Assignment Verification Reports are crucial in determining if a loan is a beneficial commodity. Seasoned loans have a high probability of incorrectly prepared assignments located in the chain, which can result in a cloud on the title. It is essential that assignments are prepared by a company that understands the requirements in order to ensure assignment chains remain intact. The best practice would be to order an AVR on any loan with a less-than-certain history to verify that all assignments were prepared and recorded correctly.
Watch this video where industry expert and COO at Nationwide Title Clearing, Michael O'Connell, discusses the importance of integrating assignment verification reports (AVRs) with assignment services on seasoned loans. Click here to watch this National Mortgage News Ask the Experts video.
Seasoned loans sometimes have a multitude of issues that can affect the ownership of beneficial rights. Clouds on titles are expensive errors to correct, sometimes not being discovered until long after the beneficiary is out of business, making preparation of a new assignment almost impossible.
In this video, Michael discusses these key points:
- There is a high probability that a previous incorrectly prepared assignment will be found on seasoned loans.
- Badly prepared assignments or incorrectly assigned loans usually result in a cloud on title and non-transferable beneficial rights.
- Most seasoned loans have assignment issues that can affect the ownership of conveyable value.
- It is extremely beneficial to order an AVR on any loan that may have an uncertain history.
- AVRs list the exact chain of assignments so that future documents prepared will cite the correct beneficiary.
- It is imperative that assignments are prepared by a company that comprehends the necessary requirements and responsibly ensures that assignment chains are intact.