August 8, 2024

In This Issue:

Basic Manual Update Series - Countdown to November 1, Installment 1: Residential Real Property Redefined
Advocacy Update: TLTA Submits Comments to TDI, CFPB
TDI Quarterly Audit Results Published (March - May 2024)

Basic Manual Update Series - Countdown to November 1, Installment 1: Residential Real Property Redefined

TLTA | Aug. 1, 2024
On May 14, 2024, the Texas Department of Insurance published a proposal to update, correct, and clarify rules and forms in the Basic Manual. The public comment period has passed. A final adoption order will be issued with a Nov. 1 effective date.

To ensure TLTA members are prepared for these upcoming Basic Manual changes, we've launched a new Dateline series, Basic Manual Update - Countdown to Nov. 1, to provide detailed overviews of the modifications that will be implemented in the Basic Manual starting Nov. 1.

This multi-part series will cover revised rules and forms, helping you understand and implement changes by the November 1 effective date to ensure you and your business are in compliance with state regulations. We are grateful to TLTA Regulatory Committee Chair Roland Love for producing this series, as well as the webinar that you will find below.

Learn more about TLTA's role in the development of the new rules being finalized by TDI for implementation in November.

Read installment 1 of this new series below:

Installment 1
Residential Real Property Redefined
by Roland Love, Chair, TLTA Regulatory Committee

This week we focus on the definition of residential real property in P-1 and Rate Rule R-16, which deals with the Amendment of Exception as to Area, Boundaries, etc. For more information on these changes, why they are being made and to review the new rules, click here.

Read Installment 1 »

Looking for additional resources on Basic Manual changes to be implemented Nov. 1? Check out our on-demand webinar.

Watch our latest on-demand webinar, 2024 Basic Manual Changes, for a detailed overview of the upcoming rule and form changes presented by TLTA's Regulatory Committee Chair Roland Love.

Advocacy Update: TLTA Submits Comments to TDI, CFPB

TLTA | Aug. 1, 2024

TLTA Submits Comments on TDI Proposals to Modernize Title 28 and Agency's General Procedural Provisions

TDI recently invited public comment on proposed changes to the Texas Administrative Code (TAC), Subchapter A, Section 1. General Procedural Provisions, which include the repeal of Title 28 TAC Sections 1.47-1.49, 1.51, 1.52, 1.88 and 1.89, the revisions to Title 28 TAC Section 1.32, and the new Title 28 TAC Section 1.47.

TLTA applauds the agency's approach to the modernization of Title 28 and the department’s general procedural provisions. The comments TLTA submitted on the proposed rule changes include observations regarding the proposals, as well as novel suggestions for changes in these sections focusing on offering helpful clarifying suggestions, emphasizing the need for transparency towards the regulated community, and advocating for the protection of due process rights for TLTA members.

Read TLTA's Comments »

TLTA Submits Comments Responding to CFPB Proposal to Ban Charging Buyers for Lenders' Title Policies

In May the CFPB announced a request for information regarding fees imposed in residential mortgage transactions. In addition to mortgage lending costs, CFPB cited title insurance several times in the report and referred to it as “one of the largest closing and settlement costs” when purchasing a home. This initiative is part of a broader effort by both the CFPB and the Biden administration to address affordable housing and is also related to CFPB’s review of so called “junk fees.”

Then, in April, National Mortgage News and other outlets reported that the CFPB was considering a proposal to ban charging buyers for lenders' title insurance policies.

TLTA today submitted comments in response to this misguided proposal and continued educating the agency about the importance of title insurance to the safe and predictable transfer of real estate nationwide, as well as the unique factors at play in the Texas market that could not be addressed by a one-size-fits-all solution.

Review TLTA's Comments »
Review Attachment 1 »
Review Attachment 2 »
Review Attachment 3 »

Learn More about CFPB's Request for Information on Closing Costs »
Lean More about CFPB's Ongoing "Junk Fee" Initiative »

TDI Quarterly Audit Results Published (March - May 2024)

TLTA | Aug. 1, 2024
The following is a summary of recent TDI audits, violations and enforcement actions from March 2024 through February 2024. 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 105 audits.

Commissioner Orders: This quarter, TDI signed four (4) Commissioner Orders.

Compliance Audit Results: Below are TDI's most common audit findings for the quarter that ended in May 2024. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred:

Number of Agencies	Description
57	Section 2702.053 – Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
38	Outstanding checks not cleared timely
34	Bank reconciliations, book balances, or three-way reconciliations prepared incorrectly
33	Escrow trial balances not prepared correctly
33	Title Bulletin No. 160 – All parties receiving portions of real estate commission not disclosed on settlement statement.