Bulletin: FL000105

Dear Associates:

The purpose of this Bulletin is to address several issues concerning acceptable GAP periods. We will address two GAP periods. First, the GAP from the time of the last title continuation until the date of closing. Second, the GAP from the date of closing until the time of recording.

The GAP from the time of the last title continuation until the time of closing should not exceed two (2) business days. The two days run from the last available date a search can be obtained from the title plant, or official records, as the case may be. We realize that plant dates and courthouse searching dates will be behind and will vary from county to county. However, your search should indicate when the last update was completed and indicate the plant date or courthouse effective date to reflect how current is the information. This procedure will help prevent issues when auditing the files.

The GAP from the date of closing to delivery for recording should also be no more than two (2) working days. In the case of a refinance, the two days would start at the end of the rescission period when funds are disbursed. We realize that not all agencies have the ability to hand deliver recording documentation on a daily basis because of the relative location of the agency and court house. This is especially true for out-of-county closings. But your file should reflect that the documents were directed from your office to the recording office within two business days of the date of closing or disbursement, whether that be by FedEx receipt, or date of cover letter in your file, or whatever means you use to document that act. We recognize that not all recording offices are current, and our focus is on the date the documents are directed to the recording office.

If the agent is aware of any unusual risk such as an uncertified final judgment, or the recording of a notice of commencement, the closing should be held in escrow until all open matters are settled and written underwriting approval has been obtained.