11 Mar

Q & A | Revision of the “Prepayment Penalty”

Q: The FHA has always required borrowers to pay interest through month end, irrespective of the actual date the payoff was received by the lender, when a borrower paid a loan off prior to maturity.  Did the CFPB revision of the definition of “prepayment penalty” under the Ability to Repay and Qualified Mortgage rules mean

11 Feb

Q & A | Reverse Mortgage Forms

Q: Since Reverse Mortgages are not covered by the new TILA-RESPA Rule, does a lender have the option to use the new Integrated Disclosure Forms (Loan Estimate and Closing Disclosure) on these transactions? A: The CFPB has answered this question, stating that the lender would not be prohibited from using the new disclosure forms on

07 Jan

Q & A | Probating Wills

Q: You may have heard the following phrase from an attorney, “You cannot probate a will if more than four years have elapsed since the decedent’s death.”  Is this fact or fiction? A: Fiction.  The statement that a will cannot be probated if more than four years have elapsed after the decedent’s death is actually

10 Dec

Q & A | Medicaid Estate Recovery Program Claim

Q: Is there something that an Estate for a deceased seller can obtain to verify that there exists no Texas Medicaid Estate Recovery Program (MERP) Claim? A: Yes, the representative or heirs/beneficiaries of a deceased property owner can complete an Authorization and MERP Certification form and submit it by mail or fax to HMS- The

08 Oct

Q & A | Inheritance for Collateral Kindred

Q:  When there is an intestate death, and the decedent did not have a surviving spouse or children or parents, leaving siblings as the heirs at law,  do half brothers and/or half sisters inherit the same percentage interest as a full brother or sister? A: No, the half brothers/sisters only inherit half as much as a

10 Sep

Q & A | Can I use a Mexican Matricula Consular (I.D. Card) as a form of identification for a notary acknowledgment?

Q: Can I use a Mexican Matricula  Consular (I.D. Card) as a form of identification for a notary acknowledgment? A: No. The Texas Civil Practices and Remedies Code sets forth the statutory rules for taking acknowledgments and states:   “(a)  An officer may not take the acknowledgment of a written instrument unless the officer knows or

13 Aug

Q & A | Issuing a T-1R Owner’s Title Policy

Q: Do I always issue a T-1R Owner’s Title Policy if the property is “residential” real property? A: No. You should issue the T-1R only when the property is “residential real property and the insured is a natural person.” When the purchaser of residential real property is a business entity (e.g. Big Investor, LLC) you

16 Jul

Q & A | Sale, Conveyance, or Encumbrance of Homestead

Q: Why does the title company require joinder of both spouses on a conveyance or mortgage of a homestead property when it is the separate property of just one spouse, because it was purchased prior to marriage or there is a prenup agreement? A: Section 5.001 of the Texas Family Code, captioned SALE, CONVEYANCE, OR

25 Jun

Q & A | R-5 “Simultaneous Issue” Rule

Q: When a purchaser who is executing a purchase money note and deed of trust for the purchase of real property is required to put up additional real property as collateral for the loan, can I issue the Owner’s Title Policy and the Lender’s Title Policy under the R-5 “Simultaneous Issue” rule? A: No. In