Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

CU System
ICUL's Title Insurance Funds Bill Signed Into Law
NAPERVILLE, Ill. (8/27/13)--An Illinois Credit Union League-backed initiative, a bill amending the Illinois Title Insurance Act to authorize the use of a cashier's check, certified check or teller's check as settlement funds at real estate closings, was signed into law Aug. 16 by Illinois Gov. Pat Quinn.

"By creating a permissive option limited to cashier's checks, teller's checks and certified checks, HB 1335 tailors the focus of the 'good funds' provisions in the Title Insurance Act to reduce unnecessary costs to consumers, while maintaining key fraud prevention components within the existing law for the benefit of lenders and title insurance agencies," said Stephen Olson, ICUL executive vice president and general counsel.

The bill provides that when a financial institution and a title company are known to each other and agree, a cashier's check, certified check or teller's check will constitute legal settlement funds at a real estate closing.

The practice that had evolved since the "good funds" provisions of the Illinois Title Insurance Act were put in place in 2010 was to require consumers to use wired funds for settlement funds in amounts over $50,000. The requirement ensures that collected funds are available before disbursement by the title insurance agency handling the closing and reduces the potential for fraud.

However, wiring funds is much more costly for consumers than obtaining certified funds from their financial institution, the league said. HB 1335 addresses situations that can avoid the added expense upon mutual agreement by the lender and title company to use a teller's check, cashier's check or certified check for settlement funds greater than $50,000.

Also, the check must be delivered to the title insurance agency in time for it to be deposited into its fiduciary trust account before disbursement from that account--although it need not actually be deposited. That change to the Title Insurance Act is entirely permissive and, if used by the title company and lender, could reduce the consumer's costs in a real estate transaction, the league said.
RSS





print
News Now LiveWire
#DDoS attacks can expose weaknesses that cybercriminals can exploit. http://t.co/8HGmDuCV9j
13 minutes ago
.@voxdotcom asks: is 2015 the year Congress takes action on patent trolls? http://t.co/4vQ49fVP0W
23 minutes ago
Class is in session for Fin. Lit. Day on #capitolhill #NewsNow http://t.co/LuslMaSPlq
47 minutes ago
New website, resources for @cunacouncils http://t.co/926Y7QeDqW http://t.co/2BnZnwOjdU
56 minutes ago
Final field-of-membership rule tops April 30 NCUA agenda http://t.co/gFIhRhUCts
16 hours ago