September 5, 2012
TLTA Supports Clarity in Lien Laws Before State House Committee
Last week, the Texas House Business and Industry Committee chaired by Rep. Joe Deshotel held a hearing on the interim charges to, "Review existing lien laws in Texas and make recommendations for improvement," and "Study the extent to which property tax liens, whether the lien is owned by the original lender or by a successor in interest, impact title and the Texas real estate market." A great deal of the discussion revolved around the property tax lender issue and their lien priority. Rep. Burt Solomons put similar questions to the Attorney General in a request for opinion in April.
TLTA Legislative Committee Chair Roland Love testified on the importance of certainty and simplicity in Texas lien law and raised three additional issues:
1. What is a 'removable' and should affidavits claiming a mechanic's lien be required to identify items deemed to be removables?
2. Currently, the limitations period applicable to mechanic's lien affidavits run from the last day that the affidavit could have been filed. This is not determinable from a review of the record or the affidavit. Should limitations periods be revised to run from a date certain, such as the filing date or the 15th day of the month after the affidavit is filed?
3. Currently, the Texas Property Code allows for affidavits of commencement and affidavits of completion, but they are permissive and only a presumption. In most cases they are not filed. If filed, they provide some certainty to many of the time requirements provided in the Texas Property Code. Should affidavits of commencement and completion be mandatory for non-residential construction?
You can watch Roland's testimony by skipping to the 5:38:26 mark here. You'll need to download RealPlayer to watch the video. TLTA will continue to support certainty and simplicity in lien laws and we will keep you posted of any updates or resolutions to the questions we raised. TLTA will also be holding a webinar on tax liens on Sept. 18 at 1:30 p.m., which you can read more about here. If you have any questions, please contact TLTA Director of Government Affairs Aaron Day at
[email protected] or 512.472.6593.
TREC Proposes Contract Changes
The Texas Real Estate Commission (TREC) has proposed changes to the following forms:
One to Four Family Residential Contract (Resale) - TREC 20-11, TAR 1601
Unimproved Property Contract - TREC 9-10, TAR 1607
New Home Contract (Incomplete Construction) - TREC 23-12, TAR 1603
New Home Contract (Completed Construction) - TREC 24-12, TAR 1604
Farm and Ranch Contract - TREC 25-9, TAR 1701
Residential Condominium Contract (Resale) - TREC 30-10, TAR 1605
Subdivision Information, Including Resale Certificate for Property -TREC 37-4, TAR 1923
Third Party Financing Addendum for Credit Approval - TREC 40-5, TAR 1901
View the proposed changes at TREC's website here. The deadline for comments is October 8, and TLTA is gathering subject-matter experts to review the changes. We will provide an analysis and more information about commenting in an upcoming newsletter.
CFPB Extends Deadline to Comment on APR Issue
Last week, the Consumer Financial Protection Bureau (CFPB) announced a deadline extension for comments on their APR proposal from September 7 to November 6. In their proposal, the CFPB is seeking to include non-lender fees such as title insurance, escrow and other closing related fees into the APR. TLTA has several concerns with this proposal and met last week with fellow trade association representatives and members Texas Credit Union League, Independent Bankers Association of Texas, Texas Bankers Association and the Texas Mortgage Bankers Association to discuss the proposals. As a result, TLTA is working on a draft a joint letter with these groups to submit the CFPB. TLTA will also be making separate comments on this issue and we encourage you to make independent comments as well. Look out for our "CFPB Update" email which will have talking points, directions and suggestions to aid you in your comments to the CFPB on their APR proposal. Read more about the proposed rule and the deadline extension here.
FHFA Raises Guarantee Fees on GSE Mortgages
Housing Wire
Fannie Mae and Freddie Mac will raise their guarantee fees charged to lenders by an average 10 basis points in order to encourage more private capital to fund the market, according to the Federal Housing Finance Agency. "These changes will move Fannie Mae and Freddie Mac pricing closer to the level one might expect to see if mortgage credit risk was borne solely by private capital," said FHFA Acting Director Edward DeMarco. For loans sold to the government-sponsored enterprises for cash, the higher fees go into effect Nov. 1. For others exchanged for mortgage bonds, the effective date is Dec. 1. Read More ยป
A Challenge to All Escrow Officers!
The TLTAPAC Board of Trustees has issued a challenge for the 2012-2013 year to every Escrow Officer in the state to contribute a minimum donation of $25 to the TLTAPAC. With almost 6,000 Escrow Officers currently licensed in Texas, a $25 contribution from each would raise $150,000 for the PAC from Escrow Officers alone! Personal contributions to the TLTAPAC are pooled together and donations are given to Representatives of the House and Senate in Austin who are favorable to the title industry. The TLTAPAC supports members from both sides of the political aisle who support TLTA. With the 83rd Legislative Session just around the corner, your industry needs your support more than ever! Please donate online today here or you can send a personal check payable to the TLTAPAC with this form.