First American Corporation (New) · NYSE:FAF
First American Corporation (New) — First American — Investor Presentation (December 2004)
6 slides from First American Corporation (New)'s investor presentation, December 2004
Slide 1: Equity Lines of Credit: Beware the Home Equity Loan Trap, Case Study #1
Equity Lines of Credit Beware the Home Equity Loan Trap Case Study #1 ? WHOSE ON FIRST? The Jones Home The Jones Home The home was Valued today at bought 5 years $225,000 ago for $140,000 The owner wants to Equity borrow against the They have a first equity appreciation. mortgage lien of $125,000 re
Slide 2: Their local bank tells them they can set up an Equity Line of Credit
Their local bank tells them they can set up an “Equity Line of Later, the Jones decide to take Credit” secured by the home. advantage of the lowest mortgage interest rates in almost 30 years. They can draw money against the line and pay it off when they wish. It is like a “Super Credit Card”. Puttin
Slide 3: The Title Company has a dilemma
The Jones decide to borrow money Problem: The Equity to take a trip to Florida for the Line of Credit, which winter. They use the checks from at one time was a the line of credit that were still in the Junior Lien to their Refinance desk draw at home. purchase money in junior loan is now a senior li
Slide 4: What is an Escrow Officer to Do? Case Study #2
In order to protect the insured What is an Escrow lender in the first position, it is important that the escrow Officer to Do? closer request that the borrower formally cancel the home equity loan. Each lender has their The borrower is also to sign a own guidelines for letter to the lender requestin
Slide 5: Our Home For Sale: However, the Equity Line Lender
Instead of The new owner of the home Call Jon Bartlett choosing to purchases the property by refinance their borrowing money secured by a home, the Jones first deed of trust. Our Home have decided to The escrow closer or assistant For Sale move. They put contacts the lender holding the their home on
Slide 6: Title Insurance Company faced with paying an avoidable claim
Never-the-less, the Title Insurance Company is now faced with the prospect of paying a claim that could have been avoided had proper precautions been taken by the escrow officer. #!*!!# 6
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