TRAC Settlement Agent Terms And Conditions

These TRAC Settlement Agent Terms and Conditions (“Terms”) shall be incorporated into the TRAC Settlement Agent Agreement (“Agreement”) executed by that certain settlement agent who is a party to such Agreement (“Settlement Agent”). These Terms may be updated from time-to-time by UWM and it shall be Settlement Agent’s responsibility to regularly check and monitor these Terms for updates as a condition of providing settlement agent services for TRAC loans pursuant to the Agreement and these Terms.

  1. Services. Settlement Agent will provide UWM and UWM’s borrower(s) with settlement agent services for TRAC loans (the “Services”) which shall include, but not be limited to: (a) preparation, printing and execution of necessary title documents, including, authorization, notarization, delivery, recording, and indexing; (b) printing and execution of UWM loan documents, including, authorization, notarization, delivery, recording, and indexing; and (c) escrow services (inclusive of disbursement services), signing services and closing services. A list of potential and non-comprehensive Services can be found below:

    • Obtain payoff of current mortgage(s), liens, construction liens, judgments, or other such matters.
    • Obtain and record any necessary subordination agreements.
    • Disburse funds to pay off existing lien(s).
    • Draft the necessary deeds waiving/conveying rights of individuals.
    • Review homeowners association (“HOA”) documents/obtain dues information and status letter.
    • Obtain information and pay outstanding and pro rata municipal charges such as taxes, water, sewer, and trash.
    • Obtain any relevant unrecorded documents in the possession of the seller.
    • Conduct the closing in accordance with UWM’s closing instructions and attorney title opinion letter (“AOL”).
    • Ensure that taxes on the subject property were not assessed between the AOL date and the date of closing. If taxes were assessed during this time, ensure that they are accounted for in the Closing Disclosure.
    • Calculate any transfer taxes, deed stamps, etc. and enter them into UWM portal (as well as provide an estimate to the broker for this loan).
    • Perform any necessary steps in UWM’s UClose portal.
    • Refund any overages to the proper party within 7 days of becoming aware of the overage, and notify UWM that the overage was returned to the proper party.

    No part of these Terms or the Agreement shall be construed to mean that UWM is guaranteeing Settlement Agent will be asked to perform Services. The option to use Settlement Agent and its Services is at the sole discretion of a borrower and/or borrower’s broker, and not UWM. Settlement Agent represents and warrants that: (i) its actions and performance of the Services are and will be in full compliance with all applicable laws and regulations, (ii) Services will be performed in a diligent and workmanlike manner in accordance with good industry practices, by individuals of suitable training and skill, and (iii) Settlement Agent will comply with all closing instructions provided by UWM.
  2. Fees. Settlement Agent shall provide the Services pursuant to the fee schedule included in the Agreement (the “Fee”). The Fee is the only closing or settlement fee that can be charged by the Settlement Agent in connection with any UWM loan that closes using an AOL, including all fees paid to subcontractors, escrow agents, attorneys, or other vendors, for services provided and/or deed preparation related to the transaction. Settlement Agent will be paid the Fee on a loan when the loan closes. Settlement Agent will not earn the Fee on a loan(s) that does not close using an AOL provided by UWM or a UWM vendor.
  3. AOL Validity. The AOL provided by UWM is valid for sixty (60) days. If the closing of the loan is delayed beyond sixty (60) days of the effective date of the AOL, the Settlement Agent must alert UWM and request an updated AOL before the closing can occur.
  4. Insurance. Settlement Agent will secure and maintain, at its own expense, Professional Errors and Omissions Liability Insurance appropriate to Settlement Agent’s profession. Coverage should be for a professional error, act or omission arising out of the scope of the Services, in an amount not less than $1,000,000 per occurrence. Upon request from UWM, Settlement Agent will furnish Certificates of Insurance evidencing all of the foregoing insurance coverage. The above-described policy will provide that written notice must be provided to UWM no less than thirty (30) days prior to cancellation, material modification, reduction in coverage, or non-renewal of the policy.
  5. Indemnification. Settlement Agent agrees to indemnify, defend and hold harmless UWM and UWM’s respective investors, including each of its respective officers, directors, shareholders, employees, and agents, as well as its third party service providers and affiliates and their respective successors, officers, directors, shareholders, employees, and agents (each an “Indemnitee”) from and against any and all losses, damages, penalties, fines, forfeitures, claims, expenses, fees, costs or liability, including reasonable legal fees and related costs and expenses as well as third-party liabilities, incurred or suffered by any Indemnitee, arising out of, resulting from, or in any way related to: (a) any claim, suit, action or proceeding (each a “Claim”) brought against Indemnitee by a third party (other than an Affiliate) arising out of the failure by the Settlement Agent to follow the provided closing instructions; (b) a breach of the terms and conditions of the Agreement or these Terms by the Settlement Agent, including but not limited to Settlement Agent’s representations and warranties; or (c) actual losses of the Indemnitees caused by the misconduct of the Settlement Agent.
  6. Disputes. The Agreement and these Terms will be governed by the laws of the State of Michigan, without regard to any conflicts of laws rules. The Parties hereby unconditionally and irrevocably submit to the jurisdiction of the Circuit Court for the County of Oakland, Michigan, or if original jurisdiction can be established to the United States District Court for the Eastern District of Michigan, Southern Division, City of Detroit, Michigan, in any action arising out of or in any way relating to the Agreement. The prevailing party in any dispute arising out of the Agreement or these Terms shall be entitled to an award of out-of-pocket costs and reasonable attorney fees.
  7. Confidentiality; Audit. Settlement Agent agrees to treat as confidential, and not disclose, all information (whether written or oral) provided by UWM to Settlement Agent, including but not limited to: (i) the terms of the Agreement; (ii) any and all consumer information or information related to any loans to which the Settlement Agent has access; and (iii) any other information that should reasonably be recognized as confidential information of UWM. Settlement Agent will provide UWM with access to, and any assistance and information that they need about the Services to confirm Settlement Agent’s compliance with the terms of the Agreement and these Terms, and applicable law and regulations.
  8. Miscellaneous. Settlement Agent may not assign or transfer the Agreement without UWM’s prior written consent. Settlement Agent will not subcontract any portion of its obligations under the Agreement or these Terms without UWM’s prior written approval. UWM’s approval with respect to any subcontracting will not relieve Settlement Agent of its responsibility for the performance of its obligations under the Agreement or these Terms. The Agreement, including these Terms, contains the complete and the entire agreement between the Parties respecting the subject matter hereof, and supersedes all prior negotiations, agreements, representations, and understandings, if any, between the Parties respecting such matter.
Register now