Menifee Valley Escrow, Inc.

02/20/2015

Hernandez Alicia Jazmin Calvillo Laurie Buchanan Jill Davis Lori Anne Clough Betty Walker

Thank you to Roberta S. Rice from Prudential and Cabral from Home Smart. Way to go team for another closing

02/20/2015

Thank you to Roberta S. Rice from Prudential and Cabral from Home Smart. Way to go team for another closing

02/20/2015

Hernandez Alicia
Jazmin Calvillo
Lori Anne Clough
Laurie Buchanan

Super excited another mobile home escrow transaction closed. Thank you so much to Genelle from Realty One Group Southwest and Dove from Coldwell Banker Residential for entrusting Menifee Valley Escrow, Inc. with your escrow transaction.

02/20/2015

Super excited another mobile home escrow transaction closed. Thank you so much to Genelle from Realty One Group Southwest and Dove from Coldwell Banker Residential for entrusting Menifee Valley Escrow, Inc. with your escrow transaction.

02/06/2015

FHA INFO #14-50

August 26, 2014

NEWS AND UPDATES
TO: All FHA Single Family Approved Mortgagees
What’s New

Eliminating Post-Payment Interest Charges and Revising Adjustable Rate Mortgage (ARM) “Look-Back” Period and ARM Consumer Disclosure Requirements
Two final rules published today in the Federal Register support Truth in Lending Act requirements for FHAinsured
mortgages

Today, the Federal Housing Administration (FHA) published two final rules in the Federal Register:
1. Federal Housing Administration (FHA): Handling Prepayments: Eliminating Post-Payment Interest Charges
(Docket No. FR-5360-F-02), and

2. Federal Housing Administration (FHA): Adjustable Rate Mortgage Notification Requirements and Look-Back
Period for FHA-Insured Single Family Mortgages (Docket No. FR-5744-F-02).

Collectively, these final rules provide consistent protections for mortgagors (borrowers) with FHA-insured mortgages,
while supporting FHA’s efforts to ensure borrowers have early access to information when making decisions about their
FHA mortgages. The rules are responsive to the regulations implementing the Truth in Lending Act, as recently revised
by the Consumer Financial Protection Bureau (CFPB).

Handling Prepayments: Eliminating Post-Payment Interest Charges
The Handling Prepayments: Eliminating Post-Payment Interest Charges final rule revises FHA regulations that currently
allow an FHA-approved mortgagee to charge the borrower interest through the end of the month when the mortgage is
paid in full before month end. The revisions to our regulations will allow mortgagees to charge interest only through
the date the mortgage is paid in full, prohibiting the charging of interest beyond that date. The changes are responsive
to the CFPB’s January 30, 2013 final rule, Ability-to-Repay and Qualified Mortgage Standards under the Truth in Lending
Act (Regulation Z), which limits the use of prepayment penalties and broadly defines “prepayment penalty” to include
FHA’s previously allowed post-payment interest charges.

FHA’s final rule adopts the policies published in our March 13, 2014 proposed rule on this topic without change,
including:
Notwithstanding the terms of the mortgage, mortgagees shall accept a prepayment at any time and in any
amount, and shall not charge a post-payment charge; and
Monthly interest on the debt must be calculated on the actual unpaid principal balance of the mortgage as of
the date the prepayment is received and not as of the next installment due date.
With the publication of this final rule, FHA is prohibiting prepayment penalties for all FHA-insured single family
mortgage products and programs, regardless of whether the product or program could fit into one of the circumstances
where the CFPB’s final rule allows a limited prepayment penalty. This maximizes consistency among FHA-insured single
family mortgage products and provides the same protections for all FHA borrowers.
The revised policies in this final rule become effective for FHA-insured mortgages closed on or after January 21, 2015.
Revisions to FHA Adjustable Rate Mortgage (ARM) Notifications and ARM Look-Back Period Policies
The Adjustable Rate Mortgage Notification Requirements and Look-Back Period for FHA-Insured Single Family Mortgages
final rule makes two revisions to FHA’s ARM program that are consistent with industry practice already required by the
CFPB for conventional mortgages. The revisions will require mortgagees to:
Base an interest rate adjustment that results in a corresponding change to the borrower’s monthly payment on
the most recent index value available 45 days before the date of the rate adjustment (commonly referred to as a
“look-back period”). Previously, FHA required a 30-day look-back period.
Comply with the disclosure and notification requirements of the CFPB’s February 14, 2013 final rule, Mortgage
Servicing Rules under the Truth in Lending Act (TILA Servicing Rule), including at least a 60-day but no more than
120-day advance notice to the borrower of an adjustment to their monthly payment. Previously, FHA required a
25-day advance notice.

FHA’s final rule adopts the policies published in our May 8, 2014 proposed rule on this topic without change.

The revised policies in this final rule become effective for FHA-insured ARMs consummated on or after January 10,
2015.

02/04/2015

"Good Funds Law"

As a result of “Good Funds Law” (AB512) escrow companies which engage in the business of conducting escrow transactions, are required to comply with the “Good Funds Law”.

What exactly are “Good Funds?”
“Good Funds” are funds that are immediately available to the escrow company upon deposit. Depending on the type of funds deposited into escrow, a waiting period will apply before those funds can be disbursed or escrow can be closed. The law requires that prior to any disbursement of funds from an escrow account, there must be sufficient funds received and deposited into the escrow.

What exactly are “Good Funds?
“Good Funds” are funds that are immediately available to the escrow company upon deposit. A waiting period does apply depending on the type of funds deposited into escrow.

What funds are considered acceptable?
Wire transfers from a FDIC insured bank

Note: A wire transfer form of deposit is by far the best choice and fastest way to send money. The funds are transferred directly into escrow’s trust account from the client’s account.

ACH (automated clearing house) transfers are not wire transfers; our escrow trust account is blocked from sending or receiving ACH transfers.

Cashier’s, Official & Certified checks?
Cashier’s, official and certified checks take up to three business days to clear

Note: Cashier’s, official and certified checks must be issued from an insured FDIC institution or NCUA Insurance Credit Union. Once a deposited for closing is made the amount does not become “good funds” until it has been paid by the issuing financial institution.

Checks?
Personal, business and corporate checks do not represent “Good Funds”

Note: Personal, business and corporate checks take as many as 14 days to clear. Once a deposit for closing is made the amount does not become “good funds” until it has been paid by the issuing financial institution.

Money Orders
Money orders do not constitute “Good Funds”

Note: The payment of a money order cannot be tracked and does not constitute “Good Funds”. A money order can take up to 14 days to clear.

Menifee Valley Escrow, Inc., makes every effort to inform your clients about the “Good Funds” law and closing funds requirements. Please reinforce this with your clients so that we can help you close the transaction on a timely manner.

The information provided is for general informational purposes.
by: Alicia Hernandez

02/03/2015

"Disbursement for Closing Escrow"

The California State Law requires that funds be deposited prior to disbursement. Escrow Holder can only authorize recording of the closing documents when all funds on deposit have been collected and cleared. In addition, the actual day we disburse funds is governed by the type of funds we have deposited into our trust account.

Escrow Holder intends to follow the disbursement schedule of the “Good Funds Law” and company policy and procedures as set forth on our general provisions. Recording and disbursement will occur as indicated below….

1. Recording will be release for same day “Special” as our deposit, if we receive:
o Wired funds (We must verify receipt by our bank).
o Before Title Insurance Co., cut off time (Times vary for each title company)

2. Recording will be released 3 days after the date of deposit, if we receive:
o Cashier’s checks (From insured FDIC Institutions or NCUA Insured Credit Unions)
o Official/Certified checks (From Insured FDIC Institutions or NCUA Insured Credit Unions)

3. Recording will be released 14 days after the date of deposit, if we receive:
o Personal checks
o Bank/Money orders

4. No “Cash” is accepted

If funds are not received in this form, your closing could be delayed at least one day and as many as 14 days.

Morning Recordings:
A.M. recordings will continue to require the funds be deposited the day before recording. In most instances, we will be able to disburse our funds the day of recording provide we are in receipt of recording confirmation, disbursement worksheet from title and funds if applicable.

Special Recordings:
In counties that allow special recording funds will be deposited on the day received, and funds will be disbursed on the day following confirmation of the special recording.

Disclaimer: This information is intended for general informational purposes only.
By: Alicia Hernandez