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Rapid Certificate Program

Iowa Title Guaranty (ITG) offers an ITG Field Issuer the ability to issue Iowa Title Guaranty Certificates, despite unreleased prior mortgages and liens. The Field Issuer must have verification that a mortgage or lien has been paid off in the current transaction (i.e. payoff statement, canceled check, wire receipt) though not yet released of record, or improperly released.

Program Procedures

An ITG Field Issuer (the "Field Issuer") may issue an ITG Certificate guaranteeing over a prior mortgage paid in that transaction that has not yet been released of record, if the following requirements are met:

  • For a mortgage paid off by a Division Closer within a Division Closing, $20,000,000 (unless prior written approval is obtained from the Iowa Title Guaranty Director). For all other mortgages, without prior ITG written approval, $1,000,000.
  • The Field Issuer has proof the prior mortgage was paid (i.e. payoff statement, canceled check, wire confirmation or other documentary evidence of payment as authorized by the Iowa Code 16.92, the Mortgage Release Statute). If the mortgage is an Open-End or Future Advances mortgage, a direction signed by the borrower(s) to close the line of credit.
  • The Field Issuer raises an exception on Schedule B for the prior unreleased mortgage and also issues an Endorsement Against Loss-Lien Endorsement on the Certificate, specifically noting on the Endorsement the Schedule B exception number for the prior unreleased mortgage.

After the release has been recorded in the land records, the Field Issuer provides the release information to ITG by completing the Showing of Release (Form 801). If after four months, the just-paid prior mortgage is not released of record, the Field Issuer submits a Mortgage Release request to ITG.

For all other liens, a Field Issuer may issue an ITG Certificate guaranteeing over a lien that has not been released if the following requirements are met:

  • The amount of the lien is $500,000 or less, unless special permission is obtained in writing from ITG underwriting department.
  • The Field Issuer must have written documentation to obtain a release evidencing the payoff amount of the lien and proof the lien was paid off (i.e. copy of canceled check or wire receipt).
  • The Field Issuer raises an exception on Schedule B describing the unreleased lien and attaches an Endorsement Against Loss-Lien Endorsement to the Certificate specifically noting on the Endorsement the Schedule B exception number for the prior unreleased lien.

The Field Issuer must give their best efforts to obtain a release of the lien. Once the lien has been released, the Field Issuer provides the release information to ITG by completing the Showing of Release (Form 801). The Mortgage Release Program cannot be used to release liens that are not mortgage.

This allows final ITG Certificates to be issued in a timely manner—avoiding costly fines or being forced to “buy-back” mortgages. Using the Rapid Certificate Program is just one more way ITG works with lenders to protect their interests.

NOTE

ITG requires copies of the payoff statement and proof of payment or other documentary evidence, and the ITG Certificate number.

If the prior mortgage on the ITG Rapid Certificate was not paid off as a part of the current transaction, the Mortgage Release Application fee must be paid.

For more detailed information on the Rapid Certificate Program, please see the link below to the Underwriting Manual. If you have additional questions or would like to request additional information, please contact Carrie Nutt at 515.725.4917.

Rapid Certificate Program
Rapid
Certificate Program Checklist

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