Nov. 2, 2022

In This Issue:

  • Appeals Court Rules CFPB Funding Source Unconstitutional
  • Instructions for Reporting Forgiven PPP Loans on Agent Stat Reports Due Nov. 7
  • TREC Broker-Lawyer Committee Recommends Commission Adopt Revised Forms at Upcoming Meeting Nov. 7
  • ICYMI: TDI Quarterly Audit Results Published
  • FinCEN Analysis Reveals Ransomware Reporting in BSA Filings Increased Significantly During the Second Half of 2021
  • Early Voting for General Election Underway Through This Friday Nov. 4

Appeals Court Rules CFPB Funding Source Unconstitutional

HousingWire | Oct. 21, 2022
 The Fifth Circuit U.S. Court of Appeals found that the funding source for the Consumer Financial Protection Bureau (CFPB) is unconstitutional, according to a decision reached by a three-judge panel.

The panel found that the “design of the CFPB violated the Constitution because it receives funding through the Federal Reserve, rather than appropriations legislation passed by Congress,” reads a story on the decision by Politico. “Democrats established the structure when they created the CFPB in the 2010 Dodd-Frank law as a way to shield the bureau from political pressures that could impact its oversight of the finance industry.”
 
Learn More »

Instructions for Reporting Forgiven PPP Loans on Agent Stat Reports Due Nov. 7

TLTA| Nov. 2, 2022
 There were no substantial changes this year in TDI's instruction for completing the agent statistical report due Nov. 7. But it's worth noting a common question we highlighted last year that is still applicable this year:
 
Q: My agency's PPP Loan was forgiven. Where do I report this?

A: Report any PPP loans forgiven in 2021 on Form E, Other Income. In the text box on Form E, describe the income item as "Forgiven portion of PPP loan." Agents should only report the portion of a forgiven PPP loan as other income once it has been formally forgiven. Do not report it as other income if it has not yet been forgiven.
 
Need guidance on how to complete the form?
Register for this webinar: TDI Experience Reporting - Industry Financial Reporting.
Note: this webinar does not include the PPP loan forgiveness guidance above.
 
Review TDI Commissioner's Bulletin Announcing the Agent Data Call Due. Nov. 7 and Providing Instructions »
 
TLTA Editor's Note: In addition to the agent stat report noted above, here are other upcoming TDI compliance deadlines and dates of interest of which you should be aware:
  
 

TREC Broker-Lawyer Committee Recommends Commission Adopt Revised Forms at Upcoming Meeting Nov. 7

Texas Real Estate Commission | Oct. 31, 2022
 The Texas Real Estate Broker-Lawyer Committee (BLC) met October 14 to discuss public comments on proposed form changes from the August TREC Meeting. After reviewing 123 public comments, the committee made some non-substantive changes and recommended the forms be adopted at the November 7 TREC Meeting.
 
Learn More » 

ICYMI: TDI Quarterly Audit Results Published

TLTA | Oct. 26, 2022
The following is a summary of recent TDI audits, violations and enforcement actions from June 2022 through Aug. 2022. Read TDI's complete summary of operations for the quarter, or review key statistics below.         
       
Compliance Audits: TDI's goal is to comprehensively audit agencies at least once every two years. This quarter, TDI conducted 66 audits.       
        
Commissioner Orders: This quarter, TDI signed no Commissioner Orders. As of this report, 9 cases remain active and under investigation.       
        
Compliance Audit Results: Below are TDI's most common audit findings for the quarter that ended in May 2022. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred:
 
Number of Agencies
Category
Description
68
Guaranty Files
Form T-S1 not submitted as required or agency failed to meet Min. Cap. requirement.
45
Abstract Plant
Section 2702.053 - Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
33
Procedural Rules
P-73: Failure to prepare/maintain Form T-64 (TD) when CD used, or Form T64 was not signed by all parties. Prepared incorrectly.
29
Minimum Escrow Accounting Procedures & Internal Controls
#16 - Every disbursement not supported by invoice or sufficient other evidence.
28
Minimum Escrow Accounting Procedures & Internal Controls
P-21: Schedule D of commitment not in file or premium split not disclosed on commitment.
Review Complete Quarterly Audit Report »

FinCEN Analysis Reveals Ransomware Reporting in BSA Filings Increased Significantly During the Second Half of 2021

U.S. Dept. of Treasury | Nov. 1, 2022
The Financial Crimes Enforcement Network (FinCEN) issued its most recent Financial Trend Analysis of ransomware-related Bank Secrecy Act (BSA) filings for 2021, indicating that ransomware continued to pose a significant threat to U.S. critical infrastructure sectors, businesses, and the public. The report focuses on ransomware trends in BSA filings from July-December 2021, and addresses the extent to which a substantial number of ransomware attacks appear to be connected to actors in Russia.
 
Read FinCEN's Press Release »
Review FinCEN's Report »
 
TLTA Editor's Note: FinCEN has issued several items of interest to our industry in recent weeks. Here are two additional announcements from FinCEN of which you should be aware:
 
FinCEN Expands GTO to Include Harris, Montgomery and Webb Counties, Renews Order for Dallas, Tarrant and Bexar Counties »
 
FinCEN Issues Final Rule for Beneficial Ownership Reporting »

Early Voting for General Election Underway Through This Friday, Nov. 4

TLTA | Oct. 26, 2022
Early voting for the upcoming General Election (i.e., midterm election) is underway and runs through this Friday, Nov. 4. Election Day is Nov. 8.
 
All U.S. representatives, state senators, and state representatives are up for election after the redrawing of political districts last year based on the 2020 census. 
   
As always, if you would like to discuss any of the candidates on your ballot or the impact of this election on our industry, please contact TLTA's Government Affairs Director, Aaron Day.   
    
Early Voting: Oct. 24 - Nov. 4    
General Election: Nov. 8   
 
Who's on the ballot, where to vote and more » 
 
Voter turnout in Texas is the among the lowest in the nation, so please make a plan to vote early, and be sure to remind your family, friends, neighbors and coworkers that voting is one of our nation's most cherished liberties.   

Institute Is Expected to Sell Out - Register Today

   
Designed for real estate and title attorneys, advanced closers and examiners, owners and managers, and anyone seeking advanced education on legal topics, the annual Texas Land Title Institute brings top title professionals to the beautiful Hyatt Regency Hill Country Resort for world-class training and networking.
 
You won't want to miss this opportunity to learn the latest, network with the best in the business, and earn valuable CE from the most talented and experienced minds our industry has to offer!
 
Review the full Institute schedule
 
Register Now
  
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Looking for more educational tools? Check out TLTA's collection of more than 80 on-demand webinars and videos!