May 1, 2013
TLTA Affirmative Legislative Agenda Moving Forward
Correction Instrument Legislation Moves To House and Senate Committees
TLTA-sponsored legislation to clarify that the date of a correction instrument relates back to the original filing date is continuing to progress positively through the legislative process.
HB 1940 was passed in the House of Representatives and has now been referred to the Senate Intergovernmental Relations Committee. Its companion,
SB 887, passed the Senate and passed the House Business & Industry Committee yesterday. This legislation would also provide the clear ability to treat an inadvertently omitted attachment as a nonmaterial correction. We are pleased with the progress it has made through the legislative process so far.
TLTA Affirmative Legislation Voted Favorably Out of Committees
Two additional pieces of TLTA-sponsored legislation have been voted out of House committees and are on track to be heard by the full House of Representatives.
HB 2795 would provide for a more efficient procedure to address a default by a deceased borrower, and was voted favorably out of the House Judiciary & Civil Jurisprudence Committee last week.
HB 1913, which would provide for the ability of tax assessor collectors to waive certain interest and penalties related to ad valorem taxes, was voted favorably out of the House Ways & Means Committee last week and is on the House Calendar for Saturday. TLTA is pleased with the progress this legislation to improve the industry has made.
TLTA Reaches Agreement on Oil & Gas Legislation
TLTA recently reached an agreement with stakeholders on
HB 2590, which pertains to the foreclosure sale of property subject to certain agreements related to the production or sale of oil or gas. The TLTA lobby team worked closely with stakeholders to reach a mutually beneficial agreement, and the bill will be amended to address all title industry concerns.
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.
Changes Made Today to the Basic Manual
Subscribe Now to the Basic Manual Online Update Service
The 3.8% increase to the Basic Premium Rate went into effect today. If you own a print copy of the Basic Manual and are not subscribed to our Basic Manual Online Update Service, you are no longer compliant. We recommend you subscribe right away so you have access to this latest update.
Today's changes aren't the only update expected to the Basic Manual this year. In just a few months, the Texas Department of Insurance will also publish a Rule Order addressing 72 agenda items that will significantly change several sections of the Basic Manual.
If you haven't already, purchase a subscription for yourself and all employees in your company who use the Basic Manual so you'll automatically receive these updates as soon as they happen. Discounted pricing is available for bulk subscriptions. Sign up
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TDI Quarterly Audit Results Published
Register Today for TLTA's Webinar "Avoiding TDI Audit Violations"
The following is a summary of recent TDI audits, violations and enforcement actions from December 2012 through February 2013. Read TDI's
complete summary of operations for the quarter or read the key statistics below.
Be sure to also register for TLTA's live webinar on Wednesday, May 8, from 10 -11:30 a.m., where Robert York, manager of title examinations for TDI, and title industry compliance experts will review this report and walk you through the most common mistakes and violations discovered during TDI audits. The webinar can help you create procedures to stay compliant.
Compliance Audits
TDI's goal is to comprehensively audit agencies at least once every two years. Through February, 547 out of the 572 licensed agents have been audited in the last two years, a 95.6% rate. Eight additional agencies have been audited within the last three years, and 16 new agencies are yet to be audited.
Commissioner Orders & Active Cases
From December 2012 through February 2013, the commissioner signed three orders resulting in fines, a much smaller number than in recent history. Through February, 65 cases remain active, including 26 cases involving the misappropriation of fiduciary funds.
Compliance Audit Results
Below are TDI’s most common audit findings from December 2012 through February 2013. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred.
NUMBER OF AGENCIES
CATEGORY
DESCRIPTION
35
Texas Insurance Code
Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
32
Escrow Accounting
Outstanding checks not cleared timely
28
Escrow Accounting
Every disbursement not supported by invoice or sufficient other evidence
19
Procedural Rules
Schedule D of commitment not in file or premium split not disclosed on commitment
16
Guaranty Files
Legal documents not recorded timely with county clerk or evidence of timely recording not in file