May 29, 2024

In This Issue:

  • Breaking News: CFPB Issues RFI Regarding Title Insurance Fees Imposed in Residential Mortgage Transactions
  • Texas Primary Runoff Election Results
  • Average Title Insurance Claim Cost for Fraud and Forgery is $143,000
  • ICYMI: Texas Legislature's Interim Charges Include Issues That Could Impact Our Industry or the Real Estate Market

Breaking News: CFPB Issues RFI Regarding Title Insurance Fees Imposed in Residential Mortgage Transactions

TLTA  | May 30, 2024
The Consumer Financial Protection Bureau (CFPB) today issued a Request for Information (RFI) regarding fees imposed in residential mortgage transactions. Title insurance is cited several times in the RFI as among the largest closing and settlement costs when purchasing a home. You can read a relevant excerpt from the RFI below:

Title insurance is one of the costliest settlement services at closing. Title insurance is meant to protect against someone else laying claim to a borrower’s property. In the current market, consumers are forced to pay for the lender’s insurance premiums in a one-time payment at closing. Borrowers need to purchase a separate owner’s policy to cover losses not covered by the lender’s policy. Title insurance premiums can be significant, and typically range from 0.5%-1.0% of the purchase price.
 
Read the CFPB's announcement re: RFI »
Review the RFI »
 
Comments on the RFI are due August 2, 2024. TLTA will be formulating comments and submitting them to CFPB. If you questions about this RFI or suggestions TLTA should consider including in our comments on this RFI, please send those to TLTA Vice President of Government Relations and Counsel, Aaron Day, thank you. 
 

Texas Primary Runoff Election Results

TLTA  | May 29, 2024
The Texas primary runoff election was held Tuesday. The victors of these contests statewide will go on to be their political party's candidate during the general election that will be held this November.
 
Seven Texas House incumbents lost their primary runoffs yesterday, and another 9 lost their seats during the primary election held in March. Those losses are in addition to the slew of House member retirements that were announced before the primaries. For our TLTA advocacy team, this means we will have to work diligently following the November election to educate the dozens of new elected officials who will be inside the railing when the 89th Texas Legislature gavels in on January 14, 2025.
 
Here are some outcomes from yesterday's primary runoff election: 
  • Speaker Phelan wins HD 21 primary runoff by 366 votes
  • Rep. Vandeaver wins HD 1 Republican primary runoff
  • Katrina Pierson defeats State Rep. Justin Holland in HD 33 Republic primary runoff
  • Alan Schoolcraft defeats Rep. Kuempel in HD 44 Republican primary runoff
  • Helen Kerwin defeats Rep. DeWayne Burns in HD 58 Republican primary runoff
  • Keresa Richardson defeats Rep. Frederick Frazier in HD 61 Republican primary runoff
  • Andy Hopper defeats Rep. Lynn Stucky in HD 64 Republican primary runoff
  • David Lowe beats Rep. Stephanie Klick in HD 91 Republican primary runoff
  • Lauren Simmons defeats Rep. Shawn Thierry in HD 133 Democratic primary runoff
  • Sen. Cook holds on to SD 15 in Democratic primary runoff
  • Hagenbuch wins SD 30 Republican primary runoff
  •  
Election returns are not final until official results are released by the Texas Secretary of State in the coming days.
  
Review All of Yesterday's Results, Including Congressional Seats, on the Texas Tribune's Election Tracker »
 

Average Title Insurance Claim Cost for Fraud and Forgery is $143,000

ALTA | May 28, 2024
Fraud and forgery claims represent 21% of the total dollars spent by title insurers on claims expense and losses, with an average claim cost of over $143,000, according to a new independent analysis conducted by global consulting and actuarial firm Milliman. Including fraud and forgery, the analysis found nearly 30% of title insurers’ losses and claims expenses arose from title problems not discoverable from a public records search.
 
The study examined over 127,000 claims associated with policies issued between 2013 and 2022, identifying key sources of title insurance claim costs throughout the decade. 
 
Read More » 

ICYMI: Texas Legislature's Interim Charges Include Issues That Could Impact Our Industry or the Real Estate Market

TLTA | May 23, 2024
The Texas Senate and House recently published their interim charges. House and Senate committees will study the subjects covered by the charges and produce reports with recommendations on policy changes that could spur legislation during the upcoming 89th Legislative Session, which will commence January 2025.
 
The following interim charges might include discussion of ideas related to our industry or the real estate marketplace.

TEXAS SENATE

Business & Commerce Committee
Assess the rising cost of insurance
(see page 3 in link to Senate Charges below for full text of this charge)
 
Finance Committee
Monitor property tax relief and infrastructure funds
(see page 7 in link to Senate Charges below for full text of this charge)
 
Local Government Committee
  • Additional property tax, relief, and reform
  • Housing affordability
  • Secure Texas against squatters (note: Adverse possession laws as they relate to this charge were discussed at a recent hearing of this committee
(see page 10 in link to Senate Charges below for full text of these charges)

State Affairs Committee
Protecting Texas land and assets 
(see page 12 in link to Senate Charges below for full text of this charge)

Review the Senate charges noted above »

TEXAS HOUSE

Committee on Agriculture and Livestock
Foreign-owned agricultural land
(see page 2 in link to House Charges below for full text of this charge)

Committee on Business & Industry
  • Housing affordability
  • Protections against fraudulent deeds
(see page 4 in link to House Charges below for full text of these charges)

Committee on Culture, Recreation, and Tourism
Conservation of Texas farm and ranchlands
(see page 2 in link to House Charges below for full text of this charge)

Committee on Land and Resource Management
Housing affordability
(see page 15 in link to House Charges below for full text of this charge)

Committee on State Affairs
Economic challenges impacting insurance premiums
(see page 20 in link to House Charges below for full text of this charge)

Committee on Ways and Means
Property tax relief 
(see page 23 in link to House Charges below for full text of this charge)
 
Review the House charges noted above » 

 
TEXAS HOUSE SELECT COMMITTEE ON SECURING TEXAS FROM FOREIGN ORGANIZATIONS
 
Item 2
“evaluate the ways in which hostile foreign organizations may acquire property, including real property, and Texas as well as the attendant risks.…”
 
Review item 2 in the proclamation that created this select committee » 
 
 
TLTA NEXT STEPS, COMMENTS, QUESTIONS
 
Your TLTA Advocacy team is engaged in the Texas Legislature's interim charge process. We will continue to monitor the issues noted above and alert you if there are concerns or opportunities of which you should be aware.
 
If you see charges that cause you concern or your have questions related to a specific charge, please send those to TLTA Vice President of Government Relations and Counsel, Aaron Day, thank you.