November 7, 2012
New Developments with Lender Vetting Companies
We’ve been providing you with regular updates over the last few months about the new lender vetting companies that have entered the market. Some lenders are requiring title agents and their escrow personnel to be certified through these third party vetting companies in order to handle their transactions.
We have now been notified that some lenders are now sending these requests directly to escrow officers and escrow assistants. The letters stress that registration is done on an individual, rather than on a company basis. This is a new development. We recommend you alert your staff right away and ask them to make you aware of any such requests they receive.
We at TLTA have expressed concerns about these lender vetting companies as outlined in our letter to the Texas Department of Insurance (TDI). We are continuing to review this matter and to discuss it with TDI and other appropriate parties. The American Land Title Association (ALTA) also met recently with the Consumer Financial Protection Bureau (CFPB) on this issue and the Bureau indicated they are seeking more information and recommended that, in the meantime, title agents ask questions when presented with these requests, as you would with any such outside request.
We agree, and would also urge you talk more with your lenders about these requests as you receive them. Make them aware of the many safeguards already in place in Texas both through our TDI regulations and audit process that include extensive requirements on title agents and escrow officers, as well as through the various underwriter requirements and audits.
TLTA is concerned that the service being offered by these lender vetting companies may duplicate those already in place in Texas and therefore may be an unnecessary additional cost. We also have questions and concerns about the security of the information being requested, among other concerns.
Please continue to keep us updated on what you are seeing at your company with regard to these new lender vetting requests by e-mailing
[email protected], and we will keep you updated on any new developments that we become aware of.
Texas Election Results From the Texas Tribune
Republicans Still Reign, but Democrats Didn't Go Home Empty Handed
Republicans still reign in Texas, but the state's Democrats — while celebrating the re-election of President Obama — didn't go home empty-handed on Tuesday. As Obama swept to a decisive Electoral College victory on Tuesday, winning at least 303 votes, Texas Republicans held on to their statewide dominance. As expected, Mitt Romney easily won the state, and Republican Ted Cruz soundly defeated Democrat Paul Sadler in the state's race to replace retiring U.S. Sen. Kay Bailey Hutchison. The GOP also won every statewide office on the ballot, including spots for the Railroad Commission, the state Supreme Court and the state Court of Criminal Appeals. And despite losing seven seats in the state House, Republicans will still make up 95 of the chamber's 150 members. Read More »
TREC Postpones Consideration of Form Changes
At its meeting earlier this week, the Texas Real Estate Commission decided not to adopt changes that had been proposed in August to several forms until after the 83rd Texas Legislature, which convenes in January. The forms include:
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
TLTA has concerns with TREC's proposed changes to Section 6 A(8) on the One to Four Family Residential Contract (Resale) form, which you may view here. We submitted a letter to TREC identifying our concerns, including our suggested change to clarify that the responsibility for costs associated with a survey amendment exception should be determined by the parties. We are seeking to clarify language to further recognize that the survey provided must be approved by the title company in order to insure title. We will keep you updated with any information about this proposed change as it becomes available.
TLTAbay Opens Tomorrow!
Bid Throughout the Week to Help Support the TLTAPAC
TLTAbay, TLTA's annual online auction benefiting the TLTAPAC, opens at 8 a.m. tomorrow and runs through 4 p.m., November 15. Take a moment to visit the auction website, get your username registered and check out some of the great items that will be available for bidding! More items will be added throughout the week, so keep checking back!
Bidding in TLTAbay is a great way to support the TLTAPAC while getting something in return. Every dollar the auction raises will aid our mission to educate elected officials and promote the importance of title insurance in Texas - and that's as important as ever as we head into the 83rd Legislative Session! If you have any questions about the auction or would like to make a donation, e-mail
[email protected].
Register Today for the Texas Land Title Institute!
...and Don't Miss the New Title Insurance Primer for Attorneys
On December 6-7, TLTA will hold the 22nd Annual Robert C. Sneed Texas Land Title Institute at the Hyatt Regency Hill Country Resort and Spa in San Antonio. This is the "must-attend" CLE event of the year, and if you've been before, you already know the value and quality of this program. Read more about the program, register online and book your hotel here.
You also won't want to miss our new program this year being held before the Institute on December 5 - Title Insurance - A Primer for Attorneys. This course will address title insurance questions that frequently arise in connection with a closing and are presented to the lawyer representing a party. The speakers will address title insurance due diligence for the client and how to assure the best coverage and rates. Read the detailed schedule and register for this program
here
.
Register for both of these programs, and you'll receive a free 1-year subscription to the Institute Legal Library. The online library chronicles all 21 years of Institute presentations - that's more than 400 course articles - and is searchable by topic. Can't make it to the Institute this year? Sign up today for the Institute Legal Library and you'll receive these next two months free. It's just $149 for members and $195 for nonmembers. Learn more here.