April 10, 2013
House Insurance Committee Considers "File & Use" Legislation
TLTA Testifies in Opposition to Legislation Dramatically Altering the Way Rates are Set
Representatives from TLTA testified yesterday in opposition to HB 2384 before the House Insurance Committee. This legislation would dramatically alter the way title insurance rates are set in the state of Texas, causing detriment to the industry and consumers. The hearing was a good opportunity for us to provide information and education regarding title insurance in general and why our regulatory system has proven successful over the years.
No vote was taken and the bill was left pending in committee. We will continue to work closely with the members of the House Insurance Committee to provide them with additional information, answer their questions and share our strong concerns and opposition to this bill. We are cautiously optimistic that the bill will not have the necessary support to allow it to continue through the process. Rest assured that defeating this proposed change remains our top focus.
The proposed legislation, authored by Rep. Matt Schaefer, would change the long-standing and successful system of promulgated rates set by the commissioner of insurance to a "file and use" system. Under this proposed system, each underwriter would file rates with the department, along with a justification of those rates. The bill additionally removes from the commissioner the authority to set the premium split between agents and underwriters.
Last month, the TLTA Board of Directors unanimously voted to oppose this legislation. The Texas system of setting rates has been very successful for many years because it provides certainty for consumers, a high quality product and accessibility of title insurance in all areas of the state. TLTA has a long history of working to preserve those protections. Rest assured that we will focus all our attention on addressing this potentially detrimental legislation and will keep you posted as this process unfolds.
Track the Progress of Legislation and Stay Informed
Stay tuned to this newsletter and the Legislative page on our website here 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
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Most Americans Say Housing Crisis Isn't Over, Survey Finds
Los Angeles Times | April 4, 2013
Data may show that the housing markets are in recovery, but a lot of people are still asking: Why buy a home anyway? The housing bust has created great skepticism about the traditional connection between homeownership and the American dream, a survey commissioned by the MacArthur Foundation has found. The How Housing Matters Survey, released Wednesday, found that more than three-quarters of Americans believe we are still in the middle of the housing crisis or that the worst is yet to come. When it comes to remedies, two-thirds believe the nation's policy should be to encourage renting and homeownership equally. Read More »
Four PMI Firms to Pay $15 Million in Penalties to the CFPB
Mortgage Professional Magazine | April 5, 2013
The Consumer Financial Protection Bureau (CFPB) has announced four enforcement actions to end what the Bureau believes to be improper kickbacks paid by mortgage insurers to mortgage lenders in exchange for business. The CFPB filed complaints and proposed consent orders against four national mortgage insurance companies in order to stop these practices, which have been prevalent for more than 10 years. The proposed orders require the four mortgage insurers to pay more than $15 million in penalties to the CFPB. Read More »
A Challenge to All Escrow Officers!
The TLTAPAC Board of Trustees has issued a challenge this 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! With the 83rd Legislative Session under way, our industry needs your support more than ever. Please donate online today here or send a personal check payable to the TLTAPAC with this form.