an introduction to equity settlementtempremoved bofa... · an introduction to... equity settlement...
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An Introduction to...Equity Settlement The New York CEMA & Co-op Process
June 2009
Monday, June 1, 2009
About Us...• Established in 1986
• Over 100 Associates
• Approved Vendor for Bank of America
• Preferred Vendor for Many National Banks& Regional Mortgage Bankers
• 49 State Coverage; 33 Direct License States
Monday, June 1, 2009
= Direct License StatesRefinance & Purchase Transactions Available
= Work Share StatesRefinance Transactions Only
= Services Not Available
PLEASE NOTE: NY, NJ and CT are the only states in which we offer Co-op Property Services.
WA $965
OR Not Available
CA $965
NV $965
TX Not Available
AZ$650
AK Not Available
HI$965
IDNot Available
MT$650
WY$650
UT$965 CO
$965
NMNot Available
OK$650
KS$890
NE$650
SD$965
ND$650
MN$650
IA$650
MO$650
AR$965
LA$650
WI$650
MI$650
IL$650
IN$650
OH$650
KY$650
TN$650
MS $650
AL$1,260
GA$650
FL$650
SC$650
NC$650
VA$650
PA$650
WV$1,160
NJ$465
MD$650
DE$650
DC$965
CT$650
RI$650
MA$650
NH$650
VT$650 ME
$650
NY$650
CEM - $950
Bundled price includes all settlement andtitle charges with the exception of titlepremium and recording fees.
Monday, June 1, 2009
Products• Title, Settlement & Closing
• Multi-State Law Firm
• Purchases (in direct states)
• Refinances
• Government & FHA Loans
• CEMA’s
• CO-OPS (NY, NJ & CT)
• Reverse Mortgages
• Home Equities
Monday, June 1, 2009
The Answers to FAQs• Attorney States are those states that require an
attorney, by law to facilitate part or all of a realestate closing transaction.
• The borrower does not need attorneyrepresentation to close a refinanced loan, nordoes the borrower choose the closing agent.
• Equity Settlement Services Inc. or Puleo DelisleLLC fund the loan as the closing agent or attorney.
Monday, June 1, 2009
Title & Closing Facts• How long does it take?
- Title Commitment: 3-5 days (Refinances) 5-6 days (Purchases) Includes Wiring Instructions, CPLs, Payoffs and Taxes
• Where can we close?
- Any Location, Anytime! We commute to your client!No Additional Fee!
Monday, June 1, 2009
CEMA: Consolidation Extension Modification Agreement
The CEMA is utilized to significantly reduce the cost of mortgage tax in conjunction with financing real property located in New York State by leveraging New York Tax Law Section 255. We, at Equity Settlement Services Inc. are experts in this process.
We can streamline the New York Refinance procedure from an ordering and processing standpoint to ensurethat the Bank of America borrower is being directed with the most cost effective savings and that the bank itself, is being represented in the most professional manner.
Monday, June 1, 2009
Basics of a CEMA• Only in New York State
• Eligible on first mortgage tax liability (whichcan be 2% in certain boroughs of NewYork) Mortgage tax fluctuates by county.
• Only taxed on the “new money” or “cashout” is the new loan amount minus theexisting principal loan balance of thecurrent loan.
Monday, June 1, 2009
Two Types of CEMAs &Applicable Consideration
• Internal CEMA (BofA to BofA)Minimal additional processing time.Additional costs associated with preparation andrecording of the CEMA.
• External CEMAAverage Additional processing time is approximately 6-8 weeksdepending on cooperation of existing lender.
Additional costs associated with preparation and recording of CEMA.
Assignment Fees from existing lender vary—some are a fixed fee, while others may be a percentage of the loan amount.
Monday, June 1, 2009
Internal CEMA Letter
Hello,
It was nice speaking with you. In order to proceed as a CEMA loan, please send an e-mail to the following department requesting internal approval to do so:
They will send you a response which you need to forward to me, then please print a out a copy of the Note and Mortgage from FileNet.
Thank you for your trust in us.
Monday, June 1, 2009
How do I Utilize the Equity Settlement CEMA Process?
• CEMA Calc on the Web -www.equitysettlement.com
• Order through LPS (Flow 4135, EM1Screen CEMA Indicator Box)
• NY CEMA Hotline:Phone: 631-656-3650Fax: 631-656-3750Email: [email protected]
Monday, June 1, 2009
Co-op Definitions• Co-op: Co-operative Apartment (not real property).
• Co-op Board: The advisory and supervisory power of the corporation theowns the dwelling.
• Managing Agent: Advocate for the Co-op Board.
• Aztech Recognition Agreement: Board Approval Form.
• Certificate of Good Standing: Ensures all fees at paid to date.
• Authorization to File: Borrowers permission to file UCC.
• UCC: Uniform Commercial Code Form (Lien).
• Collateral Attorney: Attorney representing the existing lender.
• Proprietary Lease: A lease between a cooperative apartment association and thetenant.
• Stock Certificate: An instrument evidence of ownership or share in a co-operative.
Monday, June 1, 2009
Co-op Procedures: Refinance4-6 weeks Co-operative Procedure
• Contact BorrowerEmail Co-op information for to borrower (exhibit 1)
• Aztech Recognition Agreement (exhibit 2a)Loan amount specific, no changes.
Certificate of Good Standing (exhibit 2b)
Authorization to File ($180 check) (exhibit 2c)
Instructional Letter (exhibit 2d)
• Request Collateral & Order TitleUCC to be filed when authorization to file is received from borrower (filing takes 2 weeks)
• ClosingWhen Title is clear, Collateral Attorney is ready and UCC is filed, we can set up a closing date. Closing Requires 5 Business Days Notice, due to Collateral Attorney Preparation
Monday, June 1, 2009
Co-op Procedures: Purchase4-6 weeks Co-operative Procedure
• Contact Buyers Attorney
• Once the contract is received, we prepareagreements.In Purchase the borrower will communicate directly with their attorney.
Aztech Recognition Agreement (exhibit 2a)Loan amount specific, no changes.
Certificate of Good Standing (exhibit 2b)
Authorization to File ($180 check) (exhibit 2c)Instructional Letter (exhibit 2d)
• Request Collateral & Order TitleBuyer and Sellers Attorneys to Handle, UCC to be filed when authorization to file is received from borrower (filing takes 2 weeks)
• Closing Requires 5 Business Days Notice, dueto Collateral Attorney Preparation.
Monday, June 1, 2009
Co-op Pricing • New York & New Jersey
$650 Settlement Fee$250 Document Preparation Fee$350 Lien Search$90 Recording Fee per UCC
• Connecticut$650 Settlement Fee$250 Document Preparation FeeCo-ops are considered real property in Connecticut. Title Insurance Premiums and Recording Fees will apply.
Monday, June 1, 2009