TO: ALL FLORIDA FUND MEMBERS
FROM: Underwriting Department
Re: Ally Mortgage/GMAC and JP Morgan/Chase Foreclosures
Recently, officials at GMAC Mortgage, a division of Ally Financial, Inc., JP Morgan/Chase, and most recently Bank of America announced that they are halting evictions of foreclosed borrowers and are halting REO sales in 23 states, including Florida. In fact, several agents have reported receiving written cancellation of pending transactions involving these lenders.
Accordingly, Old Republic policies may not be issued insuring REO sales after completion of foreclosure by these two lenders.
There is no prohibition on writing title insurance on short sales or following a deed-in-lieu of foreclosure involving these lenders or any prohibition against insuring titles where a mortgage foreclosure by Ally Bank/GMAC, JP Morgan Chase or Bank of America appears in the back chain of title.
We are continuing to monitor this situation and expect to be able to resume insuring REO sales by these lenders as soon as the objectionable issues have been resolved.
Please direct any questions you may have to The Fund's Underwriting Department at 800-432-9594.
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