UNDERWRITING COMMUNICATION

Issued by

First American Title Insurance Company

NA-2017-013–Standard (AGENTS ONLY)

Title: FinCEN Geographic Targeting Order

Issued By: Corporate Underwriting Department

Date Issued: August 29, 2017

On August 22, 2017, the United States Department of the Treasury’s Financial Crimes

Enforcement Network (“FinCEN”) issued an extension of the Geographic Targeting Order

(“GTO”) (attached as Exhibit A) reporting requirements that affects residential real estate

transactions involving real property in the Counties of Bexar, Texas; Miami-Dade, Broward and

Palm Beach, Florida; San Diego, Los Angeles, San Francisco, San Mateo and Santa Clara,

California; the Boroughs of Manhattan, Brooklyn, Queens, Bronx and Staten Island, New York;

and the City and County of Honolulu, Hawaii. These extended reporting requirements apply to

“Covered Transactions” (as defined below) that occur from September 22, 2017 until March 20,

2018. The GTO requires First American Title Insurance Company (“First American” or

“Company”) and First American’s issuing agents to collect and report information about the

persons involved in certain residential real estate transactions (“Covered Transactions”) in

which First American is involved (i.e. the Company insures a party in the transaction with a

policy of title insurance, conducts a settlement or performs a service). The GTO states that

First American and First American’s issuing agents may be liable, without limitation, for

civil or criminal penalties for violating any of the terms of the GTO.

The GTO defines a “Covered Transaction” as one in which:

i. A Legal Entity, whether formed under the laws of a state or of the United States

or a foreign jurisdiction, defined in the GTO as:

1. Corporation;

2. Limited Liability Company;

3. Partnership; or

4. Other similar business entity

ii. Purchases residential real property, defined by FinCEN as real property

(including individual units of condominiums and cooperatives) designed

principally for the occupancy of from one to four families, located in the

Counties/Boroughs described in the GTO;

iii. For a total purchase price of

1. $500,000 or more in Bexar County, Texas

2. $1,000,000 or more in Miami-Dade, Broward or Palm Beach

Counties, Florida

Standard - FinCen Geographic Targeting Order Page 2

3. $1,500,000 or more in the Boroughs of Brooklyn, Queens, Bronx

or Staten Island, in New York City, New York

4. $2,000,000 or more in San Diego, Los Angeles, San Francisco,

San Mateo or Santa Clara Counties, California;

5. $3,000,000 or more in the Borough of Manhattan in New York

City, New York; or

6. $3,000,000 or more in the City and County of Honolulu, Hawaii.

iv. Such purchase is made without a bank loan or other similar form of external

financing1; and

v. Such purchase is made, at least in part, using currency or a cashier’s check, a

certified check, a traveler’s check, a personal check, a business check or a

money order in any form, or a funds transfer.

NOTE: Funds transfers include, but are not limited to, wire transfers.

The GTO requires that IRS/FinCEN Form 8300 (“Form 8300”) be used to report certain

information that is more fully described in the GTO at paragraph II.B.2. That information

includes such things as (1) the identity of the Purchaser; (2) the identity of the Beneficial

Owner(s)2 of the Purchaser; and (3) the identity of the individual primarily responsible for

representing the Purchaser. The GTO sets out specific instructions for completing Form 8300,

many of which supersede the preprinted instructions on the Form 8300. Keep in mind, when

the reporting instructions in the GTO conflict with the Form 8300 preprinted instructions,

the terms of the GTO apply.

Standard:

Reporting to continue after August 22, 2017 and before September 22, 2017

First American requires its direct operations, subsidiaries, and issuing agents to continue

reporting transactions that close after August 22, 2017 and before September 22, 2017 in

compliance with the requirements of the FinCEN GTO issued February 21, 2017

notwithstanding the expiration of that order on August 22, 2017.

Reporting on and after September 22, 2017

First American requires its direct operations, subsidiaries, and issuing agents to report all

transactions that qualify under the FinCEN GTO issued August 22, 2017 beginning September

22, 2017 and ending March 20, 2018.

THEREFORE, UNLESS AND UNTIL YOU POSSESS THE INFORMATION NECESSARY TO

COMPLY WITH THE GTO PRIOR TO CLOSING THE TRANSACTION, YOU ARE

1 Loans financed by a U.S. financial institution, such as a bank or credit union that is required to have an anti-

money laundering policy. 2 “Beneficial Owner” means each individual who, directly or indirectly, owns 25% or more of the equity interests of

the Purchaser (Order at III.A.1.i.). However, if the purchaser involved in the Covered Transaction is a limited liability company, then the Covered Business must provide the name, address, and taxpayer identification number of all its members, to the extent not otherwise provided on the Form 8300 (Order at II.B.2.vi.2.).

Standard - FinCen Geographic Targeting Order Page 3

PROHIBITED FROM ISSUING FIRST AMERICAN TITLE INSURANCE POLICIES IN A

COVERED TRANSACTION. In addition, First American requires you to do the following:

1. Commitment and/or Preliminary Report Requirement – Every Commitment For Title

Insurance and/or Preliminary Report, involving residential property in the Counties or

Boroughs described above, where the purchase price is unknown or where the purchase

price meets the threshold stated in the GTO, must contain the following exception in the

preliminary report or the following requirement in the requirements section in Part 1 of

Schedule B:

This transaction may be subject to the FinCEN Geographic Targeting Order

affecting residential sale transactions. This issuing agent must be provided with

information prior to closing sufficient to determine if IRS/FinCEN Form 8300 must

be completed and filed and must be provided information sufficient to meet the

records retention requirements of the FinCEN Geographic Targeting Order. This

transaction will not be insured, and this issuing agent and/or its underwriter will

not be involved in a Covered Transaction (as defined by the FinCEN Geographic

Targeting Order) until this information is submitted and reviewed by the issuing

agent.

2. Evaluating and Reporting “Covered Transactions” – Title issuing agents must use

the Bank Secrecy Act E-Filing System to report all “Covered Transactions” as required

by the GTO. For your convenience, a FinCEN Geographic Targeting Order Covered

Transaction Evaluation Quick Guide (Evaluation Quick Guide) is provided as Exhibit B.

CAUTION: This form has been updated to reflect the requirements of the August 22,

2017 GTO. Do not use previous versions of the Evaluation Quick Guide. If filing is

required as stated in the GTO, a copy of the filed Form 8300 must be submitted to First

American along with a copy of the Bank Secrecy Act E-Filing System acknowledgment

for the filing to SOGFAI@firstam.com. Instructions for completing Form 8300 are

provided in Exhibit C. The GTO requires a copy of all records relating to compliance with

the GTO must be maintained for a period of five years from the last day the GTO is

effective (including any renewals of this GTO).

3. Gathering Reporting Information and Documents – When the settlement agent is not

the issuing agent (i.e. the settlement agent is a lawyer or an independent escrow

company) the issuing agent must gather the information and documents sufficient for it

to meet the reporting and document retention requirements of the GTO. For your

convenience, First American has created a FinCEN Geographic Targeting Order

Information Transmittal Worksheet that you may use for this purpose. (Attached as

Exhibit D). CAUTION: This form has been updated to reflect the requirements of the

August 22, 2017 GTO. Do not use previous versions of the worksheet. The GTO

requires a copy of all records relating to compliance with the GTO must be maintained

for a period of five years from the last day the GTO is effective (including any renewals

of this GTO).

Contact for Additional Information:

Contact your First American State Underwriter or Operations Counsel.

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Exhibit A

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Exhibit A

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Exhibit A

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Exhibit A

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Exhibit A

FinCEN-Evaluation Quick-Guide-Agent – For GTO Issued 2017-08-22 – Effective 9/22/17 through 3/20/18

FinCEN GTO Evaluation Quick Guide – Agent For use with GTO issued 8/22/17

1. Is property in targeted county or borough? Yes No - Stop, you’re done.

2. Is purchase price under minimum to report? Yes No - Stop, you’re done.

3. Is property residential?1 Yes No - Stop, you’re done.

4. Is purchaser an entity? Yes No - Stop, you’re done.

5. Is purchase made without a bank loan? Yes No - Stop, you’re done.

6. Was any of the purchase price, including the earnest money deposit, paid through the use of the following?

a. Currency (bills or coins): Yes No

b. Cashier’s Check; Yes No

c. Certified Check; Yes No

d. Traveler’s Check; Yes No

e. Money order in any form; Yes No

f. Business Check; Yes No

g. Personal Check Yes No

h. Funds transfer (i.e. wire transfer, etc.) Yes No

Note: Payments from the purchaser to a party representing the seller or purchaser (i.e. an attorney or real estate agent) or directly to the seller using one of the listed forms of payment require a “Yes” answer.

FinCEN GTO Form 8300 Submission Required – If questions 1 to 6 above ALL contain at least one “Yes” answer then a FinCEN Form 8300 must be completed and submitted to FinCEN via the Bank Secrecy Act E-Filing system. Additionally, to evidence compliance to First American, send electronic copies of the following documents to First American at SOGFAI@firstam.com within 5 business days of closing. Posted or FAX submissions are not allowed.

1. A copy of Form 8300 with Parts I, II, II and IV completed; and 2. A copy of the Bank Secrecy Act E-Filing System acknowledgment of filing.

FinCEN GTO Form 8300 Submission NOT Required – If questions 1 to 6 above DO NOT ALL contain at least one “Yes” answer, then a FinCEN Form 8300 need not be submitted to FinCEN. It is recommended that evidence of an evaluation be retained with the transaction file.

1 Residential property is defined as a real property (including individual units of condominiums and cooperatives)

designed principally for the occupancy of from one to four families.

Part II – Purchasing Entity’s Name and Address – GTO Para. II.B.2.ii. Note: The purchaser will always be an entity pursuant to GTO Para. II.A.2.i.

Check this box because the “Beneficial Owners” of the purchasing entity will be listed in additional Part II sections on Page 2 and in the comments section – GTO Para. II.B.2.ii.

Sample with Instructions - 3 Member LLC

Page 1 – Top – Parts I and II

Part I - Individual Primarily Representing Purchaser. Identity of the individual primarily responsible for representing the Purchaser. The “individual primarily responsible for representing the Purchaser” means the individual authorized by the entity to enter legally binding contracts on behalf of the entity. (See – FinCEN FAQs 2/1/2016.) The Covered Business must obtain and record a copy of this individual’s driver’s license, passport, or other similar identifying documentation. A description of such documentation must be provided in Field 14. – GTO Para. II.B.2.i.

Field 28 – Date of Closing – GTO Para. II.B.2.iv.1.

Field 29 – Total Amount Transferred in form of Monetary Instrument – GTO Para. II.B.2.iv.2. Note: Business checks and personal checks are included. GTO Para II.A.2.iv.

Field 31 – Total Purchase Price of Covered Transaction – GTO Para. II.B.2.iv.3.

Field 34 – Address of Real Property involved in the Covered Transaction – GTO Para. II.B.2.iv.4.

Part IV – The Covered Business that reported the transaction. – GTO Para. II.B.2.v.

Sample with Instructions – 3 Member LLC

Page 1 – Bottom – Parts III and IV

Field 30 – Multiple Monetary Payments. Check box if amount in Item 29 was received in more than one payment. Form 8300 instructions.

Field 42 – The form must be signed by an individual who has been authorized to sign for the Covered Business (i.e. First American or its agent). Form 8300 Instructions. Fields 43, 44 and 45 must also be completed.

Field 32 – Amount of Monetary Instruments – Enter the type and amount of the Monetary Instrument in U.S. Dollars. Form 8300 Instructions. Note: Currency is bills and coins. Caution: Don’t forget Issuer’s names and serial numbers. Because business checks and personal checks do not appear in field 32 it is suggested that they be included in the Comments section of the form with a reference to the Comments section in field 32.

Field 33 – Type of Transaction – Check box b “Real property purchased.” Form 8300 Instructions.

Sample with Instructions – 3 Member LLC

Page 2 – Top – Additional Part I

Additional Parts I – It is unlikely the additional Parts 1 will be needed because the GTO requires Part I to

contain the identity of the individual primarily responsible for representing the Purchaser.

Sample with Instructions – 3 member LLC

Page 2 – Bottom – Additional Parts II and Comments

Comments Section: 1. Unique identifier for the GTO = “REGTO”

Enter REGTO as a unique identifier. GTO Para II.B.2.vi.1. (The same identifier is used for all counties.) 2. LLC Purchasers – If the Purchaser is a LLC then the name address and taxpayer identification number of all

its members must be provided. GTO Para II.B.2.vi.2. (This must be done even if the first 2 names were provided in the additional Parts II above.)

3. Covered Business Name – If the Form 8300 is being filed by an agent of the Covered Business, then the name of the covered business must be included. GTO Para II.B.2.vi.3.

4. Business and Personal Checks – Because business checks and personal checks do not appear in field 32 it is suggested they be included in the comments section.

Additional Parts II - Beneficial Owner(s) of the Purchaser Name and Address. (See an example multi-tiered entity on the next page.) Enter the required information. See Form 8300 Instructions for guidance when a TIN is unavailable and for exceptions to the requirement to provide a TIN. Must obtain and record a copy of the Beneficial Owner(s) driver’s license, passport, or other similar identifying documentation and provide a description of such documentation in Field 27. – GTO Para. II.B.2.iii.

“Beneficial Owner” means each individual (including the individual listed in Part I) who, directly or indirectly, owns 25% or more of the equity interests of the Purchaser. – GTO Para. III.A.1.i. For LLCs all Beneficial Owners must be reported. For corporations put the first 2 Beneficial Owners’ names in Part II and the names of all the remaining Beneficial Owners in the comments section. GTO Para. II.B.2.iii. For limited liability companies put the first 2 members names in Part II and then list all the members in the comments section (including those listed in Part II) – GTO Para. II.B.2.iii and II.B.2.vi.2. See the charts on the following pages for examples.

If three or more Beneficial Owners must be reported use the Comments section. – Form 8300 Instructions.

Sample – Corporation – 3 Beneficial Owners (i.e. over 25%)

Page 1

Sample – Corporation – 3 Beneficial Owners (i.e. over 25%)

Page 2

ABC Corporation 8300-Part II-Pg.1

Sam Smith (30%)

8300-Part II-Pg.2

First Entry

ABC LLC (50%)

8300-Not Reported

Tom Lee (10%)

8300-Part II-Pg.2

Second Entry

Mary Lee (10%)

8300-Comments-Pg.2

First Entry

Rick Ramos (80%)

8300-Comments-Pg. 2

Second Entry

Joe Jones (20%)

8300-Not Reported

1. ABC Corporation is the “Legal Entity” purchasing the property and is reported in Part II on Page 1

of Form 8300.

2. Sam Smith is an individual who directly owns 25% or more of the equity interest of the

purchaser and is reported in Part II on Page 2 of Form 8300.

3. ABC LLC is not an individual and is therefore not reported.

4. Joe Jones is an individual who directly owns less than 25% of the equity interest of the purchaser

and is not reported.

5. Tom Lee, Mary Lee and Rick Ramos each indirectly own an interest in the purchaser because

they are members of ABC LLC. Because all members of an LLC must be reported Tom is reported

in Part II on Page 2 and Mary and Rick are reported in the “Comments” section of Page 2.

ABC LLC 8300-Part II-Pg.1

Sam Smith (30%)

8300-Part II-Pg.2

First Entry

ABC Corp. (50%)

8300-Part II-Pg.2

Second Entry

Tom Lee (50%)

8300-Comments-Pg.2

Second Entry

Mary Lee (40%)

8300-Comments-Pg.2

Third Entry

Rick Ramos (10%)

8300-Comments-Pg.2

Fourth Entry

Joe Jones (20%)

8300-Comments-Pg.2

First Entry

1. ABC LLC is the “Legal Entity” purchasing the property and is reported in Part II on Page 1 of Form

8300.

2. Sam Smith is a member of the LLC and is reported in Part II on Page 2 of Form 8300.

3. ABC Corporation is a member of the LLC and is reported in Part II of Page 2 of Form 8300.

4. Joe Jones is a member of the LLC and is reported in the “Comments” section on Page 2 of Form

8300.

5. Tom, Mary and Rick are shareholders of ABC Corporation and thus are indirect members of ABC

LLC and are all reported in the “Comments” section on Page 2 of Form 8300.

FinCEN GTO Information Transmittal Worksheet – For use with GTO issued 8/22/17 – Effective from 9/22/17 to 3/20/18 Page 1 of 2

FinCEN Geographic Targeting Order Information Transmittal Worksheet For use from September 22, 2017 to March 20, 2018 – DO NOT USE PRIOR FORMS

(Note: It is NOT necessary to complete the address fields if the information is on a legible copy of the government issued ID that will be submitted.)

SETTLEMENT AGENT INFORMATION (i.e. Law Firm, Escrow Company, etc.)

Settlement Agent Entity Name First Name

Settlement Agent Individual’s Name Date of birth Country of Address (if not U.S.)

Address City State Zip

Phone Number E-Mail Address Alien ID number

I declare that to the best of my knowledge the information I have furnished is true, correct, and complete.

Signature Date

REPORTING IS NOT REQUIRED UNDER THE FinCEN GEOGRAPHIC TARGETING ORDER - REASON

Reporting is not required because:

INDIVIDUAL PRIMARILY REPRESENTING PURCHASER (Defined as the individual authorized by the entity to enter into legally binding contracts.)

Legible copy of government issued identification (i.e. passport, driver’s license, etc.)

Taxpayer Identification Number (if none check none) None

Occupation

Last Name First Name M.I. Date of birth Country of Address (if not U.S.)

If address or ID information is not shown (or is not legible) on the government issued identification, please complete below

Address City State Zip

Alien identification description Alien ID Issued by Alien ID number

PURCHASING ENTITY’S NAME & ADDRESS

Taxpayer Identification Number (if none check none) None

Type of Legal Entity

Ltd. Liability Co., Corporation, Partnership, Other

Name of purchasing entity Country of Address (if not U.S.)

Doing business as (DBA) name Country of Address (if not U.S.)

Address City State Zip

DATE OF CLOSING – AMOUNTS PAID WITH IDENTIFIED MONETARY INSTRUMENTS – PURCHASE PRICE

Date of Closing Total Amt. Paid by below instruments Paid in more than 1 payment Total Purchase Price

$ Yes No $

Amount of Monetary Instrument (in U.S. dollar equivalent)

U.S. currency $ Amt. in $100 bills or higher $

Foreign currency $ Country:

Issuer’s name(s) Serial number(s)1

Cashier’s check(s) $

Money order(s) $

Certified check(s) $

Traveler’s check(s) $

Business check1(s) $

Personal check1(s) $

Funds Transfer1(s) $

1 For Business Checks or Personal Checks enter the account number and check number; for Funds Transfers enter the account

number and Federal Reserve reference number or similar funds transfer number.

FinCEN GTO Information Transmittal Worksheet – For use with GTO issued 8/22/17 – Effective from 9/22/17 to 3/20/18 Page 2 of 2

FinCEN Geographic Targeting Order Information Transmittal Worksheet (Continued) For use from September 22, 2017 to March 20, 2018 – DO NOT USE PRIOR FORMS

PROPERTY ADDRESS

Address City State Zip

County Block & Lot Number (NY only)

NAMES OF “BENEFICIAL OWNERS” (AS DEFINED) & NAMES OF ALL MEMBERS OF LIMITED LIABILITY COMPANIES

1. For Corporations, Partnerships or Similar Business Entities each INDIVIDUAL who, directly or indirectly, owns 25% or more of the equity interests of the Purchaser must be listed below.

2. For Limited Liability Companies all members must be listed below.

(Note: It is NOT necessary to complete the address fields if the information is on a legible copy of the government issued ID submitted to the title underwriter.)

Legible copy of government issued identification (i.e. passport, driver’s license, etc.)

Taxpayer Identification Number (if none check none) None

Occupation

Last Name First Name M.I. Date of birth Country of Address (if not U.S.)

If address or ID information is not shown (or is not legible) on the government issued identification, please complete below Address City State Zip

Alien identification description Alien ID Issued by Alien ID number

Legible copy of government issued identification (i.e. passport, driver’s license, etc.)

Taxpayer Identification Number (if none check none) None

Occupation

Last Name First Name M.I. Date of birth Country of Address (if not U.S.)

If address or ID information is not shown (or is not legible) on the government issued identification, please complete below Address City State Zip

Alien identification description Alien ID Issued by Alien ID number

Legible copy of government issued identification (i.e. passport, driver’s license, etc.)

Taxpayer Identification Number (if none check none) None

Occupation

Last Name First Name M.I. Date of birth Country of Address (if not U.S.)

If address or ID information is not shown (or is not legible) on the government issued identification, please complete below Address City State Zip

Alien identification description Alien ID Issued by Alien ID number

To add additional Beneficial Owner Names, photocopy and attach this sheet.