July 24, 2013
Title Insurance Requirement Part of Proposed GSE Reform Legislation
Jim Hyland | TLTA Federal Lobbyist
Yesterday, the House Financial Services Committee, chaired by Congressman Jeb Hensarling (R-TX), began consideration of a major overhaul of the nation's housing finance structure, HR 2767. The legislation would eliminate Fannie Mae and Freddie Mac over a five-year period. A National Mortgage Market Utility would be created in its place to facilitate the securitization of mortgages. The plan specifically emphasizes the necessity of preserving open access for institutions of all size, including community banks and credit unions. Importantly, however, there would be no federal guarantees associated with the new exchange. This is Congress' effort to end the controversial housing guarantee system that has cost the taxpayers nearly $190 billion to bail out Fannie and Freddie.
In a key victory for the title industry, Chairman Hensarling and Housing Subcommittee Chairman Randy Neugebauer, both members of the Texas congressional delegation, inserted language that required any mortgages sold in the exchange for securitization must have title insurance to receive an adequate risk rating. TLTA, in concert with ALTA, was instrumental in bringing this issue to the attention of our Congressmen. We would like to thank TLTA Federal Committee Chair Celia Flowers for her contribution to this effort. Read More »
Wells Fargo Exec: ALTA Best Practices 'Good Step' in Reducing Lender Liability
American Land Title Association | July 18, 2013
Lender liability for the acts of its service providers is nothing new. In 2001, the Office of the Comptroller of the Currency (OCC) issued guidance to national banks on managing the risks that may arise from their business relationships with third parties. Read More »
ALTA Updates Best Practices, Develops Assessment & Certification Package
American Land Title Association | July 23, 2013
ALTA has updated its "Title Insurance and Settlement Company Best Practices" and created additional tools to help title professionals confirm to lenders the policies and procedures implemented at their companies. Learn about the Assessment Procedures and Certification Package here.
Agents Beware of Canadian Bank Check Scam
TLTA was recently made aware of a check scam in which escrow officers are asked by real estate agents to contact a "potential buyer" to set up an escrow account for a property. The buyer then sends a fraudulent check to the escrow officer before canceling the transaction and requesting a return of their escrowed funds.
According to information TLTA has been provided, the checks are "drawn" on a Canadian bank account that actually exists, but the checks are fake. Because foreign checks cannot be electronically cleared through the United States' banking system, they must be physically mailed or couriered to the foreign bank for collection. This clearing process can take three weeks or more, and the process is often further slowed because the checks are fake. The buyer then tries to get their funds back from the escrow officer before the title company is alerted by their bank that the original check is fraudulent. Most of these scammers reside outside of the U.S. and have been difficult for the FBI to identify and prosecute.
Texas Department of Insurance Seeks Deputy Commissioner
The Texas Department of Insurance (TDI) is seeking a Deputy Commissioner for the Compliance Division. The Deputy Commissioner leads the activities of the Consumer Protection, Enforcement, and Fraud sections and reports to the Commissioner of Insurance. The Deputy Commissioner manages approximately 170 employees, which include associate commissioners, attorneys, insurance specialists, investigators, law enforcement, paralegals, outreach specialists, and project managers. Read Full Posting »
TLTA Webinar:
New Laws, New Requirements — What You Need to Know
Tuesday, August 6 | 1:30 - 2:30 p.m.
Sept. 1 marks the effective date of a whole host of new Texas laws that will impact the title industry. Find out how the 83rd Legislative Session changed your business from two outstanding attorneys who monitored all the changes that went through the Texas Legislature. They will provide you with practical insight on what you need to be aware of now so you can be prepared for the new laws.
Learn More & Register »