October 30, 2013
Title Industry Responds to Consumer Groups' Attack on Title Insurance
Last week, the American Land Title Association (ALTA) sent a
letter to Congress refuting myriad misstatements made by consumer and labor groups on the value and pricing of title insurance. TLTA is also drafting a letter for the Texas Congressional delegation to reinforce ALTA's letter and oppose the misleading statements made by the consumer and labor groups.
Consumer groups attacked title insurance in a
letter sent to Congress urging members to oppose HR 3211, the Mortgage Choice Act. In its response, ALTA refutes point by point each of the statements made by consumer groups. ALTA and TLTA want to remind policymakers that:
Title insurance, including pricing, is stiffly regulated by state Insurance Commissioners.
By statute, title insurance prices can be neither excessive, inadequate nor unfairly discriminatory.
The cost for title insurance is a one-time fee.
Most of the title insurance premium goes to prevent a consumer from losing their home through a challenge to their title.
While ALTA and TLTA are not lobbying for or against the bill, we want to make sure policymakers possess accurate information about title insurance as they determine their positions.
No U.S. Mortgage Limit Changes Before Spring: FHFA
Reuters | Oct. 24, 2013
U.S. lenders will get at least six months' notice before the government reduces the limit on the size of loans that taxpayer-owned Fannie Mae and Freddie Mac can back, the firms' regulator said on Thursday. The Federal Housing Finance Agency, which has already said it was considering lowering the cap to wean the housing finance system off its dependence on the government, said any change would be phased in to avoid economic disruptions.
Read More »
CFPB Releases Basic Guide for Lenders on Qualified Mortgages
The Consumer Financial Protection Bureau (CFPB) has released a basic guide for lenders defining what constitutes a qualified mortgage.
Read More »
The TLTAPAC Needs Your Help — Donate to TLTAbay Today!
This Year's Auction Will Run Nov. 7-14
The TLTAbay online auction benefiting the TLTAPAC will begin Thursday, Nov. 7, and run through Thursday, Nov. 14. You can help by donating items today — we're looking for electronics, gift cards, sporting event tickets, travel vouchers, vacations, spa packages and jewelry. Don't know what to donate? Make a monetary donation and we'll do the shopping for you! Read more about the auction and make a donation
here or contact David Glenn for more information.
Don't forget to participate when the auction opens Thursday, Nov. 7, at 8 a.m. We have some great items already, including a five-night stay in Ruidoso, New Mexico, Colt McCoy autographed jerseys and a Bose wireless speaker. Bidding in the online auction is a great way to have fun, contribute to the TLTAPAC, and get something in return!
TDI Quarterly Audit Results Published
The following is a summary of recent TDI audits, violations and enforcement actions from June 2013 through August 2013. Read TDI's
complete summary of operations for the quarter or read the key statistics below.
Be sure to also register for our special Four-Part Webinar Series that will provide you with an in-depth understanding of all the upcoming TDI Regulatory changes resulting from the recent rule hearing order. Participants will receive guidance on what you need to do to be in compliance. Learn more about these webinars here.
Compliance Audits
TDI's goal is to comprehensively audit agencies at least once every two years. Through June, 545 out of the 573 licensed agents have been audited in the last two years, a 95.2% rate. Fourteen additional agencies have been audited within the last three years, and 14 new agencies are yet to be audited.
Commissioner Orders & Active Cases
From June 2013 through August 2013, the commissioner signed seven orders resulting in fines or the revocation of escrow officer licenses. Through August, 59 cases remain active, including 27 cases involving the misappropriation of fiduciary funds.
Compliance Audit Results
Below are TDI’s most common audit findings from June 2013 through August 2013. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred.
NUMBER OF AGENCIES
CATEGORY
DESCRIPTION
50
Minimum Escrow Accounting Procedures & Internal Controls
Every disbursement not supported by invoice or sufficient other evidence
48
Texas Insurance Code
Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed
45
Escrow Accounting
Outstanding checks not cleared timely
28
Escrow Accounting
Deposit-in-transit list and/or outstanding checklist prepared incorrectly
27
Minimum Escrow Accounting Procedures & Internal Controls
Disbursement sheets missing, incomplete or incorrect