FNF Acquires Top Employee Benefits Agency

In the last quarter of 2012, the leading title insurance and mortgage services provider, Fidelity National Financial, Inc., announced its current success in the acquisition of Digital Insurance, Inc., a firm that provides employee benefits through the distribution of health insurance and the management of small businesses.

Digital has over 20,000 employer clients where 250 are broker partnerships with at least $1 billion of annual premium. Digital Benefits Advisors, company’s largest division, is also growing rapidly as a leading brokerage agency for health benefits. It utilizes the platform for scalable benefits technology of Digital in targeting small businesses through a direct basis. It has been estimated that at the end of 2013, Digital will have generated an approximate $70 million of revenue, a $20 million dollar increase from last year’s $50 million revenue.

According to George P. Scanlon, the Chief Executive Officer of FNF, the company has repeatedly demonstrated a success record of efficient distribution of health benefit programs to small businesses markets. On top of that, the fragmented market served by Digital is shouldering an organic growth of great significance as well as consolidating potential. The company’s business model is entirely unique and original, and it will no doubt provide FNF an opportunity to grow in an industry that is currently going through major changes.

FNF is currently the country’s top provider of mortgage services, title insurance, and restaurant and other diversified services. The company’s title insurance underwriters include Fidelity National Title, Commonwealth Land Title, Chicago Title and Alamo Title. These underwriters currently issue the most title insurance policies across the country. FNF is also a huge stake holder of the American Blue Ribbon Holdings, LLC, the owner and operator of Ninety Nine Restaurant, Village Inn, O’Charley’s, Stoney River Legendary Steaks and Bakers Square. Majority of the stake of Remy International, Inc., which is the leading manufacturer, marketer, designer and distributor of automobile electrical components, is also owned by FNF. To learn more about FNF, it is best to visit the company’s homepage.

According to FNF, its forward-looking statements on the future of the company are based on current statistical information of the management regarding the state of the company. They admit that actual results may differ from its expected and drafted results. The company emphasizes that it is not obliged to update anymore forward-looking statements even in the events of economic changes, arising political dilemmas and other changes affecting the financial markets.

FNF assures that it continues to look forward to achieving more successes. By acquiring Digital, they are excited to reach newer heights in the title insurance industry.

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The AARP Files Reverse Mortgage Lawsuit

The AARP has filed a lawsuit against Fannie Mae and Wells Fargo for allegedly allowing illegal eviction and foreclosure to a reverse mortgage heir.

The American Association of Retired Persons (AARP) has filed a lawsuit against the Fannie Mae and the Wells Fargo Bank in the U.S. District court in San Francisco, California for the mortgage borrowers and surviving spouses who have been evicted from their homes and those facing foreclosure.

The recent lawsuit is already AARP’s second lawsuit filed in 2011 regarding reverse mortgage issues for borrowers and their surviving spouses or heirs. The court dismissed the first lawsuit in July, 2011. The current suit is alleging Wells Fargo to have illegally allowed foreclosure on reverse mortgage borrowers. The borrowers were reported to not have been notified and that during the time when the loan was due and payable, they were not provided any opportunity to purchase the property to at least 95% of the property’s appraised value.

Robert Chandler from Elk Grove, California, the main plaintiff of the current lawsuit, admits to have inherited the home entitled to his mother, who was a reverse mortgage borrower before she died in 2010. The lawsuit states that Chandler was not even notified of his right to actually buy the property for it appraised value.

The allegation of the lawsuit and AARP reports that Wells Fargo only told the heir that he needs to pay off the remaining mortgage balance, however, Fannie Mae, the mortgage lender, proceeded to foreclosing the home. Fannie Mae already started efforts in evicting Chandler from his property after finding no one who was willing to purchase the property for its appraised value.

In the initial lawsuit that was filed in March, 2011, the HUD or Department of Housing and Urban Development had withdrawn its non-recourse guidance.  It issued a clarifying servicer FAQs on the 21st of July stating that an HECM loan that is already payable due to a death of the borrower and is conveyed to an heir can be paid off by the heir in paying the remaining balance of the mortgage or purchasing the home to at least 95% of the property’s appraised value.

The second lawsuit is stating that even with HUD’s clarifying servicer FAQs, the defendants still failed to provide any notification to the survivors of the borrowers regarding the rights in purchasing the property for at least 95 % of the property’s value. The defendants allowed foreclosure and eviction of the heir who actually was trying to pay off the market price of a home considered to be an underwater home. AARP revealed that there are actually over a thousand potential defendants who may face complaints of similar nature.

When HUD reversed its rule on the rights survivors and heirs in July 2011, more complainants contacted the AARP about facing the same concern. Senior attorney of the AARP Foundation Litigation, Attorney Jean Constantine-Davis, admitted that it is difficult to comprehend how reverse mortgage lenders are continuing to deny survivors and heirs of their legal rights on properties conveyed to them.

What to expect from reverse mortgage this year.

What to expect from reverse mortgage this year.

In 2013, you’ll be seeing some changes being made in the reverse mortgage industry. For starters, the Department of Housing and Urban Development will be eliminating the fixed rate HECM standard. Read on to know more.

When should you refinance your home? – Ali Farahpour

Most homeowners think that refinancing one’s home to allow the mortgage interest rate to decrease is a great idea, but refinancing one’s home will only work at the right time. Refinancing of homes is often heavily contingent on the right timing.

People who opt to refinance their mortgage and move to a lesser rate actually pay an overlooked price – the closing costs. If a homeowner keeps refinancing his or her home, there is a trail of closing costs that one must not miss calculating. 

Mortgage refinancing is a hit or miss venture, depending on the timing of the change. It can either work, or not, in the homeowner’s favor. This means that there are times when it is best to stay with the current mortgage rate.

Recognizing the perfect timing to refinance one’s home takes preparation and planning. It is important to first learn what the main goal for refinancing is. Having a clear goal on in mind will allow for the successful restructuring of one’s debt. Refinancing a mortgage will lead to a decrease in interest rates of the loan, as well as change the loan term. Most people opt to refinance their home so they can cut down the interest rates of the mortgage. There are homeowners, however, who aim to reduce their monthly payment by extending their loan another 30 years.

When a goal is clear, it is important to carefully calculate the circumstances and the timing of getting a different mortgage. It is wise to stay at a house for a little longer to make the most out of refinancing. It was reported that the average closing costs on a loan amounting to $200,000 would be around $3,118 as identified by the closing cost survey that was done. This amount does not include taxes, insurance, and other dues such as homeowner association payments.

Learning where one stands in their current mortgage is the best way to tell if refinancing the mortgage will work best. One’s credit score must also be considered as this will affect the kind of mortgage one will get after the home is refinanced. There are also possible prepayment penalties that one may have, it is important to have this cleared before moving on with refinancing a home.

In order to assure smooth legal transactions when refinancing one’s home, FNC Title Services LLC can provide their services to assure that the client will be well guided in their refinancing transactions.

What is a Reverse Mortgage?

The Department of Housing and Urban Development (HUD) of the United States has developed a federally-insured private loan referred to as the Reverse Mortgage program. The program enables elderly Americans to apply for a safe loan plan as a means to provide financial security. Reverse mortgage promises to provide funds for elders’ social security, help seniors be financially prepared in times of medical emergencies, and tries to assist elderly Americans be financially able to pay for extra expenses such home improvement endeavors.

Numerous Americans have already looked into the reverse mortgage program. It is important to learn about the basic information of the program to understand its benefits. Learning more about reverse mortgages will better enable individuals to see if the program is best fit for their needs.

Reverse mortgage simply allows homeowners who avail for the program to transfer their home equity into cash. The most attractive part of the program is that the homeowner is not required to pay for the loan while the house is the primary residence of the borrower. No other loan program carries this benefit.

HUD’s Federal Housing Administration states that the mortgage qualification is limited to certain requirements. Candidates eligible for the program are American individuals aged 64 years and older, have a low mortgage balance during the time of application which can be easily paid with the proceeds received from the home equity loan; or those who already fully own their home. HUD also requires for the borrower to be living in the home during the enrollment of the program.

HUD is not strict on the types of homes eligible for the program. It is just important that the borrowers own the home they are enrolling into the program. The house can be a detachable house, a condo, a manufactured house, townhouse, or a four-unit house. HUD also does not require the house to be mortgaged by certain lenders. To ensure the safety of the home equity loan, HUD thoroughly examines that the loan provided to the individuals will never go over the total value of the house enrolled in the program. This is considered a safety net, to make sure that the borrowers will not receive more loan than they can afford to pay.

The appraised value of the house enrolled in the program is the determining factor for the amount of money that can be loaned. Other minor factors also include the location of the property and the age of the borrower. There are services that can help individuals attain reverse mortgage loans.  However, it is best to first find legal aid on attaining the reverse mortgage loan to ensure more clarity and transparency. Alexander J. Chaudhry is a well renowned lawyer with over 15 years of legal practice. Mr. Chaudhry is currently working with Ali Farahpour, CEO of FNC Title Services LLC, as a means to provide legal services to title insurance agencies and professionals. Make a visit to FNC Title Services to attain legal aid regarding reverse mortgages.