1. Welcome to Spring
(almost). As Major
League Baseball gears up for another season
with reason for optimism in Chicago, unlike
many past years, there is also reason to be
optimistic about the Spring home buying
season. With interest rates extraordinari-
ly low and the pace of existing home sales
growing (up 11 percent from January 2015 to
January of this year), we seem to be poised for
a good spring and summer.
NAR is bullish on the upcoming market, as
realtor.com chief economist Jonathon Smoke
noted in February: “Recent housing and eco-
nomic reports predict we’ll see solid spring
home sales.” Smoke went on to cite improv-
ing home sales, job growth and low mortgage
rates as three of the factors giving him opti-
mism. The fourth is pricing:
“Prices are moving up and most of that has
been attributed to the limited number of
homes for-sale. At the current pace, there is
a four-month supply of homes on the market
— much lower than the norms of six to seven
months. This is driving prices higher and
encouraging consumers who hope to buy
this year to get started as soon as possible,”
Smoke added.
Combine that with a commercial real estate
market that continues to build momentum and
it seems like we could be on our way to several
good quarters in the real estate industry.
Tempering that optimism for some is the con-
tinuing struggle to get mortgage loans closed
in as timely a fashion as we did in the past.
But keep in mind that the past is just that –
past. For decades we operated in basically
the same closing environment with limited
changes here and there, but the HUD-1 era is
over and is never coming back.
There is no doubt that closings, on the whole,
are proceeding more slowly than they did
in the past. According to Ellie Mae’s latest
Origination Insight Report, the average time
to close a loan increased to 50 total days in
January, which is up four days from when
TRID went into effect in October.
For now, there isn’t a universally acceptable
timetable to get to closing. Different lenders
are approaching the process in different ways
and concentrating on getting numbers to
consumers according to the new rule. That’s
understandable especially with the CFPB
holding a cudgel and threatening to use it.
But one of the factors that is slowing down
the process is some delays in getting figures
to the settlement companies. I would urge
you all on the lending side of the world (as
well as attorneys) to get us the numbers we
need as quickly as possible so we, in turn, can
speed up our process.
None of this is surprising as we get used to
a new system. After all, HUD/RESPA was
around 40 years, and Rome wasn’t built
in a day as we Italians like to say. I believe
that the process is getting better and that
our time frames will shrink steadily as 2016
moves along.
IN THIS ISSUE
1. My Perspective
Spring Optimism in the Air
2. Legal Landscape
Mechanics’ Lien Law Change
3. Commercial Corner
2015 Great Year for Mortgages
4. CFPB TRID Updates
Correction on Tolerances
MY PERSPECTIVE
By Frank Pellegrini, Prairie Title CEO
Despite TRID Delays, Spring Optimism is in the Air
New Art Exhibit at
Prairie Title
Prairie Title is now hosting the works of
local artist Jim Tansley (shown with Frank
Pellegrini in front of two of Jim’s pieces).
Stop by any time and take a look.
ATG Limit Increasing
As of May 1, attorney-agents for Attorneys'
Title Attorney Guaranty Fund will see their
limit before before reinsurance increase 50
percent to $1.5 million.
www.prairietitle.com News from Prairie Title
March/April 2016
ASSURANCE

2. Contact Us
You can contact any member of our management team or
department heads via e-mail. Or dial our main number
at 708-386-7900 and ask for the following extensions:
Frank Pellegrini - CEO............................... ext. 1301
frank@prairietitle.com
Mary Pellegrini - Customer Service............ ext. 1306
mpellegrini@prairietitle.com
Mandy Valentin - Closing Dept................... ext. 1345
avalentin@prairietitle.com
Donna Krzanik - Title Dept........................ ext. 1305
dkrzanik@prairietitle.com
Scheduling............................................. ext. 1303
scheduling@prairietitle.com
Steve Gillum - Account Executive........ 630-450-0093
sgillum@prairietitle.com
Michael Guerin - Account Executive.....847-651-5635
mguerin@prairietitle.com
Van Hante - Account Executive............708-692-2824
vhante@prairietitle.com
Brian Zeng - Account Executive...........630-746-9855
bzeng@prairietitle.com
Prairie Title
6821 W. North Ave.
Oak Park, IL 60302
www.prairietitle.com
New Illinois Law Allows “Bonding Over” Mechanic' Lien Law
A new law passed last July that went into effect
at the beginning of the year authorizes so-called
“bonding over” of mechanics liens for the first
time ever. The addition to the Illinois Mechan-
ics’ Lien Act (section 38.1) allows “any owner,
lien claimant or other person having an inter-
est in property against which a mechanics’ lien
is asserted to petition to substitute an eligible
surety bond in place of a mechanic’s lien,” ac-
cording to National Law Review article authored
by Gregory S. Gistenson and Clifford J. Shapiro.
Practically speaking, the adjustment to Illi-
nois law will allow real estate to flow into com-
merce despite the presence of a mechanics’ lien
because it’s secured by the bond. In the past, a
mechanics’ lien would keep a property locked
in limbo until the lien was satisfied, often after
protracted litigation.
According to Gistenson and Shapiro, Section
38.1 “May cause unintended consequences for
general contractors. If a general contract re-
quires the contractor to bond over liens filed by
sub-subcontractors or material suppliers with
whom they do not have a direct contract, that
contractor risks becoming personally liable to
a lower-tier lien claimant for the amount of the
lien, plus attorneys’ fees and interest. Contrac-
tors should consider carefully any such contract
requirement in light of the above provisions and
should understand the additional risks such a re-
quirement could impose.”
This new provision of the Illinois Mechanics’
Lien Law can be beneficial to real estate devel-
opers, general contractors and others, but, as
always, caution and careful planning in con-
sultation with your real estate attorney are
highly recommended.
State Offers New Veterans’ Property Tax Break
Effective at the beginning of this year for proper-
ty tax year 2015, more Illinois veterans with dis-
abilities will be eligible for tax relief as a result of
legislation recently enacted. Public Act 98-1145
andPublicAct99-0375expand the existing prop-
erty tax homestead exemptions and mobile home
exemptions, helping more Illinois veterans with
disabilities and their families.
Veterans and their spouses who qualified for the
Specially Adapted Housing Exemption for Vet-
erans with Disabilities (35 ILCS 200/15-165) for
the 2014 tax year will receive additional proper-
ty tax relief on their 2015 property tax bills. The
Specially Adapted Housing Exemption benefit
was increased, providing a reduction in the as-
sessed value for specially adapted housing of up
to $100,000 (previously $70,000). Those veter-
ans and their families who qualify for the spe-
cially adapted housing benefit on their mobile
home will continue to be fully exempt from the
full amount of the Mobile Homes Local Services
Tax Act.
For the 2015 tax year for taxes payable in 2016,
the specially adapted housing benefit is expand-
ed to include housing specifically constructed
or adapted to suit a qualifying veteran’s dis-
ability, and is donated through a charitable
organization in compliance with the standards
set by the U. S. Department of Veterans’ Affairs.
The exemption must be reestablished annually
by certification from the Illinois Department of
Veterans to the Illinois Department of Revenue
who forwards the certification list of eligible
veterans to the local assessing official. The vet-
erans should contact their county assessor for
more information and to apply for the relief.
HUD Reform Bill Passes House
On Feb. 24, the U.S. House of Representatives
unanimously passed H.R. 3700, the Housing
Opportunity through Modernization Act. The
legislation is meant to improve and modernize
HUD's programs as the department prepares for
its 50th anniversary.
This legislation is sponsored by Reps. Luetke-
meyer (R-MO) and Cleaver (D-MO). Among its
provisions, the bill makes a number changes to
HUD's condo approval rules including (1) reduc-
ing the owner occupancy ratio to 35 percent, (2)
requiring a streamlined certification process, (3)
providing more flexibility for mixed use develop-
ments to receive HUD approval, and (4) requiring
the FHA to mirror Fannie and Freddie's rule on
private transfer fee covenants.
Legal Landscape
Introducing
Title Man – Hero
of the industry
Watch for Title Man here, there and
everywhere. Go to Prairie Title’s
Facebook page and friend us to
see where he’ll pop up next!
2 ASSURANCE News From Prairie Title March/April 2016

3. 2015 Best Year for Mortgages Since 2007
U.S. office net absorption topped 100 million
square feet for the first time since the Great Reces-
sion and the national office vacancy rate declined
another half-percentage point in 2015 as broad-
ening demand and constrained levels of construc-
tion contributed to tightening space availability in
virtually every metro area. Those findings were
included in a report released recently by Washing-
ton, D.C.’s CoStar Group.
The U.S. office vacancy rate declined from 11.3%
in 2014 to 10.8% at the end of 2015, continuing its
downward trend from the 13.2% vacancy rate at
the worst of the economic downturn, according to
data presented at CoStar's recent State of the U.S.
Office Market 2015 Review and Forecast.
“The market is overwhelmingly strong at this
point in the cycle. With the momentum in the
market, I’m sure the next quarter will also be
strong,” said Hans Nordby, managing director
of CoStar Portfolio Strategy, who presented the
findings along with CoStar Director of Office
Research Walter Page and Vice President and Re-
search Director Dean Violagis.
MBA Projects Commercial Mortgage Growth
Meanwhile, the Mortgage Bankers Association
projects originations of commercial and multi-
family mortgages to grow to $511 billion in 2016,
an increase of 3 percent from 2015 volumes and
slightly more than the previous record of $508
billion originated in 2007.
MBA also forecasts mortgage banker originations
of multifamily mortgages to reach $202 billion in
2016,withtotalmultifamilylendingat$262billion.
“This past year was extremely strong for commer-
cial real estate finance,” said MBA Vice President
of Commercial Real Estate Research Jamie Wood-
well. “Property incomes are rising, interest rates
are low and property values are up. We expect the
momentum to continue into 2016 and to support
both the demand for and supply of commercial and
multifamily mortgage capital.”
Woodwell said a growing economy, coupled with
only gradual increases in interest rates, should
continue to support a strong commercial property
market. “But there is a chance that cap rates could
increase more rapidly in response to rising interest
rates, impacting property sales and mortgage orig-
inations,” he said.
Celebrating Anniversaries
at Prairie Title
At Prairie Title, experienced employees
are our best resource. We’re now celebrat-
ing employee anniversaries on a monthly
basis, recognizing the people without
whom we could not operate.
In January, Roz Belmonte celebrated 7
years at Prairie Title.
February anniversaries included:
• Marsha White, 4 years
• Betsy Rousakis, 7 years
• Jeremie Mascheri, 9 years
Congratulations to all!
THINK OF IT
AS A PROPERTY RIGHTS
FORCE FIELD
If you’re buying a home, get owner’s title insurance
and protect yourself from costly hidden problems.
TITLE INSURANCE
Com
m
ercial
Corner
Roz Belmonte celebrates her anniversary.
ASSURANCE News From Prairie Title March/April 2016 3

4. TRID Update
CFPB Corrects Error in TRID Rule on Tolerances
The Consumer Financial Protection Bureau (CFPB) on Feb. 10 published a
Correction Of Supplementary Information in the Federal Register to fix a
typographical error regarding the application of tolerances to property
insurance premiums, property taxes, homeowner’s association dues,
condominium fees and cooperative fees.
The Supplementary Information originally published by the CFPB stated
that “property insurance premiums, property taxes, homeowner's asso-
ciation dues, condominium fees, and cooperative fees are subject to tol-
erances whether or not they are placed into an escrow, impound, reserve,
or similar account.” The correction published in the Federal Register now
states that “property insurance premiums, property taxes, homeowner's
association dues, condominium fees, and cooperative fees are not subject
to tolerances whether or not they are placed into an escrow, impound,
reserve, or similar account.’ 78 FR 79730 (Dec. 31, 2013).
This change is consistent with other language in the Supplementary
Information, particularly the sentence preceding the corrected portion of
the supplement that reads, “property insurance premiums are included in
the category of settlement charges not subject to a tolerance, whether or
not the insurance provider is a lender affiliate.” 78 FR 79730, 79829 (Dec.
31, 2013).
With this error corrected, the costs affiliated with property insurance
premiums, property taxes, homeowner's association dues, condominium
fees, and cooperative fees may now change without impacting the allow-
able tolerances for the transaction.
Despite this change, lenders and settlement agents must make good-faith
efforts to provide accurate estimates. As a reminder, once the initial
Closing Disclosure
is issued, all changes
should be made with an
updated Closing Disclosure
that the creditor must provide
to the consumer at or before consum-
mation. The creditor may not provide a revised Loan
Estimate on or after the date the creditor provides the consumer with the
Closing Disclosure.
Leeway Promised in Early TRID Exams
The Consumer Financial Protection Bureau openly acknowledged that the
transition to new mortgage-disclosure requirements presents a major
challenge for lenders, saying it will give them some leeway in upcoming
exams, reported National Mortgage News in February.
“We're very aware of the significant challenges the industry has faced in
order to get into compliance with this rule,” said Allison Brown, a program
manager in mortgage servicing in the CFPB's office of supervision policy.
The bureau will be “very sensitive” to the implementation's impact on
lenders, title companies, closing agents and real estate professionals,
Brown said in February at a Mortgage Bankers Association conference in
Orlando, Fla.
“We understand that most industry members were ready on Oct. 3, but
there are going to be implementation challenges that you wouldn't know
about until the rules took effect and you started using those disclosures,”
she said.
Prairie Title
is TRID Ready
Prairie Title Gets
top Scores!
Prairie Title’s performance was recently reviewed by
Wells Fargo, and we received their highest scores in
three key Wells Fargo categories.
• Mortgage on time delivery: 100 percent
• Title Policy on time delivery: 88.1 percent
• Recording Fee Accuracy: 85.7 percent
We’re always working to get better, but it’s gratifying
to be recognized for strong performance by such an
important real estate lender.
4 ASSURANCE News From Prairie Title March/April 2016