September 5, 2024

In This Issue:

  • Basic Manual Update Series - Countdown to November 1, Installment 5: Other Rate Rule Adjustments R-11, R-15, R-30
  • Fannie, Freddie Update Multi-Family Seller / Servicer Guides
  • Texas Legislature Update: Senate Finance Committee Met This Week to Discuss Property Taxes; TLTA Legislative Committee Continues Prep for Upcoming Session
  • Texas Realtors: Guide to Form Changes Related to NAR Settlement
  • ICYMI: FinCEN Issues Final Rule on Reporting Requirements for Certain All-Cash Residential Real Estate Transfers

Basic Manual Update Series - Countdown to November 1, Installment 5: Other Rate Rule Adjustments R-11, R-15, R-30

TLTA | Sept. 5, 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 launched a 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 covers 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 5 of this series below:
 

 
Installment 5
Other Rate Rule Adjustments: R-11, R-15, R-30
 by Roland Love, TLTA Regulatory Committee Chair
 
A number or rate rules were adjusted to place the cost in the appropriate place where it is being incurred, rather than being a part of the entire basic rate premium applicable to every transaction. These are as follows:
 
Read Installment 5 »
Read earlier installments in this series »
 
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.
 

Fannie, Freddie Update Multi-Family Seller / Servicer Guides

TLTA | Sept. 5, 2024
Our friends at ALTA recently reported that Fannie Mae and Freddie Mac have updated their multi-family seller / servicer guides. 
 
Fannie's update includes requirement related to title companies and escrow agents documenting flow of funds for muti-family transactions.
 
Read more from ALTA on Fannie's updated mutti-family servicer guide »
 
And, earlier this month Freddie Mac's update requires underwriters to handle escrow and settlement functions for transactions on multi-family properties.
 
Read more from ALTA's on Freddie's upated multi-family servicer guide »
 
TLTA is working with ALTA to closely monitor this development. 
 

Texas Legislature Update: Senate Finance Committee Met This Week to Discuss Property Taxes; TLTA Legislative Committee Continues Prep for Upcoming Session

TLTA | Sept. 5, 2024
The Texas Senate Finance Committee met this week to consider two of the committee's interim charges:
  • Monitor implementation of SB 2 (property tax relief bill passed last year)
  • Continue cutting property taxes
Review the hearing notice »
Review the witness list »
Watch a recording of the hearing »
 
This property tax-focused hearing is part of the Texas Legislature's interim charge process during which lawmakers are reviewinng implementation of recently passed bills, as well as studying ideas that could lead to legislation when legislators meet again for their 89th Session in January 2025.
 
Your TLTA Advocacy Team remains engaged in the interim process, monitoring discussion related to property rights and other issues that could impact our industry, testifying at hearings, and communicating with lawmakers about developing sound public policy that will best serve Texas consumers and the real estate marketplace.
 
TLTA Legislative Committee volunteers hard at work
TLTA's Legislative Committee, which is chaired by Steve Streiff, develops policy proposals and makes recommendations to TLTA's Board of Directors regarding TLTA's affirmative legislative agenda and the organization's position (if any) of legislation being considered at the state capitol. There are established subcommitees for common legislative issues, and special subcommittees related to hot topics impacting our industry are formed as needed.
 
The Legislative Committee met 3 times in 2024, most recently on June 20, and will meet again Sept 25. Here's an accounting of recent legislative subcommittee meetings: 
 
  • Quitclaims-Tax Foreclosures Subcommittee: April 11
  • County Clerk Recording Fee: Aug. 23
  • Memorandum of Contracts: Aug. 26
  • MUD and PID Notices: Aug. 22
  • Wind Rights: Sept. 5
 

 

Texas Realtors: Guide to Form Changes Related to NAR Settlement

Texas Realtors | July 1, 2024
Many of the Texas Realtors contracts and forms have recently been revised to handle changes related to NAR’s compensation-lawsuit settlement. Read on for the list of revisions, information on three new forms, and details about their proper use.
 
Read more »
 

ICYMI: FinCEN Issues Final Rule on Reporting Requirements for Certain All-Cash Residential Real Estate Transfers

TLTA | Aug. 28, 2024
On August 28, FinCEN issues their final rule on new reporting requirements for certain all-cash, residential real estate transactions. 

Final rule wil be effective Dec. 1, 2025.
 
TLTA members: What should you know?
These reporting and compliance requirements will have a significant impact on you and your business when handling cash transactions. You should consult with legal counsel to ensure you fully understand your obligations under this new rule.
 
TLTA will produce detailed analysis and educational programming to help guide you as you prepare for this new rule.
 
FinCEN's initial analysis of how the final rule differs from the rule proposal
"FinCEN is issuing a final rule that generally adopts the framework set out in the proposed rule but makes certain modifications and clarifications that are responsive to comments. The final rule imposes a reporting requirement on “reporting persons” that are involved in certain kinds of transfers of residential real property. In response to comments, the rule adopts a reasonable reliance standard, allowing reporting persons to, in general, reasonably rely on information obtained from other persons. FinCEN has also made other amendments in the final rule that are intended to clarify and simplify the reporting requirements, such as clarifying the definition of residential real property.
 
"Additionally, the rule excludes several additional transfers [contemplated in the rule proposal] from needing to be reported, including one designed to exempt certain transfers commonly executed for estate and tax planning purposes. FinCEN also limited the requirement to retain certain records." 
 
Review more of this summary from FinCEN and final rule in Federal Register »
 
The analysis above was produced by FinCEN. Detailed analysis from TLTA and educational materials are in development. We'll alert you when those resources are available.
 
Review Comments TLTA Submitted to FinCEN and Other Background Info »