October 26, 2011
U.S. Senate Restores Higher Conforming Loan Limits
On Thursday the U.S. Senate voted 60-39 to restore conforming loan limits that dropped from a maximum of $729,750 to the previous maximum of $625,500 and affected 669 counties in 42 states, including the following Texas counties: Atascosa, Bandera, Bastrop, Bexar, Caldwell, Comal, Guadalupe, Hays, Jeff Davis, Kendall, Medina, Travis, Williamson and Wilson. Read More >
FHFA Confirms Title Insurance Remains Part of HARP Program
Following the announcement of the revamped Home Affordable Refinance Program (HARP), some media reports indicated that title insurance and closing costs were among the fees that will be reduced or eliminated in the HARP program. The American Land Title Association (ALTA) has been assured by the agency responsible for HARP, the Federal Housing Finance Agency (FHFA), that this is not the case. We will continue to report on this issue if there are any developments.
ALTA Concerned With 5th Draft of Combined GFE/TIL
The Consumer Financial Protection Bureau (CFPB) released its last version of an initial disclosure last week and the form again includes the word "optional" when disclosing "Title - Owner's Policy". ALTA's RESPA Task Force has had productive conversations with the Bureau about the soon to be released draft settlement statement, and is submitting a comment e-mail to ask the Bureau their reasoning on the term "optional" as a matter of public policy, especially when it is already part of the buyer and sellers' purchase contract. Read more and comment on the latest draft here >
Speaker Joe Straus Releases Interim Charges for House Committees
Speaker Joe Straus recently released interim charges that will direct the work of House Committees until the 83rd Legislative Session in 2013. TLTA is pleased that a study on liens and real property will take place in the Business and Industry Committee chaired by Rep. Joe Deshotel. Last session, there were many discussions about mechanics lien law, including TLTA's concerns about the ambiguity of the law relative to the status of "removables" in a foreclosure. This will provide us an opportunity to continue that conversation. The committee will also study adverse possession and deed restrictions, and we will keep you updated on their progress.
TDI Quarterly Audit Results Published
Following is a summary of recent TDI audits, violations and enforcement actions from June through August 2011. Read TDI's complete summary of operations for the quarter or read the key statistics below.
Compliance Audits
TDI's goal is to comprehensively audit agencies at least once every two years. Through August, 543 out of the 573 licensed agencies have been audited in the last two years, a 94.8% rate. Twenty-one additional agencies have been audited within the last three years and 9 new agencies are yet to be audited.
Commissioner Orders & Active Cases
From June through August 2011, the commissioner signed 19 orders resulting in fines and the revocation of eight licenses. Through August, 112 cases remain active, including 28 cases involving Texas Insurance Code violations and 23 cases involving the misappropriation of fiduciary funds.
Compliance Audit Results
Below are TDI’s most common audit findings from June through August 2011. The numbers represent how many agencies had an infraction, not the number of times the infraction occurred.
NUMBER OF AGENCIES
CATEGORY
DESCRIPTION
43
Texas Insurance Code Section 2702.053
Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
34
Escrow Accounting
Outstanding checks not cleared timely
28
Minimum Escrow Accounting Procedures & Internal Controls
Every disbursement not supported by invoice or sufficient other evidence
23
Procedural Rules
No T-00's in files or T-00's incorrect or incomplete
21
Procedural Rules
Schedule D of commitment not in file or premium split not disclosed on commitment