3rd Party Lender Vetting

In August 2012, TLTA became aware of instances in which some Texas title agents were asked to pay a third party as a condition of doing business with certain lenders. These third-party firms offer to vet the title agents on behalf of the lender and charge title agents a flat fee per year, per escrow officer and other personnel related with the transaction. They also require the submission of extensive confidential information about the escrow personnel, as well as sensitive company information, including bank account numbers. 

As of November 2012, several major warehouse lenders have delayed their requirements for certification from third-party vetting companies. Read more about this issue and what TLTA has done to address it below.

News

TLTA coverage and more information about this issue.


Reference

Additional information and resources about this issue, including rules, forms, websites or other documents. 

TDI's Tool for Lender Compliance

The Texas Department of Insurance (TDI) has developed a new tool titled "How TDI Regulates and Oversees Texas Title Insurance Agents." This comprehensive outline of the many regulations that title agents are subject to in Texas explains the industry's safeguards for both lenders and consumers. Read more.

Lender Statements Delaying Vetting 

First Tennessee Mortgage Warehouse Group
Texas Capital Bank 


Letters 

State of Washington Letter Raising Privacy Concerns 
TLTA Letter to TDI Raising Concerns

Additional Resources

ALTA Best Practices