All posts by Frances

Compliance, Network News

Florida Agency Network Executives Receive Elite ‘CAMS’ Anti-Money Laundering Credentials

Amy Gregory (CAO), Andrea Somers (Compliance Officer), and Jay Roberts (CTO), of Florida Agency Network were awarded the widely recognized CAMS® credential by the Association of Certified Anti-Money Laundering Specialists® (ACAMS®), the world’s leading organization of professionals in the anti- money laundering (AML) field.

Exec standing and smilingThe CAMS (Certified Anti-Money Laundering Specialist) designation is awarded to professionals who successfully complete a rigorous examination demonstrating their aptitude and expertise in anti-money laundering detection and enforcement. The examination covers money laundering and terrorist financing methods, the best practices to stop these and other financial crimes, as well as key related legislation in place worldwide, global AML standards and developing defenses for financial institutions to stop terrorist financing and money laundering.

“Earning the CAMS credential places the successful candidate in an elite group of AML professionals and assures employers in the private and public sectors that they are working with someone with the essential knowledge and background in this crucial and challenging field,” said Timothy D. McClinton, President & Managing Director of ACAMS.

“With more FinCEN geographic targeting orders coming on a regular basis now, we thought it was incredibly important to stay ahead of the curve and be one of the first Title Agencies in the country to achieve this. This credential, along with our SOC 1 and 2, also helps us meet our company goal of providing clients with security to close with any of our brands,” stated Aaron Davis, CEO for Florida Agency Network.

“Achieving this credential is a major accomplishment for us. It further solidifies our company’s commitment to not only providing a safer environment for our customers but also helping to provide a more stable financial landscape in the industry,” said Andrea Somers, Compliance Officer for Florida Agency Network.

Money hanging our on a laundry line

Founded in 2001, ACAMS is the largest international membership organization dedicated to enhancing the knowledge and expertise of AML/CTF and financial crime detection and prevention professionals. ACAMS’ mission is to provide a global platform for career development for leading professionals in the AML field. ACAMS gives members the insight, information and inspiration they need to protect their institutions against the threat of money laundering, terrorist financing and related financial crime, and the tools to advance their skills and keep the AML professional ahead of those that engage in these criminal activities. CAMS is the most widely recognized AML certification among compliance professionals worldwide.

For more information, please visit www.acams.org.

Buying a Home, Resources, Selling a Home, Title and Closing

Do you have the POWER?

When and how a power of attorney for a spouse works in a real estate transaction.

 

Wooden figures hugging

Contrary to popular belief, a marriage license doesn’t necessarily give a spouse automatic power to make decisions on the other spouse’s behalf. While spouses may have rights to things like joint bank accounts and medical records, property rights can be restricted. To conduct a real estate transaction on behalf of a spouse or other person, an approved power of attorney is necessary.

 

 

WHAT IS A POWER OF ATTORNEY?

A power of attorney is a document which gives a person, called an “agent”, legal authority to act and make decisions on behalf of the spouse. The amount of power given to the agent can be limited, depending on what is agreed upon.

For real estate transactions, a power of attorney would need to specify the agent is authorized to make the specific decisions for the buyer or seller’s spouse.

 

WHY DO I NEED A POWER OF ATTORNEY?

Most real estate transactions will not need a power of attorney. However, if your spouse is unable to sign the mortgage or the deed or any other documents needed for various reasons, you will need to have an approved power of attorney.

If there is a power of attorney already created, it’s best to get that over to your title company and lender, if applicable, as soon as possible. That way, your closing team and lender has time to review and make sure the power of attorney is approved and ensuring your closing goes as smooth as possible.

 

WHAT ARE COSTS ASSOCIATED WITH A POWER OF ATTORNEY?

If you’re closing with any title brand in The Florida Agency Network and it involves the issuing of your title policy, there is no charges to you for drafting a specific power of attorney for the real estate transaction.

If you need a power of attorney drafted for other reasons or you’ve made arrangements directly with an attorney, there are possible charges for this. Fees may vary, based on the attorney or law office you and your spouse do business with.

 

Before starting your real estate transaction, where a power of attorney is needed, make sure the power of attorney is ready or there is a plan in place to get one drafted. Contact any of our offices for more information on how to get the processes started for your closing.

Title Insurance

5 Ways Title Insurance Protects You after a Home Purchase is Completed

Family moving into a new home

As a new homeowner, protecting your investment is at the top of the “to-do” list. From buying security systems to obtaining homeowners insurance, there are countless ways to protect your investment. Obtaining title insurance through an Owner’s Title Insurance Policy, insures your homeownership rights aren’t affected after you’ve purchased your home.

Here is a list of a few examples that can come up after your home purchase.

  1. Boundary and Survey disputes:
    When closing with a title agency, request a survey of your property. This shows the boundary lines, easements and encroachments of the property. With this information, you will better understand your property and protecting you from anyone making claim to portions of your property.
  2. Errors in closing documents:
     Clerical errors beyond your control can affect the Deed and/or Mortgage on your property.
  3. Unknown liens:
     Prior owners of your property may have “overlooked or forgotten” certain bills pertaining to your new property. While this isn’t your own debt, or your fault, financial institutions can place liens on the property for unpaid debts, even after you’ve closed.
  4. Missing heirs or undiscovered wills:
     There are cases where heirs go missing or are unknown at a person’s time of death. Other times, family members may discover, or challenge, a will for property rights long after you’ve purchased your home.
  5. False Impersonations & Forgery:
     Common or similar names make it easy for a person to impersonate a property owner and putting you at risk. If you purchase your property from a person not the rightful owner, your ownership rights are in jeopardy.
    The same goes for forged or fabricated documents filed with public records. If a previous “owner” has no rights to the property, you risk losing your property.

For buyers, one of the most important ways to protect your property rights is getting an owner’s title insurance policy, or title insurance. Agencies within The Florida Agency Network provide homeowners with the peace of mind and the smooth closing they deserve.

Contact any of our offices for more information on our closing services and how we can help you during the closing process.

Network News, Press Releases

Total Title Solutions Joins FAN to Bring Additional Title Resources to Clients

Florida Agency Network (FAN) expands into key Florida markets! Today, April 15, marks the first day of a new merger between Total Title Solutions (TTS) and FAN.

“As a team, we are excited about the services and products that FAN has to offer. We all believe that the TTS way is already above and beyond the standards of the Title Industry,” says Angie Haddon, Chief Operating Officer of TTS. “However, the merger with FAN will make a superior experience! Anyone involved in the real estate transaction will continue to be in GREAT hands.”

FAN will take control of TTS’ operations.  Angie Haddon will become a Division Manager for FAN, while Lisa Jahr will be promoted to Regional Manager and will oversee offices throughout the Tampa Bay Area. The merger will bring 27 new team members to the FANily and grow FAN’s geographical footprint by 5 additional offices, which include two in Pinellas, two in Pasco, and one in Hernando County.

“We are so excited to have TTS become part of FAN and continue to grow our footprint in the Tampa Bay Area. Abe, Angie, and the team have a like-minded culture to FAN, and we are grateful for the opportunity to service our clients together,” stated Amy Gregory, President of Title Operations for FAN.

Compliance, Real Estate Headline News

Who’s responsible for wire fraud?

We hear about it all the time, wire fraud, cyber security, secure networks and portals. We don’t think it can happen to us, until it does.

The way wire fraud cases are handled is changing. No one is exempt from wire fraud, and going forward, everyone in a transaction could be held responsible for the wire fraud.

As Thomas W. Cronkright II, Esq. and Lawrence Duthler, Esq. of CertifID LLC show in their recent report, all participants in a transaction are responsible for wire fraud loss. A recent Kansas Federal District Court decision ruling found a bank, title company, real estate agent, and real estate broker liable in a transaction hit with wire fraud. The cybercriminal hacked into the seller’s agent’s email and was able to reroute the buyer’s wire to a fraudulent bank account. The buyer lost $196,622.76 that day, none of which was recovered.

According to the report:

“The buyer argued that all defendants had a duty to protect them from the losses they incurred and that the failure of these defendants to live up to that duty led to the fraudulent loss of their funds. In response, the defendants responded by arguing that they owed no duty to the buyer because they did not serve in a formal representative or fiduciary capacity.”

While the bank and title company settled in mediation, it was the seller’s real estate agent and broker who were found liable for 85% of the losses during the transaction, since the fraudulent email came from the seller’s agent.

We don’t think it can happen to us, until it does. And if it does, all parties in the transaction may be held liable. Are you ready for it?

“All defendants had a duty to protect them from the losses.” We all have the duty to protect our clients. That’s why it’s so important to do business with a title company who can secure you and your clients. Agencies in the Florida Agency Network are among the Nation’s top 1% in security, compliance and innovative technology. We work hard behind the scenes to make sure everything runs smoothly, and your clients are protected.

For more information on how we can secure your closing, contact us at info@flagency.net or visit any of our offices.

Network News

Christmas in July Wrap Up

It’s a wrap on our inaugural Christmas in July Client Appreciation Party!

We are so thankful and excited about how well our first ever Christmas in July Client Appreciation Party went!

Thanks to the efforts of our clients and employees, we were able to fill three barrels  and 10 large bags with toys and supplies for Metropolitan Ministries.

For those who weren’t able to attend, we’re sorry you had to miss out! Ask any one of the 200+ attendees and they’ll let you know that SANTA CAME INTO TOWN! 

 

 

Santa made a special appearance at the Christmas in July party, handing out goodies to those on the nice AND the naughty list!

But the best part, was all of our clients and friends who were able to join us in the fun celebrations;

THANK YOU!!!!

 

Network News

Florida Agency Network at NS3

1 Comment

Early last month, a few of Florida Agency Network’s executive team checked out this year’s National Settlement Services Summit (NS3) in Detroit, MI.

NS3 is one of the title and settlement industry’s largest conference. Bringing the industry together to celebrate innovation,  recognize accomplishments, and discuss the future of the industry.

Here are a few pictures from the conference.

 

To see all the photos, click here.

Resources, Title Insurance

Welcome to Florida: Buyer Pick or Seller Pick?

Here’s a little disclaimer Aaron M. Davis, CEO of Florida Agency Network, likes to give when speaking on title insurance in Florida.

“Florida, where a judgment can attach to a piece of property simply by filing a document with the clerk, and the name doesn’t even have to be spelled correctly.

Florida, where the county may or may not have to actually FILE an enforcement action on a property for it to attach, as long as they were thinking about doing it at some time.

Florida, where an unlicensed contractor can pull a permit on a house to put on a new roof, not close a permit, and 10 years later you have to hire a licensed contractor to go back, fix the prior’s work, and close the permit.

Florida, were the seller picks the title agent or attorney, and pays for title insurance, but only depending on the county you are in. Or, even depending on what PART of a county you’re in.”

Across the country, there are 37 states where the buyer picks/pays for title and 12 states where it’s customary for the seller to do so.

Then there’s Florida.

Where the Buyer picks in:

  • The Panhandle
  • Sometimes around the beach areas in Sarasota
  • South Manatee County (but only to the Manatee River, where North is customary for seller to pick)
  • Miami-Dade County
  • Broward County
  • Collier County
  • Some of Palm Beach County, but not North…..

Then, seller picks in the majority of the other areas…

HUH???

Title scholars, settlement experts, underwriting counsel, and others  who still say things like “HUD statements, policies in triplicate, dot matrix printers, and white out,” have contemplated WHY this occurs in Florida.

Well, Aaron has figured it out!  We can blame two men named Henry. (Of course, it’s a man’s fault.)

Henry Plant and Henry Flagler

These two gentlemen were railroad tycoons who ventured deep into Florida. The areas they ended up in became tourist destinations, with great beaches, water access, and lots of construction opportunities. Plant’s rail line landed in Sarasota, and Flagler’s line had a few stop down the East coast of Florida, landing in Palm Beach and Miami.

With all those tourists and construction came the attorneys who handled those transactions, several of who previously resided in New York. And in New York, you guessed it – it’s customary for the buyer to pick and pay for title.

As for coastal areas, well, those buyers are typically wealthy, so we guess they just get stuck with the bill.

Real Estate Headline News

How Bitcoin, Blockchain, and Cryptocurrency are Changing Real Estate

In case you’ve been living under a rock somewhere, in a cave, underneath the ocean, or Mars, there has been this hysteria around Cryptocurrency. Cryptocurrency comes in several forms, or several coins, we should say, the most popular being Bitcoin. Several others dominating the landscape include Ethereum, Litecoin, Ripple, and approximately 1,600 others at the time of writing this post.

The history of Bitcoin is an intriguing story itself, created by Satoshi Nakamoto  in 2008 and released weeks following the global market crash leading to the Great Recession. Perhaps more interesting is that Satoshi Nakamoto is still unknown to this day. He wrote the first white paper on Bitcoin, and created the Blockchain database on which Bitcoin resides. However, no one really knows who this person is. Although mysterious and interesting enough, this doesn’t pertain for our purposes here. What DOES pertain is the technology behind Bitcoin, which is the blockchain.

Blockchain is being built up to be the next version of the internet; Immutable ledger system, unhackable, transparent, and definitely disruptive. However, in a good way. There are several industries that will no doubt be affected by blockchain once it gains acceptance and popularity. You can google hundreds if not thousands of companies who already work on adding blockchain to their existing technology and infrastructure.  For example, IBM, Chase, Walmart, FedEx, British Airways are just a few.  The brilliance of blockchain is its open ledger format. Once a transaction, whether financial or informational, is executed, the nodes on the network all confirm the data and update the ledger, which allows the latest “block” on the “chain” to be added and confirmed.

Industries in third-party payment processing (banks, money transfer companies, credit card companies, payment processors, payroll companies) will all be affected. Medical Industry with the significant amount data and payments will be affected. Even Crowdfunding platforms and gambling sites will be impacted.

But perhaps none more than Real Estate, title insurance, closing and settlement service providers. As blockchain is adopted into these industries, and paper records and PDFs are replaced by blockchain, we can soon envision a day where “click button, buy house” becomes more of a reality.

One company who is certainly progressive in its technology and use of Blockchain is Propy. Propy is a global real estate marketplace with a decentralized title registry. Propy aims to solve the problems facing international real estate transactions by creating a novel, unified property store and asset transfer platform for the global real estate industry. It allows buyers, sellers, brokers, and escrow/title agents/notaries to come together through the utilization of a suite of smart contracts on blockchain to facilitate transactions.

Propy completed the first Blockchain transaction late last year in the Ukraine. Then, in March 2018, they completed the first US transaction in Vermont.

The key to making these transactions happen is to first understand the technology, and second, understand how the flow of currency, whether US Dollars (also known as fiat, or paper money, in the crypto world) or cryptocurrency, work in these transactions. Currently, title agencies and law firms in the US are bound by several laws, regulations and underwriting restrictions which only allow them to accept “good funds” as payment. Right now, good funds are defined as cashier’s check or wire transfers cleared via the Federal Reserve banking platform. One reason for this is for tax reporting purposes. Other reasons are for Anti-Money Laundering (AML) and Know Your Customer (KYC) requirements.

There are several companies now working on the exchange integration to convert fiat currency to cryptocurrency, which then would allow for the acceptance of cryptocurrency for closing.

There have been a number of reported transactions who have in fact utilized cryptocurrency to buy a home. However, what likely occurred is the crypto was sold via an exchange, transferred to a traditional banking platform in order to wire US dollars to a title company or law firm’s escrow account. One of the issues still unresolved is the 1099 form and taxation of capital gains related to cryptocurrency. The IRS is quickly adapting to the virtual currency world as seen here.

Although there is still much ground to cover, it is truly exciting to see the technological advancements taking place in the real estate and settlement arena.

Network News, Real Estate Headline News

FAN’s Cottrell Announcement Featured in The Title Report

Recently, we made an announcement about  partnering with Cottrell Title & Escrow. This news is starting to trickle out to the masses, and we’re excited about it! Our official announcement was featured in a recent The Title Report.

We are thrilled to see others taking interest in what we feel is a great move for the State of Florida.

To read the official announcement, click HERE.