www.easgv.org Official Newsletter of the NOVEMBER/DECEMBER 2015 ISSUE Escrow Associates of San Gabriel Valley (EASGV) is a regional organization, founded in 1954. EASGV became a charter member of the California Escrow Association (CEA) in 1957. CEA is a statewide organization of professional escrow practitioners. The vision of CEA is to both lead and support the escrow settlement services, and real estate and financial industries, through our commitment to the professional and personal growth of the escrow practitioner. CEA was founded in 1956 and represents thousands of escrow officers and those individuals who support the escrow industry. The organization is dedicated to maintaining the highest standards in escrow through continuing education and legislative advocacy.
Transcript
www.easgv.org
Official Newsletter of the
NO
VE
MB
ER
/DE
CE
MB
ER
2015 I
SS
UE
Escrow Associates of San Gabriel Valley (EASGV) is a
regional organization, founded in 1954. EASGV
became a charter member of the California Escrow
Association (CEA) in 1957. CEA is a statewide
organization of professional escrow practitioners. The
vision of CEA is to both lead and support the escrow
settlement services, and real estate and financial
industries, through our commitment to the
professional and personal growth of the escrow
practitioner. CEA was founded in 1956 and represents
thousands of escrow officers and those individuals
who support the escrow industry. The organization
is dedicated to maintaining the highest standards in
escrow through continuing education and legislative
Escrow Practice - This session opened Saturday’s meetings. The presentation was by CEA’s
own Anita Rubeck. She is owner of Forensics Escrow Service located in Northern California.
Anita has been an expert witness for the escrow industry for many years. One of her more recent
experiences was recounted at this session. It started as a claim and morphed into a $35M dollar
class action suit. The matter took over four years to go through the courts and at a substantial cost
to Fidelity Title.
The take- away on the experience is:
E mails draw a picture
Account for your invoices, including Fed Ex. Be sure that escrow numbers appear on way bills
When itemizing your fees, be specific. This suit included a war on words: Doc Prep vs.
drawing a deed. To us this is interchangeable. However, this was a big part of the class
action matter. Be consistent in your description.
Don’t be perceived as giving something or some service for free.
For your reference, the class action was: Villanova vs. Fidelity Title. And as a further comment that
all of us know: “Document your file as though it is going to court” – don’t add personalized
comments; be business like in any dissertation, and above all, maintain all invoices. The other
factor that was interesting…the buyer was instrumental in bringing the action. He was a realtor and
a “good client”.
TRID - The balance of this session was an open discussion about TRID. Here are some take-away
items:
Guild Mortgage… Closing Instructions… Many escrow companies have “pushed back”. There is a
revision in progress. Paragraph 14 is being revised, but not eliminated. Be cautious- lots of liability
being put on the escrow holder.
United Wholesale Mortgage …. Read, read, and read. There is a lot of ambiguity in relation to the
charges. Mortgage broker may be preparing the documents. Ask for breakout of the charges.
Note: In their closing instructions, item 11d under Sales Contracts states: Our closing instructions
take precedent over contract terms. Seek appropriate counsel, as needed.
Mountain West…. Uses a portal. Read the Terms & Conditions Statement. Proceed with caution
and seek advice from your counsel.
Summit Funding…. Do not complete 11 Page form, and do not do their CD
November/December 2015
9 www.easgv.org
JUDY ARRINGTON CEA Director’s Report - Continued
Prospect Mortgage… Their system has a glitch which is not allowing their interfacing system to function (as of 11/14/15) Win Trust…. System not ready (as of 11/14/15) Real EC/Closing Insight… is experiencing serious system issues. Escrow personnel have been “on hold” for well over one half hour, then have been told to call support and secure a ticket number. Many lenders are reverting to old practice. There is a charge for this portal. The Industry is asking why we are doing this for the lender. Things to remember: As escrow holder, you do not issue the CD (closing disclosure). Escrow’s responsibility is limited to providing/confirming the title and escrow fees. The CD is a lender’s responsibility. The form is their form, let them prepare their form. As escrow holder, use your closing statement to balance. There may be variations/influences on the Closing Disclosure which does not allow it to act as a closing statement. As escrow holder, learn to say… “Escrow needs a few minutes (insert time frame, as needed)”. Be firm, pleasant and matter-of- fact. As an industry, business needs to be conducted professionally and not under the stress of the lender’s crunched time frames. The take away from years of stress: “Escrow is a player in this real estate transaction. Our function is important and vital. Escrow cannot be a friend to all, and cannot please all the entire time. Step away, remember you are a professional. Hold your ground. Learn the new lingo and do not interchange it. For example, remember, the CD does not replace the HUD. They are completely different forms and created for completely different purposes. In closing, if you are in doubt, reach out to your manager, counsel, or owner for guidance. Times are changing. Don’t make TRID…”the reason I drink.” Bill Review - The year 2015 was the end of year one of the two year legislative cycle. It adjourned on September 11th. Nine hundred fifty (950) bills were presented to the governor by the legislative secretary and deputies. The governor signed eight hundred fifty (850).
For 2016, what is ahead?
The vetting bill has a sunset clause (expires) in 2016. We need to consider if the vetting bill needs to be extended, to take a different direction, or to die a natural death.
It is predicted that the focus for the legislature next year will be how to raise revenue and not spend money! Temporary tax increases which were implemented by Prop 30 are due to sunset in 2016 and 2018. Loss of revenue is estimated at $6 to $8 billion dollars which is about 8%-10% of the general funds. “Big money” groups are trying to figure it out.
November/December 2015
10 www.easgv.org
JUDY ARRINGTON CEA Director’s Report - Continued
There will be discussion on increased tobacco tax, tax on services (SB8) which excludes health and education matters, increased tax on alcohol and increase tax on oil. It is appropriate to note that any tax increases take 2/3 vote of legislature, and the Democrats do not currently have that vote. Mike Belote advised us that in the closing session of the legislature in September, AB 1545 was modified. This will be a bill to watch. In its revised status, the bill introduces a Housing Agency which would group licensed escrow companies, title companies, state regulated banks, the current bureau of realtors. There is mixed enthusiasm at the state level. There was discussion to sponsor bills to eliminate the need to enter separate signatures for each notary document in one’s notarial journal. And also to sponsor a bill which would require the individual(s) to be seen by notary for a clerical correction in the initial notarial action. This discussion will be picked up at the January session.
Governance - This committee has been diligent in working on the By-Law, Policy and Procedures and Strategic Plan platforms. Modifications are being made to make all three consistent and conforming. The committee has had several conference calls throughout the year to accomplish this. As this year’s session closes, all three platforms are a work in progress. A motion to change the requirements for Executive Board Member was introduced: The proposed change: “Any Director of this Association, duly elected, in good standing, holding a Certified Senior Escrow Officer or Certified Escrow Officer Professional Designation, or having a minimum of ten (10) years’ experience as an escrow officer within the fifteen (15) years immediately preceding the election; and after meeting such requirements set out in this section, shall be qualified to serve as follows. This proposed change to the By-Laws will be duly published in 2016. The matter will come to vote after publication. In addition, a sub-committee presented a letter for use in 2016. The letter reaches out to HOA companies and HOA Management Companies in the spirit of collaboration and asks for their assistance collecting required documentation. Respectfully submitted, Judy Bixby-Arrington Senior CEA Director, 2015
November/December 2015
11 www.easgv.org
VANESSA JAMES
CEA Director’s Report
November, 2015
Costa Mesa, CA
Membership:
Each year membership in CEA is slowly but surely growing. Last year we had a 2% increase in membership. As of October of this year we had a total of 1121 members, which is over a 5% increase from last year. Although CEA regions did not meet our goal of 10% total increase, we are happy to report that we have still maintained and gained members overall. Plus, we already have 24 new members who took advantage of the promotion that was offered with conference and signed up for 2016 membership early. This special was voted to be offered again next year and the committee will be looking into new ways to add value to membership as well, including providing more exposure as educated escrow professionals in the real estate industry.
Respectfully Submitted,
Vanessa James, 2015 CEA Director
November/December 2015
12 www.easgv.org
JULIANA TU
CEA Director’s Report
November 13-14, 2015
Costa Mesa, CA
Professional Designation Committee What has the committee accomplished this year? It may not seem as much when listed, but what was done was crucial to the PD program:
1. The mentorship program for PD candidates was started, which we hope will help the passing of the test.
2. The CEO, CSEO, CBSS and CMHS tests were updated to the new contract and finalized. That was a big job and we are happy that it was done.
3. Work has started on getting sample tests together. 4. Work is continuing in the upgrading of the PD Workbook
What we are looking forward to in 2016:
1. Updating the CET test 2. Finishing the PD Workbook 3. Finishing sample CEO and CSEO tests to be put on the website 4. Review the past test results for Multiple Choice and True False questions that are consistently
missed to see if there is a problem with the questions themselves. 5. PD Proctor mentorship – review proctoring guidelines with the PD chairs who will be
administering. Are they doing it correctly? 6. Looking into putting our PD tests on line. We are also hoping that some of Title Companies
might help with funding for this project. The following test dates and locations were tentatively scheduled, and will be based on participation:
March 19 – San Diego April 23 – San Gabriel July 15 – NorCal August 27 – Los Angeles October – Conference in Orange County
It is a possibility that the test at Conference will be held on Thursday before Conference instead of on Sunday after Conference. We hope this will lessen the stress time for the candidates.
The Regionals who will be giving the tests are tasked with getting PD study sessions scheduled in advance of the test and make sure that the date and location for the study sessions are posted on the calendar as soon as possible.
November/December 2015
13 www.easgv.org
JULIANA TU
CEA Director’s Report—Continued
An e-blast will be sent to remind everyone that the continuing 4 year cycle is ending this year and to turn in their 502 forms. National Affairs committee Property Records Industry Association (PRIA) – This national association is trying to standardize the recording fees throughout the nation, particularly for TRID purposes. However, this will be a very difficult job, even in some states that have many counties with varying fees. American Escrow Association - The regions should get their AEA delegates nominated by February 1. The credentialing form must be signed by the President. The delegates and alternates must be members of the regional association before Feb. 1. If no one can attend, it would be beneficial to ask another member who will be going to represent so that the regional vote is not lost. However, this person must be a full member of that regional by Feb. 1. The next AEA Conference will be in Tempe, AZ on May 19 – 21st. Art Davis will be AEA’s legislative advocate until the end of the year. He needs to submit a new contract for 2016. Other Business The Charles P Conner Educational Award is being re-vamped at this time. Membership – As always we are seeking to attract new members! To this effect, we are going to schedule the CEA Board Directors meetings in 2016 at different locations (not just Costa Mesa) and have a Friday Socialization and Learning Cocktail Party – an opportunity to get together to draw in non members. The first one will be held on January 8th in Pasadena. The topic will be “TRID – The Reason I Drink” and will be presented by Nancy Silberberg and Juliana Tu and moderated by Diane Boudreau-Tschetter. A flier will be crafted as soon as a location is set, to be passed out to all members and non-members. We will also ask our affiliated industry friends to help us pass the flyer out as they visit escrow companies in their areas. If this first event is successful, the next one in April will be held in the Sacramento area, August will be held in the San Diego area (tentative) and November in the Inland Empire area (tentative). To all our members, I appreciate the opportunity given to me to represent you at the State level as your CEA Director and Professional Designation Portfolio chair. I look forward to continuing my representation of this wonderful region in 2016 as Secretary/Treasurer. Please, feel free to contact me any time you have a question or a concern!
Respectfully submitted,
Juliana Tu, CSEO, CEO, CBSS, CEI, SASIP
November/December 2015
14 www.easgv.org
MEMBERSHIP REPORT
November/December 2015
15 www.easgv.org
Our Social Media Committee has been busy gearing up for 2016. If you would like to be part of this ever-changing committee, please contact us via email at [email protected]. We encourage all members of EASGV to join us on our Facebook Group. This is a good place to interact with other
members by sharing ideas, participating in discussions, and even posting some industry-related news and photos.
If you are not already a member of our group, you will find us on Facebook by searching for Escrow Associates of
San Gabriel Valley. We created this group to allow for posts that only relate to education, association, and
industry information. All posts will need to be pre-approved by a page administrator.
We also encourage you to follow EASGV on Twitter. You will find us @EASGV. We would appreciate a reply,
retweet, or mention. You may also want to consider using the hashtag symbol # before a relevant keyword or
phrase (no spaces) in your tweet to categorize your tweets and help them show more easily in Twitter Search.
Clicking on a hashtagged word in any message shows you all other tweets marked with that keyword.
Have you seen the Photogallery on our website? On EASGV’s website at http://www.easgv.org/ , under Photogallery, you will find a link to “EASGV on Picasa Web Albums”. This link will lead you to all the wonderful photos that Juliana Tu has been collecting and posting since November 2009. You can save copies, share with your friends and family, and even post your favorites on Facebook and Twitter! We are also designing a new page to add a Photogallery of historical photos. We are asking you to share any photos you may have collected of any EASGV event you may have attended over the years. Please send them to [email protected] for consideration. And, if you happen to know, please help us out by identifying anyone in the photo. We are not only looking for digital photos, so if you have any printed photos, please contact us at the same email address and we would be happy to make arrangements for pick up or delivery. Thank you in advance for helping us to improve our website for all members of EASGV! And please don’t forget to let us know when you have a change in email address. We don’t want you to miss our email announcements on upcoming events and educational opportunities. Send your update to [email protected].
To Our Treasured and Esteemed Members and Friends of EASGV - As we wrap up 2015 and look forward to what can be accomplished in 2016, we are so very Grateful and for those of YOU who stepped up and partnered with us for those who are less fortunate or in great need. THANK YOU. Back in January we had our Fundraising Committee Lunch Planning Meeting dedicating ourselves to growing our ability to give to those less fortunate than us. NOW the opportunity to serve on our Fundraising Committee brings a new chapter – Our 2016 Fundraising Planning Luncheon will be held on Tuesday, December 15th from 12 – 1:30 in the conference room at Century 21 Adams and Barnes in Monrovia. Those who choose to be a part of our planning may join us for lunch and help us navigate the difference we can make in 2016! To join us, please call me at: 213 479-8800 to attend, or email me at: [email protected] Special thanks to our Incredible 2015 Committee:
Eric Spitz, MyNHD, Inc. Jacqueline & Bob Cheou, Champion Escrow Debbie Anderson, Umpqua Bank Vanessa James, Viva Escrow, Inc. Greg Kunath, Superior Press Lupe Landeros, Stewart Title Company Becky Proctor, East West Bank Tricia Vagt, Covina Escrow, Inc. Sherry Mosallaei, East West Bank Jana DeTevis, Comerica Bank Rosie Mares RMA Accounting Services, Inc.
How grateful we are for our Very Generous Sponsors for the City of HOPE Raffle, our Wine Tasting Donors, and our Dinner Meeting Raffle Gift Sponsors:
MyNHD, Inc. Superior Press Green Apple Escrow Karen Dier Exchange Resources, Inc. California Republic Bank RELAW, APC Opus Bank Champion Escrow, Inc. Bank of the West Jewel Escrow, Inc. Lotus Escrow BBS Notary Services Farmers Insurance - Sam Ng RMA Accounting Loretta Atwan Rammell & Company, CPA RBJ Software, Inc. Comerica Bank Jeffrey Atwan Viva Escrow! Inc. Adams & Barnes Escrow City National Bank East West Bank Avanti Notary Service Santa Fe Springs Storage Park Mercury Escrow Umpqua Bank Diamond Country Escrow First American Natural Hazard Disclosures NSBN, LLP
Our Installation dinner meeting highlighted the presentation check to both Door of Hope and City of Hope for those moneys raised in 2015…it was an inspirational evening as we celebrated the gift of giving! I believe we reflect the very heart of God as we help those who are in need. Thank you for all you do! May God bless you and our Association, and wishing you a very Happy and Meaningful Holiday Season, and a prosperous and healthy 2016! Phil Atwan - 2015 Fundraising Chair
RECORDER NOTICES: Documentary Transfer Tax on Leases Revenue and Taxation Code section 11911 requires Documentary Transfer Tax (DTT) be paid on Leases (i.e. Lease Agreements/Memorandums/Amendments/ Assignments) of 35 years or more, which includes the option renewal years (per case law Gottschalk vs. County of Merced). For Example: 30 year lease with 10 year option renewals (40 years) would be required to pay DTT
20 year lease with 10 year option renewal (30 years) would not be required to pay DTT
Assembly Bill (AB) 661 Assembly Bill (AB) 661 was passed by the California State Legislature and signed into law to amend Senate Bill (SB) 1342 (2012). AB 661 exempts any real estate instruments subject to Documentary Transfer Tax from the $3 Real Estate Fraud Prosecution Fee and any document recorded concurrently with such document. Effective January 15, 2016, when submitting a document for recording that is concurrent, or is presented for recording within the same business day, with a document that is subject to the imposition of DTT, one of the following statements must appear on the first page of the document to receive an exemption from the payment of the fee.
If the document is subject to a documentary transfer tax "A DTT declaration with the amount of tax due, stating that the transfer is subject to the tax."
If the document is recorded concurrently "Exempt from fee under GC 27388 due to being recorded in connection with a concurrent transfer that is subject to the imposition of Documentary Transfer Tax."
If the document is recorded the same business day "Exempt from the fee under GC 27388 due to being recorded in connection with a transfer that is subject to imposition of Documentary Transfer Tax recorded the same business day with instrument number __________."
Failure to include one of the three statements indicated above will result in the imposition of
the fee which will not be available for refund.
Effective November 9, 2015 the Los Angeles County Registrar-Recorder/County Clerk's Office will reject documents
failing to comply with this legal requirement.
This requirement has been made in accordance with Revenue and Taxation Code 11911 and case law (Thrifty,
