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Oct. 4, 2024

Iowa Title Guaranty Compliance Snippets

ABSTRACTING


When certifying to a notarized document that is less than (10) years old that is executed by a person(s) in a representative capacity, you must confirm the notary acknowledgment includes the name(s) of the person(s), the person(s) type of authority (e.g., officer, trustee, etc.) and the name of party on behalf of whom the instrument was executed. If any of these elements are omitted, then you must make note of the defective acknowledgement.1 


1Blue Book – Acknowledgements; Pages 26- 27


TITLE EXAMINATION


When rendering a final title opinion for use in the issuance of an ITG certificate on a purchase transaction, if buyer personal lien searches were not obtained, the examining attorney must ensure that that the guaranteed mortgage meets the definition of a purchase money mortgage as defined by Iowa Code § 654.12B and confirm the mortgage includes a purchase money mortgage recitation. When shown in the abstract as such, ITG requests the examining attorney include the Purchase Money Mortgage reference in the showing of the guaranteed mortgage in their final title opinion. 

COMMITMENT ISSUANCE


It is essential that any exception entered in Schedule B, Part II which impairs the titleholders' interest, or the priority, validity, or enforceability of the Guaranteed Mortgage has a precise corresponding requirement for its clearance entered in Schedule B, Part I.

CERTIFICATE ISSUANCE


A certificate must not be issued until all Schedule B, Part I—Requirements have been satisfied. A field issuer must not issue a certificate with the intent to clear requirements or make corrections at a later date and time. ITG’s liability to provide coverage under the terms of the certificate begins immediately after its issuance.

CLOSING PROTECTION LETTER


Acknowledgements. Carefully review the notary acknowledgement on all instruments including, but not limited to, deeds, mortgages, affidavits, and composite mortgage affidavits to verify that the acknowledgement includes all the following:


(1)   state

(2)   county

(3)   date of acknowledgement

(4)   name of the person(s) executing the document, and

(5)   representative capacity and name of party on behalf of whom instrument was executed, as applicable.


Common acknowledgement errors observed by ITG:


(1)   notary omits the signor name(s) in the notary block

(2)   notary writes in their own name rather than the signor name(s) in the notary block

(3)   notary omits the representative capacity of an individual who is executing on behalf of an entity or trust in the notary block

ITG STAFF SPOTLIGHT


Residential Underwriting Attorneys

Katherine Smith; katherine.smith@iowafinance.com; 515.452.0471

Kevin Blackman; kevin.blackman@iowafinance.com; 515.452.0485 


Certain ITG coverage products require review by ITG’s residential underwriting attorneys to confirm they are prepared in accordance with all ITG rules, guidelines, and directives prior to their issuance. ITG underwriters are also a resource for participants to consult with regarding title matters and ITG policies, procedures, and best practices. 

Please contact the Iowa Title Guaranty team with any questions.