August 15, 2012
Fraud and Security Focus at NAIC Conference
Over the weekend, TLTA staff joined ALTA and other industry members at the National Association of Insurance Commissioners (NAIC) conference in Atlanta, GA.
The NAIC is made up of insurance regulators from all 50 states and serves as a clearing house for best practices and policy discussions relating to the regulation of insurance. TLTA's presence afforded us the opportunity to liaison with TDI staff in attendance as well as monitor the discussions about issues involving title insurance.
The hot topic this year was security in the real estate transaction, examining external threats such as cyber theft and fraud as well as internal threats such as escrow theft.
James H. Freis, Jr. from the Treasury Department's Financial Crimes Enforcement Network (FinCEN) explained that his office is examining the practices of title and escrow companies to determine whether there should be a reporting role required of title agents and escrow officers if they witness suspicious activity. Based on the presentation, the focus of FinCEN appears to be money laundering by individuals who possess large amounts of money resulting from criminal enterprises and seek real property purchase opportunities to hide these illegal proceeds.
There was also a discussion of risks related to escrow theft and various steps a title agent may take to help avoid these losses, which is also part of the ongoing project of the NAIC working group to draft a white paper on escrow theft. ALTA and TLTA have been involved in this discussion at NAIC helping to educate the regulators on the practices in existence today and the costs and benefits of various regulations and approaches to addressing the issue of escrow theft. Representatives of the title industry have also emphasized that although losses may be significant when they occur, which attracts a great deal of attention, it's important to consider the number of occurrences in relation to the number of transactions performed. This perspective should not be lost when analyzing the scope of the problem and the application of policies designed to address it.
Scammers Taking Aim at Attorneys
We have recently become aware of an increase in check fraud attempts against attorneys and title agents in Texas and across the country. A recent article in the Wall Street Journal explains how many attorneys have fallen victim to this increasingly common scheme. We have heard about similar attempts recently from some of our members. In each instance, the scammer sought to pass a forged cashier's check in an expedited settlement with remote parties. Read more about this here.
TLTA Past President Bruce Boyer Wins Race for District Judge
TLTA Past President Bruce Boyer recently won a race for judge in the three-county 22nd Judicial District. The judgeship is based in San Marcos and serves Comal, Hays and Caldwell counties. Boyer is President of AmeriPoint Title New Braunfels. He's also been very active in TLTA for a number of years, serving as TLTA President in 2006-2007 and on numerous TLTA committees, including the Judiciary Committee, Finance Committee and Certification Committee. Boyer, in addition to serving six years (2005-2011) as New Braunfels' mayor, was New Braunfels' municipal prosecutor as well as assistant county attorney and assistant district attorney in Comal County. We congratulate Bruce on his win. Read More »
Fitch Expects CFPB Proposal to Result in More Market Consolidation
Fitch Ratings analysts predict a much smaller mortgage servicing industry after the Consumer Financial Protection Bureau finalizes its latest rules. "A key change with the CFPB rules is their extended scope, as they will govern both banks and nonbanks of all sizes and types," analysts said in a report Monday. "While these changes should be manageable for larger banks, Fitch Ratings believes their impact will be most directly felt by smaller institutions due to the higher impact of compliance costs." Read More »
TDI Issues Call for Underwriter Stat Data - Deadline September 24
The Texas Department of Insurance (TDI) has issued its call for Underwriter Statistical Data. The completed report must be postmarked or submitted electronically by September 24, 2012. You may read the bulletin and download all of the necessary forms here. If you have any questions, contact Betty Flores at TDI at 512.322.5029 or e-mail her here.
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.