April 30, 2014

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TLTA Hosts Inter-Industry Discussion of New CFPB Combined Disclosure Rule 

Last week, TLTA hosted a meeting in Austin with our mortgage lending and real estate partners to discuss the impact and implementation of the CFPB's new combined disclosure rule. There were about 40 participants, including representatives from the Texas Bankers Association, Texas Mortgage Bankers Association and the Independent Bankers Association of Texas as well as a variety of practitioners - mortgage originators, document preparation attorneys, escrow officers, software vendors, etc. The group discussed several issues, including who will perform which functions, how information will be shared, how the timeframes might change, how closings will be affected and how we can work together for a smooth implementation in August 2015. The meeting was very productive and the group agreed to continue the dialogue in the coming months leading up to the effective date. Stay tuned to news updates regarding the new CFPB rule, as well as special educational programming to help you prepare for this substantial change.

TREC Adopts Changes to Forms Addressing Title Policy 

At its regular meeting on April 28, the Texas Real Estate Commission (TREC) adopted changes to several of their promulgated contract forms. Changes were made in the section addressing title policies and surveys — specifically, the Amendment of Areas and Boundaries Exception. The language in this section has been changed to include a check box to elect to purchase the additional coverage as well as determine which party will pay. For example, in the One to Four Family Residential Contract (Resale), Section 6.A.(8), now reads:

The standard printed exception as to discrepancies, conflicts, shortages in area or boundary lines, encroachments or protrusions, or overlapping improvements: ❑ (i) will not be amended or deleted from the title policy; ❑ (ii) will be amended to read, "shortages in area" at the expense of ❑ Buyer ❑ Seller.

You can review these changes to this form here. Similar changes were also made to other forms, which you can view in their entirety here. The effective date for mandatory use of these forms is June 1, 2014. However, voluntary use will be possible as soon as these updated forms are posted on the TREC website in the coming weeks.

Deed Scams Mire Late Philanthropist's Plans in Legal Mess

Houston Chronicle | April 28, 2014
Dr. Rakesh Kumar Dhingra, an Indian-born family practitioner and a devout Hindu, renounced most material possessions, sometimes wore a monk's robes and spent the last years of his life in a cluttered 1,000-square-foot home without air conditioning. At the time of his death in 2010, the 58-year-old bachelor had gone blind in one eye but still drove a 1998 Mercury Tracer worth $2,000. Though relatives knew Dhingra bought and sold property for many years, they were astonished to discover after his death that he had accumulated millions of dollars in real estate and overseen $27 million in bank and brokerage accounts for the International Society of Krishna Consciousness in Houston. Read More »

Submit Quarterly Withholding Report to TDI by May 15

New agent solvency rules require title agents to submit a copy of their quarterly withholding tax report and evidence that the taxes have been paid to the Texas Department of Insurance. The first report for the quarter that ended March 31 is due to TDI by May 15. This new requirement is part of Administrative Rule S.5, which you can view here.

If a title agent is part of a professional employer organization, it may submit a copy of the payroll tax report the agent receives from the professional employer organization as the equivalent of a quarterly withholding tax report.

This report and evidence that the taxes have been paid should be submitted along with Form T-S5, which you can download here. Submit your completed documentation to [email protected] or:

Texas Department of Insurance
Title Examinations
P.O. Box 149104
Austin, TX
78714-9104

Register for These Upcoming Hot Topic Webinars!

TDI Audit Violations: A Focus on Compliance & Your Questions on Recent Changes
Wednesday, May 7 | 10 - 11:30 a.m.
Presented by:
Robert York, TDI Manager of Title Examinations
Brenda Nelson, Old Republic National Title Insurance Company
Ed Hill, Ed Hill & Company CPAs, LLC
Live Version | On-Demand Version

Escrow Procedures - It Really IS All About the Money!
Wednesday, May 14 | 1:30 - 2:30 p.m.
Presented by:
Denise Smith Holmes, Independence Title Company
Nancy Waggoner, Republic Title of Texas, Inc.
Live Version | On-Demand Version

Water Rights in the Everyday Lives of Texans
Tuesday, May 20 | 10:30 - 11:30 a.m.
Presented by:
Charles R. Porter, Jr., St. Edward's University
Live Version | On-Demand Version