December 8, 2021

In This Issue:

  • FinCEN Requests Comments on Potential Rulemaking Related to New Real Estate Sector Reporting Requirements for Cash Transactions
  • Agent Experience Reports Due This Monday, Dec. 13; Updated Guidance on Reporting PPP Loans Forgiven in 2020
  • The Intersection of Federal Bankruptcy Code With Texas Homestead Law
  • New Compliance Webinar Featuring TDI Staff Presented Live With Q&A Next Wednesday, Dec. 15

FinCEN Requests Comments on Potential Rulemaking Related to New Real Estate Sector Reporting Requirements for Cash Transactions

U.S. Department of Justice | Dec. 8, 2021
The Financial Crimes Enforcement Network (FinCEN) announced an Advance Notice of Proposed Rulemaking (ANPRM) to solicit public comment on a potential rule to address the vulnerability of the U.S. real estate market to money laundering and other illicit activity. 
 
FinCEN encourages the public to submit written comments in response to the ANPRM. Diverse viewpoints and substantive suggestions will help FinCEN develop a proposed regulation that appropriately balances the need to address the vulnerabilities of the real estate market with any potential costs such measures may impose.

Comments will be accepted for 60 days following publication in the Federal Register.
 
Read FinCEN Press Release »
 
TLTA Editor's Note: TLTA is reviewing this proposal and will determine whether to make formal comments. Many TLTA members are aware of the current FinCEN Geographically Targeted Orders (GTOs) effecting 12 metropolitan areas in the US, including some in Texas. These orders require title insurance companies in these areas to file reports on all-cash purchases of residential real properties through LLC or entities if the transaction exceeds $300,000. FinCEN is contemplating rulemaking that would expand these reporting requirements to any all-cash deal— including those by real persons in addition to those purchased by entities for commercial as well as residential —with no geographical limitations.

Additionally, FinCEN is contemplating adding additional duties for title agents handling escrow monies that banks currently are required to perform: According to FinCEN, “[t]his ANPRM seeks public comment on whether FinCEN should impose a similar [to the current GTO’s for title insurance companies], ongoing, and expanded reporting requirements through regulations...including, for example, potentially promulgating Bank Secrecy Act record keeping and reporting requirements for 'persons involved in real estate settlements and closings.'"  
 

Agent Experience Reports Due This Monday, Dec. 13; Updated Guidance on Reporting PPP Loans Forgiven in 2020

TLTA | Dec. 8, 2021
In case you missed it, TDI issued a call for 2020 agent statistical data.
 
This is the second data call issued this year. The call for 2019 data was issued July 2, 2021 with a due date of Aug. 13, 2021.

Please note that this call is for data collected during calendar year 2020. You must respond to this data call using the provided instructions and forms no later than Dec. 13, 2021.
 
2020 Agent Experience Report Submission Docs and More »
 

UPDATED GUIDANCE FROM TDI: Reporting PPP loans that were forgiven on agents' 2020 experience reports

Was your agency's PPP loan forgiven in 2020? Forgiven PPP loans should be included in experience reports for 2020 statistical data.
 
In response to questions from TLTA members, TLTA staff worked with TDI to secure the following guidance for agents regarding how to report PPP loans forgiven in 2020. If an agent had a PPP forgiven in 2020, that information should be reported among the 2020 statistical data due Dec. 13, 2021 as part of your 2020 experience report.
 
The following instructions apply only to agents that had a PPP forgiven in 2020. For agents who meet that condition, please do the following when preparing your 2020 experience report, which is due Dec. 13:
Agent should report any PPP loans forgiven in 2020 as other income on Form E. The forgiven amount should be listed in column 2 "title".  In the text box, describe the income item as “Forgiven portion of PPP loan.”
Agents should only report the portion of a forgiven PPP loan as other income once it has been formally forgiven. Do not report it as other income if it has not yet been forgiven.
If you've already filed your 2020 experience report, and you had a PPP loan that was forgiven in 2020 that you did not include in the 2020 experience report already submitted, you should file an amended report.

Agents: On-Demand Webinar Available to Help Produce Your 2020 Experience Report

(Note: This webinar does not include the special TDI instructions listed above for agents that had a PPP loan forgiven in 2020)
 
Looking for help producing your experience report for TDI? Check out this on-demand webinar, TDI Experience Reporting - Industry Financial Reporting, which we produced to help you complete the report on 2019 data that was due in August. TDI's requirements haven't changed since the report on 2019 data was submitted (other than the new PPP guidance above), so this on-demand webinar can guide the production of your report for 2020 data.
 

The Intersection of Federal Bankruptcy Code With Texas Homestead Law

Rayni Scott, TLTA Judiciary Committee Member | Nov. 30, 2021
While we are currently experiencing a booming real estate market in Texas, at some point it is probable a title company will experience a costumer who is in bankruptcy. The purpose of this article is to provide some highlights of how the United States Bankruptcy Code and the Federal Rules of Bankruptcy Procedure intersect with Texas Homestead law.
 
Read More »
 
TLTA Editor's Note: This new article from TLTA Judiciary Committee member Rayni Scott is part of an ongoing series produced by the committee to provide judiciary-related insights for TLTA members. The Judiciary Committee, which is chaired by Leslie Johnson, is responsible for recommending to our board of directors TLTA's position on court decisions that could affect the defense of title companies and title agents.
 

New Compliance Webinar Featuring TDI Staff Presented Live With Q&A Next Wednesday, Dec. 15

TLTA | Dec. 8, 2021
We all know everything is bigger in Texas, including regulations and compliance challenges in the title industry.  Join us for this session where Arturo Bustamante, TDI Director, Financial Regulation Division, Title Examination will join Brenda Nelson VP, SW Agency Operations Manager at Old Republic National Title Insurance Company, to discuss and share answers to some of the most common, and not so common questions that TDI Auditors are asked.  Arturo will share his perspective on how to stay compliant through each step in the real estate transaction, from receipt of contract, abstract and exam, closing, funding and recording, and more.
 
Register for Live Webinar Dec. 15 Featuring Q&A With TDI Staff » 


In addition to live webinars held throughout the year, you have access to our library of more than 80 On-Demand webinars and videos  covering the title industry topics you need to earn continuing education credits and stay ahead of the curve on the latest industry trends!