here.