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[+] Comment on "Title Agent Gets Two Years for Stealing Escrow Money to Buy Her Home" - Source of Title/OH (5 replies)
12/28/2011 2:19:22 PM (3260 views)

[+] Commission advances? Now this is scarey - CHARLENE  PERRY/MD (1 reply)
12/28/2011 2:18:30 PM (5110 views)

[-] Texas Cash out - LORRAINE CHRISTOPHER/TX (3 replies)
12/27/2011 5:24:03 PM (3260 views)
Re: Texas Cash out - Robert Franco/OH
12/28/2011 10:08:01 AM (6744 views)
Re: Texas Cash out - LORRAINE CHRISTOPHER/TX
12/28/2011 3:36:38 PM (3996 views)
Re: Texas Cash out - Robert Philo/TX
1/3/2012 4:09:50 PM (4234 views)

Lorraine, if the Texas HEL was closed in a restaurant (or any other place not authorized by the Texas constitution), it is certainly voidable and probably void ab initio.  Texas title companies usually issue home equity endorsements whenever they insure a HEL - a T-42 and a T-42.1.  The Texas regulations (Rule P-44) provide, in part:

 "C. The Company may add subparagraph (f) to paragraph 2 of the Equity Loan Mortgage Endorsement (T-42) if it considers the risk insurable, provided that the following requirements are met:
(1) The promissory note secured by the insured mortgage and the insured mortgage must be executed by the borrower(s)/grantor(s) at the office of a title company and the insured mortgage must be acknowledged by the borrower(s)/grantor(s) at the office of a title company. For purposes of this subparagraph C(1), "the office of a title company" shall mean the leased or owned Texas office location(s) of: (a) a title insurance company; or, (b) a direct operation; or, (c) a title insurance agent; or, (d) an attorney conducting the attorney?s business in the name of a title insurance company or direct operation or title insurance agent where the attorney and the attorney?s bona fide employees who close transactions are licensed as escrow officers as provided in Article 9.42.C, Texas Insurance Code.
(2) Subparagraph (f) of paragraph 2 of the Equity Loan Mortgage Endorsement (T-42) must read as follows:
"(f) The extension of credit secured by the lien of the insured mortgage being closed at a location other than the office of the lender, an attorney at law, or a title company, as set forth in Subsection (a)(6)(N) of Section 50, Article XVI, Texas Constitution."
 

So, check the title insurance policy endorsements to see if you hav ecoverage or not for the problem created when the loan was not closed according to constitutional requirements. 

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[+] Abstrax - Deborah Jackson/GA (6 replies)
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[+] Comment on "Rich Bank, Poor Bank" - Source of Title/OH (2 replies)
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If you wonder why I sound frustrated when you call me...... - CHARLENE  PERRY/MD
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[+] Rush for Gas Rights Ignites Battle for Control of Land - Leigh Attridge/MA (1 reply)
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[+] Dodd-Frank and QRM's - CHARLENE  PERRY/MD (3 replies)
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