Chapter 2-MCQ-v2

<p>To account for changes in payment amounts or fees. (B)</p> Signup and view all the answers

<p>They contribute to significant claims. (C)</p> Signup and view all the answers

<p>To identify general and specific title matters that need to be cleared before closing (C)</p> Signup and view all the answers

<p>The requirement is moved to Schedule B as an exception (A)</p> Signup and view all the answers

<p>Following underwriting guidelines (D)</p> Signup and view all the answers

<p>Obtain written consent from the parties regarding the exception (D)</p> Signup and view all the answers

<p>To avoid unauthorized access to the account after payoff (B)</p> Signup and view all the answers

<p>A form to lock access to the account (B)</p> Signup and view all the answers

<p>Require receipt prior to closing and hold it in escrow (C)</p> Signup and view all the answers

<p>To avoid potential legal issues related to the mortgage (D)</p> Signup and view all the answers

<p>If it has been sold to a different lender (D)</p> Signup and view all the answers

The Schedule B1 requirements outline the steps and conditions that must be met before a title insurance policy can be issued.

Items on the Schedule B1 that are fulfilled are removed and not included in the final title policy.

Requirements that cannot be met but the parties agree to close are moved to Schedule B and become exceptions in the policy.

A written agreement from the parties confirming that a specific item will be an exception in the title policy.

All involved parties should review and agree to any changes made to the original contract or closing instructions.

A borrower may continue to draw on the credit even after the account is paid down to zero if it's not properly closed.

The lender should be notified of your intent to pay off and close the HELOC, and they may require forms to be signed by the borrower to block access and satisfy the mortgage.

It's crucial to ensure that the borrower's access to the HELOC account is blocked after closing. Review the payoff instructions carefully and fulfill their conditions.

Obtain a borrower's affidavit stating that they haven't made any additional withdrawals and gather any necessary documents from the lender to close the account.

A post-closing procedure is vital to verify that satisfaction has been recorded and the account is truly closed. If it hasn't, it might still be open.

A written statement from a lender guaranteeing to accept a specific dollar amount for a loan, releasing the mortgage lien upon payment by a specified date. It should be addressed to the title agent and include the loan number, unpaid balance, and transmittal instructions.

A mortgage payoff statement must be updated right before closing to reflect any changes in the loan balance due to late fees, penalties, or property taxes.

A type of loan that allows homeowners to borrow money against the equity in their homes. It can be a source of claims due to potential misunderstandings regarding the loan's terms.

The process of reviewing a title commitment and marking the status of each requirement as they're completed, helping track progress towards closing.

To avoid potential title claims, it's vital to verify the accuracy of the loan number associated with a property, as borrowers may have multiple loans with the same lender.