- August 24, 2012
- All Georgia Issuing Offices
- Reese v. Provident Funding Associates, LLP
In Reese v. Provident Funding Associates, LLP (2012 Ga. App. LEXIS 666, 2012 Fulton County D. Rep. 2374; Decided June 12, 2012), the Georgia Court of Appeals held that the foreclosure was invalid because the notice of default did not include information on the “secured creditor” in violation of O.C.G.A. 44-14-162.2 nor did the notice comply with the terms of the security deed. In June of 2002, Izell and Raven Reese gave a security deed to Provident. After funding, Provident sold the loan to Resident Funding Company LLC. Provident continued to service the loan for Resident. Upon default, the first notice sent to the debtor identified Provident as the holder of the note and security deed. The second notice identified Provident as the “lender” not the “servicer”. There was no mention of Resident in either notice. The Court concluded that the statute requires the notice of default to properly identify the “secured creditor” and reflect that the notice is being sent by the “secured creditor” or by an “entity with authority on behalf of the secured creditor.”
COMPANY POLICY: As a reminder, Issuing Agents must verify that the current assignment into the foreclosing lender is filed for record prior to the time of sale or no later than the date of the sale of the property at auction. Issuing Agents must also be satisfied that any prior assignments constitutes an uninterrupted chain of ownership from the first mortgagee to the last assignee. Any error or inconsistency in the security deed, assignments and deed under power on the record may require review of the foreclosure ad and all notices prior to insuring a purchaser at foreclosure sale or a conveyance subsequent to foreclosure.
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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.
- Bulletins Replaced:
- Related Bulletins:
- GA2008007 Sales Made on Foreclosure under Power of Sale
- SLS2009011 Insuring at or after Mortgage or Deed of Trust Foreclosure
- SLS2010023 Insuring at or after Mortgage or Deed of Trust Foreclosure
- SLS2012005 Post-Foreclosure Conveyance out of Fannie Mae
- SLS2012011 Deeds in Lieu of Foreclosure
- Underwriting Manual:
- 11.28.4 Insuring An Assignment Of A Mortgage
- TX 12.26.4 Insuring An Assignment Of Mortgage
- Exceptions Manual: