April 3, 2013

Work Continues on Legislation That Could Impact the Industry

Correction Instrument Legislation Voted Out of House Committee
With just 54 days left in the 83rd Legislative Session, activity is picking up at the Capitol as House and Senate committees listen to legislation and decide on whether to vote it out of committee.

TLTA-sponsored legislation to clarify that the date of a correction instrument relates back to the original filing date was voted favorably out of the House Business & Industry Committee yesterday. This legislation, HB 1940, along with its companion legislation in the Senate, SB 887, would also provide the clear ability to treat an inadvertently omitted attachment as a nonmaterial correction.

TLTA Meets With Subcontractors on Mechanic's Lien Legislation
The TLTA lobby team and members recently met with subcontractor representatives to provide feedback and concerns regarding SB 1281, which relates to mechanic's, contractor's or materialman's liens. Subcontractors are again seeking significant changes to the mechanic's lien laws and we encourage you to take a moment and review this legislation. We welcome your feedback, especially as it pertains to potential unintended consequences that could result from this legislation.

TLTA Opposes Legislation Dealing with Format of Recorded Documents 
Earlier this week, representatives from TLTA also testified against HB 1626, which would give county clerks new authority to reject documents based on format or ability to reproduce the document. This would affect real estate documents that need to be filed, and it would also affect assumed name certificates, powers of attorney and a wide array of other items. The proposed format requirements do not meet common national standards, and the ability to reproduce is an undefined, subjective standard. If clerks could enforce such a regime by rejecting documents, it could dramatically change the behavior of title companies, requiring them to demand that documents be in a certain format before transactions can close. Current law makes it clear that clerks cannot decide what to accept, and this legislation could slow the system down severely and potentially cause chaos.

Track the Progress of Legislation and Stay Informed
Stay tuned to this newsletter and the Legislative page on our website for updates on the progress of our affirmative agenda, as well as other legislation we're tracking that could impact the industry. If you would like to receive email notifications with links to live legislative hearings, please email [email protected] to get added to the list.

CFPB Launches Public Database of Consumer Financial Complaints

Housing Wire | March 28, 2013
The Consumer Financial Protection Bureau launched the nation’s largest public database of consumer financial complaints Thursday. The move gives the public-at-large a first-hand look at how mortgage servicers and lenders handle various complaints from customers. The database will give consumers a chance to review and analyze 90,000 individual complaints on financial products and services. "By sharing these complaints with the public, we are creating greater transparency in consumer financial products and services," said CFPB Director Richard Cordray. Read More »

A Mortgage Practice Gets a Closer Look by Regulators

The New York Times | March 26, 2013
Among the conditions imposed on most people who borrow money to buy a house, maintaining property insurance is one of the most common. If a borrower lets such a policy lapse, the lender will often protect its investment by purchasing a policy and billing the homeowner for it. That practice, known as force-placed or lender-placed insurance, has recently attracted the attention of federal and state regulators, who say that the policies often have premiums that are considerably higher than the policies they replace and might impose abusive costs on homeowners. Read More »

Updates Expected Soon to the Basic Manual

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In less than a month, a new rate chart will be incorporated into the Basic Manual, and later this year, the Texas Department of Insurance will publish a Rule Order addressing 72 agenda items that will significantly change the Basic Manual. 

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