July 26, 2017
Roland Love Testifies Before House Committee on Business and Industry
On Tuesday, July 25, TLTA member Roland Love testified before the Texas House Committee on Business and Industry on mechanic's liens and their impact on the title industry.
"Basically, the title industry, at a closing, is wanting to make sure there's a good, clean transfer and that the voluntary lien that secures the debt is a good lien," said Love. "And so, it's important to us to make sure that everyone has been paid and that there's clear title to be transferred...From our perspective, in the title industry, it's all about notice. And that really is the basis of Texas property laws. If you think about it, title companies are the ultimate collectors. They collect ad valorem taxes, they collect HOAs, they get liens paid; and if the notice is there, in the transfer of title and the creation of a voluntary lien, it'll get taken care of."
In other special session news, no title insurance issues have been added to the call; however, legislators are quickly working through the items on Gov. Abbott's list. TLTA will keep you posted as issues of interest to the title insurance industry are added to the special session agenda.
Read "The Texas Senate Had a Whirlwind Special Session Weekend" (Texas Tribune) »
CFPB Leadership News: Cordray Reportedly to Quit CFPB for Ohio Governor Race
CFPB director Richard Cordray is planning to leave the bureau and seek the 2018 Democratic nomination for governor of Ohio, according to a statement by Ohio Supreme Court Justice Bill O'Neill reported by Cleveland.com.
Read "Report: Cordray to Quit CFPB for Ohio Governor Race" (National Mortgage Professional Magazine) »
Read "CFPB Director Cordray Will Run for Ohio Governor, Says State Supreme Court Justice" (HousingWire) »
GSE News: Fannie-Freddie Reform Hinges on Keeping Small Lenders Happy; Fannie Mae and Freddie Mac Would Be Privatized Under Proposed House Budget
On Thursday, July 20, a key Senate committee held a hearing on the nation’s system for funding home loans that featured small lenders. It was the third housing-finance hearing held by the Senate Banking Committee this year as Congress takes another stab at figuring out a long-term solution for Fannie and Freddie, which underpin nearly half the mortgage market. The companies have been under the government’s control since the 2008 financial crisis.
Read "Fannie-Freddie Reform Hinges on Keeping Small Lenders Happy" (Bloomberg) »
House Republicans want to privatize Fannie Mae and Freddie Mac as part of their 2018 budget proposal. GOP members of the House of Representatives on Tuesday, July 18, unveiled their 2018 budget. Dubbed "Building a Better America" and authored by Budget Chairman Diane Black (R-TN), the plan calls for more than $200 billion in cuts to mandatory spending programs and sets the path for tax reform. It also calls for the privatization of mortgage giants Fannie Mae and Freddie Mac and assumes provisions of the House bill that would repeal Dodd-Frank.
Read "Fannie Mae and Freddie Mac Would Be Privatized Under Proposed House Budget" (The Street) »
CFPB News: CFPB Loses Court Battle Over RESPA Violations, Ignores Request From OCC to Postpone Arbitration Rule
A federal district court in Kentucky handed a victory to a Louisville, Kentucky law firm, Borders & Borders, after a long-standing legal battle with the CFPB over alleged RESPA violations. The noteworthy case will definitely gain some attention in the industry given the recent controversy around RESPA violations, with the PHH and CFPB legal battle being one of the most prominent.
Read "CFPB Loses Court Battle Over RESPA Violations" (HousingWire) »
In addition, despite a heated exchange of letters between the CFPB and the Office of the Comptroller of the Currency asking for the delay of the newly announced arbitration rule, the rule will carry on as planned and be published in the Federal Register. The issue dates back to earlier this month when the CFPB revealed its new rule to ban companies from using mandatory arbitration clauses, allowing consumers to participate in class action lawsuits.
Read "CFPB Ignores Request From OCC to Postpone Arbitration Rule" (HousingWire) »
TLTA is scheduling more live webinars for summer 2017. Register now, or explore the On-Demand webinar library today!