I hope you all have settled into your Fall routines.  Business has been brisk here at the PLTA.  We had a very successful Agents Expo a few weeks ago and Charlene continues to fill up our calendar with educational opportunities for our members.  I have been busy planning the 2013 PLTA Convention.  I am happy to announce that the convention will be held June 2-4, 2013 at the beautiful Hyatt Chesapeake Bay in Cambridge, MD, about a 2 ¾  hour drive from King of Prussia.  The Hyatt Chesapeake is a beautiful, self-contained resort offering dining, golf, swimming, spa and RELAXATION.  We are hard at work putting together an educational program, keynote speaker and group gatherings that will be enjoyable for all.  Look for more information in the coming weeks! 

Jan Koski Hogan, CLTP
President

As Anne Anastasi, CLTP begins to wrap up her term as ALTA President, she took a moment with PLTA to reflect on her journey along the way and share with us her plans for the future.

When asked what she viewed as the major accomplishments of her Presidential year, Anne spoke first about Title 101, a program designed to educate regulators about the title industry.  Anne was a driving force of the PLTA task force that created Title 101.  The program was developed in response to a request for education a Pennsylvania regulator made of Anne. That program was a resounding success, and led to a subsequent Pennsylvania program, Title 201.  Anne then brought the idea to the attention of ALTA and it has since been presented to 19 Departments of Insurance.  As a result, the NAIC has asked her to present and record the program in a webinar format, making it available to every state.  Anne says she will continue with that project even after her ALTA Presidency ends.

Throughout the conversation Anne mentioned several times the high regard with which PLTA is held throughout the country.  Several PLTA programs have sparked interest on the national level. PLTA’s Professional Designation program is the prototype program used by ALTA in the creation of the first national professional designation program.   “This is another way for title insurance agents and abstractors to stand out in our industry, and PLTA has had a successful designation program for many years.” In addition, she said, “PLTI is renowned for top-notch title education and was created by the leadership of PLTA, who saw the need for educating its own.”

As a Past President of PLTA, Anne has experienced first-hand the needs and struggles of the state land title association.  Recognizing that these challenges are not only felt in Pennsylvania, Anne has made it a priority in her Presidential year to increase ALTA’s liaison with the state associations.   “We need to work together to leverage our combined knowledge and experience for the betterment of our industry,” she said.

While the past year has been extremely busy and at times exhausting, Anne could not stress enough the return on the investment she has received as a result of her ALTA involvement.  Anne found herself surrounded by, “the most brilliant, passionate, and dedicated industry professionals” she has ever met. “These individuals encouraged me to become an officer of ALTA and the benefits I have received are priceless.  “My biggest client in 2011 came from a referral from an agent I met through ATLA who is not licensed to conduct business in Pennsylvania.  I have received all of her Pennsylvania work. This is business I would not have if it wasn’t for my involvement. I also receive phenomenal business practice ideas from some of the largest title agents in the country.” 

For these reasons and so many more, she strongly encourages agents to become involved – first in their state associations and then in ALTA. “True title professionals must join their trade associations. You don’t have a voice in your own survival if you don’t participate. Those agents who want to survive, grow, and be an effective part of the title industry need to join and get involved.” Anne stated. “Agents have to give back – this is our industry! Don’t sit back and let others determine the future of your business.”

“In many aspects, though, we have gone from being the underdog to the lead dog. The Consumer Financial Protection Bureau (CFPB) has asked for the opinions of ALTA to assist with the creation of the new GFE/TILA form.  The CFPB  acknowledged that the title agent ‘sees the confusion on the consumers’ faces’ and can offer valuable insight into creating a document that borrowers can clearly understand.  This is a tremendous compliment for our industry and a testimony to the ALTA task force who was praised for their efforts during the RESPA Reform.”

Anne admits that the industry is still facing some significant challenges. The role of the title insurance agent still remains a mystery in many real estate closings.  While Anne believes that perception is changing for the better, we cannot rest until our industry is as well known and respected as others involved in the real estate transaction.  “We need to stay in front of the decision makers, regulators, and those on Capital Hill,” she stressed. 

So, what is Anne going to do in October, when her term is over? “Meet my husband again and see how he’s doing,” she responded in laughter.  Anne knew the position was going to take time away from her family and business, but underestimated the magnitude of that impact.  However, while her presidency has been time consuming, it has also brought some of her fondest memories.  She has greatly enjoyed traveling the country, touring and meeting colleagues from each state.  And, remembering like it was yesterday, Anne’s eyes filled with tears as she shared the look on her husband and brother’s faces when she was sworn in as President of ALTA.  “My husband of little words turned to me with this overwhelming look of pride and said, ‘I’m so proud of you.’  My brother had the time of his life in San Diego and, not knowing then that we were going to lose him unexpectedly a week later, it meant the world to me to have him there.”

PLTA is very proud of one of its most successful members and equally grateful for her continuing efforts on behalf of an entire nation of title professionals.  A contingent from PLTA will be on hand to recognize the accomplishments of President Anne Anastasi at the ALTA convention in Charleston next month.

by Katherine McKay, CLTP, former Administrator of PLTI and Executive Vice President of PLTA

Since this column is entitled Back Title, I thought I’d revive an old chestnut about the ultimate back title.  This story’s been around many times, from several sources, but it still gives me a laugh.  So, to take your mind away from the ungodly heat and endless rain and floods of this summer of 2011, here it is.

Compiling title evidence can be a complex task.  Back in the 1930s, a title report was required by the federal government’s Reconstruction Finance Corporation (RFC) before approval of a loan.  One loan applicant, New Orleans Attorney N.R. Howard, had supplied title information dating back to 1803, but the RFC then asked, “Who owned the land before that?” 

Howard replied, “I note you wish titles to extend further than I have presented.  I was unaware that any educated person did not know that Louisiana was purchased from France in 1803.  France acquired title by conquest from Spain, who acquired it by right of discovery in 1492 by a Genoese sailor named Columbus, who had been granted the privilege of seeking a new route to India by the Spanish Queen, Isabella.  The Queen, being a pious woman and careful about titles (almost as careful, I might say, as the RFC) took the precaution of securing the Pope’s blessing on the voyage before she financed Columbus.  Now the Pope, as you know, is the emissary of Christ, who is the Son of God, and God, it is commonly accepted, made the world.  Therefore, I believe it is safe to assume that He also made that part of the world called Louisiana.

It seems safe to assume that the RFC granted the loan.

Over the last several months we’ve rolled out two significant social destinations for our members – one on LinkedIn and the Other on Facebook.

PLTA on

PLTA has created a group on LinkedIn for the benefit of our members.  It’s a place to post information, participate in discussions, ask questions, and connect with our peers online.

It’s our private place on the ‘Net where sales messages, spam, or bad behavior aren’t tolerated.  Only members can join, and only those who have joined the group can see the content.   Join the discussion here.

Like us on

While you may already adore PLTA, stop by on Facebook and “like” our new Facebook Page. We’ll be sharing title industry news, event information, special offers, and discounts for PLTA Members.  Don’t forget to “like” us, or all that great information won’t show up in your Facebook news stream.

Don’t forget to visit the page and check out the Convention 2011 photos.

Dave Wirsching

Technology Committee Chair

http://davewirsching.com

by Katherine McKay, CLTP, former Administrator of PLTI and Executive Vice President of PLTA

Do you remember the ‘80s?  Ginormous shoulder pads for women that made them look like NFL linebackers in drag.  Waiting all summer to find out who shot J.R. Ewing on Dallas.  Ronald Reagan in the White House and Mikhail Gorbachev ruling Russia. Personal computers that took up serious real estate on your desk.  Car phones the size of a loaf of Wonder Bread.  Mortgage interest rates at 17%. The real estate crash.  Title companies contracting – oh, wait, is that now?  Ah, the 80’s.

And what was PLTA doing through all this?  These were fertile years for the association with significant achievements, all told by one of the PLTA’s most visible successes, Common Ground. Here’s a brief tour through the 80s issues.

June 1980:

The inaugural issue of Common Ground reports on the coming convention.  Included on the agenda is a presentation by James Rosenstein, Esq., then of Wolf, Block, Schorr & Solis-Cohen (R.I.P.), on what the Common Ground editor calls “condo-mania,” which is termed “rampant across the state.”  Mr. Rosenstein is one of the drafters of the Pennsylvania Uniform Condominium Act.

August 1981

Edward Schmidt, PLTI Administrator, announces that the Evening School would hold its First Year of Studies at the PSFS Building in Philadelphia, the Second Year of Studies at Bartley Hall on the Villanova University campus, and the Third Year of Studies at the Holiday Inn on City Line, Philadelphia.  The Evening School continues to this day in various formats and locations.

November 1983

Common Ground becomes a four-page newspaper for the first time, previously having been a single double-sided sheet of news.

• Herb Walton announces the concept of awarding a CLTP (Certified Land Title Professional) designation, working with the Professional Designation Board of Review, the PLTI, the PLTA PR committee, and the Executive Committee.  The first awards would be given in 1986.
• The Plain Language Consumer Bill is working its way through the PA legislature.  It is noted that a PA trial judge (unnamed) had said, “The trouble with plain English is that it is akin to truth: always devoutly sought, rarely (if ever) seen, and subject to many opinions about what it really is.”

November 1984

J. William Cotter, Jr., then president of T.A. Title Insurance Company and in 1990 to be PLTA president, announces a new member drive to include agents, prompted by changes in the PLTA by-laws, to give “greater recognition to agents and their contribution to the association.”

May 1985

Herb Walton announces a new designation, the ALTP, the Associate Land Title Professional, to recognize people earlier in their careers than CLTPs but with “a professional attitude and dedication” to the industry.

June 1986

The first CLTPs are awarded to Marvin New, Albert Pentecost, James G. Schmidt, and Edward Schmidt.  The first ALTPs are Frank Cozzo and James Kilgallon.

April 1987

• The by-laws are amended to allow an Organizational Meeting of PLTA officers and chairmen to take place soon after the Annual Meeting, proving that there is indeed a method to their madness.

Spring/Summer 1989

Then PLTA president Sam Musser observes that “PLTA and PLTI is in a state of transition” as Al Pentecost and Ed Schmidt both give notice to retire at the end of the year, “two people,” Sam says, who were “prime movers and shakers during a particularly strong period in the history of both organizations.”

Winter 1989

PLTI celebrates “A Decade of Service” at a luncheon given at the then Hershey Hotel in Philadelphia.  Guest speaker is Peter Liacouras, who is president of Temple University at that time.  Albert Gibboni, then PLTA president and later Chairman of the Board of Trustees of PLTI, presides over the well-attended affair.  First instructor of the Evening School, Sebastian Rainone, Esq. is a guest.

Every decade has its triumphs and troubles, some more markedly than others.  PLTA has had tumultuous years among the more placid, years of great change and years of significant progress.  And assuredly, someday someone will write about the current decade if they can keep their tears in check and their perspective firmly fastened onto a rosier future.

By Sue Morgan, PLTA Public Relations Committee Chair

On May 18, 2011 the Consumer Financial Protection Bureau (CFPB) released two draft designs for the new “single, simpler mortgage disclosure form.”  The goal of the new form is to combine the information found on the TIL and GFE into one all-inclusive, easy to read form that borrower’s can truly understand.  The bureau is asking consumers and industry professionals to visit their site http://www.consumerfinance.gov/know-before-you-owe-go/ and vote on their preference of Option A or Option B.  They anticipate this first step will take months and there will also be opportunities for individuals to communicate their thoughts as the Bureau moves forward with the process.

The Bureau came into existence in July, 2010 when Congress passed and President Obama signed the Dodd-Frank Wall Street Reform and Consumer Protection Act.  It was this Act that then led to the creation of the CFPB and many of the pieces of the Act relating to the CFPB will go into effect on July 21, 2011.

According to the Bureau’s website, “The consumer bureau will also implement and enforce new protections under the Dodd-Frank Act that will:

• Require mortgage lenders to determine that a borrower has the ability to repay a loan by verifying income and making sure borrowers can afford loans even after teaser rates expire and payments rise;
• Prohibit prepayment penalties, which can make it expensive to refinance, for high cost loans and adjustable-rate mortgages;
• Put an end to practices like paying bonuses to mortgage brokers and loan officers who steer borrowers into higher-cost loans than they otherwise qualify for; and
• Require clearer and simpler disclosures about international money transfers.”

To learn more about the disclosure form and the CFPB, visit their site at http://www.consumerfinance.gov.

William (Bill) Corrigan, Esq., CLTP, recently joined Old Republic Title as Associate Counsel. In this role, he will assist agents and employees with underwriting questions on both commercial and residential transactions. He also will assist with regulatory compliance issues and in making educational presentations on behalf of the Company. Bill will work out of the Wayne, Pennsylvania office, and will report to Dwight Edwards, CLTP, Vice President and Pennsylvania State Manager.

With nearly 45 years of title industry experience, Bill got his start in the business as a Title Examiner. Over the years he has worked in a number of roles, including: Title Searcher, Title Officer, Senior Title Officer and Claims Counsel. Most recently, he served as General Counsel for another large underwriter.

“Bill has learned the business from the ground up and brings with him a wealth of industry knowledge,” stated Dwight Edwards. “This, coupled with his sharp legal eye and smart business acumen, make him an excellent addition to our underwriting team.”

After earning his Bachelors of Science degree in Management and Bachelors of Arts degree in Political Science from Rutgers University, Bill went on to receive his Juris Doctorate from the Delaware Law School. He is admitted to both the Pennsylvania and New Jersey Bars.

A longtime advocate for local title associations, Bill has served as both the Past President of the Pennsylvania Land Title Association (PLTA) and the Past Chairman of the Pennsylvania Land Title Institute, where he continues to be an active member of the Board. Bill also is the current Chair of the PLTA Convention Committee.

To contact Bill directly, please call (800) 842-2080 or email him at wcorrigan@oldrepublictitle.com.

On Friday, June 24, 2011 Pennsylvania Governor Thomas Corbett signed into law House Bill 442, which will ban the practice of Private Transfer Fees (PTFs) throughout the Commonwealth. With this signing, Pennsylvania becomes the 36^th state to have banned or restricted PTFs.

The Pennsylvania Land Title Association ®  (PLTA) has worked for many months to prohibit private transfer fees.  PLTA’s Board formed a special committee in early 2010 to investigate the impact of Private Transfer Fee Covenants on the transfer of real estate in Pennsylvania.  

Sen. Wayne Fontana (D-Allegheny) and Rep. Sue Helm (R-Dauphin) introduced legislation supported by PLTA to prohibit private transfer fees in the Commonwealth. The legislation also creates reporting and disclosure requirements on the administrators of the private transfer fees that already exist and if those requirements aren’t met, the PTF is null and void. The legislation garnered a large number of co-sponsors and was passed with close to a unanimous vote in both houses.

PLTA’s Immediate Past President, Diana Sabol, CLTP said, “This is a win for Pennsylvania consumers. These private transfer fee covenants could have cost home buyers thousands of dollars in additional closing fees and made it impossible for many to purchase a home.”  Sabol went on to say, “PLTA is grateful to both Sen. Fontana and Rep. Helm for their dedication to protecting the consumer and home ownership in Pennsylvania.”

PLTA’s PTF Committee Chair Paul Trefz, CLTP explains, “Private transfer fees are part of a covenant attached to the property deed that forces the seller to pay 1 percent of the purchase price to a private third-party entity every time the property sells over the next 99 years. These fees cost unsuspecting homeowners thousands of dollars in additional closing costs.” Current PLTA President Philip Janny, CLTP said, “PLTA is extremely proud of Immediate Past President Diana Sabol and Chairperson Paul Trefz for their leadership role with this important bill”.

PTFs are being fought by a national coalition of organizations called the Coalition to Stop Wall Street Home Resale Fees. PLTA worked on this legislation with the Pennsylvania Association of Realtors ®. The Coalition also includes the American Land Title Association, and the National Association of REALTORS® (NAR) .  In addition, the Consumers Union and the Consumer Federation of America recently announced that they have joined the Coalition.

By Diana T. Sabol, CLTP, PLTA President

Did you ever wonder what dogs would say if they could talk? Since I adopted Chance a year and a half ago, I’ve always tried to do the very best thing for him but, it seems doing that hasn’t always worked out for the best.

Last spring, I took Chance to be groomed, only to find out that while he was there, somehow he had fallen out of the bathtub and hurt his right front paw.  The doctors discovered that it was severely broken and would require surgery to repair the damage by putting a plate and eight screws in the paw.  A splint was then put on his leg, which remained on for 13 weeks to hold everything in place. Shortly thereafter, the doctors discovered that the plate they had inserted had broken thus, requiring another surgery to remove it and another 13 weeks of wearing a splint.   After all of this it was determined that there was nothing more that could be done to fix the paw.

Chance now wears a brace everyday in order for him to walk and is on medication daily for pain.  This has been very difficult to watch since, prior to all this happening, Chance loved going for walks, playing, and sleeping on the couch!  I will always remember the time when he could do those things he loved, but if he could talk, I know he would say that finally, he has found someone in this world who loves him.

Many of us at times think our luck in this industry is similar to what Chance is experiencing – you can’t catch a break.  It’s times like these that your support of this association is so important.  There is strength in numbers!  Membership of agents is more important than it has ever been.  Agents dues now account for the largest percentage of our income so we would like to see more agents get involved with our industry’s trade association.  Membership renewals have gone out so if you haven’t yet renewed, please do so and thank you to all that have.  Your continued support is what makes PLTA one of the most active and effective Land Title Associations.

A Very Brief History of the Origin of the Deed and Recording System in the United States.

By Dave Jenkins, Senior Claims Counsel – Mid-Atlantic Region, Fidelity National Title Group

In feudal England, as in modern America, it was quite common for those who own land to donate it to churches or affiliated organizations.  Church land then, as now, was largely exempt from taxation.  A large number of such property donations in the time of the Crusades prompted Edward I of England to devise ways to avoid further losses to his tax revenue.  His primary solution to the perceived problem was the passage of the Statutes of Mortmain and Quia Emptores toward the end of the 13^th century.  These statutes prevented the conveyance of real property to religious bodies without state approval.

Clever jurists, however, soon came up with an alternative method of donating land to religious bodies without running afoul of the new prohibitions and their severe penalties.  Instead of conveying title to the property, the donors would instead convey only the use of the property while theoretically retaining title.  In this way, the landowners could achieve their goals while specifically avoiding the prohibitions imposed by the state.  At the time, however, the primary method for conveying title to the real property was through the use of the “livery of seisen” ceremony.  This was a straightforward and mostly undocumented public ritual in which a symbolic token of the property, typically a twig or clod of dirt, was presented from the seller to the buyer in front of several witnesses at or near the property being conveyed.  This method of conveyance was created as part of the Common Law legal system, which was imposed in England after the Norman Conquest.  Rather than attempting to modify this simple ceremony to fit their needs, landowners and their lawyers resorted to the employment of written documents, likely based on much older Roman deeds and trusts, which would carefully spell out that only the use of the land, but not the title, was being conveyed.

The most common form of these new instruments were called “bargain and sales,” which would  promise to convey everything associated with a property as well as vest the grantee with an equitable interest in the property, much like a modern agreement of sale.  The document itself was typically imprinted with the official seal of the donor, imparting it with the legal significance of being a “deed” (i.e. the official act) of the grantor.  The equitable interest created by such a deed was called a “Use” because, as described above, it did not convey title, but only the use of the land.  Also, as an equity matter, any dispute regarding a Use would typically be heard in England’s courts of equity as opposed to its courts of law.  This was significant because the courts of equity were primarily run by Catholic Church officials, while the courts of law were largely in the hands of appointees of the Crown.  Then, as now, the practice of forum shopping for legal disputes was quite common.

And it appears there were some disputes, prompting successive changes to the language of these documents.  As time went on, these deeds grew in verbiage to include elaborate lists of both physical amenities located on the land, as well as legal privileges associated with the land.  The practice became to list everything that could possibly be included with land such as “ways, waters, courses, streams, etc.” as well as catch-all legal terms such as “hereditaments and appurtenances” in an effort to demonstrate that everything but actual title was intended to be conveyed.  In theory, this would prevent the heirs of donors from going to court to reclaim anything associated with the property that was not specifically mentioned in the deed.

The use of bargain and sale deeds for donating land to the Church was successful and apparently tolerated for some time, but quickly came to an end as a result of the machinations of Henry VIII.  In an effort to supplement his already innovative marital dispute resolution practices, Henry had himself made the head of the Church in England with the passage of the first Act of Supremacy in 1534.  In the same year, likely in anticipation of the expenses associated with prolonged warfare and conflict with the Papacy and most of Catholic Europe, Henry had his agents catalog the assets of the Church in England.  These assets included the property of several monasteries that held land by virtue of bargain and sale deeds.

Aware of the vast wealth that these monasteries held, Henry devised a devious and thorough method to prepare the monasteries for liquidation.  In 1535 Parliament passed both the Statute of Uses and the Statute of Enrolments [sic].  The first statute converted all bargain and sale deeds into outright conveyances of fee simple title.  The second required all such deeds to be enrolled (i.e. recorded) in a central office in Westminster within a certain time period or the grantee (e.g. the monastery) would suffer the complete loss of title.  The monasteries, either unaware of Henry’s intent, or simply realizing they had no choice, complied and enrolled their deeds of bargain and sale, lease and release, and other similar forms in London.  And so, in 1536, equipped with a list of all the assets of all of the monasteries in England, the agents of Henry VIII carried out the process known to historians as the Dissolution of the Monasteries.  This consisted of seizing monastery property, both land and objects, as property of the state, along with the slaying of any recalcitrant church officials.  This ranks as one of History’s most effective “stand up and we won’t shoot you” ruses.

Despite its ominous beginnings, the increasing ascendant merchant and landowning classes in England were quick to take advantage of the newly devised system to facilitate the exchange of real property and attendant trade.  A central registry and laws regarding legal priority facilitated exchanges and borrowing by introducing greater certainty in ownership and repayment of secured debts.  The livery of seisen ceremony began to fall into disuse as deeds proved much more convenient and certain in their terms.  These two statutes, with minor modifications, continued to be the basis of real property exchanges in England and its colonies during the Colonial Period.  Although some colonies, such as Pennsylvania, had early failed attempts to create alternative systems for registering land, most eventually adopted the Statutes of Uses and Enrollments as a model for their recording systems.  The bargain and sale deed, more by force of custom than any pressing legal need, remained the primary method of conveyance due to its widespread use and legal recognition in these well-established recording systems.

Many deeds in Pennsylvania, as well as many other states, continue to carry these ponderous phrases from ancient bargain and sale deeds.  Several of these cumbersome phrases have received substantive judicial interpretation over the years, and so there is significant reluctance to remove them from deeds.  The trend, however, both in statutes and custom, has been to reduce deeds to a bare minimum of language, stating simply who the parties are and what land is being conveyed.  The end result of this process will likely be that the once elaborate bargain and sale deed will come to resemble the much more direct charter by which the Saxon rulers of England, who ruled before the Norman imposition of the Common Law, had the exclusive privilege of conveying real property.