That's what I said. We've made the amendment and -- we can talk about it, but we made 194 5/21/08 - LAW & GOV'T - BILL 080424 the amendment. That is not in there.
You were. We're going to put in an amendment dealing with that issue.
And I appreciate that. With respect to Section 203, when these provisions are exempted for sheriff's deeds, title company deeds, attorney-presented deeds, I also think there should be an exemption in there of banks or regulated financial institutions. There are times where banks and regulated financial institutions deal with transfers of title to property, and I think that the safeguards of those financial institutions, in and of themselves, should be addressed in the general exemptions section of the document. Echoing one concern which I've heard and, again, just anecdotally, I was 195 5/21/08 - LAW & GOV'T - BILL 080424 recently involved in a transaction representing the County of Delaware where there was a loan being made for low-income housing in the County of Delaware. I do a lot of that lending work for the County. And there were several institutional lenders involved as well as the County. The speed of recording of documents is critical to any lender, because if a document is delayed in the recording process, other liens or judgments can interfere with the priority of the lien created by that document or the purported transfer created by that document. In my particular case, I had a closing involving a large low-income housing project. The lead lender was an affiliate of Citibank. It sent its documents in remotely to be recorded, but with a specific letter to the title company saying if these documents are not recorded within 24 hours of the date of signature, you shall return them to us, 196 5/21/08 - LAW & GOV'T - BILL 080424 the deal will not go through, the project would not have been built. If the regulations or the bill 5 presented here were to delay the recording of deeds or mortgages, because a mortgage can't be recorded on a transferred property until the deed is recorded, there's nothing to encumber until the title has been transferred, I see in a real-world situation that many, many lenders will simply not make loans for transfers of property, because their mortgages can't be recorded in a timely fashion. They're not going to release the money until the mortgage is on record. A title company is not going to insure the gap period between the date of signature and the date of recording if that gap period is more than or 48 21 hours in the normal course. If a deed or 22 a mortgage can't be recorded for weeks or 23 weeks while investigations as to its 24 efficacy are ongoing, money won't change hands. Titles won't be transferred. 197 5/21/08 - LAW & GOV'T - BILL 080424 The project in Delaware County, which was for low-income housing, would not have been built, because the escrow letter from the lead lender said do not release this money, do not close this deal until my mortgage is recorded, and if it is not recorded right away, send it back. That's a real-world concern I have about asking the Recorder's Office to act as a title company, in essence, and to check the efficacy of the deeds. I would like very much to find a way to make that happen. I would like very much to find a way to have the Commissioner's office write regulations which would allow that to happen, because I think on a visceral level, you're absolutely correct, Mr. Chairman and members of Council, it's very hard to tell the people in Philadelphia that nobody is looking to see if their names are on the deed or not. But most of the time in my own experience the question is not 198 5/21/08 - LAW & GOV'T - BILL 080424 whether the name of the grantor on the new deed meets the name of the grantee on the old deed. It's more that the name has just been forged, and that's not an issue which can be dealt with by checking the names one against the other. Thank you for the opportunity.
We're going to keep working with the Records Department on various issues that you raise, sir. Thank you for your testimony.
That concludes the hearing. Let me just note for the record that Resolution 080176 will be continued to the call of the Chair. Now we'll go into the public meeting of the Committee on Law and Government. I note for the record that we have a quorum with myself, Councilman Goode, Councilman Kelly and Councilman 199 5/21/08 - LAW & GOV'T - BILL 080424 Clarke, who was appointed by the Council President, and I now recognize Councilman Goode for an amendment on the bill in question.
Thank you, Mr. Chairman. I propose an amendment to Bill No. 080424. It's been circulated to the members of the Committee. I move for the adoption. (Duly seconded.)
It's been moved and seconded that the amendment be adopted. All in favor please say aye. (Aye.)
The motion carries and the bill is amended. The Chair again recognizes Councilman Goode.
Thank you, Mr. Chairman. I move that Bill No. 25 080424 as amended be reported out of 200 5/21/08 - LAW & GOV'T - BILL 080424 Committee with a favorable recommendation and the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
It's been moved and properly seconded. All those in favor please say aye. (Aye.)
And the record will note that Councilman Green and Councilman DiCicco will also be recorded as voting aye on the bill and the amendment. Bill No. 080424 will be reported out of this Committee with a favorable recommendation and the rules of Council will be suspended to allow for first reading at our next session of Council. It's been a long morning and afternoon. Thank you to everybody for hanging in there, all the witnesses. 201 5/21/08 - LAW & GOV'T - BILL 080424 This Committee on Law and Government will stand in recess. Thank you very much. (Committee on Law and Government adjourned at 1:00 p.m.) - - - 202 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on May 21, 2008, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)