CCE

Title Insurance Business

Nguyen Thai Son

14-May-2011

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Table of Contents
Title Insurance Business .................................................................................................................................... 1
1. Overview .................................................................................................................................................... 3
1.1. Purpose of Document ....................................................................................................................... 3
1.2. Terms & Acronyms ........................................................................................................................... 3
2. How Title Insurance Works........................................................................................................................ 3
2.1. Business Context .............................................................................................................................. 3
2.2. Escrow Business Process ................................................................................................................ 4
2.3. Title Insurance Business Process..................................................................................................... 6
2.4. Buyer/Seller/Lender Flow ................................................................................................................. 6
2.5. Module Flow ...................................................................................................................................... 7
2.6. Closing Pyramyd ............................................................................................................................... 9
2.7. Region/Branch Structure .................................................................................................................. 9
2.8. Key Actors/Users .............................................................................................................................. 9

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1. Overview
1.1. Purpose of Document
[The Client]’s solutions include a complete set of tools to facilitate and automate much of the work performed
by title companies nationwide. Its products include CCE, PaperlessCloser, Closing Market, FileScan Plus,
CC Scheduler, CC Supervisor, CC Reports, RTF DocHelper, Standard Language, and many other services.
These applications fully automate the title product process.

The document is to provide background information of title insurance and business functionalities being
implemented in applications containing:
− CCE,
− CCS,
− File Scan,
− Escrow Accounting,
− Workflow Dashboard,
− Standard Language

The knowledge/description has gained during 2-week study the client’s business. This document is expected
to help development team an overall understanding of the current systems and modules.

1.2. Terms & Acronyms

Term Description

ALTA American Land Title Association

Binder A Binder title policy is a promise to provide a Title Policy at a later date.
The process of completing a real estate transaction during which deeds, mortgages,
leases and other required instruments are signed and/or delivered, an accounting
Closing between the parties is made, the money is disbursed, the papers are recorded, and all
other details such as payment of outstanding liens and transfer of hazard insurance
policies are attended to.
CSS Commercial Settlement Statement
HUD Department of Housing and Urban Development.
The HUD-1 Settlement Statement is a standard form in use in the United States of
HUD-1
America which is used to itemize services and fees charged to the borrower by the lender
Settlement
or broker when applying for a loan for the purpose of purchasing or refinancing real
Statement
estate.
“Title” is the collective ownership records of a piece of real estate; it consists of all
Title transfers of real property rights, as well all loans that use the property as collateral.
"Title" also means having the right to control and convey a piece of real property.
TLTA Texas Land Title Association

2. How Title Insurance Works

2.1. Business Context
When buying a home, in most cases the buyer will be required to obtain title insurance. Title insurance protects
the buyer's legal ownership of the property. The insurance policy will be subject to certain exclusions and
exceptions. Prior to issuing the insurance, the title company will conduct a thorough search of public records
to determine the exceptions to coverage, such as any lien or restriction that affect ownership of the property.

For example, if the seller failed to pay property taxes, the government would have a lien against the property.
The property could be seized and sold to pay off the seller's back taxes. If the buyer were to purchase the
property without knowing about the unpaid taxes, he could end up having to pay the back taxes himself or risk
losing the property.

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Figure 1. Business Context of Closing process

In terms of real estate, there are two types of company:

− Title company escrow
− Independent escrow company

Title Company Escrow Independent Escrow Company

A title company offers insurance on the title of a home, as

An escrow is a neutral, impartial third party
well as does background checks, to make sure there are
that serves others (buyer, seller, lender, real
any liens (money owned) by the previous owner, and
estate agent, and the attorney) in a property
tacked on to the property. They do the paperwork, and
transfer. An escrow officer is the central point
they make sure that the title is transfered correctly to the
person throughout the closing process.
new home owner.
Escrow company is regulated by Department Title company escrow is regulated by Department of
of Real Estate. Insurance, which focuses on insurance laws.

Note: escrow officer = escrow holder = title officer = closing agent = the closer = settlement agent

2.2. Escrow Business Process

An escrow is an arrangement in which a neutral third party, called an escrow holder, holds legal documents
and funds on behalf of a buyer and seller and distributes them according to the buyer's and seller's instructions.
People buying and selling real estate often use an escrow for their protection and convenience.
− The buyer can instruct the escrow holder to disburse the purchase price only upon the satisfaction of
certain prerequisites and conditions.
− The seller can instruct the escrow holder to retain possession of the deed to the buyer until the seller's
requirements, including the receipt of the purchase price, are met.

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Duties of the escrow holder include:

− following the instructions given by the principals and parties to the transaction in a timely manner;
− handling the funds and/or documents in accordance with the instruction;
− paying all bills as authorized;
− responding to authorized requests from the principals;
− closing the escrow only when all terms funds in accordance with instructions and provide an
accounting for same: the Closing or Settlement Statement.

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2.3. Title Insurance Business Process

After the buyer has legal title of the property, he/she is considered the owner. But what happens if the title
came to him/her with a lien against it? What if the liens against the property total thousands of dollars?
That's where the title insurance comes into play.
Title Insurance insured the buyer against such things as liens, undiscovered liens, improper recording of
deeds, and other things that could negatively affect the title. The protection period of the title insurance
extends backward, which means that it insures against losses from the past ownerships of the property. And
the insurance is in effect as long as the buyer owns the property.

Figure 2. How Title Company works in Closing Process

Note: in CCE, the Title Search is created outside. Users enter the results then in Commitment/Policy/Binder
section of order entry. It is almost at the time of closing, order information will be loaded/entered in HUD,
Commitment/Policy/Binder, Check Writing, and Invoices details.

Title insurance cannot be transfered. That means if the previous buyer already has his title insurance, the
current buyer cannot have the current owner transfer to him, even if it is brand new. The current buyer has to
buy new title insurance himself. Who pays for the cost of title insurance, the buyer or the seller, depends on
what's customary for that city.

2.4. Buyer/Seller/Lender Flow

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Figure 3. Lender/Buyer/Seller Flow in title insurance

A mortgage is a security interest in real property held by a lender as a security for a debt, usually a loan of
money. A mortgage itself is not a debt, it is the lender's security for a debt. It is a transfer of an interest in
land (or the equivalent) from the owner to the mortgage lender, on the condition that this interest will be
returned to the owner when the terms of mortgage have been satisfied or performed. In other words, the
mortgage is security for the loan that the lender makes to the borrower.

Mortgage Discharge is a document that confirms a collateral loan - one that is secured with real estate - has
been released from a property. Lender must pay mortgage discharge fee.

2.5. Module Flow

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Figure 4. CCE Module Flow

In which,
− Complete Closing Supervisor is the module of CC suite where all adminstrative functions and
security options are set at the system, region, and branch levels. This application is also to define
the structure for branches, users, tasks, departments, and individuals. Typically, only a few users
have access to this.
− Complete Closing Enterprise: the cornerstone application of The Client’s suite of products. CCE
provides various tools the client need for title insurance and closings from tracking an order to
printing final policies.
− Workflow Dashboard: is an application allowing an efficient process for tracking the organization's
orders from beginning to end. The dashboard setup allows user to manage each task of the order,
and assign it to specific departments and people within this organization with respective due dates. It
provide tools for management to develop performance and accountability while eliminating tasks
thay may be left behind or missed.
− CCScheduler is used to graphically view, create, and edit closing information for different orders that
exist within CCE. It also can schedule events related or unrelated files and schedule resources.
− FileScan is used to store and manage documents, primarily related files in CCE. With FileScan, the
title company is able to sort, search and e-mail scanned copies of documents resulting from a
closing and/or attach them to a file for retention compliance.
− Escrow Accounting program works with CCE to enable monthly reconciliation that escrows account
bank statements, and prepares the three components of monthly Three Way Balance.
− File Tracking is designated for tracking and reporting both in File Tracking and CCE. This application
allows companies to set up departments and users and electrionically track file activity within CCE.
Only a few users have access to this.

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− Standard Language feature enables user to store passages of text one time, and then reuse them
wherever needed in CCE. Stardard language passages can be simple text, or can include user
prompts for data entry and/or inserted field values.
− Reporting (or CCReports): stores all The Client’s standard reports and any custom reports created
for the company.
− Web Publishing (or PaperlessCloser)

2.6. Closing Pyramyd

Figure 5. Closing Pyramid

The CCE program is based on Order Entry. Everything in the problem feeds from the Order Entry module of
the program. When being used by endusers, if there were a problem in the other modules, most likely it would
have to correct it in the Order Entry module.

2.7. Region/Branch Structure

Figure [Link]/Branch Structure

2.8. Key Actors/Users

Actor Descriptions
System − Unlimited access in the Supervisor module
Administrator − Allowed to make changes to all Regions, Branches, and Users
− Region must be set to 0
Region − Responsible for specific Region
Administrator

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− Responsible for all corresponding Branches that belong to the

Region
− Permitted to access screens listed in the table below to
determine default settings affecting own Region and
corresponding Branches.
Branch − Responsible for a specific Branch or Branches
Administrator − Permitted to access screens listed in the table below to
determine default settings, affecting such Branches.
Escrow Escrow Administrators allow more access to the program such as
Administrator ability to make changes to the Checks/Deposit browsers,
modifying a finalized reconciliation and different screens in Escrow
Accounting.
Closer / Person designated to actually perform closings (i.e., attorney,
Closing closer or escrow officer). Also, the person who prepares, balances
Agent the escrow and issues checks. Closer is the title company staff
member responsible for the order.

Note: this person is also entered in Order Entry. When this closer
is associated with a CCE user, and he/she is assigned a task, the
system dynamically assigns the task to the person selected in
Closing Agent drop-down in Order Entry.
Escrow Person designated to prepare files for the order.
Officer
Note: this officer is also entered in Order Entry. When this officer
is associated with a CCE user, and he/she is assigned a task, the
system dynamically assigns the task to the person selected in
Escrow Officer drop-down in Order Entry.
Escrow Person designated to close files (e.g., an escrow assistant).
Processor
Note: this person is also entered in Order Entry. When this person
is associated with a CCE user, and he/she is assigned a task, the
system dynamically assigns the task to the person selected in
Escrow Processor drop-down in Order Entry.
Title Officer Person is responsible for verifying title of the order.

Note: this person is also entered in Order Entry. When this person
is associated with a CCE user, and he/she is assigned a task, the
system dynamically assigns the task to the person selected in Title
Officer drop-down in Order Entry.
Title Person who conducts title searches, prepares Commitments and
Processor Policies and creates and disburses documents.

Note: this person is also entered in Order Entry. When this person
is associated with a CCE user, and he/she is assigned a task, the
system dynamically assigns the task to the person selected in Title
Processor drop-down in Order Entry.

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