May 20, 2015
What Does the Proposed New Texas Disclosure Do and Not Do?
Purpose and Limitations of the Texas Disclosure
There have been several questions brought to TLTA about what the proposed Texas Disclosure is designed to do and what it does not do. TLTA volunteer, Janet Minke, has drafted an
outline with the goal of helping explain further about how to think of and understand the proposed Texas Disclosure. The outline provides which data elements correspond with other documents in the transaction including the Federal Closing Disclosure and the Title Commitment. It’s important to keep in mind that the Texas Disclosure alone is not designed to function as a “settlement statement,” nor to include all the fees/charges in connection with settlement. The Texas Disclosure is a vehicle to allow settlement agents in Texas to meet state disclosure requirements that may not be adequately provided for in the Federal Closing Disclosure.
Background
Upon the Consumer Financial Protection Bureau’s (CFPB) final adoption of the Closing Disclosure, it became immediately apparent that the disclosure would not work completely in Texas. First, the CFPB Closing Disclosure, direction and commentary does not allow for a proper disclosure of how “simultaneous issue” transactions take place in Texas. Second, there are several fees and disbursements for which TDI requires disclosure or otherwise practical audit access that are not accommodated on the Closing Disclosure. Finally, the Closing Disclosure does not provide for acknowledgement by the parties for disbursement of funds necessary for the title agent to disburse based on the information contained in the Closing Disclosure. TLTA made the Texas Department of Insurance (TDI) aware of these concerns and TDI staff set out to create a disclosure and procedural rule designed to address these shortcomings so that the Texas real estate industry economy will be in a better position when the CFPB Closing Disclosure becomes effective on August 1, 2015. A rule and form has been proposed and
posted for comment and there will be a hearing next week.
Hearing
The hearing for the Commissioner to consider adoption of the proposed
Form T-64 (Texas Disclosure) and accompanying
Procedural Rule P-73 will take place on May 27 at 9:30 am in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street, Austin, Texas. TLTA will be present and offering support for the proposed items and providing explanatory testimony as necessary. Additionally, TLTA will be submitting comments recommending two amendments to the contents of the Closing Disclosure. One amendment sought will amend the current section for “Property Address” to simply read “Property” instead, thus allowing for the legal description to be used as well. A second amendment would allow for the listing of the place where the closing was performed which is helpful information for the lending industry in the home equity loan context.
TLTA is extremely grateful for all of the comments and questions brought by TLTA members. We are also grateful for the many volunteer hours devoted by TLTA members in the formulation of this disclosure and rule. As always if you have any questions or comments, please don’t hesitate to call us at (512) 472-6593.
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Changes to TDI's Contact Information Adopted
As previously
reported TDI proposed rules to change their contact information. Now, the Commissioner has adopted rules which will change the information on the Title Policy jacket. The Commissioner of Insurance published adopted rules adding new 28 TAC §§1.208 - 1.210, concerning changes to TDI contact information. The statutory effective date for the adopted rules is June 1, 2015. Please see 28 TAC §§1.208 – 1.210 for other important dates.
Please visit the TDI website at
http://www.tdi.texas.gov/rules/2015/index.html to review the adoption.
ALTA President Testifies Before Congress
ALTA President Diane Evans and representatives from the National Association of Realtors, American Bankers Association and the Urban Institute all encouraged Congress to pass legislation that would implement a grace period after the CFPB's TILA-RESPA Integrated Disclosures rule goes into effect August 1.
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Read Diane Evans full testimony here.
Groups Ask Congress for "Breathing Room" on TRID
Mortgage News Daily | May 15, 2015
All four people who testified on behalf the housing industry, including ALTA president Diane Evans, agreed that while implementation of TRID should continue as scheduled there needs to be a grace period for enforcement.
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TRID Could Stall Some Bank Mortgage Products
Bloomberg | May 15 2015
More than a fifth of bankers surveyed claim they will shy away from certain mortgage products if the vendors' systems are not prepared for the new integrated disclosures August 1st deadline.
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CFPB Files Amicus Brief Regarding TILA's Definition of 'Consumer Credit'
JD Supra | May 18, 2015
In its most recent amicus brief, filed with the Fifth Circuit on April 9, 2015 in Billings v. Propel Financial Services, the Consumer Financial Protection Bureau argues that entities who lend consumers money to pay property tax delinquencies are subject to the Truth In Lending Act because they are extending “consumer credit.”
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Check out the Exciting New Conference Program and Speakers for the TLTA Conference!
Review the new program, and get registered.
Hotel Update: Due to an overwhelming response the Gaylord Texan is currently sold out of rooms in the TLTA block. We are working with the Gaylord to see if additional rooms can be secured, as well as nearby hotels to make sure everyone is accommodated.
Important: If you plan to attend the conference but HAVE NOT made your hotel reservation at the Gaylord Texan, please email or call Alex Ferber, 512.879.2882, ASAP to get on the wait list, so we can assist with getting you accommodations.
NEW THIS YEAR! Optional Pre-Conference program scheduled for June 17 at the Gaylord:
TLTA TRID Readiness Series Part II
Hands-On, How-To Workshop that will take you through the new Closing Disclosure using case studies. Grab a calculator and a pencil and plan to join us!
10am-4pm includes lunch
Click here for Pre-Conference Program
Register Today!
The Twilight Zone of Cyber Fraud and Escrow Theft
June 3, 2015 10:30-11:30 a.m.
Follow the tales of 8 victims of cyber fraud and escrow theft as they found themselves transferred from their everyday life as a title professional into the Twilight Zone of Cyber Fraud and Escrow Theft! This session will raise awareness of cyber fraud and escrow theft by sharing cautionary stories of fraud that ended the careers of some innocent practitioners. Attendees will leave this session prepared to implement best practices in the protection of escrow funds.
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Register for On Demand webinar>>