AGENDA Iowa Title Guaranty Board Meeting June 2, …...2020/06/02  · AGENDA Iowa Title Guaranty...

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AGENDA Iowa Title Guaranty Board Meeting June 2, 2020 Telephonic Meeting Dial +1 515-348-6300 Conference ID: 800 881 785# 10:30 a.m. I. Roll Call II. Action Items a. ITG Board Meeting Minutes March 3, 2020 b. Proposed 2021 ITG Board Meeting Dates c. New Business i. Transfer of Funds 1. Resolution ITG 20-02 ii. ALTA Residential Assignment Endorsement and Mortgage Modification Endorsement 1. Resolution ITG 20-03 iii. Annual Participation Fee Increase 1. Resolution ITG 20-04 III. Discussion & Informational Items a. Financial Report David Morrison b. Business Relationship Report Deb Franklin c. Claims Report Doug Mizer d. Mortgage Release Report Kevin Blackman e. Commercial Update Matt Veldey f. ITG Director’s Update Lindsey Guerrero IV. Public Comment: The public is invited to provide comments at this time. Each speaker is asked to limit comments to 5 minutes. V. Adjournment: Next Board meeting is Tuesday, September 1, 2020. Iowa Finance Authority, Helmick Room Des Moines, Iowa 50315 10:30 a.m.

Transcript of AGENDA Iowa Title Guaranty Board Meeting June 2, …...2020/06/02  · AGENDA Iowa Title Guaranty...

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AGENDA

Iowa Title Guaranty Board Meeting

June 2, 2020

Telephonic Meeting

Dial +1 515-348-6300

Conference ID: 800 881 785#

10:30 a.m.

I. Roll Call

II. Action Items

a. ITG Board Meeting Minutes March 3, 2020

b. Proposed 2021 ITG Board Meeting Dates

c. New Business

i. Transfer of Funds

1. Resolution ITG 20-02

ii. ALTA Residential Assignment Endorsement and Mortgage Modification Endorsement

1. Resolution ITG 20-03

iii. Annual Participation Fee Increase

1. Resolution ITG 20-04

III. Discussion & Informational Items

a. Financial Report David Morrison

b. Business Relationship Report Deb Franklin

c. Claims Report Doug Mizer

d. Mortgage Release Report Kevin Blackman

e. Commercial Update Matt Veldey

f. ITG Director’s Update Lindsey Guerrero

IV. Public Comment: The public is invited to provide comments at this time. Each speaker is asked

to limit comments to 5 minutes.

V. Adjournment: Next Board meeting is Tuesday, September 1, 2020.

Iowa Finance Authority, Helmick Room

Des Moines, Iowa 50315

10:30 a.m.

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BOARD MEETING MINUTES

Iowa Title Guaranty

Des Moines, Iowa

March 3, 2020

Board Members Present

Chuck Winkleblack, Chair

(via phone)

Daniel Seufferlein (via

phone)

Judy Hilgenberg

Jason Froehlich

Sarah Pesek

Board Members Absent

None.

Staff Members Present

Lindsey Guerrero, Director, Iowa Title Guaranty

Matt Veldey, Commercial Underwriting Attorney

Kevin Blackman, Residential Underwriting

Attorney

Doug Mizer, Residential Underwriting Attorney

Ethan Murray, Commercial Attorney

Katherine Smith, Residential Underwriting

Attorney

Deb Franklin, Business Relationship Manager

Rachel Pettit, Audit Specialist

Heidi Koll, Participant Program Administrator

Rita Grimm, Chief Legal Counsel

David Morrison, Accounting Manager

Steve Harvey, Accounting Director

Others Present

Jan Gemar, ILTA (via phone)

Zach Ruroden, ILTA (via phone)

Call to Order

Chairman Winkleblack attended via telephone and requested that Ms. Hilgenberg attend to the

meeting. Ms. Hilgenberg called to order the Meeting of the Iowa Title Guaranty (ITG) Board of

Directors, March 3, 2020 at 10:30 a.m. Roll call was taken, and a quorum was established with the

following Board Members present: Members Judy Hilgenberg, Jason Froehlich and Sarah Pesek.

Chair, Chuck Winkleblack and Dan Seufferlein participated by phone.

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Action Items

Review and Approval of December 3, 2019 Board Meeting Minutes

MOTION: On a motion by Ms. Pesek and a second by Mr. Froehlich, the Board unanimously

accepted the December 3, 2019 Board Meeting Minutes.

New Business

ITG 20-01 – Transfer of Funds

Mr. Morrison presented the proposed transfer of ITG funds outlined in Resolution ITG 20-01. The

proposed transfer would be in the amount of $250,000.00 to Iowa Finance Authority’s (IFA) housing

assistance fund. Mr. Morrison requested board action on ITG 20-01.

MOTION: On a motion by Mr. Seufferlein and a second by Mr. Froehlich, the Board unanimously

approved ITG Resolution 20-01.

Discussion and Informational Items

Financial Report

Mr. Morrison reported that ITG operated favorably to the budget for the first seven months of 2020.

Operating revenue was 19.1% above budget and 29.0% above last year, while operating expense

was 3.5% favorable to budget and 14.7% unfavorable to last year. Employee expense and

professional services account for this variance to budget. The transfers to the IFA Housing

Assistance Fund exceeded budget by $98,000.00. Net income is exceeding the budget.

Commitments issued thus decreased 15% compared to December, while outstanding receivables

grew 26%.

Business Relationship Update

Ms. Franklin met with mortgage lenders and credit unions with 28 appointments in January, 17 of

those were in the Quad Cities. She had 26 appointments in Cedar Rapids, Dubuque and Des

Moines in February.

Claims Update

Mr. Mizer reviewed the current claims report with the Board, stating that FY19 year to date

ITG had paid out $46,130.79 in claims. He gave a detailed report regarding the trends in claims

and the types of claims received. Mr. Mizer supplemented his written report to show updated

reserves as of 3/2/20 are now $419,797.53. The last quarter of the fiscal year he estimates

approximately 101 total claims for FY19. Ms. Hilgenberg asked about claims we typically see

arising from judgments against prior titleholders. Mr. Mizer stated that they are most often claims

we can deny outright, such as a lien on the property over 10 years old. They typically do not arise

from an error on the front end of the transaction, but instead due to unfamiliarity with Iowa law on

behalf of the submitting claimant.

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Mortgage Release Update

Mr. Blackman reported that through January 2020, 176 mortgage release requests had been

received. He stated that 110 of the requests were in conjunction with the Rapid Certificate

program (63%), 66 requests included the $200 fee (34%) and 211 releases had been filed. Mr.

Blackman reported that since inception, 6,602 mortgages have been released through this

program.

Commercial Update

Mr. Veldey reported that the commercial team has been actively promoting their services.

Samantha Askland and Ethan Murray attended the ICREA Luncheon in early February, where the

organization discussed upcoming projects in Bondurant. Samantha Askland and Kim Praska

attended the IFA luncheon in February, as well. Samantha Askland and Kim Praska will attend

the IMA Conference, where commercial will have a booth, and Samantha Askland will attend the

ILTA Conference, where commercial will have a booth. Mr. Veldey noted this will be the first

time the commercial staff will attend or have a booth at either event. Samantha Askland will also

attend the National Settlement Services Seminar in late June.

Mr. Veldey will participate in the ALTA Forms Quarterly Meetings via conference call, as they

are proposing changes to lender/owner forms and endorsements.

Mr. Veldey reported that commercial had their best February to date, with revenue just under

$100,000.00. The commercial team had 6 closings and commitments had increased from the prior

year.

ITG Director Update

Ms. Guerrero reported that the title insurance bill did not make it through the legislative funnel this

session and that we will continue to monitor developments.

Ms. Guerrero then introduced Katherine Smith, the new ITG Residential Underwriting Attorney.

Director Guerrero provided an update on the software development with Qualia Labs, Inc.

The Qualia Stakeholder Meetings went well and survey results were as expected, in that ITG

Participants are eager to see the Iowa-specific deployment which is still undergoing

development. However, as Director Guerrero pointed out, the purpose of the meetings was

to serve as a high-level preview of the platform to obtain participants’ feedback to assist

with development of the ITG deployment. Overall, the meetings were positive.

ITG’s Software Programmer, Michael Johnson, delivered an API to Qualia to facilitate data

migration process from CAP to Qualia. ITG is currently working with Qualia to develop

roles, authentications and credentials within the Qualia platform. Beta testing will begin in

early summer. Staff is currently viewing the Qualia University training videos to provide

feedback as to how the videos should be tailored for the Iowa platform.

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ITG and Qualia will host a variety of regional training labs in October 2020.

The ITG Annual Conference will be held in conjunction with the IFA Housing Conference on

September 9-11, 2020. Qualia will host training labs during the conference.

Director Guerrero reported on ITG marketing efforts:

• ITG is developing new marketing materials to educate consumers and lenders about Iowa’s

land-title system and the benefits of obtaining ITG coverage.

• The new marketing materials include informational flyers, keychains for homebuyers, new

branded business cards.

Director Guerrero reported on the following compliance matters:

• ITG is encountering an increase in the number of abstract company sales.

• ITG intends to improve education efforts by improving the frequency and the means by

which ITG provides participants with educational materials detailing ITG requirements.

• ITG is updating the participant application to make it more educational and instructive

regarding participant responsibilities.

Ms. Guerrero informed the Board that ITG is considering a variety of policy changes to be proposed

to the Board for approval at the June Board meeting. These proposed updates include, but are not

limited to, pricing changes, increased professional liability insurance requirements, and forms

updates.

She concluded her remarks with an update on the sale of 2015 Grand Ave. which she hopes will

close by the end of the month.

Mr. Froehlich inquired as to the appropriate level of staff to handle the decrease in mortgage interest

rates. Ms. Guerrero stated that her preference would be to hire additional staff pending Director

Durham’s approval.

Public Comment

There were no comments from the public.

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Adjournment

MOTION: On a motion by Ms. Pesek and a second by Mr. Froehlich, the March 3, 2020 Meeting

of the ITG Board of Directors adjourned at 11:29a.m.

Dated this 2nd day of June, 2020.

Respectfully submitted: Approved as to form:

Lindsey A. Guerrero

Charles Winkleblack

Director, Iowa Title Guaranty Board Chair, Iowa Title Guaranty

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Proposed 2021 ITG Board Meeting Dates

March 2, 2021

June 1, 2021

August 31, 2021

November 30, 2021

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ITG RESOLUTION

ITG 20-02

WHEREAS, Iowa Title Guaranty (“ITG”), in accordance with the statutory directives set

forth in Chapter 16 of the Code of Iowa, as amended, operates a program to offer guaranties of

real property titles to facilitate mortgage lenders’ participation in the secondary market and to

add to the integrity of the land-title transfer system in the state of Iowa; and

WHEREAS, ITG generates revenue by the sale of ITG Certificates, the revenues of

which are deposited in the ITG Fund held by the treasurer of state with all interest generated

from the ITG Fund being deposited in the housing trust fund; and

WHEREAS, section 16.91(1) of the Iowa Code provides that “if the authority board in

consultation with the ITG board determines that there are surplus funds in the ITG fund after

providing for adequate reserves and operating expenses of ITG, the surplus funds shall be

transferred to the housing assistance fund created pursuant to section 16.40.”; and

WHEREAS, the ITG Board has determined that there are surplus funds in the ITG Fund

in the amount of $1,000,000 and it is recommending to the Iowa Finance Authority Board that it

would be appropriate to transfer the surplus funds to the Housing Assistance Fund pursuant to

Iowa Code section 16.91(1).

NOW, THEREFORE, BE IT RESOLVED that the ITG Board adopts and recommends

that the surplus funds in the ITG Fund, in the amount of $1,000,000 be transferred to the

Housing Assistance Fund created pursuant to Iowa Code section 16.40.

PASSED AND APPROVED this 2nd day of June, 2020.

___________________________________________

Charles Winkleblack, Iowa Title Guaranty Board Chair

____________________________________________

Lindsey A. Guerrero, Iowa Title Guaranty Board Secretary

(Seal)

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RESOLUTION

ITG 20-03

WHEREAS, Iowa Title Guaranty, a division of the Iowa Finance Authority (“ITG”), in

accordance with the statutory directives set forth in Chapter 16 of the Code of Iowa, as amended, operates

a program to offer guaranties of real property titles to facilitate mortgage lenders’ participation in the

secondary market and to add to the integrity of the land-title transfer system in the state of Iowa; and

WHEREAS, pursuant to Iowa Code §16.91(1) and 265 Iowa Administrative Code 9.5(16), ITG

shall adopt and issue such contracts, forms, and manuals as ITG deems necessary to set out standards and

requirements, and such other matters that the division deems necessary for implementation and effective

administration of the ITG program; and

WHEREAS, pursuant to Iowa Code §16.91(1) and 265 Iowa Administrative Code 9.5(16), the

form of ITG commitments, certificates, and closing protection letters will be adopted, revised or amended

by resolution of the Board; and

WHEREAS, ITG has adopted and currently uses both the Assignment Endorsement (ALTA

Endorsement 10-06) and Mortgage Modification Endorsement (ALTA Endorsement 11-06); and

WHEREAS, The Assignment Endorsement guarantees against loss or damage sustained

by the assignee of a mortgage arising from defects in a specified assignment of mortgage; and

WHEREAS, The Modification Endorsement guarantees against loss or damage sustained

by a mortgagee arising from defects in or lack of priority arising from a specified mortgage

modification; and

WHEREAS, The ALTA Assignment Endorsement and Mortgage Modification Endorsement

forms contain a “Date of Endorsement” field which is not present in ITG’s adopted versions of said

forms; and

WHEREAS, It is ITG’s desire to amend both the Assignment Endorsement and Mortgage

Modification forms to include the “Date of Endorsement” field; and

WHEREAS, it is the desire of the ITG Director and staff to obtain Board approval to amend its

Assignment Endorsement and Mortgage Modification forms to include the “Date of Endorsement” field,

and to obtain approval to implement the Assignment Endorsement and Mortgage Modification forms, as

modified, at the ITG Director’s discretion; and

NOW, THEREFORE, BE IT RESOLVED that the ITG Board approves the amendments to the

Assignment Endorsement and Mortgage Modification Endorsement, approves implementation of

Assignment Endorsement and Mortgage Modification Endorsement, as modified, at the ITG Director’s

discretion, and the ITG Board directs the ITG Director to proceed with notifying the IFA Board of the

ITG Board’s consent to adoption of said amendments to the Assignment Endorsement and Mortgage

Modification Endorsement forms.

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PASSED AND APPROVED this 2nd day of June, 2020.

__________________________________________

Charles Winkleblack, Iowa Title Guaranty Board Chair

__________________________________________

Lindsey A. Guerrero, Iowa Title Guaranty Board Secretary

(Seal)

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To: Iowa Title Guaranty Board of Directors

From: Kevin Blackman, Residential Underwriting and Claims Attorney

Date: April 22, 2020

Re: Assignment Endorsement (ALTA Endorsement 10-06) and Mortgage Modification

Endorsement (ALTA Endorsement 11-06)

Iowa Title Guaranty (“ITG”) provides title coverage to lenders, investors, owners, and purchasers

of residential real estate in the State of Iowa. As an integral part of those services, ITG offers a full

range of title products on American Land Title Association (“ALTA”) forms, including closing

protection letters and endorsements.

ITG has adopted ALTA’s Assignment Endorsement and Mortgage Modification Endorsements, and

both forms are currently in use by ITG. The Assignment Endorsement guarantees against loss or

damage sustained by the assignee of a mortgage arising from defects in a specified assignment of

mortgage. The Mortgage Modification Endorsement guarantees against loss or damage sustained

by a mortgagee arising from defects in or lack of priority arising from a specified mortgage

modification.

While conducting a review of its endorsements currently in use, ITG identified that the Assignment

Endorsement and Mortgage Modification Endorsement as adopted by ITG both omit a “Date of

Endorsement” field that appears in the corresponding ALTA forms. The “Date of Endorsement”

provides a field for the effective date of the endorsement to be specified, and is a useful data field

allowing for the date of the assignment or mortgage modification to be shown on the endorsement

itself. As such, ITG recommends that both endorsements be amended to include the “Date of

Endorsement” field. Both endorsements would remain unchanged in all other respects. Therefore,

I request that the Board approve Resolution ITG 20-04.

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AssignmentALTA Endorsement 10-6

1. The name of the Guaranteed at Date of Endorsement and referred to in this endorsement as the “Assignee” is amended to read: __________.

2. ITG guarantees against loss or damage sustained by the Assignee by reason of:

a. The failure of the following assignment to vest title to the Guaranteed Mortgage in the Assignee: __________;

b. Any modification, partial or full reconveyance, release, or discharge of the lien of the Guaranteed Mortgage recorded on or prior to Date of Endorsement in the Public Records other than those shown in the Certificate or a prior endorsement, except: __________;

This endorsement does not guarantee against loss or damage, and ITG will not pay costs, attorneys' fees, or expenses, by reason of any claim that arises out of the transaction creating the assignment by reason of the operation of federal bankruptcy, state insolvency, or similar creditors' rights laws that is based on:

1. the assignment being deemed a fraudulent conveyance or fraudulent transfer; or

2. the assignment being deemed a preferential transfer.

This endorsement shall be effective provided that, at Date of Endorsement, (1) the note or notes secured by the lien of the Guaranteed Mortgage have been properly endorsed and delivered to the Assignee, or (2) if the note or notes are transferable records, the Assignee has "control" of the single authoritative copy of each "transferable record" as these terms are defined by applicable electronic transactions laws.

This endorsement is issued as part of the certificate. Except as it expressly states, it does not (i) modify any of the terms and provisions of the certificate, (ii) modify any prior endorsements, (iii) extend the Date of Certificate, or (iv) increase the Amount of Coverage. To the extent a provision of the certificate or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the certificate and of any prior endorsements.

Date of Endorsement: __________

Certificate Number:

(ALTA Revised 02/03/2010)

CERTIFICATE NO.: VERIFICATION CODE:

The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Copyright 2014 American Land Title Association. All rights reserved.

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Mortgage ModificationALTA Endorsement 11-06

ITG guarantees against loss or damage sustained by the Guaranteed by reason of:

1. The invalidity or unenforceability of the lien of the Guaranteed Mortgage upon the Title at Date of Endorsement as a result of the agreement dated __________, recorded __________ ("Modification"); and

2. The lack of priority of the lien of the Guaranteed Mortgage, at Date of Endorsement, over defects in or liens or encumbrances on the Title, except for those shown in the certificate or any prior endorsement and except: __________

This endorsement does not guarantee against loss or damage, and ITG will not pay costs, attorneys’ fees, or expenses, by reason of any claim that arises out of the transaction creating the Modification by reason of the operation of federal bankruptcy, state insolvency, or similar creditors’ rights laws that is based on:

1. the Modification being deemed a fraudulent conveyance or fraudulent transfer; or

2. the Modification being deemed a preferential transfer except where the preferential transfer results from the failure

a. to timely record the instrument of transfer; or

b. of such recordation to impart notice to a purchaser for value or to a judgment or lien creditor.

This endorsement is issued as part of the certificate. Except as it expressly states, it does not (i) modify any of the terms and provisions of the certificate, (ii) modify any prior endorsements, (iii) extend the Date of Certificate, or (iv) increase the Amount of Coverage. To the extent a provision of the certificate or a previous endorsement is inconsistent with an express provision of this endorsement, this endorsement controls. Otherwise, this endorsement is subject to all of the terms and provisions of the certificate and of any prior endorsements.

Date of Endorsement: __________

Certificate Number:

(ALTA Adopted 06/17/2006)

CERTIFICATE NO.: VERIFICATION CODE:

The use of this Form is restricted to ALTA licensees and ALTA members in good standing as of the date of use. All other uses are prohibited. Reprinted under license from the American Land Title Association.

Copyright 2014 American Land Title Association. All rights reserved.

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RESOLUTION TG 20-04

WHEREAS, Iowa Title Guaranty (“ITG”) is a division of the Iowa Finance Authority (the

“Authority”), created by Iowa Code §16.2A. The ITG Board (the “Board”), in accordance with

statutory directives set forth in Chapter 16 of the Code of Iowa, as amended, operates a program

to offer guaranties of real property titles to facilitate mortgage lenders’ participation in the

secondary market and to add to the integrity of the land-title transfer system in the state of Iowa;

and

WHEREAS, pursuant to Iowa Code §16.91(4) and 265 Iowa Administrative Code 9.5(6),

ITG shall set any annual participation fee required to be eligible to participate in the Iowa Title

Guaranty program, subject to the approval of the Authority; and

WHEREAS, the ITG June 2020 Policy Update Summary (“Policy Summary”) have been

presented to the Board, and included in said Policy Summary as Part 6 is a proposal to change

ITG’s annual participation fee from twenty-five dollars ($25) per service to a flat fee of seventy-

five dollars ($75) per participant, said Policy Summary being hereby incorporated by reference;

and

WHEREAS, for the reasons stated in Part 6 of the Policy Summary, it is the desire of the

ITG Director and Staff to obtain Board approval of the specified change in ITG’s annual

participation fee; and

WHEREAS, ITG requests that the Board approve changing ITG’s annual participation fee

required to become an ITG participant to a flat rate of seventy-five dollars ($75) per participant,

as specified in Part 6 of the Policy Summary; and

NOW, THEREFORE, BE IT RESOLVED that the ITG Board approves changing ITG’s

annual participation fee to a flat fee of seventy-five dollars per participant, and directs ITG to

proceed with notifying the IFA Board of the ITG Board’s consent to adoption of the aforesaid

annual participation fee, and further directs that the new annual participation fee be incorporated

into ITG systems and operations, subject to the approval of the Authority, to be used as determined

by the ITG Director.

PASSED AND APPROVED this 2nd day of June 2020.

Chuck Winkleblack, ITG Board Chair Lindsey Guerrero, ITG Board Secretary

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POLICY UPDATE SUMMARY

JUNE 2020

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POLICY UPDATE SUMMARY JUNE 2020

TABLE OF CONTENTS

1. “750 Bright Line” Overview………………………………………………………………….……………...….…2

2. Residential Flat Rate Premium – Increase……………………………………………...……………..….……3

3. Residential Flat Rate Coverage Maximum – Increase………………………………………...……..….……6

4. Forms 900/901 Eligibility: Maximum Coverage Amount – Decrease…………..……………….….….….…7

5. Participant E & O Minimum “Per Occurrence” Requirement – Increase…………………………….………8

6. Annual Participation Fee – Flat Fee Structure……………………………………………..…….…..………...9

7. E-Payment Requirement……………………………………………….…………………..……………...……10

8. Application E-Submission Requirement………….……………………………………………..…………….11

9. Composite Mortgage Affidavit - Update…………………………………………….…………….….………..12

10. Notice of Availability - Update…………………………………………….…………………………………….16

11. Post-Closing Search Requirement – Update…………………………………………….………………...…18

12. Minimum Abstract Standards - Update…………………………………………….………………………….21

13. Form 900/901 Standards and Manual - Update………………………..…….……………………..………..28

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1. “750 Bright Line” Overview

Currently, participants and lenders experience confusion regarding ITG’s policies, as the associated thresholds for each policy vary significantly. Further, these differing thresholds regularly create inadvertent results for ITG. In ITG’s continued effort to improve the title production process, ITG proposes alignment of existing policies to (i) simplify use of the program for all stakeholders; (ii) clarify ambiguities of the program that currently cause delay and frustration; and (iii) improve efficiency of compliance oversight and risk mitigation strategies.

The following chart provides a summary of the proposed policy changes which will be described in detail in the subsections

below.

CURRENT PROPOSED EFFECTIVE DATE Residential Flat Rate

Premium $140 $175 January 1, 2021

Residential Flat Rate Coverage Maximum $500,000 $750,000 January 1, 2021

Forms 900/901 Maximum $1 million $750,000 January 1, 2021 E & O Minimum Requirement $500,000 per occurrence $750,000 per occurrence January 1, 2021

Residential Underwriting Required > $750,000 > $750,000 Current

Real Property Inspection Report or Survey Required > $750,000 > $750,000 Current

Annual Participation Fee $25 per service $75 flat fee January 1, 2021

E-Payment Policy - - Immediately

Application E-Submission Requirement - - Immediately

2020 Revised CMA - - Immediately

2020 Notice of Availability - - Immediately

Post-Closing Search Requirement - - Immediately

2020 Minimum Abstract Standards - - January 1, 2021

2020 Form 900/901 Manual - - Immediately

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2. Residential Flat Rate Premium - Increase

Current: $140

Proposed: $175

Proposed Effective Date: January 1, 2021

Proposed: ITG proposes a streamlined fee increase for title coverage from $140 to $175 to generate the revenue necessary to pay for the development, support and maintenance of ITG’s next generation title production system on a self-sustaining basis.

Background: ITG has partnered with Qualia Labs, Inc. (“Qualia”) to modernize and outsource its title production system to reduce risk and compete more effectively in an increasingly digital and fast-paced real estate market. Qualia Labs, Inc. has agreed to develop, support and maintain ITG’s next generation title production system for a $30 per transaction fee generated upon the issuance of any Iowa Title Guaranty Certificate.

Qualia brings the entire closing team (lenders, real estate agents, buyers, sellers, abstractors, attorneys, field issuers and closers) to one digital platform to increase understanding, transparency and efficiency. Some of the key benefits of the platform include:

KEY PLATFORM BENEFITS

ALL PARTY ACCESS. Enable all parties to participate in the transaction using role-based

authorizations, including buyers and sellers.

CLOUD-BASED PLATFORM. Log in from any device. No server updates.

CLOSING SCHEDULER AND TIMELINE. Schedule closing within the platform to notify all transaction parties.

View the closing tracker/timeline within Qualia “Connect”

TRANSACTION-BASED FEE STRUCTURE. No annual maintenance or license fees.

ELIMINATION OF REDUNDANT DATA ENTRY. Auto-population of data into relevant closing documents, including but

not limited to, CD, ALTA settlement statement, title opinions, commitments and certificates.

INTERNAL BUSINESS REPORTING. Learn more about your business operations using Qualia’s

reporting tools. Custom and automatic reporting for transactions, operations and performance.

SECURE DATA STORAGE AND MANAGEMENT. Securely upload and store all closing documentation directly into the

electronic file, known as an “Order”.

SECURITY & PRIVACY. Two factor authentication, SOC Type II certification, ISO

27001, AES-256 Data-at-Rest Encryption.

STREAMLINED COMMUNICATION. Securely communicate with all transaction parties in the platform. Securely deliver documents or invite transaction parties to view documents within the platform. Chat feature enables parties to

quickly correspond with others while simultaneously working on a file.

TRAINING & SUPPORT. Live support, and online, on-demand education known as

“Qualia University”. Qualia chat feature for instant troubleshooting. Online video tutorials and training materials.

CUSTOM WORKFLOWS. Create custom workflows and automated task management.

INTEGRATED E-PAYMENTS. Digital invoicing and online payment processing.

OPTIONAL SETTLEMENT AND ESCROW SOFTWARE. ITG’s participants will have access to optional settlement and escrow

features being provided at no cost.

INTEGRATIONS. Shipping, e-recording, loan origination, recording, property

data.

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KEY PARTICIPANT & TRANSACTION PARTY BENEFITS

TITLE ATTORNEYS 1. Title opinion drafting - Draft title opinion within the platform.

Upload personalized letterhead and any cautions to create a custom template for the law firm.

2. No rekeying of data – Fields prepopulate in the CD, ALTA settlement statement, HUD, commitments and certificates using smart tags (buyer, seller, lender, property address, legal description, etc.).

LENDERS 1. Encompass® integration – the mortgage industry’s first

two-way integration with a title and escrow software. 2. eSign – eSign by Qualia is the first electronic signing

solution built specifically for title and escrow software. 3. Document sharing – Share documents with buyers and

sellers prior to closing and easily manage and store documents without needing to download, print or scan them.

FIELD ISSUERS

1. One-click title commitment/certificate generator – Generate the title commitment with one click. The system will pull data from the fields in the title opinion template.

2. No more downloading – No more downloading, saving and emailing commitments and certificates. Send documents to all parties directly through the platform.

3. Auto-populated requirements and exceptions – Certain requirements and exceptions will auto-populate based on the type of coverage and endorsements selected. No more guessing or flipping through manuals to determine the appropriate requirement and exception language.

4. Enhanced drop-down menus – Updated drop-down menu for requirements and exceptions.

REALTORS

1. Closing timeline– Access to the closing tracker with updates and notifications. Invite client to log in to view the timeline.

2. Obtain confidential client information - Invite client to log into the platform to securely provide personal information (e.g., marital status) or the required closing documents (e.g., 1099, W-9, SSN). No need to risk an email security breach.

3. Communicate with transaction parties – Securely and efficiently communicate with the examining attorney, closer, field issuer, and ITG directly through the platform.

4. Document sharing – Securely upload all closing documents (purchase agreement, amendments, seller disclosures, invoices, commission statements, termite inspection reports, etc.) to the platform to be conveniently accessed by all transaction parties.

CLOSERS

1. No rekeying of data – Fields prepopulate in the CD, ALTA settlement statement and HUD-1 using smart-tags (buyer, seller, lender, property address, legal description, etc.).

2. Centralized communication – Digitally collaborate with lenders, attorneys, abstractors and realtors on fees and closing documents.

3. Closing confirmation – Confirm completion of closing to automatically notify abstractors to commence preparation of the final abstract or Form 901.

4. Reconciliation – Reconcile accounts and track disbursements and receipts.

5. E-Recording – E-record within the Qualia platform.

ABSTRACTORS

1. Legal description upload – Upload the legal description directly to the platform instead of emailing the Word version to the various transaction parties.

2. Legal description audit and tracking – Platform tracks any changes made to the legal description.

3. Form 900/901 – Prepare and send Form 900s and 901s within the platform.

4. Closing notification – Receive alerts when closing is complete, prompting preparation of post-closing search or final abstract continuation.

BUYERS

1. Closing participation – Participate in the closing process from start to finish.

2. Communication - Buyers will be able to conveniently communicate with transaction parties to ask questions and schedule closing.

3. Access to closing timeline and documentation – Secure access to closing tracker and documentation, including but not limited to, CDs, ALTA settlement statements, commitments, and certificates.

4. Securely provide confidential information – Instead of sending unsecure emails containing NPPI, submit necessary information through the secure platform.

SELLERS

1. Closing participation – Participate in the closing process from start to finish.

2. Communication - Conveniently communicate with transaction parties to ask questions and schedule closing.

3. Access to closing timeline and documentation –Secure access to closing tracker and documentation, including but not limited to, CDs and ALTA settlement statements.

4. Securely provide confidential information – Instead of sending unsecure emails with 1099s, W-9s and other confidential documents containing NPPI, submit necessary information through the secure platform.

According to the feedback received from the February 2020 Stakeholder Meetings, stakeholders prefer that the per transaction fee be included in the Iowa Title Guaranty flat rate premium instead of being itemized as a separate technology fee. The flat rate premium best conforms to RESPA disclosure requirements.

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To harmonize with the 750 Bright Line policy, ITG proposes a flat fee of $175. This flat rate will offset losses arising from the increased coverage maximum and third-party e-payment processing fees accompanying the e-payment requirement (discussed in sections three and seven below, respectively). ITG performed a cost comparison with title insurance in neighboring states. This increased rate remains competitive and significantly less than most title insurance premiums.

This flat rate will enable ITG to continue to further its mission to (1) offer guaranties of real property titles as an adjunct to the abstract-attorney’s title opinion; (2) serve as a low-cost mechanism to facilitate lender’s participation in the secondary market; (3) add to the integrity of Iowa’s land-title transfer system; and (4) support Iowa homebuyers by reinvesting all excess revenue in excess of operating expenses into IFA’s housing assistance programs.

ITG PROTECTS Iowa homeowners and lenders by providing low-cost title coverage for Iowa real property. ITG STRENGTHENS Iowa’s land-title system by guaranteeing clear property titles. ITG SUPPORTS Iowans by reinvesting into communities across the state through down payment assistance

programs and participant incentive payments.

In 2019, ITG contributed to local Iowa communities in the following ways:

1. Invested $1 million into Iowa Finance Authority’s affordable housing programs. 2. Assisted 1,494 homebuyers with down payment assistance. 3. Partnered with 1,180 Iowa real estate attorneys, 140 Iowa abstractors, and 390 Iowa closers. 4. Paid $2.7 million to participating field issuers across the state of Iowa.

Since inception, ITG has invested $59.1 million into Iowa Finance Authority housing programs.

Industry Impact:

• Streamlines coverage premiums by combining transaction technology fee with ITG’s flat fee premium.

• Participants gain access to individual Qualia Labs, Inc. platform deployments at no cost.

• Qualia Labs, Inc. platform brings the entire closing team (lenders, real estate agents, buyers, sellers, abstractors, attorneys, field issuers and closers) to one digital platform to streamline closings and increase understanding, transparency and efficiency.

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3. Residential Flat Rate Coverage Maximum - Increase

Current: $500,000

Proposed: $750,000

Proposed Effective Date: January 1, 2021

Proposed: ITG proposes the maximum coverage amount qualifying for the flat rate premium of $175 be increased from $500,000 to $750,000.

Background: The majority of purchasers elect to obtain owner coverage when offered free in conjunction with the lender certificate. In FY19, 89% of purchasers eligible for free coverage elected to obtain owner coverage.1 By contrast, only approximately 30% of purchasers with purchase prices over $500,000 elected coverage when offered in conjunction with the lender certificate, and the percentage has remained unchanged over the years. Iowa purchasers with purchase prices over $500,000 decline to elect for owner coverage due to the increased $1 per $1,000 premium. Most purchasers are not advised of the right to elect owner coverage prior to arriving at the closing table. While the $1 per $1,000 often amounts to a mere nominal fee, the thought of having to remit additional payment post-closing deters many purchasers from electing coverage. Increasing the flat rate premium coverage maximum to $750,000 will encourage purchasers to elect owner coverage for no additional charge (if issued in conjunction with a lender certificate). The flat rate premium will also encourage purchasers who are not obtaining financing to obtain owner coverage up to $750,000 for a flat rate of $175.

For 2020, the Federal Housing Finance Agency (FHFA) raised the maximum conforming loan limit for a single-family property to be acquired by Fannie Mae and Freddie Mac from $484,350 to $510,400. ITG proposes increasing the maximum coverage amount qualifying for the flat rate premium to accommodate lenders and maintain a competitive edge in the title coverage industry.

This policy change is aligned with ITG’s mission to provide low-cost title coverage to lenders and owners. ITG’s clean title standard allows ITG to provide this flat rate structure with increased maximums without exposing ITG to unreasonable liability. Title insurance competitors will be unable to provide policy rates this low due to the title insurance “assumption of risk” model in which title companies write over defects instead of clearing them prior to closing. Due to this fee structure, ITG anticipates it will experience an estimated $55,000 annual reduction in excess premiums. Yet, ITG expects that diminution will be offset in part by its new flat fee structure ($5 per transaction). ITG anticipates acquiring new business from lenders who may currently use title insurance and from owners attracted to the low, simplified premium. ITG also anticipates an increase in residential certificates issued from new and existing participants that now have access to the Qualia software platform to perform residential transactions in compliance with the TILA-RESPA Integrated Disclosure (TRID) Rule and RESPA.

Industry Impact:

• Streamlines pricing for 99.8% all transactions, including lender and owner certificates.

• Encourage owners to elect coverage by removing the deterrent of the additional and unexpected cost discovered at the closing table.

• All Fannie Mae and Freddie Mac conforming loans become eligible for flat rate premiums. While this excludes “high-cost area limits” as defined by FHFA, no Iowa property constitutes a high-cost area.

• Provides ITG with a distinct competitive advantage over title insurance.

• Aligns with the “750 Bright Line” initiative with participant E & O minimums, Forms 900/901 coverage maximums, ITG underwriting standards, and land survey requirements.

1 This percentage has increased with ITG’s adoption of the Notice of Availability which provides the owner with information pertaining to

owner coverage and requires that the owner elect or deny coverage. In FY17, 66% of owners eligible for free coverage elected to obtain coverage.

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4. Forms 900/901 Eligibility: Maximum Coverage Amount - Decrease

Current: $1,000,000

Proposed: $750,000

Proposed Effective Date: January 1, 2021

Proposed: ITG proposes reducing the Form 900/901 maximum coverage amount to $750,000 or less.

Background: ITG currently permits the use of the Forms 900/901 for coverage amounts of $1 million or less. The Forms 900/901 are short-form abstractor search products used in refinance transactions if certain eligibility requirements are met. The Forms 900/901 are limited search products that do not disclose specific plats, declarations, covenants, restrictions, easements, reservations, rights and options filed of record.

However, ITG requires full underwriting and a Real Property Inspection Report for all transactions with lender coverage amounts greater than $750,000. Due to the increased value and associated potential loss of improvements on properties in this price range, full underwriting requires all record matters be disclosed as exceptions on the commitments and certificates. Since the abstractor does not perform a full abstract search when preparing the Forms 900/901, the ITG underwriters are forced to manually search the public records online to pull the record items that are not disclosed on the abstractors’ Forms 900/901 and add them to the commitment and certificate. Essentially, ITG underwriters are performing a full abstracting search. A full search, especially if the land is unplatted or has been replatted numerous times, may take a full day to complete. ITG only has two full time residential underwriting attorneys. The administrative burden imposed upon the underwriting attorneys to complete transactions with coverage amounts in this price range is unreasonable and not an effective use of time.

More importantly, the practice is incredibly risky as ITG underwriting attorneys are not experienced abstractors, do not have extensive knowledge of local customs and practices, nor do they have physical access to the local county records to ensure they have accurately pulled all items in the 40-year chain of title. A title search performed by an ITG staff member rather than a professional abstractor exposes ITG to unwarranted risk by increasing the possibility that an exception to title is missed.

Prior to proposing this change, ITG conducted research as to the number of transactions that would be impacted by this change. In FY19 only 32 refinance transactions across the state of Iowa had coverage amounts between $750,000 and $1 million. Twenty of the 32 required full abstract continuations and only 12 of those 32 were eligible for the Form 900. According to this number, only 0.0009% of Iowans refinancing would be impacted by the change and required to obtain full abstracting.

While full abstracting will impose an increased expense on those 0.0009% transactions described above with coverage amounts between $750,001 and $1 million, the expense is justifiable and necessary to mitigate the increased potential losses associated with properties in this price range. In most circumstances, the increased expensed will likely be no more than $150 to $300. This is not an unreasonable or prohibitive expense for properties within this price point. However, the new flat rate of $175 for transactions up to $750,000 will help mitigate this expense as the ITG coverage premium would be reduced by $250.

Notwithstanding the foregoing, ITG will continue to permit the use of the Form 900/901 on transactions with coverage amounts over $750,000 after January 1, 2021 provided that the following occurred at the time of purchase by the current titleholders: (1) a participating abstractor prepared a final abstract continuation certified through the date and time of the vesting deed; (2) a participating attorney rendered a final title opinion; and (3) an ITG certificate was issued.

Industry Impact:

• Compliant with Iowa law which requires that search products are prepared by participating abstractors that own or lease and maintain and use in the preparation of abstracts, an up-to-date abstract title plant including tract indices for real estate for each county in which abstracts are prepared for real property title guaranteed by Iowa Title Guaranty, unless waived or grandfathered. ITG underwriting attorneys are not waived from the 40-year title plant requirement and should not be performing title searches.

• Protects ITG against significant potential claims losses associated with covenant violations, boundary disputes, and encroachments of valuable improvements into easements and setback lines.

• Aligns with the “750 Bright Line” initiative with participant E & O minimums, Forms 900/901 coverage maximums, ITG underwriting standards, and land survey requirements.

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5. Participant E &O Minimum “Per Occurrence” Requirement - Increase

Current: $500,000

Proposed: $750,000

Proposed Effective Date: January 1, 2021

Proposed: ITG proposes increasing the participant’s professional liability insurance known as errors and omissions (E & O) “per occurrence” minimum from $500,000 to at least $750,000. ITG does not propose a change to the current “in the aggregate” minimum of $1,000,000.

Background: ITG currently requires participants to maintain a professional liability policy with a minimum of $500,000 per occurrence. However, ITG does not conduct underwriting review unless the transaction involves a lender coverage amount of greater than $750,000. Transactions with coverage amounts from $501,000 to $750,000 expose ITG to unnecessary risk, as the participants E&O insurance would not cover a loss exceeding $500,000. The current policy exposes ITG to $250,000 in liability for each transaction with a coverage amount between $500,000 and $750,000. This is further exacerbated by the fact that since the minimum insurance requirements were implemented, the average home has increased significantly with inflation and costs of living increases. Since 2010, the number of transactions with coverage amounts exceeding $500,000 per year has increased by 700%.2

ITG’s reports evidence that 1,162 of 1,371 or 85% of participants already maintain “per occurrence” coverage over $750,000. This demonstrates that most participants already recognize the need for increased professional liability insurance. Only 209 out of 1,371 participants or approximately 15% of all ITG participants only have the current $500,000 minimum per occurrence and will be affected by this policy change.

Industry Impact:

• Increased protection for lenders, consumers, and real estate professionals.

• Protects ITG against significant potential claims losses.

• Aligns with the “750 Bright Line” initiative with participant E & O minimums, Forms 900/901 coverage maximums, ITG underwriting standards, and land survey requirements.

• Aligns with ALTA Best Practice #6 which provides that appropriate levels of professional liability insurance or errors and omissions insurance help ensure that title agencies and settlement companies maintain the financial capacity to stand behind their professional services.

2 In 2010, only 75 transactions had coverage amounts over $500,000. In 2019, 529 transactions had coverage amounts over $500,000. In the first four months of 2020, over 634 transactions had coverage amounts over $500,000.

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6. Annual Participation Fee – Flat Fee Structure

Current: $25 per service (title opinion, abstracting, closing protection letters).

No charge for field issuing.

Proposed: $75 flat annual participation fee for all participants.

Proposed Effective Date: January 1, 2021

ITG Board Approval Required3

IFA Board Approval Required4

Proposed: ITG proposes a flat $75 annual participation fee for all participants regardless of the number of services requested.

Background: Since inception in 1987, ITG has charged a $25 annual participation fee for each service the participant is approved to provide on its behalf. For example, the annual participation fee for a participant approved for title opinion and closing protection letters (“CPL”) is $50. In 1987, participants submitted paper applications and renewals. Upon receipt of ITG approval, participants would remit payment for the services for which they were approved.

ITG eventually transitioned to online applications and renewals, requiring participants to remit payment as a condition of approval. This requirement ensured prompt payment of the participation fee. However, it also resulted in an additional refund process. In the event a requested service is denied under the current fee structure, an ITG staff member must manually process the $25 refund. The Participant Program Administrator spends a significant volume of time simply processing participation fee refunds. The cost to administer each $25 refund is exceedingly burdensome and is not an effective use of ITG’s limited resources. The flat fee will reduce the administrative burden of having to process refunds of $25 fees.

ITG has exponentially grown over the years and now partners with approximately 1,500 participants, including attorneys, abstractors, and independent closers. The participant application has evolved into a Participant Program with a single dedicated staff member managing all 1,500 participant records. The Participant Program Administrator frequently spends hours corresponding with the participant via email and phone. An ITG attorney also reviews the participant’s corporate or organizational documents as well as the participant’s responses to compliance questions. The flat fee structure will allow ITG staff to reallocate the time currently being spent on processing refunds to managing participant records and performing necessary compliance reviews.

According to inflation models, $25 in 1987 is equivalent to $58.14 today. Using this figure, the participation fee should be increased to $116.28 for 2 services and $174.42 for 3 services. In determining the amount of the proposed flat participation fee, ITG considered the number of services provided by participants to determine the number of participants that would be impacted by the fee increase. Currently, 758 participants are approved for 1 service, 282 participants approved for 2 services; and 264 participants approved for 3 services. Given that many participants provide only 1 service, ITG proposes increasing the fee to only $75.

Another important and often forgotten factor is that ITG pays for each participant’s American Land Title Association’s (“ALTA”) license fees which allows the participant to use ALTA’s commitment, closing protection letter, certificate, and endorsement forms. The license fee is $195.00 for each participant that issues 51 or more certificates the previous year. This license fee is 7.8 times greater than the $25 annual participation fee, and over 2.5 times greater than the proposed $75 annual participation fee.

For the reasons stated above, ITG proposes a flat $75 annual participation fee for all participants regardless of the number of services requested. For example, a participant requesting title opinion and CPL services as mentioned above would now be charged $75 even though the participant will only provide 2 services. The annual fee will not increase for those participants that provide 3 services, as the three $25. fees are equivalent to the flat $75. According to the statistics on current ITG participants, ITG anticipates an increase of $44,950.00 in participation fees. This revenue will help offset the estimated $55,000 loss in revenue resulting from the increase in ITG’s flat rate premium threshold from $500,000 to $750,000.

Industry Impact:

• Simplified, streamlined flat fee for all applicants regardless of services requested.

• Aligns with the “750 Bright Line” initiative with participant E & O minimums, Forms 900/901 coverage maximums, ITG underwriting standards, and land survey requirements.

3 Iowa Code §16.91(4). 4 Id.

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7. E-Payment Requirement

Current: E-Payment Encouraged

Proposed: E-Payment Required

Proposed Effective Date: Immediately

Proposed: ITG proposes that all premium payments be remitted electronically through the e-payment portal located on ITG’s Resource Desk. Upon transition to Qualia Labs, Inc., e-payments must be submitted through the Qualia platform.

Background: ITG implemented the e-payment portal in 2015 and has encouraged participants to remit payment through the portal. Few participants have adopted this practice and continue to remit premiums via paper check. ITG currently processes approximately 4,000 checks per month. The administrative burden to process paper checks is monumental. ITG requires a full-time accounting position simply to process the paper checks. Often, the checks fail to include a copy of the invoice and fail to reference the corresponding certificate number. When this occurs, a staff member must manually search through CAP records to determine the proper transaction to which the funds should be applied. Given the volume of transactions processed through the CAP system since 2006, the research often leads to duplicate files and the inability to determine how the funds should be applied. This research function is also a full-time job.

The COVID-19 pandemic required ITG to implement a remote work policy. ITG’s ability to promptly process premium payments remotely now requires that all ITG premiums be paid through the e-payment portal. ITG recognizes that the current e-payment portal could be significantly improved. ITG is diligently working with a third-party servicer to implement several user-friendly enhancements, including the addition of reference fields for check and file numbers. The transition to Qualia will greatly improve the efficiency of e-payment processing, as participants will have the ability to allocate or earmark funds to transaction files and submit aggregate payments to ITG.

Industry Impact:

• Expedited application of premium payments.

• Improved accuracy of application of funds by requiring the funds be electronically submitted with the transaction number.

• Reduction in administrative burden of processing thousands of checks.

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8. Application E-Submission Requirement

Current: E-Submission Encouraged

Proposed: E-Submission Required

Proposed Effective Date: Immediately

Proposed: ITG proposes that all applications for division-issued commitments and certificates be submitted electronically through ITG’s Resource Desk or by emailing the necessary documentation to [email protected]. Upon transition to Qualia Labs, Inc., application submissions must be submitted through the Qualia platform.

Background: ITG has historically accepted paper applications and subsequent submissions for division-issued commitments and certificates. ITG currently processes hundreds of paper submissions each month. These paper submissions create an unnecessary burden on ITG, as staff must sort, scan and upload the documentation.

The COVID-19 pandemic required ITG to implement a remote work policy. ITG’s ability to promptly process applications now requires that all ITG applications be submitted electronically through ITG’s Resource Desk or by emailing the necessary documentation to [email protected]. Upon transition to Qualia Labs, Inc., application submissions must be submitted through the Qualia platform.

This policy change significantly reduces the administrative burden of sorting, scanning and uploading paper files, allowing ITG staff to process applications and subsequent submissions more efficiently.

Industry Impact:

• Expedited application processing.

• Increased production efficiency by reducing redundancy of manual tasks.

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9. Composite Mortgage Affidavit - Update

Current: N/A

Proposed: See updates below

Proposed Effective Date: Immediately

Proposed: ITG proposes adoption of the updated Composite Mortgage Affidavit (Owner/Seller) and Composite Mortgage Affidavit (Buyer) shown on the subsequent pages. The fundamental updates to the documents are as follows:

• Addition of check boxes to produce affirmative responses;

• Rewording of the statements to be more easily understood by consumers;

• Requiring the disclosure of any labor, equipment or materials furnished for all property types;

• Providing examples of public improvements to provide clarification to the affiant;

• Providing examples of other interests that may impact the property;

• Requiring disclosure of any mortgages, lines of credit or bridge loans obtained prior to closing;

• Requiring spouses of all titleholders to join in execution;

• Improved, user-friendly format and signature lines; and

• Addition of multiple notary blocks.

Background: The Composite Mortgage Affidavit (“CMA”) is a document that must be completed, signed and properly acknowledged by all titleholders and purchasers of a property as a condition to obtaining ITG coverage. The CMA is a critical document because it is the only documentation evidencing those items that are not shown in the public record. These items are known as the four Standard Exceptions and are shown on Schedule B, Part II of the commitment:

1. Any right or claim of a party in possession not shown by Public Records. 2. Any encroachment, encumbrance, violation, variation or adverse circumstance affecting the title that would be

disclosed by an accurate and complete land survey of the Land. 3. Any easement or claim of easement not shown by the Public Records. 4. Any lien or right to a lien for services, labor or material heretofore or hereafter furnished, imposed by law and not

shown by the Public Records.

Most lenders require title coverage for these non-record items and will not accept a policy containing these items as exceptions. ITG agrees to remove these items as exceptions to title on the lender certificate ONLY IF the CMAs are accurately completed, signed and notarized and reflect no new matters. Without the required CMAs, ITG is unable to provide coverage for these items without an ALTA survey and other necessary assurances.

Due to the passive nature of statements in the current CMA, which require no response if not applicable, the owners and buyers frequently do not review the questions prior to signing. In some instances, the parties permit a real estate agent to sign the CMA with a Power of Attorney and the agent fails to consult with the client who has the knowledge to accurately answer the questions. This is extremely problematic, as ITG relies upon the statements and certifications on the CMA when agreeing to issue coverage.

Many of the claims ITG receives involve matters that should have been disclosed on the CMA at the time of closing. By requiring active responses to each question, ITG expects greater attention to detail by the affiants which will ultimately result in fewer claims and related expenses.

Industry Impact:

• Purchasers and lenders obtain accurate information about the property prior to closing.

• Alerts the lender, purchaser and settlement agent to any matters that must be cleared prior to closing, • CMA disclosures provide the opportunity for the settlement agent and/or examining attorney to clear all matters

prior closing, ultimately resulting in fewer claims and protecting Iowa’s land title system. User-friendly language and formatting allow the parties to easily complete the forms.

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Composite Mortgage Affidavit (Owner/Seller)

Commitment No.

Loan No.

Property Address (“Property”):

To be completed by the current owner(s) if a refinance transaction or seller(s) if a purchase transaction.

The undersigned, being first duly sworn on oath (or upon affirmation), deposes and states as to the Property:

1. Has any labor, material, or equipment been furnished on the Property in the last 90 days?

None Yes, as follows:

2. Are you aware or have you received notice of any public improvements or services that would constitute a special assessment on the Property after the date of closing (e.g. sidewalks, curbs, streets, sewer, lawn care, delinquent water bills)?

None Yes, as follows:

3. Are there any unrecorded contracts, mortgages, options, covenants, conditions, restrictions, leases, easements, agreements or other interests that affect the Property (e.g. shared driveway agreements, access easements)?

None Yes, as follows:

4. Do any improvements located on the Property encroach into setback lines or easements of the Property or onto neighboring property?

None Yes, as follows:

5. Do any neighboring improvements, including but not limited to, buildings, fences, walkways, driveways, eaves and drains encroach upon the Property?

None Yes, as follows:

6. Do any of the neighboring property owners dispute the location of boundary lines?

None Yes, as follows:

7. Are you aware or have you received notice of any violations of covenants, conditions or restrictions, including but not limited to, delinquent dues or unpaid special assessments?

None Yes, as follows:

8. Are there any persons in actual possession or claiming a right to possession of the Property or any part thereof, other than yourself?

None Yes, as follows:

9. Have you obtained in the last 90 days, or will you obtain prior to closing, any mortgages, lines of credit, or bridge loans on the Property?

None Yes, as follows:

10. Are there any judgments, liens, claims or pending lawsuits against you?

None Yes, as follows:

11. Are there any pending bankruptcy proceedings involving you?

None Yes, as follows:

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12. My marital status is: single married to each other married to: N/A (e.g., entity, trust, conservatorship, etc.)

13. I, the owner/seller, or the owner/seller’s spouse, have disclosed all matters based on information known or

reasonably available to me and certify that all matters stated herein are true and accurate. I make the above statements for the purpose of inducing Iowa Title Guaranty to issue a lender and/or owner certificate with respect to the Property. I hereby indemnify and hold harmless Iowa Title Guaranty against any and all loss, costs, damages and expenses or every kind, including but not limited to attorney’s fees, incurred by Iowa Title Guaranty by reason of its reliance on the statements made herein.

Note: All titleholders and spouses, if any, must execute the Composite Mortgage Affidavit.

Sign: Sign:

Print: Print:

Sign: Sign:

Print: Print:

STATE OF , COUNTY OF :

Signed and sworn to (or affirmed) before me this _____ day of ________________________________, ___________, by

.

_____________________________________ Signature of Notary Public

STATE OF , COUNTY OF :

Signed and sworn to (or affirmed) before me this _____ day of ________________________________, ___________, by

.

_____________________________________ Signature of Notary Public

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Composite Mortgage Affidavit

(Buyer)

Commitment No.

Loan No.

Property Address (“Property”):

To be completed by the buyer(s) of the above-described Property.

The undersigned being first duly sworn on oath (or upon affirmation) deposes and states as to the Property:

1. Have you obtained in the last 90 days, or will you obtain prior to closing, any mortgages, lines of credit, or bridge

loans on the Property?

None Yes, as follows:

2. Are there any judgments, liens, claims or pending lawsuits against you?

None Yes, as follows:

3. Are there any pending bankruptcy proceedings involving you?

None Yes, as follows:

4. My marital status is:

single

married to each other

married to:

N/A (e.g., entity, trust, conservatorship, etc.)

5. I, the buyer, have disclosed all matters based on information known or reasonably available to me and certify that all matters stated herein are true and accurate. I make the above statements for the purpose of inducing Iowa Title Guaranty to issue a lender and/or owner certificate with respect to the Property. I hereby indemnify and hold harmless Iowa Title Guaranty against any and all loss, costs, damages and expenses or every kind, including but not limited to attorney’s fees, incurred by Iowa Title Guaranty by reason of its reliance on the statements made herein.

Note: All proposed titleholders must execute the Composite Mortgage Affidavit.

Sign: Sign:

Print: Print:

STATE OF , COUNTY OF

Signed and sworn to (or affirmed) before me this _____ day of _________________________________, __________, by

.

_____________________________________

Signature of Notary Public

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10. Notice of Availability - Update

Current: N/A

Proposed: See updates below

Proposed Effective Date: Immediately

Proposed: ITG proposes adoption of the updated Notice of Availability shown on the subsequent page. The updated Notice of Availability provides for additional options which allow an owner to elect owner coverage in cash transactions and when the purchase price of the property exceeds $500,000 ($750,000 on or after January 1, 2021). The content and formatting of the form was also updated to be user-friendly and informational to the purchaser.

Background: The existing Notice of Availability is flawed in that is only contemplates election of coverage if (i) it is being issued in conjunction with a lender certificate and (ii) the purchase price of the property is $500,000 or less. This is a misleading representation which leads purchasers to believe that coverage is unavailable unless those two factors have been satisfied. The form does not allow for the purchaser in a cash deal to elect to obtain coverage, nor does it clearly permit those owners seeking coverage over $500,000 to obtain coverage. The Notice of Availability in its current form results in owners declining to elect coverage.

Industry Impact:

• Informs purchasers as to their right to obtain owner coverage.

• Purchasers can clearly review all coverage options and elect owner coverage, if desired.

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NOTICE OF AVAILABILITY

OF IOWA TITLE GUARANTY OWNER CERTIFICATE

Buyer(s) Name(s): Date:

Address of Property ("Property"):

Purchase Price or Owner’s Coverage Amount: ______________________

In connection with your mortgage, your lender may require an Iowa Title Guaranty Lender Certificate (“Lender Certificate”).

A Lender Certificate provides title coverage to your lender. The Lender Certificate does not provide title coverage to you,

the Property owner.

You have the right and opportunity to obtain an Iowa Title Guaranty Owner Certificate (“Owner Certificate”). An Owner

Certificate provides title coverage to you, the Property owner, often in an amount equal to the purchase price of the Property.

The Owner Certificate provides assurance that your ownership interest is free from certain title defects, liens, and

encumbrances, including but not limited to:

• Someone claiming an ownership interest in your Property;

• Someone seeking to enforce a lien on your Property, including unpaid liens for real estate taxes, mortgages,

judgments, or unpaid homeowner's association liens; or

• You have no legal right of access to your Property.

An Iowa Title Guaranty commitment (“Commitment”) is an offer to issue an Iowa Title Guaranty certificate upon fulfillment

of certain requirements and conditions. An Owner Certificate is issued after the requirements of the Commitment are

satisfied. Once issued, an Owner Certificate becomes effective. A Commitment is not an abstract of title, a representation

of the title’s status, nor does it provide the protection of an Owner Certificate. Iowa Title Guaranty urges you to seek

independent legal advice if you are uncertain if you should obtain an Owner Certificate.

Please select an option below:

___ I WANT AN OWNER CERTIFICATE, as follows:

Select which applies:

1. Purchase price or owner’s coverage amount is $500,000 or less:

a. _____No additional premium (when issued in conjunction with a Lender Certificate); OR

b. _____Flat fee of $140 (when issued apart from a Lender Certificate).

OR

2. Purchase price or owner’s coverage amount is greater than $500,000:

a. _____$1 per $1,000 in excess of $500,000 (when issued in conjunction with a Lender Certificate); OR

b. _____Flat fee of $140 + $1 per $1,000 in excess of $500,000 (when issued apart from a Lender

Certificate).

___ I DECLINE AN OWNER CERTIFICATE. I understand, acknowledge and accept the risks associated with this decision.

I hereby acknowledge receipt of this notice and understand that if elected, my Owner Certificate will not be issued

until all requirements are satisfied and I have paid all applicable premium amounts (if any) to Iowa Title Guaranty.

BUYER(S):

Sign: Sign: Print: Print:

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11. Post-Closing Search Requirement - Update

Current: Closing Protection Letter (CPL) closers that field issue may perform final searches to confirm filing of the vesting deed and guaranteed mortgage and issue final certificates without a final search product prepared by a participating abstractor.

Proposed: A final search product prepared by a participating abstractor certified through the date of the vesting deed and/or guaranteed mortgage is required for all ITG certificates.

Proposed Effective Date: Immediately

Proposed: ITG proposes that a final search product prepared by a participating abstractor certified through the date of the vesting deed and/or guaranteed mortgage be required prior to the issuance of an ITG certificate. Self-evidencing is prohibited. See updated Abstract and Title Search Requirements for Residential Transactions on the subsequent page.

Background: In 2008, ITG permitted CPL closers that also performed field issuing services to issue a final certificate without having a final search performed by a participating abstractor. This policy was permissible at the time because a pre-closing search was required for the issuance of the CPL and e-filing was not yet common practice. In 2008, the abstractor delivered the documents to the recorder’s office shortly after execution, typically running a further final search immediately prior to recording. The risk for an intervening lien using this process was minimal and the risk to ITG providing first lien coverage was extremely low.

Since 2008, not only is e-filing with a county recorder or through Iowa Land Records now commonplace, often bypassing the abstractor and the abstractor’s final last-minute search, but other county offices and state agencies have implemented mandatory electronic filing. Iowa’s Judicial Branch now requires electronic filing of all documents and Iowa’s Secretary of State requires electronic postings to the Mechanic’s Notice and Lien Registry (“MNLR”). The instantaneous nature of electronic filings and postings significantly increases the risk that an intervening lien could be filed and take priority over the guaranteed mortgage. The mere verification of recordation of the guaranteed mortgage and/or deed which was an acceptable procedure when the abstractor was performing a final search immediately prior to the filing of documents, now exposes ITG to much greater risk. Iowa has long held that abstractors and attorneys providing abstracting services have the specialized skills and expertise required to thoroughly search the public records to identify any and all title defects. Given today’s complexities of various indexing requirements which can vary significantly from county to county, the speed at which liens are now filed, and the intricacies of determining legal filings affecting real property, ITG has determined it is no longer sufficient to simply confirm the filing of the vesting deed and guaranteed mortgage in order for ITG to guaranty first lien position.

Due to evolution of e-filing, as well as the potential liability associated with failure to properly perform final title searches, ITG requires a final search prepared by a participating abstractor commencing from the pre-closing search certification date and continuing through the filing date of the vesting deed and/or guaranteed mortgage to confirm proper title vesting and first lien priority. A final search must be conducted against all titleholders (sellers in a purchase, owners in a refinance) and all property covered by an ITG certificate, defined as the “Land”. ITG permits the use of an abstractor post-closing search in lieu of a final continuation if an abstract continuation was completed prior to closing, provided, however, that the examining attorney may require a final abstract continuation to render a final title opinion, For detailed information on acceptable search products, please see updated “Abstracting and Title Search Products for Residential Transactions” on the subsequent page.

ITG will continue to provide lenders with CPL and GAP coverage. ITG is simply requiring that the CPL closer obtain a post-closing search to confirm that the closing documents were filed in the proper order with no intervening liens. This post-closing requirement not only protects ITG, but also protects the CPL closer. While ITG remains obligated to the lender under the CPL, ITG would eventually seek recoupment from the CPL closer for failure to properly follow ITG’s requirements and/or the lender’s closing instructions. The post-closing requirement affords the CPL closer the prompt opportunity to resolve any issues immediately post-closing instead of numerous years into the future. Most title defects or errors in lien priority can be resolved relatively easily and quickly if the transaction recently closed. Correcting title defects years after a closing is much more difficult, as it is often challenging to locate the proper transaction parties.

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While ITG offers the same title coverage products as offered by title insurance, it is important to remember that ITG is fundamentally different than title insurance. ITG operates as an adjunct to Iowa’s attorney-abstract land-title system by offering low-cost title coverage and adding to integrity to Iowa’s land-title system. Iowa’s land-title system is a “guaranty system” (guarantying clear title prior to closing) rather than an “assumption of risk system” (insuring over defects). In other words, ITG guarantees lenders and consumers clear title for a low, flat-rate premium. Conversely, title insurance companies agree to assume risks for defects in exchange for exorbitant premiums. While title insurance may agree to pay to resolve a title defect discovered post-closing, the consumer will undoubtedly be faced with time, expense and potential closing delay while navigating through the claim procedures.

The Iowa Title Guaranty system is built upon the premise that title must be clear prior to closing. ITG’s sustainability requires clean title and few claims. ITG routinely covers roughly $14 billion in residential loans each year. Due to ITG’s low premiums, ITG only generates around $1 million in excess revenue annually. Currently, this excess revenue is reinvested back into Iowa communities in the form of down payment assistance grants. If ITG expected to take on the increased risk associated with circumventing the abstractor’s final search, ITG would be forced to exponentially increase fees to cover claims and further the mission of supporting housing assistance programs. However, such an increase in fees to support an assumption of risk system would be contrary to ITG’s mission to provide low-cost title guaranties and add to the integrity of Iowa’s land-title system. Ultimately, ITG would be charging consumers an increased premium for a lesser assumption of risk product.

Therefore, the post-closing search requirement is critical for ITG to remain viable and to allow ITG to continue to provide low-cost title coverage to lenders and consumers.

Industry Impact:

• Lenders have assurance the Guaranteed Mortgage is in first lien position.

• Owners have assurance of clear and marketable title.

• Creates consistency in post-closing search requirements. Reduces errors resulting from searching unofficial or incomplete records online.

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ABSTRACTING & TITLE SEARCH REQUIREMENTS FOR RESIDENTIAL TRANSACTIONS

PURCHASE PRIOR TO CLOSING

PRE-CLOSING (DAY OF CLOSING)

POST-CLOSING

No Commitment No CPL

Abstract continuation recommended.

Pre-Closing Search recommended.

One of the following required: - Abstract continuation,

OR - Abstractor Post-Closing Search

if abstract continuation completed prior to closing.

Commitment No CPL

Abstract continuation required.

Pre-Closing Search recommended. If Gap Coverage is requested, a day of closing search is required.

One of the following required: - Abstract continuation,

OR - Abstractor Post-Closing Search.

Commitment CPL Abstract continuation required.

Pre-Closing Search required.

One of the following required: - Abstract continuation,

OR

- Abstractor Post-Closing Search.

REFINANCE PRIOR TO CLOSING

PRE-CLOSING (DAY OF CLOSING)

POST-CLOSING

No Commitment No CPL Abstract continuation OR Form 900 recommended.

Pre-Closing Search recommended.

One of the following required: - Abstract continuation, - Abstractor Post-Closing Search

if abstract continuation completed prior to closing,

- Form 901 if Form 900 completed prior to closing, OR

- Form 900 and Form 901 completed post-closing.

Commitment No CPL Abstract continuation OR Form 900 required.

Pre-Closing Search recommended. If Gap Coverage is requested, a day of closing search is required.

One of the following required: - Abstract continuation, - Abstractor Post-Closing Search

if abstract continuation completed prior to closing, OR

- Form 901 if Form 900 completed prior to closing.

Commitment CPL Abstract continuation OR Form 900 required.

Pre-Closing search required.

One of the following required: - Abstract continuation, - Abstractor Post-Closing Search

if abstract continuation completed prior to closing, OR

- Form 901 if Form 900 completed prior to closing.

The Forms 900/901 may only be used when certain eligibility requirements have been met. Please refer to Iowa Title Guaranty’s Form 900/901 Manual for detailed information.

The Pre-Closing Search, also known as the Day of Closing Search, must be completed in writing by a participating abstractor immediately prior to closing. The certification date should be as close to the time of closing as possible. The deed and mortgage must be recorded immediately after closing but in no instance later than 10 business days following the Pre-Closing Search certification date. The written search must show the same information as required in an abstract continuation. The Post-Closing Search must be completed in writing by a participating abstractor. The written search must show the same information as required in a final abstract continuation. ITG does not require a specific template. The Post-Closing Search is not analogous to, and should not be confused with, the Form 901, which is a separate search product.

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12. Minimum Abstract Standards – Update

Current: N/A

Proposed: See updates below.

Proposed Effective Date: January 1, 2021

Proposed: ITG proposes updating ITG’s Minimum Abstract Standards (2014) adopted by Resolution TG 14-04 to improve overall format and readability, update requirements in response to new legislation, case law, ITG underwriting issues and claims, and to provide enhanced clarification as to ITG’s abstracting requirements. See updated Minimum Abstract Standards on the subsequent page.

Background: The most recent version of ITG Minimum Abstract Standards was adopted in 2014 (“Standards”). ITG proposes updating the Standards to address common questions and provide clarity to abstractors and other ITG participants. ITG has encountered a variety abstracting issues that warrant additional clarification. Therefore, ITG has added the following requirements and clarifications to the Standards:

1. REMOTE NOTARIAL ACTS – Senate File 475, approved by the Governor on April 28, 2019, legalizes remote online notaries (“RON”) in Iowa effective July 1, 2020. The Governor’s Proclamation of Disaster Emergency on March 22, 2020 related to COVID-19 expedited the implementation of the Act. Pursuant to the Proclamation, RON shall remain valid in Iowa so long as it is extended by proclamation. In the event the disaster expires prior to July 1, 2020, the RON Act will again become effective on July 1, 2020. Due to the uncertainty and lender restrictions on the use of RON, ITG has updated its Standards to include the following requirement:

i. REQUIREMENT: Identify remote notarial acts and include the recitation shown in the acknowledgment (e.g. “This notarial act involved the use of communication technology.”).

2. ACCESS – ITG frequently encounters transaction in which the property owner does not have a legal right of access.

i. REQUIREMENT: The abstract must reflect all matters of record showing access to the public

right-of-way pursuant to Title Standard 1.11. The abstractor has no affirmative duty to confirm legal access. However, if lack of access or other access issues are discovered or otherwise known, the abstractor should alert the examiner by noting in the abstract entry.

3. MNLR POSTINGS – The purpose of the Secretary of State’s Mechanic’s Notice and Lien Registry is to provide notice of work being performed or materials being furnished on a property. If a contractor, materialmen, supplier or subcontractor posts a commencement of work notice and/or a preliminary notice, a later-filed mechanic’s lien relates back to the date of the original notice posting. Currently, many abstractors are not abstracting notices because they do not constitute liens. While a notice alone is not technically a lien, the notice is a public record which serves as the effective date of the mechanic’s lien, when and if filed. This creates the following problem in title examination: Contractor files a commencement of work notice on June 1, 2020. Owner sells the property to Buyer on June 15, 2020. The abstractor’s preliminary abstract update and pre-closing search do not set forth the commencement of work notice. Buyer executes a mortgage in the amount of $300,000 which is filed the same day, June 15, 2020. The mortgage is not a purchase money mortgage. The attorney issues an ITG lender certificate guaranteeing the mortgage is in first lien priority. On June 30, 2020, Contractor files a mechanic’s lien in the amount of $500,000 which is now effective as of June 1, 2020, taking priority over the guaranteed mortgage. Currently, closers are tasked with performing MNLR searches at the time of closing. This practice is problematic for the following reasons:

a. Searches Not Being Performed. Many closers assume the abstractor is performing the search, and therefore, do not perform any MNLR searches.

b. Lack of Search Expertise. Often, the closer, who has no experience in searching public records and does not have the same level of expertise as the abstractor, does not understand how to properly perform an MNLR search or understand the consequences of an improper search. Those participants that do understand the importance of the search and gravity of a mistake believe that abstractors are best equipped to perform searches of the public records and should be responsible for doing so.

c. Closing Delays. If a closer performs an MNLR search, it is performed on the day of closing. If a posting is revealed on the day of closing, closing is delayed allowing time to prepare and obtain lien waivers and file satisfactions and/or withdrawals.

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d. ITG Liable under CPL. If a CPL is issued a no search or an improper search is performed, ITG is liable for any postings that were not satisfied or withdrawn prior to closing. If the field issuer is not the closer, the field issuer does not know that the closing occurred until months later when the lender requests a final title certificate. While the field issuer could (and should) perform an MNLR search prior to issuing the final certificate, ITG would remain liable under the CPL for any postings that were not cleared prior to closing.

After obtaining input from industry stakeholders, ITG has determined it is in the best interest of ITG and Iowa’s land title system that abstractors perform MNLR searches for the following reasons:

a. Public Records. The abstractor’s role in Iowa’s real estate industry is to search the public records. The public records are not limited to the county recorder, but also include records of the courthouse, treasurer, and postings to the Secretary of State’s MNLR database. MNLR postings should not be exempt from public records searches simply because the search venue has shifted to the Secretary of State’s office. The shift does not impose a physical burden on the abstractor, as all postings are discoverable through the online database.

b. Prevents Closing Delays. As mentioned above, closings are often delayed due to a notice or lien posting discovered on the day of closing. Setting forth notice postings in the preliminary abstract continuation will prevent delays by providing the examining attorney and closer the time necessary to resolve any postings revealed.

c. Abstractor Expertise. The nature of abstracting is detail-oriented, and abstractors are equipped with the necessary search expertise to properly perform MNLR searches. While closers may understand closing procedure and closing instructions, many—if not most—are unfamiliar with performing real property searches.

d. Industry Demands. In conducting research, ITG discovered that many abstractors, including abstracting companies performing work in Iowa’s largest metropolitan areas are already performing MNLR searches and showing MNLR postings due to the demands of clients – attorneys and closers.

e. Compensation. Abstractors are not being asked to perform the search for free. Rather, the abstractor may charge for the search as an additional revenue stream.

i. REQUIREMENT: The abstract must reflect all postings to the Iowa Secretary of State’s

Mechanics Notice and Lien Registry, including mechanic’s liens, commencement of work notices, preliminary notices and withdrawals.

4. OPEN-END MORTGAGES - ITG requires closers and field issuers to obtain documentation evidencing that an

open-end, future advance, HELOC or other form of line of credit mortgage has been satisfied, closed and released. A satisfaction merely states that the balance of the loan has been paid to zero, but it does not release the lien from the Land. A release provides that the lien has been released or detached from the Land—confirming that the Land no longer serves as collateral for the loan. A document entitled “satisfaction” may be acceptable, so long as the substantive terms within the body of the document provide that the lien is discharged and released. Obtaining a mere satisfaction without the required release language may result in a previous owner taking a future draw. Currently, many abstractors are not identifying and setting forth and alerting the examiner if the mortgage contains a future advance or line of credit clause. This creates an issue for the title examiner who relies on the abstract entry to determine his or her title objections and requirements. Without a recitation in the abstract indicating that the mortgage is an open-end mortgage, the examiner is unable to determine if (1) he/she must require a Request to Close and Release be sent to the lender, and (2) a mere satisfaction (without release language) adequately clears title.

i. REQUIREMENT 1: Mortgage entries must reflect that the mortgage secures an open-end, future advance, HELOC or other form of line of credit mortgage.

ii. REQUIREMENT 2: When abstracting a release and/or satisfaction pertaining to an open-end, future advance, HELOC or other line of credit mortgage, the release or satisfaction must be typed in full or in short form, provided a copy of the complete instrument is included for the examining attorney’s review.

5. ZONING AND LAND USE – The current Standards provide that zoning ordinances are excluded from the minimum

requirements. This exclusion is in conflict with Iowa Title Standard 1.10 which requires that all recorded zoning and land use regulations that specifically refer to the real estate described in the caption of the abstract should be briefly abstracted to alert the examiner to the existence of the same. ITG will not require the abstractor to abstract all other zoning and land use regulations but will require the abstractor include the recitation below.

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i. REQUIREMENT: Pursuant to Title Standard 1.10, all recorded zoning and land use regulations that specifically refer to the real estate described in the caption of the abstract should be briefly abstracted to alert the examiner to the existence of the same. For all other zoning and land use regulations, the following (or similar) notation in an abstract is sufficient: “Various proceedings regarding zoning and land use regulations may affect the real estate described in the caption of this abstract. You may wish to contact the appropriate offices for further particulars to see how they may affect the subject real estate.”

The current Standards are provided in a list format with little organization which presents a challenge for participants wishing to quickly reference the Standards. The proposed Minimum Abstract Standards (2020) reorganizes the requirements and presents the material in a user-friendly format.

Industry Impact:

- Consistent, uniform guidance on ITG abstracting requirements. - Alleviates uncertainty amongst ITG participants. - Increases protection of consumers, lenders and ITG. - User-friendly manual promotes awareness and understanding.

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MINIMUM ABSTRACTING STANDARDS

EFFECTIVE JANUARY 1, 2021

I. ABSTRACTING REQUIREMENTS. Abstracts relied upon for the issuance of ITG coverage must

reflect, at a minimum, the following information:

1. LEGAL DESCRIPTION – The legal description or reference to “same as caption” must be shown on

the first page of each continuation.

2. CERTIFICATION – The abstract certification must reflect:

a. The property searched.

b. The parties searched.

c. The time period searched, including “from” and “to” dates and times, with no time gaps

between certifications.

3. SIGNATURE – The continuation must be signed by an authorized signatory of the ITG participating

abstractor and the signature block must reflect the abstractor’s Iowa Title Guaranty Number.

4. ROOT OF TITLE SEARCHES – A root of title search must show a record chain of title dating back at

least 40 years pursuant to the Marketable Record Title Act (“MRTA”) Iowa Code § 614.36 and Iowa

Land Title Standard 11.7. There can be no gaps of time in the chain of title. All matters of record prior

to the 40-year search period may be omitted except for the following:

a. Any right, title or interest of the United States.

b. Plats and surveys.

c. Grants of easement.

d. Mineral or timber rights, interests or reservations.

e. Unexpired leases.

f. Boundary line agreements.

5. NAMES SEARCHED – The abstract must reflect the specific names searched or clearly state all

necessary parties have been searched through the certification date.

6. COUNTY – The abstract caption, certificate or both must show the county or counties in which the

real estate is located.

7. ENTRY INFORMATION – Abstracting of documents must include, at a minimum, the following

information, shown pursuant to the ILTA Blue Book standards.

7.1. Each entry shall include:

a. Record or Instrument Date. Date of the record or instrument.

b. Recording Date. Recording date.

c. Recording Time. Recording time of the vesting deed(s) and guaranteed mortgage(s).

d. Filing Information. Record, document or instrument number or book and page.

e. Grantor(s)/Grantee(s). Grantor(s)/grantee(s) of the record or instrument, if reflected on the

record or instrument.

f. Marital Status. Marital status of the grantor(s) and grantee(s); if reflected on the record or

instrument.

g. Estate or Tenancy. Estate or tenancy of the grantor(s) and grantee(s) in deeds or other

conveyance instrument, if reflected on the record or instrument.

h. Waivers of Spousal Interests. Homestead, dower/curtesy, and distributive share waivers for

a real estate contract, deed of trust or mortgage, regardless of acreage.

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i. Homestead Exemption Waiver. Status of homestead exemption waiver in a contract, deed

or mortgage affecting agricultural land 40 acres or more if statutorily required; Show either the

exemption language or specify that the exemption language meets the statutory requirement.

7.2. Each entry shall set out:

a. Date Inconsistencies. Identify and set out any irregularities in between the effective date,

execution date, and acknowledgement dates.

b. Execution Omissions, Irregularities or Inconsistencies. Identify and set out the omission

of signatures or acknowledgments and any inconsistencies or irregularities between

execution, signatures and acknowledgments.

c. Legal Description Variations. Identity and set out fundamental variations in the legal

description in the instrument compared to the legal description from the caption of the abstract.

Underscore obvious errors.

d. Remote Notarial Acts. Identify remote notarial acts and include the recitation shown in the

acknowledgment as required by law (e.g. “This notarial act involved the use of communication

technology.”).

8. RECORD MATTERS – All record matters filed in the certification period subject to MRTA and other

curative statutes and statutes of limitation, including but not limited to:

a. Access. Matters of record showing access to the public right-of-way pursuant to Title

Standard 1.11. The abstractor has no affirmative duty to confirm legal access. However, if

lack of access or other access issues are discovered or otherwise known, the abstractor

should alert the examiner by noting in the abstract entry.

b. Affidavits. All affidavits that reference the property.

c. Agreements. All agreements affecting the property or the rights of the owner to use or dispose

of the property, including but not limited to, cost-sharing agreements, maintenance

agreements, development agreements, lease agreements, lot-tie agreements, petitions and

waivers, encroachment agreements.

d. Association Documents. Association documents, including but not limited to, articles of

incorporation, bylaws, etc. for homeowners’ associations and condominium owners’

associations.

e. Bankruptcy Proceedings/Judgments. Bankruptcy proceedings for property located in Polk

County (Southern District) or Linn County (Northern District). Show in all other counties only

if a bankruptcy proceeding has been transcribed to the records of the Iowa District Court or

county recorder for the county in which the property lies.

f. Certifications. Certifications of payment (e.g. HOA certification).

g. Conveyances. Conveyance instruments, including but not limited to, deeds, real estate

contracts, memoranda of contracts, bills of sale.

h. Condominium Declarations. Declarations of submission to horizontal property regime and

amendments must be typed in full or in short form, provided a copy of the complete instrument

is included in the abstract.

i. Court Proceedings. Court proceedings affecting title, including but not limited to:

• Conservatorship proceedings.

• Dissolution or divorce actions.

• Foreclosure actions.

• Partition actions.

• Probate proceedings.

• Quiet title actions.

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• Suits entered in lis pendens.

• Support proceedings.

j. Covenants, Conditions and Restrictions. Restrictions, covenants, or agreements not

expired through the Stale Uses and Reversion Act (Iowa Code §614.24) must be typed in full

or in short form, provided a copy of the complete instrument is included in the abstract. While

covenants lapse after 21 years unless a verified claim is filed, easements and maintenance

obligations are perpetual unless the instrument stipulates a termination date or another form

of termination is filed of record. Therefore, if a document over 21 years includes an easement

or maintenance obligation, it must be shown in the abstract.

k. Easements. Easements, including but not limited to all uses, conditions, duration and terms

of the easement and a description of the dominant tenement if it is described in the instrument.

The location of the easement must be shown by narrative. For example, if the language states

easement lies over the “North 20 feet” the abstract must state the location as such. l. Federal Court Proceedings/Judgments. Show federal court proceedings/judgments for

property located in Polk County (Southern District) or Linn County (Northern District). Show

in all other counties only if a federal court proceeding has been transcribed into the Clerk of

Court of County Recorder for which the property lies.

m. Improperly Indexed Matters. The abstractor has no affirmative duty to determine if matters

are indexed correctly. However, if improper indexing is discovered or otherwise known, the

abstractor should alert the examiner by noting in the abstract entry.

n. Judgments and Liens.

o. Leases and Leasehold Interests.

p. Mechanic’s Notice and Lien Registry. All postings to the Iowa Secretary of State’s

Mechanics Notice and Lien Registry, including:

• Mechanic’s Liens.

• Commencement of Work Notices.

• Preliminary Notices.

• Satisfactions of Liens.

• Withdrawals.

q. Mineral Interests. Mineral rights, interests or reservations.

r. Miscellaneous. Miscellaneous documents that commonly appear in the chain of title that may

require an explanation or should be shown in full, including but not limited to:

• Affidavits.

• Powers of Attorney.

• Attachments.

• Marginal notations.

s. Mortgages. Mortgages, deeds of trusts, as well as amendments, extensions, modifications,

assignments and subordination agreements filed within the certification time period that have

not been properly released of record or extinguished by Iowa law. Show all unreleased

mortgages to the United States because said mortgages are not extinguished by Iowa law.

The entry must reflect that the mortgage secures an open-end, future advance, HELOC or

other form of line of credit.

t. Options to Purchase.

u. Plats. Subdivision plats, including all platting documentation, and plats of survey, including

visual representations.

v. Releases and Satisfactions. Releases and satisfactions filed within the certification time

period, including, but not limited to, release and satisfactions of all mortgages, deeds of trusts,

lines of credit, and judgments. When abstracting a release and/or satisfaction pertaining to an

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open-end, future advance, HELOC or other line of credit mortgage, the release or satisfaction

must be typed in full or in short form, provided a copy of the complete instrument is included

for the examining attorney’s review.

w. Rights of First Refusal.

x. Surveys. All surveys affecting the property, including but not limited to boundary retracement

surveys, plats of survey, including all visual representations.

y. Tax Liens. Tax liens in favor of the local municipality, State of Iowa, or United States of

America.

z. Taxes and Special Assessments. Taxes and special assessments certified to the county

treasurer.

aa. Tax Sales. Tax sale proceedings in accordance with Iowa Code chapters 446, 447 and 448.

bb. Timber Interests. Timber rights, interests or reservations.

cc. UCC Filings. UCC filings affecting fixtures if recorded with the county recorder.

dd. Zoning and Land Use Regulations. Pursuant to Title Standard 1.10, all recorded zoning and

land use regulations that specifically refer to the real estate described in the caption of the

abstract should be briefly abstracted to alert the examiner to the existence of the same. For

all other zoning and land use regulations, the following (or similar) notation in an abstract is

sufficient: “Various proceedings regarding zoning and land use regulations may affect the real estate described in the caption of this abstract. You may wish to contact the appropriate offices for further particulars to see how they may affect the subject real estate.”

ee. Any other records or instruments that cloud, cure or otherwise affect or otherwise

purport to affect title to the real estate described in the caption of the abstract.

II. ABSTRACTING EXCLUSIONS.

1. Possible alias names that may be listed in Iowa Court Information System.

2. Matters excluded by curative statutes or standards.

3. Matters not required to be shown pursuant to written county bar standards as adopted by the county

bar association.

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13. Form 900/901 Standards and Manual - Update

Current: N/A

Proposed: See updates below.

Proposed Effective Date: June 2020

Proposed: ITG proposes an updated Form 900/901 Manual to provide clarify as to existing requirements, expand eligibility criteria in two limited, but common circumstances, and to improve participant’s overall knowledge and understanding of Form 900/901 eligibility and reporting requirements.

Background: The ITG Forms 900/901 were introduced as short-form abstractor search products to reduce abstracting costs, expedite closings and allow ITG to remain competitive in the refinance market. However, real estate professionals have consistently expressed confusion and misunderstanding related interpretation of the Forms 900/901 eligibility and search requirements. To alleviate common concerns and promote uniformity across Iowa’s 99 counties, ITG created the Form 900/901 Manual in September 2019. The manual sets forth the eligibility requirements, minimum reporting requirements, and provides sample Forms 900/901 and an updated attorney certification.

Since the release of the Form 900/901 Manual, ITG participants have suggested further improvements. The suggestions include clarifications as to existing policies, but also recommendations for policy changes. In response, ITG has added language to the Form 900/901 Manual to clarify the following existing policies:

1. ACCESS. While the abstractor has no affirmative duty to confirm legal access, the Forms 900/901 should not be used if the abstractor discovers there is no legal access to the property or if there are other known access issues.

2. SPOUSAL EXCEPTION. An exception to the requirement that all titleholders acquire title by virtue of the last full value deed exists when a spouse is added or removed from title by virtue of a deed less than full value, provided that the abstractor performs names searches on all grantors and grantees of the conveyance instrument(s) adding or removing the spouse and the title attorney examines the deed to confirm validity.

3. PERSONAL LIEN SEARCHES. While the Forms 900/901 only require property search since the date of the last full value deed, the abstractor must still perform 10-year lien searches against all current titleholders.

4. OPTIONAL 24-MONTH CHAIN OF TITLE. ITG does not require that the abstractor show the 24-month chain of title. However, most residential loans sold on the secondary market require that the title commitment include the 24-month chain. Abstractors may wish to add the 24-month chain of title as a courtesy to customers. NOTE: ITG only requires a search from the date of the last full value deed.

In accordance with the updated Minimum Abstracting Standards described above, ITG has amended the Form 900/901 Manual to require the following:

5. OPEN-END MORTGAGES. Mortgage entries must include a recitation indicating that the mortgage secures an open-end, future advance, HELOC or other form of line of credit mortgage. When showing a release and/or satisfaction pertaining to an open-end, future advance, HELOC or other line of credit mortgage, the release or satisfaction must be typed in full or in short form, provided a copy of the complete instrument is included for the examining attorney’s review.

6. MNLR POSTINGS –The Forms 900/901 must reflect all postings to the Iowa Secretary of State’s Mechanics Notice and Lien Registry, including mechanic’s liens, commencement of work notices, preliminary notices and withdrawals.

In response to urgent industry demands of the spring 2020 refinance boom, ITG revised the current Form 900/901 Manual to expand eligibility criteria in a second limited circumstance falling within the parameters described below.

7. INTER VIVOS TRUST EXCEPTION. An exception to the requirement that all titleholders acquire title by virtue of the last full value deed exists when a transfer is made to/from an individual’s and/or spouse’s individual or joint inter vivos trust in which the individual and/or the individual’s spouse is the settlor and the trustee of said trust, provided that the abstractor performs name searches on all grantors and grantees of the conveyance instrument(s) to/from the inter vivos trust (trustees/trust and individuals) and the title attorney examines the deed, trustee and purchaser affidavits, and guaranteed mortgage to confirm validity and desired lien priority.

The purpose of this change is to permit individuals or married couples who have transferred their property into an inter vivos trust for estate planning purposes to refinance the property without the need for full abstracting. This exception is limited to individuals and their spouses. All other transfers to and from trusts trigger full abstracting.

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a. Examples of Form 900/901 Eligible Conveyances

i. Sue Doe, single, to/from Sue Doe, Trustee of the Sue Doe Trust.

ii. Jon Doe and Jan Doe, husband and wife, to/from Jon Doe and Jan Doe, Co-Trustees of the Jon Doe and Jan Doe Trust.

iii. Jon Doe, Trustee of the Jon Doe Trust to/from Jon Doe and Jan Doe, husband and wife.

Notwithstanding the foregoing, the Forms 900/901 may not be used in transactions in which the examining attorney determines the Form 900 does not provide sufficient information to render an opinion. Nor can the Forms 900/901 be used when a transfer is made (1) from an individual, and spouse, if any, to a trust in which neither individual grantor nor the individual’s spouse is both the settlor and the trustee; (2) from a trustee of a trust to an individual who is not the settlor and trustee of the trust; or (3) to/from other types of trusts.

b. Examples of Conveyances Triggering Abstracting

i. Jan Doe, single, to/from Joe Smith, Trustee of the Joe Smith Trust (conveyance to a trust of an individual who is not a spouse).

ii. Jon Doe and Jan Doe, husband and wife, to/from Joe Smith, Trustee of the Joe Smith Trust(conveyance to a trust of an individual who is not a spouse).

The last revision is proposed in accordance with the 750 Bright Line Policy.

8. COVERAGE AMOUNTS UP TO $750,000: Effective January 1, 2021, the Forms 900/901 shall only be used for coverage amounts $750,000 or less. Notwithstanding the foregoing, ITG will continue to permit the use of the Form 900/901 on transactions with coverage amounts over $750,000 after January 1, 2021 provided that the following occurred at the time of purchase by the current titleholders: (1) a participating abstractor prepared a final abstract continuation certified through the date and time of the vesting deed; (2) a participating attorney rendered a final title opinion; AND (3) an ITG certificate was issued. See Section 4 above on Page 5 for further details.

Industry Impact:

- Consistent, uniform guidance on Form 900/901 requirements. - Alleviates uncertainty amongst ITG participants. - Expands eligibility requirements to permit the use of the Form 900/901 in 2 common circumstances that otherwise

would not meet eligibility requirements and would not qualify for the use of the Form 900/901. - User-friendly manual promotes awareness and understanding.

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FORM 900/901 MANUAL Date: Updated June 2020

History of the Form 900/901 Part of Iowa Title Guaranty’s mission is to provide a low-cost mechanism to facilitate mortgage lenders’ participation in the secondary market. 265 IAC 9.3. To stay competitive in nonpurchase transactions, the division created the Form 900/901 as an alternative to full abstracting. The Form 900/901 is a written or electronic short-form summary setting forth the titleholders, liens and encumbrances prepared in accordance with the guidelines adopted by Iowa Title Guaranty. 265 IAC 9.1.

Determining Form 900 Eligibility Basic requirements for using the Form 900 are as follows:

1. Non-purchase – refinances, junior mortgages, and new mortgages on property already owned by borrower. Does NOT include construction loans or the payoff or refinance of an installment contract.

2. Residential – single-family or multi-family dwelling consisting of four (4) units or less. 3. Coverage amount – Prior to January 1, 2021: $1 million or less; On or after January 1, 2021:

$750,000 or less. * 4. Legal description – no changes since the last full value deed. 5. Chain of title – current titleholder acquired title by virtue of and the Form 900 search goes back to

one of the following: i. Last full value deed**; or ii. Court Officer Deed with full transfer tax paid; or iii. Tax, guardian, executor, administrator, receiver, referee assignee or sheriff’s deed that has

been of record for at least ten (10) years without any adverse action. 6. Court proceedings – if a lis pendens notice, bankruptcy, probate, dissolution, support or court order

referencing the property is disclosed in the search, the abstract must provide sufficient information (i.e. copies of corresponding court filings/proceedings, etc.) to allow the examining attorney to render an opinion as to the marketability of title.

*ITG will continue to permit the use of the Form 900/901 on transactions with coverage amounts over $750,000 after January 1, 2021 provided that the following occurred at the time of purchase by the current titleholders: (1) a participating abstractor prepared a final abstract continuation certified through the date and time of the vesting deed; (2) a participating attorney rendered a final title opinion; AND (3) an ITG certificate was issued.

**See 2 limited exceptions shown on Page 2.

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WHEN CAN I USE THE FORM 900?

Transaction Type

Non-purchase transactions including conventional or cash-out refinances, junior mortgages, new mortgages on property already owned by borrower.

Transaction Type Purchase transactions; Installment contract payoff or refinance; Construction loans

Property Qualifications Residential property defined as any single-family dwelling or a multi-family dwelling consisting of four (4) units or less, including:

- Primary residence - Second homes - Vacation homes - Investment or rental properties

Property Disqualifications 1. Commercial property:

- Office buildings - Rental properties (>4 units) - Agricultural property or evidence of farming - Mixed-use (evidence of farming or other commercial

activity on the property, even if a dwelling exists) 2. Bare land 3. Leased land 4. No legal access or other known access issues 5. Known dispute related to an encroachment, easement, or

boundary. Coverage Amount

Prior to January 1, 2021: Coverage amount $1 million or less; On or after January 1, 2021: Coverage amount $750,000 or less.

Coverage Amount Prior to January 1, 2021: Coverage amount over $1 million; On or after January 1, 2021: Coverage amount over $750,000.

Legal Description No changes to legal description since last full value deed.

Legal Description Legal description has changed since last full value deed. Common examples: - Owner sold a portion of the property (third party purchaser,

condemnation, right-of-way grant, etc.) - Property has been split by virtue of a plat of survey or

subdivision plat Title Vesting

All record titleholder(s) acquired title by virtue of: 1. Last full value deed**; or 2. Court Officer Deed with full transfer tax paid; or 3. Tax, guardian, executor, administrator, receiver, referee

assignee or sheriff’s deed that has been of record for at least 10 years without any adverse action against it.

**2 Limited Exceptions: Spousal - Deed to add or remove spouse, ONLY IF abstractor

performs name searches on all grantors and grantees of the conveyance instrument adding or removing the spouse and the title attorney examines the deed to confirm validity.

Inter Vivos Trust - Deed to/from an individual’s and/or spouse’s individual or joint inter vivos trust in which the individual and/or the individual’s spouse is the settlor and the trustee of said trust ONLY IF abstractor performs name searches on all grantors and grantees to from the inter vivos trust (trustees/trust and individuals) and the title attorney examines the deed, trustee and purchaser affidavits, and guaranteed mortgage to confirm validity and desired lien priority. EXAMPLES: (1) Sue Doe, single to/from Sue Doe, Trustee of the Sue Doe Trust; (2) Jon Doe and Jan Doe, husband and wife, to/from Jon Doe and Jan Doe, Co-Trustees of the Jon and Jan Doe Trust; (3) Jon Doe, Trustee of the Jon Doe Trust to/from Jon Doe and Jan Doe, husband and wife.

However, the examining attorney may require full abstracting.

Title Vesting One or more record titleholders acquired title by virtue of: 1. Any deed less than full value

- Example: owner adds relatives with quit claim deed 2. Tax, guardian, executor, administrator, receiver, referee or

sheriffs deed filed of record less than 10 years; or adverse action filed less than 10 years

The following do NOT fall within the 2 limited exceptions:

x Transactions in which the examining attorney determines the Form 900 does not provide sufficient information to render an opinion.

x Deed from an individual, and spouse, if any, to a trust in which neither individual grantor nor the individual’s spouse is both the settlor and the trustee.

x Deed from a trustee of a trust to an individual who is not the settlor and trustee of the trust.

x Deeds to/from other types of trusts. EXAMPLES: (1) Sue Doe, single, to/from Joe Smith, Trustee of the Joe Smith Trust; (2) Joe Smith, Trustee of the Joe Smith Trust to/from Jon Doe and Jan Doe, husband and wife.

Court Proceedings Court proceeding disclosed in the record: - A Form 900 may be used, but only if abstractor can provide

sufficient information so that the examining attorney can render an opinion as to the matter. The examining attorney may require full abstracting.

Court Proceedings Court proceeding disclosed in the record: - The examining attorney determines the Form 900 does not

provide sufficient information. In this case, full abstracting is required.

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FORM 900/901 MANUAL

Forms 900/901 Minimum Reporting Requirements

1. Name and Address of the lender. 2. Mortgage loan number, if available. 3. Abstractor’s reference or file number. 4. Complete legal description, including county. 5. Local address of the property being searched. 6. Name(s) of the titleholder(s) and how the titleholder(s) currently hold title. 7. Last Full Value Deed:

i. Name(s) of titleholder(s) who conveyed the property to current titleholder(s); ii. How the previous titleholder(s) held title (vesting information); iii. Deed type (warranty, quit claim, trustee), execution date, acknowledgement date, recording date, and

recording information of the deed. 8. OPTIONAL: ITG does not require that the abstractor show the 24-month chain of title. However, most residential

loans sold on the secondary market require that the title commitment include the 24-month chain. Abstractors may wish to add the 24-month chain of title as a courtesy to customers. NOTE: ITG only requires a search from the date of the last full value deed.

9. The following record instruments filed since the last full value deed: i. Conveyances – All conveyances, including the names(s) of the parties, type of conveyance, execution date,

recording date, and recording information; ii. Mortgage(s) – name of lender, name(s) of borrower(s), marital status of borrower(s), amount of mortgage,

execution date, acknowledgement date, recording date, and recording information; include the filing date and time of the guaranteed mortgage on the Form 901; The Forms 900 and 901 must include a recitation indicating that the mortgage is open-end, future-advance, HELOC or other form of line of credit.

iii. Mortgage Assignment – name of assignor, name of assignee, execution date, recording date and recording information;

iv. Mortgage Release* – name of lender releasing the mortgage; filing information of the mortgage being released; execution date, recording date and recording information;

v. Other record documents including affidavits, postings to the Secretary of State’s Mechanic’s Notice and Lien Registry, judgments, releases* and/or satisfactions* – the title of the document, names of the parties, date of document, recording date, and recording information of the documents.

vi. *NOTE: The abstractor must show all releases and satisfactions in full or short form, provided a copy of the complete instrument is attached for the examining attorney’s review.

10. 10-year personal lien search against all current titleholders. i. Include any and all judgments, liens or other record matters revealed.

11. Taxes – include the current status with reference to fiscal year and installments and Permanent Tax Parcel Number(s).

12. Current assessed value, including type of assessment. 13. The following certification:

This report is given solely for the purpose of issuance of a Lender Certificate by Iowa Title Guaranty, 1963 Bell Avenue, Suite 200, Des Moines, IA 50315, on above mortgagee’s loan and is not intended to be used for sale or transfer. No liability for errors or omissions will accrue to the benefit of any other person, firm or corporation. No report is made of instruments or proceedings not within the listed categories. Judgment and lien search has been made against all parties within the search pursuant to Title Guaranty requirements. This report is not a guaranty of title, or a statement as to the legality of sufficiency of any instrument or proceeding inspected in the search of the above real estate.

14. Effective date and time of certification. 15. The participating abstractor’s ITG Number, name, address, and signature.

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SAMPLE FORM 900

Iowa Title Guaranty Form 900 Report of Title

TO: [name and address]

We furnish the following information of record in County, Iowa:

Abstract No. or Reference No.: ; Loan No.:

Legal description:

Local address:

Borrower Full Value Deed:

[insert titleholder(s)], as [insert marital status or entity type, as applicable] acquired title in the above-described real property by virtue of a [insert deed type] from [insert names and marital status of prior titleholders conveying property to borrower] dated , filed in Book/Page or Instrument/Document No. of the , County, Iowa Recorder’s Office.

Unreleased Mortgages and Assignments:

[insert type] Mortgage in favor of [insert mortgagee/lender] from [insert mortgagor/borrower], as [insert marital status], dated , filed in Book/Page or Instrument/Document No. , to secure an indebtedness in the amount of $ .

Court Proceedings, Judgments, Liens, Etc.:

Judgment entered against on for $ plus interest and court costs. Taxes & Special Assessments: General Taxes for the year and prior years, paid. General Taxes for the year , $ First one-half, $ ; Second one-half, $ Parcel No. _______________________ ____________ Assessed Value: $ ; Assessed residential: _______ YES _______ NO

This report is given solely for the purpose of issuance of a Lender Certificate by Iowa Title Guaranty, 1963 Bell Avenue, Suite 200, Des Moines, IA 50315, on above mortgagee’s loan and is not intended to be used for sale or transfer. No liability for errors or omissions will accrue to the benefit of any other person, firm or corporation. No report is made of instruments or proceedings not within the listed categories. Judgment and lien search has been made against all parties within the search pursuant to Iowa Title Guaranty requirements. This report is not a guaranty of title, or a statement as to the legality of sufficiency of any instrument or proceeding inspected in the search of the above real estate.

Search ending on this day of , 20__ at AM/PM, County, Iowa.

By: (authorized signature)

Print Name: ; ITG#

Address:

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SAMPLE FORM 901 Iowa Title Guaranty Form 901 Report of Title

TO: [name and address]

We furnish the following information of record in County, Iowa:

Abstract No. or Reference No.: ; Loan No.:

Previous Report of Title (Form 900) Date & Time:

Legal description:

Local address:

Last recorded deed conveys the above described real estate to:

[INSERT NAME(S) OF TITLEHOLER(S)]

We also furnish the following new information of record since our previous report:

[INSERT TAXES, AFFIDAVITS, JUDGMENTS, SATISFACTIONS, RELEASES, MORTGAGES, ASSIGNMENTS, DEEDS, OTHER NEW RECORDINGS] [INCLUDE THE FILING DATE AND TIME OF THE GUARANTEED MORTGAGE]

This report is given solely for the purpose of issuance of a Lender Certificate by Iowa Title Guaranty, 1963 Bell Avenue, Suite 200, Des Moines, IA 50315, on above mortgagee’s loan and is not intended to be used for sale or transfer. No liability for errors or omissions will accrue to the benefit of any other person, firm or corporation. No report is made of instruments or proceedings not within the listed categories. Judgment and lien search has been made against all parties within the search pursuant to Title Guaranty requirements. This report is not a guaranty of title, or a statement as to the legality of sufficiency of any instrument or proceeding inspected in the search of the above real estate.

Search ending on this day of , 20__ at AM/PM, County, Iowa.

By: (authorized signature)

Print Name:

ITG#:

Address:

Addendum: [ATTACH ALL AFFIDAVITS, RELEASES, SATISFACTIONS, OR OTHER CLEARANCE DOCUMENTS FILED OR

RECORDED AFTER CERTIFICATION DATE]

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ATTORNEY CERTIFICATION*

FORM 900/901 REPORT OF TITLE OR POST-CLOSING SEARCH

Abstract/Report No.:

Abstractor:

Property Address:

Legal Description:

Form 900/901 or Post-Closing Search Certification Date & Time:

I have examined the Form 900/901 Report of Title or Post-Closing Search (hereinafter “Report”) referenced above. It is the opinion of the undersigned, based solely upon the information as provided in the Report, that merchantable fee simple title to the legal description reflected on this Report, as of the effective time and date of the Report, is indefeasibly vested in the grantee(s) shown in the deed described as the Last Grantee, Devisee, or Heir of Record, subject only to the mortgage(s), taxes, special assessments, judgment(s) and other encumbrances shown on the Report.

Please be advised that all encumbrances shown on the Report must be satisfied and released of record. Taxes and special assessments, including interest and penalties, must be paid in full. Prior to the issuance of an ITG commitment or certificate, I also require the following matters to be cleared pursuant to the instructions set forth below:

____________________________________________________________________________________________________

This opinion is based on examination of those items shown on the Report as of the certificate date referenced above. I offer no opinion as to matters not shown on the Report, including but not limited to: (i) defects of title, (ii) declarations, (iii) covenants, (iv) restrictions, (v) easements, (vi) reservations, (vii) rights, (viii) options, (ix) leases or other rights or claims of parties in possession, (x) encroachments, encumbrances, violations, variations, or adverse circumstances affecting title that would be disclosed by an accurate and complete survey, (xi) plats, including all easements, building setbacks, restrictions, reservations and notations thereon, (xii) local ordinances, and/or (xiii) any other matters that would otherwise be disclosed by full abstracting.

This opinion is issued solely for the purpose of obtaining Iowa Title Guaranty coverage on a “non-purchase” (refinances, junior mortgages, and new mortgages securing property already owned by the borrower) residential transactions with a coverage amount of $750,000 or less ($1 million or less if prior to January 1, 2021), unless exception requirements have been satisfied. This opinion may not be relied upon in connection with a purchase transaction or in connection with a payoff or refinance of a real estate installment contract. Further, this opinion may not be relied upon if the transaction does not meet Iowa Title Guaranty’s Form 900/901 eligibility requirements. I make no representation as to whether the transaction has met the eligibility requirements for use of the Report. Prior to issuing a commitment or certificate, you must consult with the abstractor and Iowa Title Guaranty to confirm the transaction meets the Form 900/901 eligibility requirements.

Signature:

Print Attorney Name:

ITG Participant #:

*THIS FORM SHALL NOT BE USED IF THE EXAMINING ATTORNEY IS ALSO THE CLOSER AND/OR FIELD ISSUER. IF THE EXAMINING ATTORNEY IS THE CLOSER AND/OR FIELD ISSUER, THE ATTORNEY HAS AN OBLIGATION TO DETERMINE WHETHER THE TRANSACTION IS ELIGIBLE FOR A FORM 900/901 REPORT OF TITLE.

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To: IFA & ITG Board Members From: David Morrison Date: May 12, 2020 RE: April 2020 YTD Financial Results

Iowa Title Guaranty Financial Results ($ in thousands)

ITG operated favorably to budget for the first ten months of FY2020.

Operating revenue was $1,696, or 26.1% above budget and 39.9% above last year. A policy change to not reflect Interest Revenue in Operating Revenue resulted in $0 to be reflected in FY20.

Operating expense was $77, or 1.4% unfavorable to budget and 23.1% unfavorable to last year. Favorable items: Employee expense $404; Other Expenses $22 unfavorable related to higher Marketing and Misc Operating expenses $41, YTD $317 GAAP Reserve adjustment, YTD higher claim recoveries $111 offset by an increase in Known Claim Reserve estimate ($410). These Favorable variances were offset by unfavorable Professional Services ($460) – primarily related to higher incentive payments.

$23 $44 $70 $130 $0 $100

$6,189$7,081 $6,580

$5,673

$8,110

$6,333

$6,305

$7,258$6,747

$5,867

$8,206

$6,510

$0$1,000$2,000$3,000$4,000$5,000$6,000$7,000$8,000$9,000

FY16 FY17 FY18 FY19 FY20 Bud20 R5

Operating Revenue

Interest Revenue Fee Revenue Authority & Other Revenue

$1,429 $1,673 $1,772$1,378 $1,458

$1,862

$2,923$3,113 $2,738

$2,409

$3,283$2,823

$625

$691$719

$712

$795 $773$4,977

$5,477$5,228

$4,498

$5,535 $5,458

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

FY16 FY17 FY18 FY19 FY20 Bud20 R5

Operating Expense

Interest Expense Employee Expenses Professional Services Other Expenses

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Transfers to Housing Assistance Fund fell behind budget by $10 related to change in recording interest income to Title Guaranty.

As a result, NOIAG is $1,629 favorable to budget and $933 favorable to last year.

$723 $744

$570

$380

$750 $760

$0

$100

$200

$300

$400

$500

$600

$700

$800

FY16 FY17 FY18 FY19 FY20 Bud20R5

Transfers to Housing Assistance

$605

$1,037$949 $988

$1,921

$292

$0

$500

$1,000

$1,500

$2,000

$2,500

FY16 FY17 FY18 FY19 FY20 Bud20 R5

Net Operating Income after Grants

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Commitments increased 11% ($1.165M vs $1.048M) compared to March, while outstanding receivables increased 26% in April ($177k to $141k primarily in >30 days aging).

Iowa Title Guaranty issued 73.9 commitments FYTD March compared to 41.1 in FY19.

$(1,165,589)

$92,995 $11,877 $10,097 $41,741 $13,965 $6,869

(1,400,000)

(1,200,000)

(1,000,000)

(800,000)

(600,000)

(400,000)

(200,000)

-

200,000

Commit Deposits >30 30>60 60>90 90>1yr >1yr >2yr

Open A/R $

4.85.3 5.1 4.9 5.0

4.04.6

3.93.1 3.2 3.2

3.9

5.3

5.3 5.96.6

7.4 7.5 7.4 7.0

5.4 5.0 5.0

6.2

11.012.0

0

2

4

6

8

10

12

14

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Monthly Trend - Commitments - Rolling 12 Months

PY - Commitments Issued CY - Commitments Issued

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Iowa Title Guaranty issued 81.3 certificates FYTD March compared to 69.5 in FY19 (in red font).

5.8 5.7 5.7

6.0

8.8 7.58.5

7.06.2

9.0

5.95.5 5.0

5.0 5.05.6

6.9

7.2 7.5

8.67.9 7.9

11.9

8.9

7.17.3

0

2

4

6

8

10

12

14

Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr

Monthly Trend - Certificates Issued- Rolling 12 Months

PY - Certificates Issued CY - Certificates Issued

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Actuals Bud20 R5 Difference % Last Year Difference % Actuals Bud20 R5 Difference % Last Year Difference %Operating Revenue Interest Revenue (140,005) 10,000 (150,005) -1500.1 14,868 (154,874) -1041.6 - 100,000 (100,000) -100.0 130,193 (130,193) -100.0 Authority Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Fee Revenue 760,257 545,152 215,105 39.5 436,150 324,107 74.3 8,109,554 6,333,480 1,776,074 28.0 5,672,707 2,436,848 43.0 Other Revenue 10,363 7,650 2,713 35.5 685 9,678 1412.9 96,421 76,500 19,921 26.0 63,871 32,551 51.0Total Operating Revenue 630,615 562,802 67,813 12.0 451,704 178,911 39.6 8,205,976 6,509,980 1,695,996 26.1 5,866,770 2,339,205 39.9

Operating Expense Interest Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Authority Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Employee Expenses 153,650 188,666 (35,016) -18.6 130,708 22,942 17.6 1,457,525 1,862,228 (404,703) -21.7 1,377,886 79,638 5.8 Common Expenses 13,266 15,102 (1,836) -12.2 54,277 (41,011) -75.6 209,172 165,070 44,102 26.7 399,830 (190,658) -47.7 Marketing Expense - 2,990 (2,990) -100.0 (2,793) 2,793 -100.0 76,006 54,440 21,566 39.6 42,133 33,873 80.4 Professional Services 332,870 238,030 94,840 39.8 164,363 168,507 102.5 3,282,562 2,822,975 459,587 16.3 2,408,780 873,782 36.3 Claim and Loss Expenses 81,431 17,452 63,979 366.6 8,942 72,489 810.7 184,913 203,001 (18,088) -8.9 197,848 (12,934) -6.5 Service Release Premium - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Miscellaneous Operating Expense 10,598 7,250 3,348 46.2 8,641 1,957 22.6 98,697 72,500 26,197 36.1 71,953 26,744 37.2 Overhead Allocation 16,975 27,161 (10,186) -37.5 - 16,975 0.0 226,566 277,623 (51,058) -18.4 - 226,566 0.0Total Operating Expense 608,791 496,652 112,138 22.6 364,139 244,652 67.2 5,535,441 5,457,836 77,605 1.4 4,498,430 1,037,011 23.1

Net Operating Income (Loss) Before Grants 21,824 66,150 (44,326) -67.0 87,565 (65,740) -75.1 2,670,535 1,052,144 1,618,391 153.8 1,368,340 1,302,195 95.2

Net Grant (Income) Expense Grant Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Grant Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Intra-Agency Transfers (140,005) 10,000 (150,005) -1500.1 14,868 (154,874) -1041.6 750,000 760,000 (10,000) -1.3 380,193 369,807 97.3Total Net Grant (Income) Expense (140,005) 10,000 (150,005) -1500.1 14,868 (154,874) -1041.6 750,000 760,000 (10,000) -1.3 380,193 369,807 97.3

Net Operating Income (Loss) After Grants 161,830 56,150 105,680 188.2 72,696 89,133 122.6 1,920,535 292,144 1,628,391 557.4 988,147 932,388 94.4

Other Non-Operating (Income) Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0

Net Income (Loss) 161,830 56,150 105,680 188.2 72,696 89,133 122.6 1,920,535 292,144 1,628,391 557.4 988,147 932,388 94.4

IFA Home Dept Staff Count 14 17 (3) -17.6 12 2 16.7 13 17 (4) -21.2 15 (1) -8.2FTE Staff Count 16 19 (4) -19.3 14 2 13.3 16 19 (3) -15.5 16 0 2.3

Income StatementIowa Title Guaranty Division (Rollup)

YTD as of Apr-2020Apr-2020

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Actuals Bud20 R5 Difference % Last Year Difference % Actuals Bud20 R5 Difference % Last Year Difference %Operating Revenue Interest Revenue (140,005) 10,000 (150,005) -1500.1 14,868 (154,874) -1041.6 - 100,000 (100,000) -100.0 130,193 (130,193) -100.0 Authority Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Fee Revenue 753,120 497,480 255,640 51.4 383,272 369,848 96.5 7,538,914 5,856,760 1,682,154 28.7 5,232,085 2,306,829 44.1 Other Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0Total Operating Revenue 613,115 507,480 105,635 20.8 398,140 214,974 54.0 7,538,914 5,956,760 1,582,154 26.6 5,362,278 2,176,635 40.6

Operating Expense Interest Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Authority Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Employee Expenses 116,424 150,194 (33,770) -22.5 108,125 8,299 7.7 1,137,246 1,481,179 (343,934) -23.2 1,092,932 44,313 4.1 Common Expenses 12,422 14,477 (2,056) -14.2 47,101 (34,680) -73.6 194,137 160,050 34,088 21.3 352,612 (158,474) -44.9 Marketing Expense - 2,740 (2,740) -100.0 (2,323) 2,323 -100.0 71,086 49,400 21,686 43.9 38,633 32,453 84.0 Professional Services 332,579 237,930 94,649 39.8 164,199 168,380 102.5 3,282,144 2,821,975 460,169 16.3 2,408,524 873,620 36.3 Claim and Loss Expenses 81,866 16,225 65,640 404.6 18,601 63,265 340.1 169,009 190,732 (21,724) -11.4 190,566 (21,557) -11.3 Service Release Premium - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Miscellaneous Operating Expense 7,114 - 7,114 0.0 340 6,774 1992.4 10,213 - 10,213 0.0 5,989 4,224 70.5 Overhead Allocation 13,350 21,375 (8,025) -37.5 - 13,350 0.0 178,185 218,484 (40,299) -18.4 - 178,185 0.0Total Operating Expense 563,755 442,942 120,813 27.3 336,044 227,711 67.8 5,042,019 4,921,820 120,200 2.4 4,089,255 952,764 23.3

Net Operating Income (Loss) Before Grants 49,360 64,538 (15,178) -23.5 62,097 (12,737) -20.5 2,496,894 1,034,940 1,461,954 141.3 1,273,023 1,223,871 96.1

Net Grant (Income) Expense Grant Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Grant Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Intra-Agency Transfers (140,005) 10,000 (150,005) -1500.1 14,868 (154,874) -1041.6 750,000 760,000 (10,000) -1.3 380,193 369,807 97.3Total Net Grant (Income) Expense (140,005) 10,000 (150,005) -1500.1 14,868 (154,874) -1041.6 750,000 760,000 (10,000) -1.3 380,193 369,807 97.3

Net Operating Income (Loss) After Grants 189,365 54,538 134,827 247.2 47,228 142,137 301.0 1,746,894 274,940 1,471,954 535.4 892,830 854,064 95.7

Other Non-Operating (Income) Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0

Net Income (Loss) 189,365 54,538 134,827 247.2 47,228 142,137 301.0 1,746,894 274,940 1,471,954 535.4 892,830 854,064 95.7

IFA Home Dept Staff Count 10 13 (3) -23.1 8 2 25.0 10 13 (3) -26.2 11 (1) -12.7FTE Staff Count 12 15 (3) -22.6 11 1 9.7 13 15 (2) -16.3 13 (0) -0.7

Income Statement800-020 Residential

YTD as of Apr-2020Apr-2020

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Actuals Bud20 R5 Difference % Last Year Difference % Actuals Bud20 R5 Difference % Last Year Difference %Operating Revenue Interest Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Authority Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Fee Revenue 7,137 47,672 (40,535) -85.0 52,878 (45,741) -86.5 570,641 476,720 93,921 19.7 440,622 130,019 29.5 Other Revenue 10,363 7,650 2,713 35.5 685 9,678 1412.9 96,421 76,500 19,921 26.0 63,871 32,551 51.0Total Operating Revenue 17,500 55,322 (37,822) -68.4 53,563 (36,063) -67.3 667,062 553,220 113,842 20.6 504,492 162,570 32.2

Operating Expense Interest Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Authority Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Employee Expenses 37,226 38,472 (1,246) -3.2 22,583 14,643 64.8 320,279 381,048 (60,769) -15.9 284,954 35,325 12.4 Common Expenses 845 625 220 35.1 7,176 (6,331) -88.2 15,035 5,020 10,015 199.5 47,219 (32,184) -68.2 Marketing Expense - 250 (250) -100.0 (470) 470 -100.0 4,920 5,040 (120) -2.4 3,500 1,420 40.6 Professional Services 291 100 191 191.1 164 127 77.4 418 1,000 (582) -58.2 256 162 63.4 Claim and Loss Expenses (435) 1,227 (1,662) -135.4 (9,659) 9,224 -95.5 15,905 12,269 3,636 29.6 7,282 8,623 118.4 Service Release Premium - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Miscellaneous Operating Expense 3,484 7,250 (3,766) -51.9 8,301 (4,817) -58.0 88,484 72,500 15,984 22.0 65,964 22,520 34.1 Overhead Allocation 3,625 5,786 (2,161) -37.3 - 3,625 0.0 48,381 59,140 (10,758) -18.2 - 48,381 0.0Total Operating Expense 45,036 53,710 (8,674) -16.1 28,095 16,940 60.3 493,422 536,017 (42,595) -7.9 409,175 84,247 20.6

Net Operating Income (Loss) Before Grants (27,535) 1,612 (29,147) -1808.1 25,468 (53,003) -208.1 173,641 17,203 156,437 909.3 95,317 78,323 82.2

Net Grant (Income) Expense Grant Revenue - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Grant Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0 Intra-Agency Transfers - - - 0.0 - - 0.0 - - - 0.0 - - 0.0Total Net Grant (Income) Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0

Net Operating Income (Loss) After Grants (27,535) 1,612 (29,147) -1808.1 25,468 (53,003) -208.1 173,641 17,203 156,437 909.3 95,317 78,323 82.2

Other Non-Operating (Income) Expense - - - 0.0 - - 0.0 - - - 0.0 - - 0.0

Net Income (Loss) (27,535) 1,612 (29,147) -1808.1 25,468 (53,003) -208.1 173,641 17,203 156,437 909.3 95,317 78,323 82.2

IFA Home Dept Staff Count 4 4 - 0.0 4 - 0.0 4 4 (0) -5.0 4 0 5.6FTE Staff Count 4 4 (0) -7.1 3 1 26.2 4 4 (1) -12.6 3 0 14.7

Income Statement800-030 Commercial

YTD as of Apr-2020Apr-2020

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Actuals Bud20 R5 Difference % Last Year Difference %Assets and Deferred Outflows Cash & Cash Equivelents 13,737,672 10,405,988 3,331,685 32.0 10,634,262 3,103,410 29.2 Investments - - - 0.0 - - 0.0 Mortgage Backed Securities - - - 0.0 - - 0.0 Line of Credit - - - 0.0 - - 0.0 Loans - net of reserve for losses - - - 0.0 - - 0.0 Capital Assets (net of accumulated depreciation) - 1,250,000 (1,250,000) -100.0 - - 0.0 Other Assets 607,943 241,047 366,896 152.2 240,790 367,153 152.5 Deferred Outflows 307,669 473,026 (165,357) -35.0 393,180 (85,511) -21.7Total Assets and Deferred Outflows 14,653,284 12,370,061 2,283,223 18.5 11,268,232 3,385,052 30.0

Liabilities, Deferred Inflows, and Equity Debt - - - 0.0 - - 0.0 Interest Payable - - - 0.0 - - 0.0 Unearned Income - - - 0.0 - - 0.0 Escrow Deposits 2,086,747 1,844,583 242,164 13.1 780,290 1,306,457 167.4 Reserves for Claims 1,069,721 1,133,426 (63,705) -5.6 919,236 150,485 16.4 Accounts Payable & Accrued Liabilities 1,497,049 1,116,618 380,431 34.1 924,325 572,724 62.0 Other liabilities 1,267,687 1,546,304 (278,617) -18.0 1,447,710 (180,023) -12.4 Deferred Inflows 88,843 65,505 23,338 35.6 65,142 23,701 36.4 Total Liabilities and Deferred Inflows 6,010,046 5,706,436 303,610 5.3 4,136,703 1,873,343 45.3

Equity YTD Earnings(Loss) 1,920,535 292,144 1,628,391 557.4 988,147 932,388 94.4 Prior Years Earnings 6,722,703 6,371,481 351,222 5.5 6,143,382 579,321 9.4 Transfers - - - 0.0 - - 0.0 Total Equity 8,643,238 6,663,625 1,979,613 29.7 7,131,529 1,511,709 21.2

Total Liabilities, Deferred Inflows, and Equity 14,653,284 12,370,061 2,283,223 18.5 11,268,232 3,385,052 30.0

Iowa Title Guaranty Division (Rollup)Apr-2020Balance Sheet

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Iowa Title Guaranty FY 2021 Budget Summary Recap FY20 Financial Statement Highlights (FY20 Forecast compared to FY20 Budget)

Total Operating Income is above budget at $9.1 million, $1.4 million or 19% more than budget of $7.6 million.

Operating Expenses of $6.2 million are below budget of $6.5 million -4%.

Net Operating Income Before Grants of $2.8 million is forecasted to be above budget by $1.7 million.

Transfers to Housing Assistance Fund of $1.75 million, $0.75 million or 75% more than budget of $1.0 million.

FY21 Operating Budget Highlights compared to FY20 Forecast

Net income for FY21 is budgeted to be $1,141,889 which is $1,676,270 or 59.5% less than net income forecasted for FY20. The lower profitability budgeted for FY21 is due to anticipated increases in employee expenses, professional services, and other operating expenses, and by lower revenues. Budgeted operating results for FY21 compared to Forecasted FY20 are summarized below:

Forecast 2020 Budget 2021 Incr / (Decr) % Change

REVENUES

Residential 8,252,754 7,522,235 (730,519) -8.9%

Commercial 801,874 613,748 (188,126) -23.5%

Combined 9,054,627 8,135,983 (918,644) -10.1%

NET INCOME

Residential 2,608,871 1,134,801 (1,474,070) -56.5%

Commercial 209,288 7,088 (202,200) -96.6%

Combined 2,818,160 1,141,889 (1,676,270) -59.5%

TRANSFERS TO HOUSING 1,750,000 1,100,000 (650,000) -37.1%

Revenues - FY21 Residential revenues are budgeted to decrease $730,519, or 8.9% compared to revenues projected for FY20. The decrease in residential revenues is due to lower expected transactions as ITG is expecting a downturn in residential purchasing. This is partially offset by increasing the streamlined single premium to $175.00 per transaction effective January 1, 2021 primarily due to Qualia system go-live. Residential purchase activity is budgeted to decrease 9.8% in FY21 compared to FY20 and refinance activity is budgeted to decrease 33.0% in FY21 compared to FY20. Commercial Division revenues are budgeted to decrease by $188,126 or 23.5%, compared to FY20.

Total Operating Expenses – Total operating expenses are budgeted to increase $757,626 compared forecasted FY20.

Forecast 2020 Budget 2021 Incr / (Decr) % Change

Employee Expenses 1,757,888 2,316,480 558,591 31.8%

Other Operating Expenses 624,239 599,687 (24,552) -3.9%

Sales & Marketing 84,976 71,524 (13,452) -15.8%

Professional Services 3,659,597 3,976,510 316,913 8.7%

Claims Activity Expenses 109,768 29,893 (79,875) -72.8%

Total Operating Expenses 6,236,468 6,994,094 757,626 12.1%

Employee Expenses are budgeted to increase $558,591, or 31.8% compared to FY20, due to:

1. Several positions that were vacant for various time periods in FY20 are budgeted to be filled during FY21. Three additional positions were also approved: Operations Manager, Audit Specialist and Production Specialist.

2. Scheduled Step Increases – 3% 3. Across the board 2.1% increase 7/1/2020. 4. Increased Travel and Education which was lower in FY20 related to open positions.

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Iowa Title Guaranty FY 2021 Budget Summary Recap Other Operating expenses in FY21 are budgeted to be $24,552 lower than FY20, due to:

1. FY20 included amortized 2019 ALTA license fees ($10,140) plus 2020 license fee ($19,110). A method change was implemented to expense the full annual cost at the time of expenditure. FY20 expense represents 1.5 years.

2. ALTA ($19,340 vs $14,000) and ILTA ($7,500 vs $5,000) Membership fees had been previously amortized; however, a method change was implemented to recognize the full annual fee at time of expenditure. FY20 expense represents 1.5 years.

3. SoftPro software will be fully depreciated by mid FY21.

Sales and Marketing Expenses are budgeted to be $71,524 in FY21, a decrease of $13,452 compared to FY20 forecast. ITG is budgeting 7 Workshops around Qualia training in place of larger conferences.

Professional Services are budgeted to be $3,976,510 in FY21, an increase of $316,913, or 8.7%, compared to forecasted amounts in FY20. Due to:

1. Field issuer incentives are budgeted to be 40.2% of residential premiums in FY21 compared to 42.8% in FY20. Resulting in decreased expenses of $451,805

2. 6-month impact of Qualia transaction fees. ITG has a $500k reserve which will be amortized beginning January 2021 to offset the first 4 months. Total projected fees $673,650 based upon budgeted certificate issuance. The streamlined flat fee pricing was also increased accordingly to offset transaction fees.

3. Budgeted Demotech Consulting project to provide a strategic overview for the purpose of evaluating and assessing how ITG can leverage its unique attributes to serve more Iowans through its protection of a clean title.

Claims activity expense is budgeted to decrease $79,875 in FY21 compared to FY20, due to lower frequency of claims.

Transfers to the Iowa Housing Assistance Fund are budgeted to be $1,100,000 in FY21 which is lower than the amount forecasted for FY20. ITG is budgeting to transfer 96% of its net income in FY21 to the Iowa Housing Assistance Program.

Cash is budgeted to increase $694,909 in FY21 compared to fiscal year end 2020. ITG is budgeted to generate $1,794,909 cash from its operations in FY21. Cash generated from operations is offset by the transfer of $1,100,000 to the Iowa Housing Assistance Programs.

Budget 2021 Forecast 2020 Incr / (Decr)

Beginning Balance 7/1 $11,796,671 $11,383,211 $413,460

Net Income $1,141,889 $2,818,160 ($1,676,270)Escrow Account Changes ($620,229) $620,229Other Working Capital Changes $653,020 ($34,471) $687,491

Cash Generated from Operations $1,794,909 $2,163,460 ($368,551)

Transfers to Housing Assistance $1,100,000 $1,750,000 ($650,000)

Ending Balance 6/30 $12,491,580 $11,796,671 $694,909

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Iowa Title Guaranty FY 2021 Budget Summary Recap Net Position is budgeted to increase by approximately $46,000 in FY21 as net income of $1,141,889 is offset by

transfers of $1,100,000 to the Iowa Housing Assistance Programs.

Forecast 2020 Budget 2021 Incr / (Decr)

Beginning Balance 7/1 $6,722,703 $7,790,863 $1,068,160

Net Income $2,818,160 $1,141,889 ($1,676,270)

Transfers to Housing Assistance $1,750,000 $1,100,000 ($650,000)

Ending Balance 6/30 $7,790,863 $7,832,752 $41,889

Operating Statistics

Forecast Budget

FY 2020 FY 2021 Incr / (Decr) % Change

Commitments Issued 75,771 65,319 (10,452) -13.8%

Certificates IssuedPurchase Certificates 34,986 31,778 (3,208) -9.2%Refinance Certificates 24,070 16,136 (7,934) -33.0%Owners Certificates 32,281 31,478 (803) -2.5%Jr. Certificates 91 60 (31) -34.1%

Total Certificates Issued 91,428 79,452 (11,976) -13.1%

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5/21/2020

ACT FY14 ACT FY15 ACT FY16 ACT FY17 ACT FY18 ACT FY19 FCST FY20 Bud FY21 $ change % changeAssets and Deferred Outflows - - - - - - - - - 0% Cash & Cash Equivelents 11,204,841 9,254,442 13,813,463 10,406,451 9,942,205 11,383,211 11,796,671 12,491,580 694,909 6% Investments - - - - - - - - - 0% Mortgage Backed Securities - - - - - - - - - 0% Line of Credit - - - - - - - - - 0% Loans - net of reserve for losses - - - - - - - - - 0% Capital Assets (net) 244 3,313 2,979 2,645 2,311 - - - - 0% Other Assets (58,522) 146,471 282,810 181,209 170,558 157,800 544,772 44,772 (500,000) -92% Deferred Outflows - 219,725 241,770 283,103 393,180 307,669 307,669 307,669 - 0%Total Assets and Deferred Outflows 11,146,562 9,623,951 14,341,022 10,873,408 10,508,254 11,848,680 12,649,113 12,844,022 194,909 2%

Liabilities, Deferred Inflows, and Equity - - - - - - - - - 0% Liabilities and Deferred Inflows 9,835,167 4,578,943 9,019,142 4,656,295 4,364,872 5,125,977 4,858,250 5,011,269 153,019 3% Equity 1,311,396 5,045,007 5,321,880 6,217,114 6,143,382 6,722,703 7,790,863 7,832,752 41,889 1%Total Liabilities, Deferred Inflows, and Equity 11,146,562 9,623,951 14,341,022 10,873,408 10,508,254 11,848,680 12,649,113 12,844,022 194,909 2%

ACT FY14 ACT FY15 ACT FY16 ACT FY17 ACT FY18 ACT FY19 FCST FY20 Bud FY21 $ change % changeOperating Revenue Interest Revenue - - 30,353 54,124 85,620 157,327 - - - 0% Authority Revenue - - - - - - - - - 0% Fee Revenue 6,456,949 5,433,802 7,265,274 8,084,427 7,628,252 6,599,796 8,953,569 8,075,983 (877,586) -10% Other Revenue 125,614 74,455 117,732 164,496 116,531 80,805 101,058 60,000 (41,058) -41%Total Operating Revenue 6,582,563 5,508,256 7,413,360 8,303,047 7,830,404 6,837,929 9,054,627 8,135,983 (918,644) -10%

Operating Expense Interest Expense - - - - - - - - - 0% Authority Expense - - - - - - - - - 0% Employee Expenses 1,793,526 1,856,910 1,688,843 2,155,089 2,253,501 1,579,076 1,757,888 2,316,480 558,591 32% Common Expenses 128,046 241,372 242,390 247,240 388,091 477,646 242,581 216,062 (26,519) -11% Marketing Expense 102,420 100,210 68,304 54,506 65,831 42,830 84,976 71,524 (13,452) -16% Professional Services 2,808,645 2,391,530 3,399,456 3,547,146 3,170,936 2,823,868 3,659,597 3,976,510 316,913 9% Claim and Loss Expenses 264,339 (4,726,508) 376,392 (116,877) 513,596 246,273 109,768 29,893 (79,875) -73% Service Release Premium - - - - - - - - - 0% Miscellaneous Operating Expense 113,615 77,203 130,748 166,586 116,620 81,588 110,449 90,600 (19,849) -18% Overhead Allocation - - - - - - 271,209 293,025 21,816 8%Total Operating Expense 5,210,590 (59,284) 5,906,133 6,053,689 6,508,575 5,251,281 6,236,468 6,994,094 757,626 12%

Net Operating Income (Loss) Before Grants 1,371,973 5,567,540 1,507,226 2,249,357 1,321,829 1,586,648 2,818,160 1,141,889 (1,676,270) -59%

Net Grant (Income) Expense Grant Revenue - - - - - - - - - 0% Grant Expense - - - - - - - - - 0% Intra-Agency Transfers 1,169,000 1,012,000 1,230,353 1,354,124 1,235,620 1,007,327 1,750,000 1,100,000 (650,000) -37%Total Net Grant (Income) Expense 1,169,000 1,012,000 1,230,353 1,354,124 1,235,620 1,007,327 1,750,000 1,100,000 (650,000) -37%

Net Operating Income (Loss) After Grants 202,973 4,555,540 276,873 895,233 86,208 579,321 1,068,160 41,889 (1,026,270) -96%

Non-Operating (Income) Expense - - - - - - - - - 0%

Net Income (Loss) 202,973 4,555,540 276,873 895,233 86,208 579,321 1,068,160 41,889 (1,026,270) -96%

IFA Staff Count by Home Dept 16.5 17.5 15.8 17.7 18.3 14.4 13.8 19.0 5.3 38%Contractor Staff Count by Home Dept 0.0 0.7 1.0 0.1 0.5 0.5 0.0 0.0 0.0 0%Staff Count by FTE 19.4 19.4 17.7 19.2 20.0 16.1 16.4 20.9 4.5 27%

Bud21Balance Sheet Iowa Title Guaranty Division (Rollup)

Income StatementBud21

Iowa Title Guaranty Division (Rollup)

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5/21/2020

ACT FY14 ACT FY15 ACT FY16 ACT FY17 ACT FY18 ACT FY19 FCST FY20 Bud FY21 $ change % changeAssets and Deferred Outflows - - - - - - - - - 0% Cash & Cash Equivelents 11,204,841 9,254,442 13,813,463 10,406,451 9,942,205 11,383,211 11,796,671 12,491,580 694,909 6% Investments - - - - - - - - - 0% Mortgage Backed Securities - - - - - - - - - 0% Line of Credit - - - - - - - - - 0% Loans - net of reserve for losses - - - - - - - - - 0% Capital Assets (net) 244 3,313 2,979 2,645 2,311 - - - - 0% Other Assets (58,522) 146,471 282,810 181,209 170,558 157,800 544,772 44,772 (500,000) -92% Deferred Outflows - 219,725 241,770 283,103 393,180 307,669 307,669 307,669 - 0%Total Assets and Deferred Outflows 11,146,562 9,623,951 14,341,022 10,873,408 10,508,254 11,848,680 12,649,113 12,844,022 194,909 2%

Liabilities, Deferred Inflows, and Equity - - - - - - - - - 0% Liabilities and Deferred Inflows 9,835,167 4,578,943 9,019,142 4,656,295 4,364,872 5,125,977 4,858,250 5,011,269 153,019 3% Equity 1,311,396 5,045,007 5,321,880 6,217,114 5,952,872 6,588,327 7,790,863 7,832,752 41,889 1%Total Liabilities, Deferred Inflows, and Equity 11,146,562 9,623,951 14,341,022 10,873,408 10,317,744 11,714,305 12,649,113 12,844,022 194,909 2%

ACT FY14 ACT FY15 ACT FY16 ACT FY17 ACT FY18 ACT FY19 FCST FY20 Bud FY21 $ change % changeOperating Revenue Interest Revenue - - 30,353 54,124 85,620 157,327 - - - 0% Authority Revenue - - - - - - - - - 0% Fee Revenue 5,913,881 4,851,451 6,454,966 7,441,853 6,749,141 6,053,759 8,252,754 7,522,235 (730,519) -9% Other Revenue 16,765 25 1 2,392 - - - - - 0%Total Operating Revenue 5,930,646 4,851,476 6,485,320 7,498,369 6,834,761 6,211,086 8,252,754 7,522,235 (730,519) -9%

Operating Expense Interest Expense - - - - - - - - - 0% Authority Expense - - - - - - - - - 0% Employee Expenses 1,487,844 1,509,787 1,377,038 1,780,939 1,880,387 1,242,426 1,374,749 1,892,547 517,798 38% Common Expenses 104,967 204,925 204,302 218,637 348,816 422,604 225,716 204,410 (21,306) -9% Marketing Expense 89,282 83,430 62,959 48,075 60,686 39,130 79,306 62,579 (16,727) -21% Professional Services 2,795,020 2,382,632 3,391,648 3,539,200 3,163,194 2,820,127 3,659,170 3,970,810 311,640 9% Claim and Loss Expenses 232,738 (4,755,801) 328,850 (143,585) 498,471 235,672 90,009 18,084 (71,925) -80% Service Release Premium - - - - - - - - - 0% Miscellaneous Operating Expense 6,626 2,806 7,314 5,611 3,176 6,329 3,699 3,600 (99) -3% Overhead Allocation - - - - - - 211,234 235,404 24,170 11%Total Operating Expense 4,716,477 (572,221) 5,372,111 5,448,877 5,954,730 4,766,287 5,643,882 6,387,434 743,552 13%

Net Operating Income (Loss) Before Grants 1,214,169 5,423,697 1,113,209 2,049,492 880,032 1,444,799 2,608,871 1,134,801 (1,474,070) -57%

Net Grant (Income) Expense Grant Revenue - - - - - - - - - 0% Grant Expense - - - - - - - - - 0% Intra-Agency Transfers 1,169,000 1,012,000 1,230,353 1,354,124 1,235,620 1,007,327 1,750,000 1,100,000 (650,000) -37%Total Net Grant (Income) Expense 1,169,000 1,012,000 1,230,353 1,354,124 1,235,620 1,007,327 1,750,000 1,100,000 (650,000) -37%

Net Operating Income (Loss) After Grants 45,169 4,411,697 (117,144) 695,367 (355,588) 437,472 858,871 34,801 (824,070) -96%

Non-Operating (Income) Expense - - - - - - - - - 0%

Net Income (Loss) 45,169 4,411,697 (117,144) 695,367 (355,588) 437,472 858,871 34,801 (824,070) -96%

IFA Staff Count by Home Dept 13.8 14.6 13.0 14.7 15.3 10.8 9.9 15.0 5.1 51%Contractor Staff Count by Home Dept 0.0 0.7 1.0 0.1 0.5 0.4 0.0 0.0 0.0 0%Staff Count by FTE 16.2 16.4 14.4 15.3 16.5 13.0 12.7 16.8 4.1 32%

Bud21Balance Sheet 800-020 Residential

Income StatementBud21

800-020 Residential

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5/21/2020

ACT FY14 ACT FY15 ACT FY16 ACT FY17 ACT FY18 ACT FY19 FCST FY20 Bud FY21 $ change % changeAssets and Deferred Outflows - - - - - - - - - 0% Cash & Cash Equivelents - - - - - - - - - 0% Investments - - - - - - - - - 0% Mortgage Backed Securities - - - - - - - - - 0% Line of Credit - - - - - - - - - 0% Loans - net of reserve for losses - - - - - - - - - 0% Capital Assets (net) - - - - - - - - - 0% Other Assets - - - - - - - - - 0% Deferred Outflows - - - - - - - - - 0%Total Assets and Deferred Outflows - - - - - - - - - 0%

Liabilities, Deferred Inflows, and Equity - - - - - - - - - 0% Liabilities and Deferred Inflows - - - - - - - - - 0% Equity 0 0 - 0 190,510 134,376 - - - 0%Total Liabilities, Deferred Inflows, and Equity 0 0 - 0 190,510 134,376 - - - 0%

ACT FY14 ACT FY15 ACT FY16 ACT FY17 ACT FY18 ACT FY19 FCST FY20 Bud FY21 $ change % changeOperating Revenue Interest Revenue - - - - - - - - - 0% Authority Revenue - - - - - - - - - 0% Fee Revenue 543,068 582,351 810,308 642,574 879,111 546,037 700,816 553,748 (147,068) -21% Other Revenue 108,849 74,430 117,731 162,104 116,531 80,805 101,058 60,000 (41,058) -41%Total Operating Revenue 651,916 656,780 928,039 804,678 995,642 626,843 801,874 613,748 (188,126) -23%

Operating Expense Interest Expense - - - - - - - - - 0% Authority Expense - - - - - - - - - 0% Employee Expenses 305,683 347,123 311,806 374,149 373,114 336,650 383,140 423,933 40,793 11% Common Expenses 23,080 36,447 38,088 28,603 39,276 55,042 16,865 11,652 (5,213) -31% Marketing Expense 13,137 16,780 5,345 6,431 5,144 3,700 5,670 8,945 3,275 58% Professional Services 13,624 8,898 7,808 7,946 7,742 3,741 427 5,700 5,273 1236% Claim and Loss Expenses 31,600 29,293 47,541 26,708 15,125 10,601 19,759 11,808 (7,950) -40% Service Release Premium - - - - - - - - - 0% Miscellaneous Operating Expense 106,989 74,397 123,434 160,975 113,444 75,259 106,750 87,000 (19,750) -19% Overhead Allocation - - - - - - 59,975 57,621 (2,354) -4%Total Operating Expense 494,113 512,938 534,022 604,812 553,845 484,993 592,585 606,660 14,074 2%

Net Operating Income (Loss) Before Grants 157,803 143,842 394,017 199,866 441,797 141,849 209,288 7,088 (202,200) -97%

Net Grant (Income) Expense Grant Revenue - - - - - - - - - 0% Grant Expense - - - - - - - - - 0% Intra-Agency Transfers - - - - - - - - - 0%Total Net Grant (Income) Expense - - - - - - - - - 0%

Net Operating Income (Loss) After Grants 157,803 143,842 394,017 199,866 441,797 141,849 209,288 7,088 (202,200) -97%

Non-Operating (Income) Expense - - - - - - - - - 0%

Net Income (Loss) 157,803 143,842 394,017 199,866 441,797 141,849 209,288 7,088 (202,200) -97%

IFA Staff Count by Home Dept 2.7 2.9 2.8 3.0 3.0 3.6 3.8 4.0 0.2 4%Contractor Staff Count by Home Dept 0.0 0.0 0.0 0.0 0.0 0.1 0.0 0.0 0.0 0%Staff Count by FTE 3.2 3.0 3.3 3.8 3.5 3.1 3.7 4.1 0.4 11%

Bud21Balance Sheet 800-030 Commercial

Income StatementBud21

800-030 Commercial

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To: Iowa Title Guaranty Board Members

From: Iowa Title Guaranty, Business Relationship Manager-Deb Franklin Date: May 15, 2020

Re: Business Relationship Update 2020

ITG Event Calendar-First Quarter 2020 through May 15th: The Iowa Title Guaranty Team is having a great year despite the challenges that we have faced in the first quarter of 2020. As we gear up to roll out the largest endeavor, Iowa Title Guaranty has ever taken on, our team is focused, and Lindsey Guerrero, Director is leading the pack with a new internal structure and new tools for participants. As most American businesses are adapting to a change in how we manage our business, our ITG team, a division of IFA, the IT staff, and operations have not missed a beat. Our staff has been working from home and we are fully engaged, using technology and our “Teams” communication system to stay connected as a company, with lenders and participants. Lindsey promptly responded to the COVID-19 pandemic by working closely with lenders and participants to meet their needs, while effectively managing risk to ITG. The necessary new requirements to address COVID-19 were implemented immediately to protect Iowa’s title process and in turn protect Iowa homeowners, lenders, and ITG participants. Director Lindsey Guerrero is also member of the COVID-19 Task Force with ILTA. Lindsey manages a consistent communications campaign with our IFA Marketing team, as we advise industry partners of changes due to the impact of the pandemic, as we introduce new tools, new manuals, and revised guidelines, along with confronting the Qualia rollout in September. Lindsey Guerrero has directed stakeholder meetings (virtual) to obtain input and advice related to the Policy Update Summary. She also organized a workgroup to revise ITG’s Minimum Abstract Standards, which are reflected in the Policy Update Summary. Our Iowa Title Guaranty Commercial Division has become a sponsor of CREW and Sam Askland, Commercial Services Officer, has attended various CREW events this year. Lindsey Guerrero and four of our Iowa Title Guaranty staff members attended IFA’s Lender Awards Luncheon to recognize and acknowledge IFA’s lender partners. The team of ITG attorneys attended the Drake Real Estate CLE and other ITG staff have attended professional development courses in the first quarter of 2020. To remain connected, Iowa Title Guaranty has moved to conducting conference calls and virtual meetings with our participants and the lenders. Deb Franklin, Business Relationship Manager, has led 22 conference

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calls in the last 4 weeks. These conference calls were set up with participants and lenders in Southern Iowa, Southeastern Iowa, and Northwestern Iowa. During the first quarter of 2020, Iowa Title Guaranty outreach focused on Eastern Iowa, including Dubuque, Clinton, DeWitt, Davenport, and Bettendorf, as well as stops in Moline and Rock Island, Illinois. Deb had a total of 29 physical appointments in these communities. These appointments were all held with current and prospective lenders. In addition, during the first quarter of 2020, Deb had 33 physical appointments in Cedar Rapids, Monticello, Iowa City, Hills, Coralville, WDSM, Clive, Ames and Ida Grove, Iowa. Again, the focus was lenders, and we started to visit participants.

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To:

Iowa Title Guaranty Board

From:

Doug Mizer

Date:

May 19, 2020

Re:

Claim Report

I.

Current Total Claims Reserves as of May 19, 2020: $426,410.52.

II.

Fiscal Year 2020 Claims Paid to Date: $82,472.14.

III.

Claim Summary as of May 19, 2020:

Total Pending Claims as of May 19, 2020 45

Pending Claims in Recoupment Status 3

Net Pending Claims as of May 19, 2020 42

Claims Received since July 01, 2019 108

Claims Resolved since July 01, 2019 120

IV.

Trends:

Claims Trends Lenders Owners Total

Claims in FY 2016 (July 1. 2015 to June 30, 2016) 62 6 68

Claims in FY 2017 (July 1. 2017 to June 30, 2017) 94 12 106

Claims in FY 2018 (July 1. 2017 to June 30, 2018) 108 22 130

Claims in FY 2019 (July 1. 2018 to June 30, 2019) 129 13 142

Claims to date FY 2020 (July 1. 2019 to Present) 90 18 108

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To: Iowa Title Guaranty Board

From: Kevin Blackman

Date: June 02, 2020

Re: Mortgage Release – FY20

Mortgage Release – FY20 Update

Through April 2020, we received 272 requests:

176 were in conjunction with the Rapid Certificate program (65%)

96 of the remaining requests included the $200 fee (35%)

301 releases have been filed

Since inception, 6,692 mortgages have been released through this program.

FY 2020 Requests

Received

Rapid

Certificates

Paid

$200

Releases

Filed

Jul-19 30 21 9 59

Aug-19 22 12 10 36

Sep-19 25 17 8 22

Oct-19 19 11 8 30

Nov-19 21 10 11 17

Dec-19 20 10 10 21

Jan-20 39 29 10 26

Feb-20 38 31 7 24

Mar-20 40 25 15 26

Apr-20 18 10 8 40

Totals 272 176 96 301