Bulletin: FL000075

Date:
July 15, 1998
To:
All Florida Offices and Agents
RE:
Flip Transactions

Dear Associates:

This bulleting supplements our bulletin of November 24, 1997 concerning flip transactions and is intended to restate that bulletin as well.

The purpose of this bulletin is to bring to your attention the seriousness of the problem. Freddie Mac has just recently issued an Industry Letter warning lenders to be especially vigilant for occurrences of mortgage fraud in South Florida. According to Freddie Mac, loans originated in the Miami area in 1997 are defaulting at a rate of more than five times the national average. Not all these defaults come from the same cause but many result from flip transactions with inflated appraisals and in some cases inflation in income reporting and other misrepresentations.

THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER  AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.

References

Bulletins Replaced:
None
Related Bulletins:
FL000068 Flip Transactions
Underwriting Manual:
None
Exceptions Manual:
None
Forms:
None