Order Entry: The case-specific data (party names, property address, sales price, etc.) is entered into the title software, and letters are emailed out to agents, buyers and sellers.

Title: A title search is performed and reviewed. Issues are communicated, and where possible cured. A title commitment is sent to the lender.

Taxes and Payoffs: Tax, water, and sewer departments are called and current figures are added to a preliminary HUD-1 Settlement Statement (HUD-1) . Payoff figures for any seller mortgages or liens are requested, received, and entered on HUD-1 .

HUD-1 Completion: Once the lender’s figures are received, they are entered on the HUD-1, which is finalized and sent to the lender for approval. Once approved, it’s on to settlement.

Settlement: An attorney or licensed settlement agent conducts the closing, facilitating the execution of all documents.

Recording and Post-closing: Several documents (typically the deed and mortgage/deed of trust) go to the county for recording. The remainder of the documents are bundled and sent to the lender. Finally, the file is disbursed and all funds that have come in are disbursed out in accordance with the HUD-1.

*******************************
Derek M. Massey
President, Mid-Atlantic Settlement Services
www.MASettlement.com | 443-955-0313
********************************

Regardless, a Blackberry can do many of the same things any other device can. With the right apps and set up, we can (at least pretend to?) play with the big boys.  Here are the apps on my device and how I use them:

Above the Fold (the top row):

Email:  Duh.  Work and personal accounts in one folder.

SMS:  Duh 2.0

Evernote:  This is my new favorite app, and this is how I use it.  On the Blackberry, I take quick notes which feed into my “Action Bin” notebook.  When I’m back online, I sort through and create my “To-Do List.”  A truly great app.

UberTwitter:  I’ve tried all the Twitter apps for Blackberry, and this is my favorite.  Not a huge fan of the latest version, but it quickly gets me to my replies, let’s me stalk people easily, and is very reliable.

Foursquare:  I mostly use this to check into places where I eat bad food.  But again, the app works fine.  Does the trick.

Browser:  Mostly I connect to Mobile  Facebook from the browser, as the Facebook for Blackberry program sucks hard.  More on that below.  But this is also handy to have on the Top Line for searching, as well as to get to the DailyMile and Evernote mobile sites.

The second string (row 2):

Facebook:  As stated above, the Facebook for Blackberry program sucks hard.  The only reason I keep it on my phone is to enable the posting of pictures to Facebook.  Otherwise, it’s useless.  In fact, after I post this, I’m moving it and adding an app in its place.  I’ll let you know what it is.

Tripit:  I love TripIt.  Anytime I travel overnight and need some sort of accomodation I use it.  It’s handy on the Blackberry when you want that hotel address or car reservation number.

Google Maps:  I use this the most when I’m stuck in traffic and I want to know for how long I will be stuck in traffic.  Green = good.  Yellow = meh.  Red = pull over and find a bar.  Er, restaurant.

Calendar:  So I know what I’m doing.

Alarm Clock:  So I wake up in time to do it.

Turn Power Off:  It goes off before I go to bed.  I consider this the most important function on the entire device.

Enter Evernote.

I won’t spend much time explaining what Evernote is – if you’re reading this post you know.  Instead, here’s an explanation of how I use it.  I’ve only been at it for a month or so, so I am by no means an Evernote expert, but in a short period of time I’ve found this system to be very helpful.

Where is it installed?

On my laptop (downloaded program), Blackberry Tour and Apple iTouch.  All of my notes are also accessible at www.EverNote.com.

What “notebooks” have I created?

I use 5:  Action Bin, Blog Topics, Movies, Music and To-Do List.  The book-ends, “Action Bin” and “To-Do List” are the most important.

How do I use each?

“Action Bin” is set up as my “default” notebook.  This means that every time I add a note from my Blackberry, iTouch, or via email (yes, you can email anything to your Evernote account), it goes into the “Action Bin” folder.  This notebook is, as the name suggests, a receptacle for items that require further action.

Like with an inbox, I go through this notebook regularly – at least once a day.  Typically, whatever goes in there gets done right away or reassigned to another notebook.

“Blog Topics” is a collection of… wait for it …. topics that I want to write about.   Movies and Music?  Likewise.  Movies that have been recommended that I want to rent, or songs/albums to download.

“To-Do List” is the engine that makes it work – the main dish.  Each note in “To-Do List” represents a task or project that either gets accomplished in a single step, or requires additional “next steps” in each.  My current “To-Do List” notebook contains items like completing an expense report, opening a new office, testing and marketing a new website feature and reworking a sales reporting system.

Originally, I struggled with Evernote’s inability to let me order the notes as I pleased.  I fixed this by using the tagging feature, tagging the most important/urgent notes with “A”, the least-pressing with “C” and then sorting by Tag.  I’m sure there are better ways, but this hack is working for me.  Below is my current “To-Do List” notebook (with the project names redacted).

Anatomy of a Note

Your individual “note” or task item can be as simple or as complex as you want it.  For me, simple = better.  Simple “next step” items, in order, make a perfect task list for me.  For those projects needing more, you can add files, images, links and more.

Other useful Evernote features:

• You can email into and out of Evernote.
• Screenshots are instantly saved to Evernote.
• Voice notes can be recorded from your mobile device into Evernote.
• To-Do style “check boxes” can be added to notes
• Documents and images can be saved within individual notes

Do you use Evernote?  How do you use it and what are your favorite features?

Among them:

- Provide exposure to local businesses you support;

- Obtain discounts (where the venue offers it);

- Provide (or obtain) tips about local businesses; and

- Let your friends know where you are.

I’d never thought of Foursquare as a tool to *expand* my network/sphere of influence within my local community until I started looking a little harder, particularly at the relationship between it and Twitter.
Here is a post automatically generated from my Twitter account based on a Foursquare check-in to Bagel Works in Hunt Valley:

I just ousted @cbdunn19 as the mayor of Bagel Works Hunt Valley on @foursquare! http://4sq.com/bnklYp

I just “met” a local who likes the same bagels I do. I wasn’t following Ms. Dunn, but I certainly am now.

This is obviously a very isolated example, but with the right Foursquare/Twitter strategy new people with a common interest can find themselves placed nicely in your Twitter stream, with a nice conversational starting point.

#end

**********
Derek M. Massey
President, Mid-Atlantic Settlement Services
www.MASettlement.com | 443-955-0313
**********

Now freeze that picture of you with the hundo in your hand.

Is it yours?  Is it fair that you walk away with it?  Does my mistake really entitle you to 99 more dollars than equity dictates?

Too often, I am seeing that people think it does.  Any mistake by any person or entity entitles the “victim” to the total amount of the mistake. Let’s reverse the scenario:  Say I gave you $1.00 instead of $100.00.  Rest assured that once the error was discovered, you’d get your correct change.  And maybe a free Red Bull.

There are times when damages are more than warranted.  Time spent? Aggravation?  Maybe even a “Dumbass Tax” against me for giving the wrong change?  Sure.  But let’s stop confusing your damages with an unearned windfall.

But that statement is seldom true when the attorney is also the settlement agent.

The settlement agent doesn’t really “represent” any party so much as she does take accountability for carrying out the terms of the contract. If she does represent anyone, it’s the lender (in a sale with loan or refinance) to whom she is evidencing title and facilitating closing protection via an insurer’s closing protection letter.

If you want true representation, the buyer (or seller for that matter) should hire a separate attorney to truly protect *his* interests, such as reviewing the sales contract, performing an independent title search, drafting documents such as deeds and trustee certificates, and sitting in at the closing. I don’t believe this is a necessity in most closings, much like hiring an attorney to fight a traffic ticket is overkill, but if you want true representation, that’s what you’d do.

This is not to say I am condoning the operation of a title company without attorneys. I have never operated a title company without one, nor do I intend to. Having legally trained folks who understand the intricacies of real property and contract law is a must, and can be the difference between a settlement happening or not happening. But that is still a far cry from either relying on a settlement attorney for true representation or telling that tale to your client.

NOTE: This is not legal advice. While I am a lawyer, I am a non-practicing one who runs a title company (www.MASettlement.com).

The purpose of this post is to expand on Seth’s points.  It’s easy to say “I’m an elite” or “I’m building an elite organization,” but very challenging to implement.  Here’s why:

1. It starts with you.  Have you ever half-assed a presentation?  Gone into a meeting unprepared?  Watched Lost instead of finishing up a project was due yesterday?  Stop. Doing. That. Now.  It doesn’t matter whether you are leading the team or a member of it.  It doesn’t matter if the rest of the team is slacking – tell yourself you’re not accepting less than elite status for yourself.
2. Recruiting is especially critical.  Too often we are reactionary when hiring. We wait for a void, then fill it under pressure.  I’d rather take an extra month now to find the right person.  Hiring the wrong person wastes time and money, and sends the wrong signal to the rest of the team and your clients.  Get an elite team member from Day 1.
3. You must be vigilant in working low performers up or out.  This is the hardest one of all.  So you have a team player who is OK.  Maybe technically sound but has the wrong attitude.  Your job, if you are tasked with building Team Elite, is to work that low performer (and they are indeed that) up or out.  Make them elite, or let them be mediocre somewhere else.  This means being seemingly nitpicky and persistent:  Did you write down your goals?  What did you do today to achieve them?  How did you do against those goals?  If you didn’t meet them, what are you doing about it?  You need to have DAILY discussions with these people to get them where you need them to be.

Once you’ve decided to create or be a part of an elite team, your job is 3% done – 10% if you’re *really* committed to it.  The rest comes when you act it every day in every facet of your job.

1. The weekend lasts much longer without being tethered to the interwebs.
2. People who are always checking their smartphones are tools (when I’m not one of them).
3. It’s OK to miss a good photo opp – there will be more.
4. No one cares or misses you when you’re not checking every tweet, text or FB update.
5. Emails arriving on Saturday morning are still there Sunday evening – and no one cares that you didn’t return it right away.
6. The coffee at Dunkin Donuts tastes the same even if you don’t check in on Foursquare.
7. Your wife explicitly appreciates your attention.  Your kids implicitly so.

This is part of a bigger plan to be more “in the moment” with whatever I’m doing.  If I’m having coffee with you, that’s the only place I want to be.  Working on a project?  Laser focus.  With my family?  That will be me disregarding dings, blinking lights and shiny squirrels.

RESPA affects all of us in real estate.

This change represents the first time the GFE and HUD-1 have been substantially changed in 30 years.

Components on RESPA changes:

1. GFE (the centerpiece). The goal of the new GFE is greater clarity and transparency. Attorney Schulman joked that only HUD could simplify process by taking one page and turn it into 3 pages. J
2. Controversial YSP Disclosure (mortgage brokers sued HUD, lost)
3. Tolerance Limitations
4. New HUD-1
5. Average Charges
6. Settlement provider list: Lender is required to give one name, can add as many as you want.

On Tolerances:

All settlement fees fall into 1 of 3 “buckets”:

1. zero tolerance
2. 10% tolerance: $1000 is disclosed. If the aggregate of all fees in this bucket are $1100 or less, you’re fine.
3. No tolerance: if consumer chooses a title co. (or other settlement service provider) not recommended by lender no tolerances.

Audience seemed concern about lenders “high-balling” the GFE so tolerances are not tripped. Attorney Schulman’s reply was basically that lenders “high-ball” at their own risk. They run the risk of losing the deal to someone quoting less.

There exists much friction between settlement service providers. What’s good for brokerage isn’t necessarily good for mortgage, what’s good for mortgage isn’t necessarily good for title, etc. This is something inherent in our industry.

Top Takeaways for the Real Estate Professional:

1. Fees to be paid on behalf of the borrower by the seller must be disclosed on GFE. Charges “typically” paid for by the Borrower are ALWAYS listed on GFE.
2. A written list of settlement service providers must be provided to the consumer. When shopping is provided, consumer must get list. At least one provider per service required. Because provider chosen from list places service in 10% bucket, expect lenders to limit number of vendors appearing on the list.
3. Lender not stuck with estimates if circumstances change. Examples: loan terms or conditions change, property value changes, borrower changes deal. New GFE required w/in 3 business days of change. 10-day shopping period starts over. Borrower can waive.
4. Seller incentives distort settlement charges on GFE. Put an asterisk next to every charge seller is paying for: * “Seller, lender or 3rd party to pay these fees on behalf of borrower.”
5. Required v. Voluntary use of HUD: Required: federally related mortgage, refinance, reverse mortgage, Purchase Money Mortgage (PMM). Voluntary: cash, commercial, temp financing, investor transactions.
6. New methods for disclosing lender charges, title charges and RE commissions on HUD. Lender origination bundled in 801 of HUD-1 (processing, underwriting, doc prep and YSPs) and the Title charges are bundled on 1101. Commissions: percentages now gone. “Admin fees” are now problematic in some legal circuits. Build the $295 (or whatever this additional commission charge is) into the total commission, don’t break it out. Courts will not mess with commissions.
7. Closing times have increased. Why? (a) Longer form; (b) Pressure on closing agent to respond to mortgage-related questions; and (c) learning curve.
8. Paid Outside of Closing (POC) not allowed on GFE, what about HUD-1? It’s fine on the HUD-1.
9. Borrower charges paid for by seller are reflected on 1st page of HUD-1.
10. Reprieve until 4/30 to comply with new rules: Don’t believe what you hear, believe what you read. While HUD may not enforce penalties against the out-of-compliance lenders, consumers can still sue.

Consumer takeaways:

1. Can I shop for everything on the GFE for the next 10 days? No, interest rate may be different. Lender can set expiration of interest rate.
2. There is a credit to the origination charge. Do I get cash back? Consumers likely to question the meaning of “credit.” Gives lender opportunity to explain premium payment to broker and lender payment of settlement charges. Confusion could carry over to HUD-1 and line 802. Question from the audience: “Why do brokers have to disclose when they upsell when bankers do not?” Answer: Sales of loans on secondary market not covered by RESPA.
3. How do tolerances affect the settlement fees I have to pay? Possible refund to consumer at time of closing or cured in 30 days.
4. Title insurance split now shown on HUD. Why important? Not a long leap before agent/broker split disclosed. ß Yikes!
5. Fees in 10% tolerance have increased by $1,542. Do I get a $1,542 refund? No. Credit is the amount that is 10% above disclosed fees.

Conclusion:

1. New forms provide more transparency and clarity and will likely result in more accurate estimates for borrower charges.
2. Expect turmoil during first few months of 2010 (now likely beyond)
3. Chill out, it’ll get better
4. But hey, it’s RESPA – Expect the unexpected.

NOTE:  This is not legal advice.  It’s free notes taken from a guy who was listening to a lawyer.  If you want legal advice, you should hire an attorney.

“At Inbox 1,672″

“I have 28 voicemails to return”

“Just hit ‘delete all’ on my inbox”

To some degree, I get the need (desire?) to share how hard you’re working.  We all want to show we’re in demand, and that people want to reach out to us.  I also completely understand how daunting a task keeping on top of email can be.

But realize that at a certain point it looks like it may be a burden for someone to reach out to you?  If I’m a potential client of yours and I see that you have unread emails in the hundreds or thousands I have to ask whether you want (or can handle) my business.

Is this the message you want to send?