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1998 SESSION

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SB 554 Settlement Agents.

Introduced by: Warren E. Barry | all patrons    ...    notes | add to my profiles

SUMMARY:

Settlement Agents. Amends provisions concerning settlement agents in the Consumer Real Estate Settlement Protection Act (CRESPA), and adds provisions concerning settlement agent fees in a statute governing subordinate mortgage loans. Principal changes in CRESPA include those which: (i) authorize licensed realtors, their employees or independent contractors not named as the settlement agents in real estate purchase contracts to nevertheless perform escrow, closing or settlement services (if such licensees are not otherwise prohibited by law or regulation from performing these functions) without complying with CRESPA; (ii) redefine "settlement agent" to mean the individual furnishing settlement services who is listed as the settlement agent in the real estate purchase contract; (iii) require settlement agents other than attorneys or title insurance companies to have analyses of their escrow accounts conducted at least once in each consecutive 12-month period; (iv) delete reference to the requirement that escrow fund disbursements be accomplished via written instructions (signed by both sellers and purchasers or borrowers) conforming to the federal Real Estate Settlement Procedures Act; as amended, written instructions signed by both sellers and purchasers or borrowers will be deemed sufficient; and (v) require all CRESPA-governed real estate settlement statements to be in writing, and identify, by name and business address, the settlement agent.

An additional provision in the bill permits lenders to charge borrowers for the cost of a settlement agent's services in connection with making a loan secured by a subordinate mortgage or deed of trust.


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