July 6, 2011

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Dear ,

The 82nd Legislative Session has come to a close and we're very happy to report that despite the budget crisis, redistricting and other major issues, we had one of the most successful Legislative Sessions in TLTA history. We not only worked to pass legislation that will lower costs and prevent claims, but we also successfully defended our system of rate regulation as it came under intense scrutiny with bills designed to disassemble our rate system.

We are particularly pleased that the Governor signed our legislation to eliminate the 2% minerals credit. The new law will take effect January 1, 2012, and along with eliminating the 2% credit, will make it clear that a title company can take a general exception for minerals and title companies may not be forced to insure a mineral estate.

Creating more practical minimum capitalization requirements for agents, improving and streamlining the rate setting process and preserving P-53 and educational activities are just a few of our other successes this session. You can read more about these and the rest below.

It’s important to note that the effective dates vary for these different pieces of legislation, and you may view a table of effective dates here. Some of our legislation is also still subject to the regulatory rulemaking process with TDI and we are already working with them on a plan for that process.

The Legislative Session is a complicated and arduous process and was successfully navigated due to our extraordinarily talented lobby team, which included Allen Place and the partners at Focused Advocacy including Curtis Seidlits, Snapper Carr and Brandon Aghamalian. Likewise, TLTA Legislative Committee Chairs Roland Love, Timothy Redding and the entire Legislative Committee, were instrumental in our efforts this year.

The TLTAPAC is also key to our success. TLTAPAC raised a record-setting $127,881. These funds allow us to back candidates and members in the legislature who support the title industry and educate elected officials and promote the importance of title insurance. Even though we just finished the 2011 Legislative Session, we’re already thinking about 2013 and the things we want to accomplish. Every PAC donation helps!

We also owe extreme gratitude to the many legislators who sponsored and worked for our legislative program. Finally, I’d like to thank all the TLTA members and volunteers who spent countless hours working on behalf of the industry – we couldn’t have done it without you! 

Sincerely,

Aaron Day

TEXAS LEGISLATIVE NEWS 

Governor Signs TLTA Legislation - Eliminates 2% Minerals Credit

We are very pleased to announce that our affirmative legislative agenda has been signed by the Governor and will become law on the effective dates listed in the table here. It is important to note that some of this legislation will require regulatory rulemaking for implementation and we are already working with TDI on a plan for that process.

Here are some of the highlights of what TLTA accomplished this Legislative Session:
Eliminated 2% minerals credit starting Jan. 1, 2012
More practical minimum capitalization for agents
Improved and streamlined title insurance rate setting process
More due process in TDI licensing and enforcement
Preserved P-53 promotional and educational activities
TLTA also worked on many more bills that will improve transactions, lower costs and prevent claims. Read more about the legislation and the effective dates here.

If you have any questions or concerns, please contact TLTA's Director of Government Affairs and Counsel Aaron Day at [email protected], Government Affairs Manager Tedrah Hutchins at [email protected] or TLTA Executive Vice President and CEO Leslie Midgley at [email protected].

New Law Bans Private Transfer Fees

Part of TLTA's Affirmative Legislative Agenda was seeking a ban on private transfer fees. These fees are written into neighborhood deed restrictions and typically throw 1 percent of a home's sale price back to the original developer each time the home changes hands over the next 99 years. Both the Texas House and Senate voted overwhelmingly for the bill, and Texas now joins 33 other states that have banned or restricted private transfer fees in recent years.

"TLTA supported passage of the original statute and we are pleased to support legislation that strengthens the law with important new consumer protections," said outgoing TLTA President Brian Pitman. "We applaud Governor Perry, Representative Darby and Senator Harris for protecting unsuspecting homeowners." TLTA thanks Randy Lee of Stewart Title Guaranty Company, whose efforts were critical to the passage of this legislation. Read more here.

JUDICIARY 

Case Review: How Land Owners Can Protect Their Mineral Interests

BP America Production Co. v. Marshall
Bradford Irelan | Irelan Hargis, P.L.L.C.
This case outlines both the high level of reasonable diligence required of a landowner to make himself aware of all information he seeks to use in order to protect his mineral interest in addition to the more stringent requirements needed to establish adverse possession by co-tenants. 

This case involves two related oil and gas mineral lease disputes that were jointly tried. Two weeks before the expiration of the lease, BP drilled the J.O. Walker 1 well on the property in which it was assigned fifty percent of the minerals. The lease had a 60-day savings clause. The well ultimately proved unproductive and BP sold its percentage to Sanchez-O’Brien in 1981, who drilled a productive well one month later. Wagner is a successor in interest to Sanchez-Obrien. The Vaquillas family filed suit against Wagner in 1997, amending the suit to seek declaration of title to the mineral interest asserting that Wagner did not have title to the lease because it expired before BP transferred its interest. Read the full case review here.

"Feed Scanner" Attorney General Request Still Pending

In recent weeks we have received several inquires regarding the Atascosa County Attorney General Opinion Request that was filed last September.

As you may recall, the Atascosa County District Attorney filed a Request seeking an opinion as to whether the Atascosa County Clerk is required to permit a member of the public to use a sheet fed scanner to copy the clerk’s records. The request was submitted as the result of a letter received by the Atascosa County Clerk from a member of the public who, according to the Opinion Request, “demanded that he be allowed to use a sheet feed scanner to copy most of the Atascosa County Clerk’s records.”

Shortly following the submission of this Opinion Request TLTA filed a letter with the Attorney General’s office. Although no members of the title industry were directly involved in this request, we are very interested in the continued access by the public to the public’s records for which the Clerk is a custodian. TLTA strongly believes in order for access to be meaningful, it is important to preserve all elements of the ability to access and copy records.

We spoke to the Attorney General’s Office earlier this week and were informed they are still working on the request and a publication has not been set. We will continue to monitor this important issue and if you have any questions please contact our office at 512.472.6593.

ON THE FEDERAL FRONT - THE ALTA REPORT

ALTA, Lawmakers Question QRM Down Payment

Last week ALTA joined U.S. Senators Johnny Isakson (R-Ga.), Kay Hagan (D-N.C.) and Mary Landrieu (D-La.) and U.S. Representatives John Campbell (R-CA) and Brad Sherman (D-CA) and a group of 40 industry and civil rights groups for a press conference sharply questioning federal regulators' 20% down payment requirement in the QRM. A video of the press conference can be found here. 

The event offered ALTA an opportunity to highlight other problems with the proposed rule, including the lack of common sense underwriting of the legal title to mortgage collateral. The offensive against the QRM appears to be working and at a conference last week, under-secretary for domestic finance at the Treasury Department Jeffery Goldstein said, "We are seriously considering feedback and are committed to getting this rule right, so that we can ensure securitization is a stable and reliable source of credit for consumers, businesses, and homeowners."

CFPB Seeks Comments on New Versions of Mortgage Disclosure Form

The Consumer Financial Protection Bureau (CFPB) is continuing its work to combine the Truth in Lending Act (TILA) disclosure and the Real Estate Settlement and Procedures Act's Good Faith Estimate (GFE). The CFPB is now seeking feedback on the second round of draft forms and it's vital that our industry's voice is heard. This is a rare opportunity to offer feedback on forms that will have a huge effect on the industry, and we encourage you to take the time to comment here.

The CFPB asks that you consider these questions when commenting:
Would this form help consumers understand the closing costs associated with their loans?
Could lenders and brokers clearly and easily explain the form to their customers?
What would you like to see improved on the form? Is there some way to make things a little bit clearer?
Read more from the CFPB about the new versions of the forms here, or read about ALTA's RESPA Task Force, which is working closely with the CFPB, and their recommendations here. Your comments are also welcome at any time throughout the process at [email protected] and you may also send comments on the prototypes to ALTA’s RESPA Task Force by emailing [email protected].

Legal Framework for Covered Bonds Passes Committee

Legislation creating the legal framework for a covered bonds market passed the U.S. House Financial Services Committee on Wednesday. ALTA sent this letter of support for the legislation. Covered bond legislation has been a priority of Scott Garrett, Chairman of the subcommittee on Capital Markets and Government Sponsored Enterprises whose committee is the gatekeeper for GSE reform legislation. ALTA also signed onto a joint letter with MBA, the Realtors and others to discuss the impact covered bonds could have on commercial real estate. The bill, H.R. 940, easily passed the Committee by a vote of 44-7 despite opposition from the FDIC. The legislation must still pass the full House and the Senate where it will face an uphill battle despite the bi-partisan support of Senators Charles Schumer (D-NY) and Bob Corker (R-NY).

Senate Committee Discusses National Flood Insurance Program

Last week, the Senate Banking Committee held its second hearing in as many weeks on the re-authorization of the National Flood Insurance Program (NFIP), which is set to expire on September 30. Witnesses included the Government Accountability Office, the Association of State Floodplain Managers, the Smarter Safer Coalition, the National Association of Home Builders, the Consumer Federation of America, and Richardson and Ritchie Consulting. During the hearing, several committee members called for a long-term extension of the program, and also discussed the need for significant reforms to ensure the program's long-term viability. ALTA continues to urge Congress to pass a long-term sustainable fix for the NFIP.

TLTAPAC 

Fundraising Record Set!

Last year, President Brian Pitman kicked off his presidency by challenging everyone to help raise an unprecedented $110,000 for the TLTAPAC. Thanks to all of our generous donors, we did it! As of June 30, we raised a record-setting $127,811!

The money raised by the TLTAPAC allows us to back candidates and members in the legislature who support the title industry. Every dollar we raise and continue to raise aids our mission to educate elected officials and promote the importance of title insurance in Texas.

The 2010-2011 TLTAPAC fundraising co-chairs Mark Greek & Terry Grantham, as well as the entire TLTAPAC board, worked tirelessly to help beat the previous record. We want to thank our individual donors for their contributions. We would also like to extend a special thanks to the corporate sponsors below whose generosity covers administrative costs and underwrites our fundraising efforts.

Corporate Donors:
Aldrich Abstract Company
Brown Abstract Company, Inc.
Capital Title of Texas, L.L.C.
Central Texas Title
Chambers County Abstract Co., Inc.
Chapin Title Company
Chicago Title Insurance Company
Comerica Bank
CourthouseDirect.com
DOCUmation of Austin, Inc.
East Texas Title Company
Elliott & Waldron Abstract Company of Palo Pinto
Fidelity National Title Insurance Company
First American Title Insurance Company
First Western Title Co.
Hexter-Fair Title Company
Hill Country Titles, Inc.
Independence Title Company
Integrity Title Company
Landtech Data Corporate
Lone Star Title Company of El Paso
McDaniel Holt, PC
Monteith Abstract & Title Company
Morgan Stanley Smith Barney
National Investors Title Insurance Company
NextAce Corporation
North American Title Insurance Company
op2
Pecan Valley Title Company
Property Info Corporation
RamQuest Software, Inc.
RynohLive
Sneed, Vine and Perry
Stone Title Company, Inc.
The Brown County Abstract Company, Inc.
Title Resources Guaranty Company
University Title Company
W.W. Howeth Co.
West Texas Abstract and Title Company
West Texas Title Company
WFG National Title Insurance Company
Windward Consulting/Software
Winstead PC

Conference PAC Breakfast Clubs a Success

The TLTAPAC Breakfast Club at our Annual Conference and Business Meeting was a huge success and well received by attendees. The Friday breakfast included a presentation by Evan Smith, CEO and Editor-in-Chief of The Texas Tribune. Smith gave the audience an inside view of Texas' rapidly changing demographics - especially with the flourishing Hispanic population. Everyone enjoyed Smith's comprehensive statistical data and interpretation of the numbers as well as his entertaining style.

On Saturday, Rep. Drew Darby, a veteran legislator and title agent, talked about his experiences during the recently concluded 82nd Legislative Session. He talked about how the big issues this Session, such as the budget deficit and redistricting, impacted other legislation and how important it is for groups to have strong lobby teams in order to be heard. 

TLTA recognized Rep. Darby and Rep. Jose Menendez with Outstanding Legislator Awards and awarded the Outstanding Freshman Legislator Award to Rep. Rodney Anderson. TLTA would like to thank these legislators for their help throughout the 82nd Legislative Session and for their outstanding service to the citizens of Texas.

Bert Massey Classic Enjoyed By All

We would like to thank everyone who participated in the Annual Bert Massey Classic for making it such a fun-filled event. Special thanks to our PAC Golf Chairs Charlie Valdesof Chicago Title Insurance Company and DJ Horn of Title Resources Guaranty Company for their work on the tournament. We also want to thank all of our sponsors for making the tournament possible.

Why I Give...  Pam Rodgers

Pam Rodgers
Alliant National Title Insurance Company

I believe in contributing to our TLTAPAC because we need to give back to the industry that provides so much to us: jobs, support, political action, etc.
This year, more than ever, I believe our PAC dollars were at work for us! I believe every dollar that TLTA donated this year was put to good use by helping to establish relationships necessary for communicating complex legislation on subjects such as minerals and education.
With more than twenty years in this industry I am a firm believer in "backing the PAC!"

TLTA Would Like to Thank These Legislators for Their Help This Session:

Rep. Drew Darby

 
Rep. Larry Taylor

 
Rep. Veronica Gonzales

 
Rep. Joe Deshotel

 
Rep. Will Hartnett

 
Rep. Rodney Anderson

 
Rep. Marc Veasey

 
Sen. Chris Harris

 
Sen. Eddie Lucio

 
Sen. John Carona

 
Sen. Kirk Watson

 
Sen. Royce West

 
Sen. Carlos Uresti

 
Sen. Wendy Davis

NEWS TO KNOW

 Industry Stats

Indicator Release Date Latest Release Change from Previous Release
30 Year Fixed Mortgage Rates 6/09/11 4.49% -0.06
15 Year Fixed Mortgage Rates 6/09/11 3.68% -0.08
10 Year Treasury Rate 6/14/11 3.11% +0.11
Existing Home Sales (in millions) 5/19/11 5.05 +0.8%
New Home Sales 5/24/11 323,000 +7.3%
Supply of Housing Inventory 5/24/11 6.5 months -.8 monthsStats courtesy of ALTA