An Important Message From Mike Patterson Regarding The Coronavirus Disease (COVID-19)
Clients and Friends,
The acceleration of the Coronavirus pandemic has caused us to move forward our plans for our employees to work remote. Effective immediately, our production staff is working from home on PPDocs-owned laptops, giving them secured access to the same systems they use everyday to service our clients. We don’t expect any effect on the quality or timeliness of our services and actually feel these measures will provide better redundancy and reliability during these times.
Legal, Compliance, and Accounting will continue to be fully available to our clients during this period. The following are the email groups that you can use to contact us:
|Type of Inquiries||Email Address|
|Document preparation questions and status updates on document orders||DocPrep@ppdocs.com|
|Questions for fulfillment orders||Fulfillment@ppdocs.com|
|Compliance specific questions (e.g. TRID, federal reg., state reg.)||Compliance@ppdocs.com|
|Technical support, bug reporting||Support@ppdocs.com|
|Legal specific questions (e.g. title, survey, state law)||Legal@ppdocs.com|
|New clients, registering, pricing quotes||CR@ppdocs.com|
|Accounting, billing issues||Accounting@ppdocs.com|
During this time, you may not be able to reach us by phone directly. Emailing us is the fastest way to get a response. If you need to speak to someone on the phone, please email the appropriate department and someone will contact you as soon as they are able to.
God bless us all!
Relief Modification Services for Customers of Clients Affected by the COVID-19 Pandemic
In light of the significant economic and social dislocation occurring throughout the United States as a result of the COVID-19 pandemic, we have available two forms to assist lenders in helping borrowers who are unable to meet their obligations. The forms are available to our clients for electronic signature using our E-Sign service:
Simple Non-Recordable Loan Modification Agreement
A comprehensive memo discussing these forms, their use, and their limitations, is available here. An Executive Summary of this memo has been created for your management and/or board members and is available here.
Lenders may prepare these documents using the PPDocs, Inc. system for $75.00 per transaction. Lenders may use our system to prepare these documents even if the original loan documents were not prepared through PPDocs, and even if the lender is not a regular client of the firm.
The only requirement for preparing these documents through our system for those who are not current clients is that they register with PPDocs at www.ppdocs.com. Registration is very simple. . . taking less than 5 minutes, and there is no cost to register.
Because it is likely that customers may be unwilling or unable to attend a physical signing outside the home, these documents are offered together with our electronic signature services, which we provide through DocuSign. When prepared through our system, the documents can be electronically delivered to the customer for electronic signature in the comfort and safety of their own home.
eRecording Service Can Help During This Challenging Time
As a result of the spread of COVID-19, there is a growing possibility that county recorders will halt the recording of physical documents affecting title to real property, including warranty deeds, deeds of trust, releases, etc. Based on preliminary information we have received, these county recorder offices may still continue to accept and record documentation electronically.
PPDocs, Inc. offers a robust eRecording platform for such instruments and is connected to over 600 counties around the country. Further information regarding our eRecording platform and how it works can be found at the link below.
Please be aware that our eRecording platform is only available for current, active clients. If you would like to request access to our eRecording platform or have any questions about eRecording, please contact our Support Group at firstname.lastname@example.org.
Texas Title Insurance "Gap" Coverage
Clients and Friends,
Re: Texas Title Insurance “Gap” Coverage
In the past couple of days, we have had several clients ask about a new exception that may be appearing in title commitments as a result of the COVID-19 crisis. The exception some lenders may see in Schedule B or C of the title commitment is the following (or something with similar wording):
The Company reserves the right to make exceptions and requirements prior to and following closing for issuance of a title policy(ies) based upon the specifics of the transaction, the review of the closing documents, and changes in recording and title searching capabilities resulting from the consequences of the COVID-19 pandemic and business and government office closures.
This exception relates to “gap” coverage, which is typically covered by the mortgage title policy. The period between the time when the borrower(s) sign their loan documents and the actual filing of the deed of trust is commonly referred to as the “gap” period. Even though Texas title insurance rules require the mortgagee title policy to be dated no earlier than the date of the deed of trust, rather than the date of recording or funding (see TDI Bulletin No. 152-July 01, 1980: https://www.tdi.texas.gov/bulletins/1995earlier/152.html), our current Texas title insurance policy (Form T-2: https://www.tdi.texas.gov/title/documents/form_t-02.pdf) provides coverage for that “gap” period in Paragraph 14 (emphasis added):
14. Any defect in or lien or encumbrance on the Title or other matter included in Covered Risks 1-13 that has been created or attached or has been filed of recorded in the Public Records subsequent to Date of Policy and prior to the recording of the insured Mortgage in the Public Records.
The Title Company will also pay the costs, attorney fees and expenses incurred in the defense of any matter insured against by this Policy, but only to the extent provided in the Conditions.
Although not contained in the actual policy itself the Texas Short Form Residential Loan Policy of Title Insurance (Form T-2R: https://www.tdi.texas.gov/title/documents/form_t-02r.pdf) has the same gap coverage protections because it incorporates the provisions of the longer T2 mortgagee title policy:
…HEREBY INSURES THE INSURED IN ACCORDANCE WITH AND SUBJECT TO THE TERMS, EXCLUSIONS, AND CONDITIONS SET FORTH IN THE LOAN POLICY OF TITLE INSURANCE (FORM T-2) PRESCRIBED BY THE TEXAS COMMISSIONER OF INSURANCE AND IN EFFECT AT DATE OF POLICY, ALL OF WHICH ARE INCORPORATED HEREIN.
Typically, the “gap” period the title company is insuring is only a few days. Accordingly, the risk is considered acceptable and insurable. If recording offices start closing due to the Coronavirus pandemic, however, that previous relatively short period of exposure may become longer and the associated risk not acceptable to title insurers. In an effort to shift that risk from the title company to the lender, title companies may request to start adding the above-exception to lender coverage in their mortgagee commitments/policies.
It will be a business decision for the lender whether to accept this exception in the mortgagee title policy, but the risk could be considerable. The above exception is very broad. In our view, the FNMA and FHMLC Selling Guides do not permit this type of exception in the mortgagee title policy. Although we do not yet know, we doubt it would be acceptable to most other investors either.
Accordingly, we recommend our clients carefully review title commitments they receive going forward to ensure that the above exception or something similar is not included in Schedule B or C. If a client does see this exception in their title commitment on a secondary market loan, we strongly recommend obtaining investor approval before proceeding. For portfolio loans, it will be a business/risk decision whether to accept this exception in the mortgagee title policy.