February 5, 2014
TLTA Submits Comments to the CFPB on the Mortgage Closing Process
The Consumer Financial Protection Bureau (CFPB) recently asked related industries to provide feedback on the mortgage closing process. TLTA has submitted a comment letter to the Bureau answering their questions and highlighting certain issues such as late arrival of lender closing instructions, a confusing and over-inclusive APR and consumer privacy concerns. TLTA also stressed the importance of allowing the mortgage and settlement service industry time to adjust before any new rules or regulations are contemplated by the CFPB. We also stressed the importance of the neutral 3rd party settlement agent in the closing process.
Submit Your Comments to the CFPB by Friday, Feb. 7
We encourage you review our comment letter here, and then submit your own comments to the Bureau before the deadline this Friday, Feb. 7. You can review the Bureau's request with specific questions about the closing process
here, and you can submit your comments to the Bureau
here. Please send a copy of your comments to
[email protected].
Texas Supreme Court Opinion Addresses Home Equity Lending
The Supreme Court of Texas Blog | Jan. 31, 2014
The Supreme Court of Texas recently denied the Texas Bankers Associations' Motion for Rehearing in the case of The Finance Commission of Texas et al v. Valarie Norwood et al in which several homeowners challenged some of the rules interpreting the Texas home constitutional provisions. In its denial for rehearing, the Court issued a supplemental opinion addressing some of the questions raised by various amici and lenders about how the Court's guidance will apply to future loans.
In its opinion, the Court reiterated that the the power of attorney often signed to facilitate closing is a part of the process that must be executed in a formal location (at the lender's office, a title company, or an attorney's office). Imposing that formality was the intent behind requiring that closing documents be signed in such a location, and balancing that consumer inconvenience against the gain in consumer protection was up to those who drafted the provision.
The Court also clarified a substantive footnote in its original opinion distinguishing "front-end fees" from "interest paid in time." The lenders and amici asked what happens to interest paid at the front-end rather than over time, such as "per diem interest" or "discount points." The Court agreed that both of these categories are still "interest" under its definition and, therefore, not subject to the strict 3% cap on fees.
Read More >
Agent Statistical Reports Now Available
The Texas Department of Insurance (TDI) has released its Agent Statistical Report for the calendar year 2012. The report includes information about income, expenses and losses from title agents doing business in Texas. You can view a .pdf of the Agent Statistical Report
here, and you can download the corresponding Excel spreadsheet
here. TDI is expected to release the Underwriter Statistical Report by the end of the month.
House Interim Committee Charges Released
Title Insurance Not Included Among Issues for Study
Texas Speaker of the House Joe Strauss last week released the Interim Committee Charges for the Texas House of Representatives. Agriculture, water and school funding top the list of charges, and there were no charges included regarding title insurance. TLTA will be working closely with the Business & Industry Committee, however, in their discussions about liens before the 84th Legislative Session. You can read a full copy of the Interim Committee Charges
here.
Upcoming Hot Topic Webinar— Register Today!
Avoiding TDI Audit Violations: Compliance & Recent Changes
Thursday, Feb. 13 | 10:00 - 11:30 a.m.
Presented by: Robert York, TDIs Manager of Title Examinations
Brenda Nelson, Old Republic National Title Insurance Company
Ed Hill, Ed Hill & Company CPAs, LLC
Our panel of experts will walk you through the most common mistakes and violations discovered during TDI audits, address internal weaknesses that hinder the audit process and provide important guidance on how you can stay in compliance and be prepared for your next TDI audit. Attendees will be encouraged to submit questions prior to the webinar.
Learn More & Register »