February 22, 2012
TDI Rule Hearing Begins Next Week
The Texas Department of Insurance will hold a Rule Hearing beginning next Tuesday, February 28, at 9:30 a.m. The hearing will be held in Room 100 of the William P. Hobby, Jr. State Office Building, 333 Guadalupe Street in Austin. We've prepared an easy-to-use guide to the hearing with brief descriptions of all the items to be heard as well as links to the full text if you want to review them in more detail. More information can also be found on the Rule Hearing page at our website here. Please take a few minutes to review these items that could affect your business. All members of the industry are invited and encouraged to attend this hearing.
Comment Now on the CFPB's Proposed Changes to the HUD-1
The Consumer Financial Protection Bureau (CFPB) has released its final draft form of integrated disclosures that combine the GFE and HUD-1. This is your last chance to provide feedback to the Bureau before they formally propose the final form this July. As you may recall, TLTA requested the Bureau conduct consumer testing in Texas, and we are pleased to report that the forms are being tested this week in Austin. The Bureau's next phase of the project will be writing the proposed rules for the disclosures. This round includes revised prototypes for the Loan Estimate and the Settlement Disclosure. You may make comments and read more about the forms here or send an email directly to the CFPB.
Celia Flowers to Serve on Small Business Panel
The CFPB is one of three federal agencies that must comply with special rule-review procedures of the 1996 Small Business Regulatory Enforcement Fairness Act, or SBREFA. Accordingly, the CFPB has formed a Small Business Review Panel. The panel, which includes TLTA member Celia Flowers, East Texas Title Companies, will assist the Bureau in determining the potential impact of the prototype disclosures and the proposals they will release this summer. The mortgage disclosure rule to combine the GFE and the HUD-1 will be the first regulation vetted by the small business review panel. If you have any input on how these forms will affect you as a small business owner, please send us your comments here.
Important TREC Form Changes on the Horizon
HOA Addendum Dealing With Resale Certificates to be Considered Feb. 27
At its regular meeting February 27, Texas Real Estate Commission (TREC) will recommend a proposed HOA Addendum to the TREC One-to-Four Family Residential Contract that will include language addressing the common failure to reimburse title agents ordering subdivision information in transactions that do not close.
The TREC Broker-Lawyer Committee recently met to discuss the originally proposed HOA Addendum. TLTA had strong concerns and submitted a comment letter. The Committee considered the letter and discussed the title industry's concerns. The new language addressing title agent reimbursements in the draft HOA Addendum is highlighted in the Committee meeting minutes which can be found here. It is important to note that this is only a proposal that will likely be taken up by the Commission at their February 27th meeting. TLTA will be monitoring this process very closely and will encourage the Commission to adopt the Committee's recommendation.
TREC Changes In Effect March 1
TREC recently adopted changes to six contract forms and 17 addenda. The forms have been posted to the TREC forms website and will be mandatory March 1. Most of the revisions relate to TREC's new Web address and phone number, but here are a few other changes that were adopted:
The seller agrees to have the utilities on during the entire time a property is under contract.
There are new choices for a buyer if a seller fails to complete repairs as agreed.
Language was added to advise the parties that, if the property is subject to a private transfer fee, the law requires a seller to notify a buyer that the private transfer fee obligation may be governed by the Texas Property Code.
Redistricting Limbo Extends Beyond Races
Tentative Primary Date is May 29
Joe Holley & Nolan Hicks | San Antonio Express-News
Congressman Mike McCaul, R-Austin, is running in place. The congressional campaign of Roger Williams is on hold. And a handful of would-be U.S. Senate candidates are hoping that the long, drawn-out redistricting controversy and elusive primary date will work to their benefit as they attempt to nip at the heels of front-runner David Dewhurst. Those are only a few of the countless people, political parties and organizations — not to mention Texas voters - affected by the redistricting feud. Read More >
FHFA Releases Plan for Freddie, Fannie Exit
Zachary Goldfarb | Washington Post
A federal housing regulator Tuesday released a plan for beginning to scale back mortgage giants Fannie Mae and Freddie Mac — just as the Obama administration is pressing the taxpayer-backed companies to do more to help homeowners. The Federal Housing Finance Agency, which oversees Fannie and Freddie, laid out steps to wind down the companies, largely by increasing fees charged to borrowers who take out mortgages. The FHFA's hope is that as the cost of receiving a taxpayer-backed mortgage goes up, more borrowers will turn to private lenders, whose loans do not carry government backing. Read More >