November 20, 2012
Warehouse Lenders Change Course on Vetting Requirement
As we've previously reported, new third-party lender vetting companies recently entered the market. The issue took an important turn last week, however, when two of the original warehouse lenders who sought to require the use of a third party vetting service reversed course and announced they would no longer require the use of such a service by January 1, 2013. Each lender issued a statement stating that they were suspending their efforts indefinitely because of a lack of participation from escrow companies. Both lenders emphasized a continuing desire for more assurances of security in the escrow transaction. You may read the statement from First Tennessee here and the statement from Texas Capital Bank here.
Additionally, a state regulator recently began inquiring about the third party vetters' business model and practices. Deborah Bortner, the Director of Consumer Services for the State of Washington's Department of Financial Institutions, issued a letter raising privacy concerns and questioning the necessity of the product. The issue is also beginning to get some media attention as questions are being raised over the legality of the practice. The Washington Post recently ran an article you can read here, and the National Association of Realtors ran an article you can read here.
TLTA responded early to this issue by raising concerns with TDI and their staff is currently reviewing the issue. Meanwhile, ALTA has published a list of best practices designed to educate lenders about the procedures the title industry often uses to help prevent escrow theft. Additionally, ALTA is encouraging the use of these best practices throughout the industry. We will continue to monitor this issue, and in the meantime, if you received a solicitation from a vetting company or a demand by a lender that you use such a company as a condition of doing business, you are encouraged to ask questions about the necessity and safety of such a measure and seek guidance from your underwriter.
Basel III Measures Could Raise Home Ownership Costs
The proposed Basel III capital requirements could have the unintended effect of raising borrowing costs for homeowners with weaker credit profiles, banking analysts argued this week. The Senate Bank Committee met Wednesday to question agency officials looking to adopt stricter capital requirements by the Basel Committee on Banking Supervision. Read More ยป
Thank You TLTAbay Donors, Bidders and Winners!
TLTA would like to thank all of our members who participated in the 2012 TLTAbay Annual Online auction benefiting the TLTAPAC! Thanks to our generous donors, bidders and winners, we raised close to $17,000 - a new record! Special thanks to the TLTAbay subcommittee including Celia Goode-Haddock, Ashley Chilcote, Dawn Bowers, Dan Bartlett, Carol Hallows, Zana King, EJ Brent, Glen Cochran, June Van Etten, Chris Phillips, Kristy Santelia, Kelli Owens and Janet Allen. Even though this year's auction is over, it's not too late to support theTLTAPAC - make a donation online today!
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 and register online 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
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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.