Bulletin 2006-4 - Michigan Bankers Title of the Upper Peninsula

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Bulletin 2006-4 - Michigan Bankers Title of the Upper Peninsula Powered By Docstoc
					                                                          MBA Service Corporation
                                                      Title Insurance Division Bulletin
October 27, 2006                                                    Page 1 of 2                                 Number 2006-4

                                                 Fee Change
MBA Service Corporation
                                                 After 10 years of charging the same fee for assisting the customer
              Managed                            in the drafting of their deeds, the Agency’s Board Members
         Title Companies                         approved a fee increase from $25 to $35 to cover the costs
                                                 involved. This increase will take effect November 1, 2006.
 Michigan Bankers Title of East Michigan,
                                                 Agency News
       Lisa Haun - Agency Manager
           507 S. Grand Avenue                   We are happy to announce that MBT Title Services, L.L.C. and
            Lansing, MI 48933                    Michigan Bankers Title of East Michigan, L.L.C. have approved a
         TEL.       517-374-1965
         FAX        517-374-1985                 merger of the two Agencies effective January 1, 2007. The name of
    E-MAIL: lhaun@mibankerstitle.com             the entity will be MBT Title Services, L.L.C. There are no plans for
                                                 changes in staffing. However, each Agency will benefit from
                                                 additional enhancements due to each Agency having successful
        MBT Title Services, L.L.C.
                                                 staff from different areas of the industry. We are very excited
    Fritz Kleibusch - Agency Manager             about the potential success that this combined Agency may have.
           507 S. Grand Avenue
            Lansing, MI 48933
                    517-374-1983                 Junior Loan Policies
  E-MAIL: fkleibusch@mibankerstitle.com          The Junior Loan Policy is a product that insures residential equity
                                                 loans. In some of the counties, the Agencies have the ability to
                                                 search an on-line database and have been providing this policy
 Michigan Bankers Title of Mid Michigan,
                L.L.C.                           based on this search product. However, the majority of the
                                                 counties do not have on-line access. Therefore, the Agency was
      Lisa Haun - Agency Manager
          507 S. Grand Avenue
                                                 contracting with a vendor that provided an inexpensive product in
           Lansing, MI 48933                     order to service the customers and still make a profit. However,
        TEL.       517-374-1969                  the Agencies have been unhappy with the service received from this
        FAX        517-374-1987
    E-MAIL: lhaun@mibankerstitle.com             vendor both in the quality and the turn-around time. After many
            www.mbt-mid.com                      attempts to correct these issues with this vendor, a decision was
                                                 made to change the service provider to the Agencies’ independent
   Michigan Bankers Title of the Upper           searcher network that the Agencies use for all other products.
           Peninsula, L.L.C.                     Therefore, those of you who handle the equity loans should see a
      Rod Shaw - Agency Manager                  great improvement in this product.
      1901 W. Ridge Street, Suite 6
         Marquette, MI 49855
                  906-228-2682                   First American Title Ins. Co, et al v
                                                 Wayne County Register of Deeds
   E-MAIL: rshaw@mibankerstitle.com
         www. mbt-upmich.com

 Michigan Bankers Title of West Michigan,        Although many of you do not do business in Wayne County, the
                                                 results of the case brought on by 10 title companies against this
     Phyllis Cornell - Agency Manager            county will set precedence for the rest of the state and this result is
      900 East Paris, S.E., Suite 302
      Grand Rapids, MI 49546-3676
                                                 a victory for all. Please see the memo that your Agency received
         TEL.        616-975-7756                from the Michigan Land Title Association (MLTA), in part regarding
                                                 this victory!
   E-MAIL: pcornell@mibankerstitle.com
                                                 What oxygen is to the lungs, such is hope to the meaning of life.
                                                                                          Emil Brunner (1889-1966) Theologian
                                                 To:      MLTA Members
                                                 From: MLTA President Robert Meredith
MBA Service Corporation                          Subject: MLTA Legal Success
                                                 We received from MLTA General Counsel Patricia Irving Cwiek of the successful actions that
         Title Companies                         MLTA have made in its quest to resolve the Register of Deeds concerns. Please note Pat’s
                                                 report below and subsequent success of the Pennsylvania title Association on a recorder to
 Michigan Bankers Title of East Michigan,        eliminate back logs.
                                                 For more information on MLTA legal success, please contact MLTA General Counsel Patricia
       Lisa Haun - Agency Manager                Cwiek Phone (313) 882-8599; Cell Phone: (313) 802-7462; Fax: (313) 882-5952 or E-mail:
           507 S. Grand Avenue
            Lansing, MI 48933                    pcwiekmlta@aol.com.
         TEL.       517-374-1965
         FAX        517-374-1985                 First American Title Ins. Co, et al v Wayne County Register of Deeds – The Eastern
    E-MAIL: lhaun@mibankerstitle.com             Federal District Court of Michigan made a ruling on October 19, 2006 which cleared the way
                                                 for 10 title insurance companies. The Judges order provided to the title insurance companies
                                                 to receive relief against the Wayne County, Michigan Register of Deeds for failing to record
        MBT Title Services, L.L.C.               documents in a timely fashion as required by state law The complaint filed by the several title
    Fritz Kleibusch - Agency Manager
                                                 insurance underwriters last May alleges that the title companies paid millions of dollars in
           507 S. Grand Avenue                   "gap" and fraud claims directly attributable to the register of deeds' failure to certify the date
            Lansing, MI 48933                    and time when documents were received or maintain an entry book as required by state law.
         TEL.       517-374-1973
         FAX        517-374-1983
  E-MAIL: fkleibusch@mibankerstitle.com
                                                 The Motion to Dismiss brought by the Wayne County Register of Deeds at the hearing was
         www.mbttitleservices.com                denied by Judge Avern Cohn stating that the grounds asserted for dismissal were "frivolous".
                                                 The register sought to have the lawsuit dismissed on the grounds that the title companies
                                                 lacked "standing" because title insurance policies did not provide coverage for losses
 Michigan Bankers Title of Mid Michigan,
                L.L.C.                           attributable to unrecorded transactions. The register of deeds also claimed that they were
                                                 immune from suit in federal court under the Eleventh Amendment of the United States
      Lisa Haun - Agency Manager                 Constitution.
          507 S. Grand Avenue
           Lansing, MI 48933
        TEL.       517-374-1969                  Although a written opinion will not be issued until this week, the court noted that the
        FAX        517-374-1987                  complaint "raised serious statutory and constitutional claims" against the Wayne County
    E-MAIL: lhaun@mibankerstitle.com             Register of Deeds and that the case would be allowed to proceed to a trial on both the damage
            www.mbt-mid.com                      claims as well as the request for injunctive relief made by the title companies.
                                                 The title companies based their claim for damages claims on constitutional grounds, alleging
   Michigan Bankers Title of the Upper           that they were denied Due Process of law, as well as statutory grounds.
           Peninsula, L.L.C.
                                                 This is a tremendous first step by the title industry in Michigan to resolve the ―gap‖ issue by
      Rod Shaw - Agency Manager
      1901 W. Ridge Street, Suite 6              register of deeds.
         Marquette, MI 49855
        TEL.      906-228-2009                   Judge orders Pa. recorder to eliminate backlog - After one year of winding through the
        FAX       906-228-2682                   court system, Ellie Antoine, the Berks County, Pa., recorder of deeds, has been ordered by a
   E-MAIL: rshaw@mibankerstitle.com
         www. mbt-upmich.com                     Bucks County judge to hire the necessary personnel and eliminate her recording backlog and
                                                 indexing backlog by Dec. 6.
 Michigan Bankers Title of West Michigan,        The mandamus order issued by Bucks County Senior Judge Edward G. Biester Jr., was the
                                                 result of a lawsuit filed by the Pennsylvania Land Title Association (PLTA) on Nov. 29, 2005,
     Phyllis Cornell - Agency Manager            for failing to follow the state guidelines for recording documents in a timely manner — to the
      900 East Paris, S.E., Suite 302            detriment of the title and real estate industry.
      Grand Rapids, MI 49546-3676
         TEL.        616-975-7756
         TEL:        888-879-4256                The PLTA accused Antoine last year of failing to immediately record and index deeds,
         FAX         616-975-7758                mortgages and other documents. The PLTA also stated the county’s recording documents
   E-MAIL: pcornell@mibankerstitle.com           were out of order, and alleged Antoine imposed arbitrary and burdensome recording
            www.mbt-west.com                     requirements and imposed illegal fees for the service.

                                                 Upon payment of the recording fee, the recorder should record the transaction, the judge
                                                 stated. A rejected document which is returned after correction shall be recorded in the same
                                                 order as all other documents for recording. The judge also ruled against limiting the number of
                                                 documents presented by any individual or company for recording at any time.


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