Financial Security Law Supported by NJLTA and NJSBA

In January 8, 1998, Governor Whitman signed into law Senate Bill S-928 requiring the use of "Good Funds" for proceeds of Real Estate Mortgages. This law is effective immediately and amends NJSA 17:11B-14.

Sponsored by Senator Bubba and Assemblymen Augustine and Bateman and supported by the New Jersey Land Title Association and the New Jersey State Bar Association, this bill makes important changes to increase the security of real estate financing transactions and applies to mortgage lenders in both purchase and refinance transactions.

Specifically, the law as amended, requires a mortgage banker or mortgage broker to:

(a) present a certified check, cashiers check, tellers check or bank check, or

(b) arrange for electronic funds transfer, or

(c) provide payment by cash of loan proceeds to the mortgagor, attorney for mortgagor or any other person acting on behalf of mortgagor at a reasonable time and place prior to closing.

It also introduces the unique concept of a "teller’s check." A teller's check is defined as a draft drawn by a bank on another bank, or payable at or through a bank. A person so providing the check may assess a new fee to reflect additional costs incurred in providing "good funds". Such fee shall be duly disclosed at or prior to issuance of the loan commitment.

Further, Subsection K requires a title agent or title insurance underwriter to comply with these regulations as well. It also requires a closing agent to deposit loan proceeds in a trust or escrow account which shall not be commingled with agent’s own funds. A mortgage banker or broker may disburse funds directly in accordance with the settlement documents.

Lastly, a title producer or title insurance company may disburse against uncollected funds deposited in a special trust or escrow account in an amount not to exceed $1,000.00. Uncollected funds are those other than cash, electronic wire transfers, cashier’s, certified, teller’s or bank checks.

Virtual Underwriter Available Now

Stewart Title Guaranty Company, an industry leader with over 100 years experience, is proud to introduce Virtual Underwriter. This new online service is simple to use and designed specifically with the needs of real estate attorneys in mind. It has proven to be an invaluable, time saving resource for processing real estate transactions across the nation and is now available in New Jersey.

It's Simple!

All you need is a PC compatible computer using DOS or Windows and it is available on disk or CD ROM. Virtual Underwriter is a streamlined program that doesn't require sophisticated computer experience or a wealth of computer knowledge. Simple "clicks" open screens and move you from one screen to the next. You can move forward or backtrack to a previously explored section for review. "Hypertext" links enable a user to move from one feature to another within the program.

It's Complete !

A vast array of information is available on Virtual Underwriter:

• Bulletins: Hundreds of bulletins clarifying underwriting guidelines and procedures are available and are constantly updated via modem or disk.
• Endorsement Guidelines: Instructions on how and when specific endorsements should be used.
• Forms: The most comprehensive collection of policy forms and endorsements available, with specific notes for New Jersey !
• Standard Exceptions: Frequently used exceptions and an explanation of how and when they should be used.
• Underwriting Manual: General underwriting principles for insuring most types of real estate transactions.
• Master Index: a complete, easy to use index of all keywords in the Underwriting Manual, Forms, Bulletins, Standard Exceptions and Endorsement Guidelines.
• Stewart Title Corporate Directory: listing key individuals alphabetically, geographically and functionally.

It's Easy !

Virtually everything the real estate attorney needs to know about title insurance is available with the added ease of features such as Cut and Paste, Direct Printing, Direct Faxing and Instant Updating, 24 hours a day.

Virtual Underwriter is an easier way of doing the business you do every day, without the paperwork, volumes of reference books and manuals or delays. Virtual Underwriter provides all the tools you need to handle the toughest title insurance issues at your fingertips in an easy to use format.

It's Here !

Virtual Underwriter is now available in New Jersey. Please call us today for a free demonstration.

Sanctity of Contract

Alfred D. Santoro, Jr., Esq.

Elissa Buonarota, Esq.

Stewart Title Services of North Jersey, L.L.C.

272 Parsippany Road
Parsippany, NJ 07054
Phone: (973) 560-0636
Fax: (973) 560-0819
1 (800) 734-6019

"New Jersey lawyers delivering quality title insurance and related services to New Jersey lawyers."

Litigation Data Available

Do you or your clients need fast accurate information from the public records? Stewart Title Services of North Jersey can now provide you with up to the minute information that can make the difference in your next business or litigation decision.

Unprecedented access to government records has now made a variety of information available, not in days or weeks, but in hours. We can now access the following public records quickly, efficiently, and economically:

1. Bankruptcies- US District Court for New Jersey

2. Federal Tax Liens- Tax liens and releases filed in all 21 NJ Counties.

3. New Jersey Tax Liens- State tax liens or Certificates of Debt filed by state agencies.

4. Judgments- New Jersey Superior Court, Law Division, Special Civil Part, US District Court, Recognizances and Public Defender liens.

5. Pending Litigation- New Jersey Superior Court, Law Division, Special Civil Part, US District Court.

6. Foreclosures- New Jersey Superior Court, Chancery Division, Complaints to Foreclose.

To:

If you need any information on anything that you have seen in this newsletter or have any title related questions, please call:

Stewart Title Services of North Jersey

Your first resource in real estate