Commissioner adopts 2004 Rule Order
Texas Department of Insurance Commissioner Mike Geeslin has by order officially adopted amendments that were considered during the rulemaking phase of the 2004 Texas Title Insurance Biennial Hearing. These changes are effective November 1, 2005 unless otherwise noted.
Click here to view the Commissioner’s order. 

The following is a summary of adopted items effective November 1, 2005.
Click here to view individual Agenda Items.

Agenda Item #2004-01   
Amends the Limited Pre-Foreclosure Policy Form T-40 to change the number of the form. The new form number will be T-98.

Agenda Item #2004-02  
Amends the Limited Pre-Foreclosure Policy Down Date Endorsement Form T-41 to change the number of the form and make other conforming amendments. The new form number will be T-99

Agenda Item #2004-03
Amends Procedural Rule P-43 to make conforming changes based on amendments to the Limited Pre-Foreclosure Policy and Limited Pre-Foreclosure Policy Down Date Endorsement. This is a technical change: the Limited Pre-Foreclosure Policy will now be T-98 and the Pre-Foreclosure Policy Down Date Endorsement will now be T-99

Agenda Item #2002-04
Amends the Verification of Services Rendered Form T-00 by updating and clarifying the form to comply with new and existing reporting requirements.

Agenda Item #2004-05  
Amends the Endorsement Instruction in Section II of the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas and Procedural Rule P-8 to allow for issuance or affirmation of coverage under Forms T-19 or T-19.1 upon completion of contemplated improvements.

Agenda Item #2004-06
Adopts new Procedural Rule P-59 regarding recodification of the Texas Insurance Code. This new rule is needed to keep provisions of the Basic Manual up-to-date with the recoding of the Insurance Code without having to resort to amending each provision in the Basic Manual that references provisions in the current Insurance Code.

Agenda Item #2004-07
Amends the First Loss Endorsement Form T-14 to conform to a new American Land Title Association form and to eliminate the 10% threshold loss requirement.

Agenda Item #2004-08 – can not issued until Rate Rule is adopted
Adopts the New Assignment of Rents/Leases Endorsement Form T-27. This coverage relates to the value of the collateral consisting of offices, shopping centers or similar property.

Agenda Item #2004-09
Adopts the new Procedural Rule P-60 for the proposed new Assignments of Rents/Leases Endorsement. This endorsement may be issued only after collection of the premium for the endorsement if a rate rule is later adopted by the commissioner setting the premium amount for the endorsement.

Agenda Item #2004-10
Repeals the Adjustable Mortgage Loan Endorsement Form T-33 and Adopts the New Variable Rate Mortgage Endorsement Form - Negative Amortization Endorsement Form T-33.1 to conform to American Land Title Association Forms.

Agenda Item #2004-11
Amends Procedural Rule P-9 to conform to the issuance of the proposed new Variable Rate Mortgage-Negative Amortization Endorsement.

Agenda Item #2004-12
Amends the Texas Short Form Residential Mortgagee policy - One-to-Four Family Form T2R to conform to the issuance of the proposed new variable rate mortgage endorsements and other endorsements.

Agenda Item #2004-14 – can not be issued until Rate Rule is adopted.
Adopts the New Condominium Endorsement Form T-28. The new T-28 is essentially like the ALTA endorsement 4. The endorsement provides for various coverage’s related to condo statutes and documents.

Agenda Item #2004-15
Amends Procedural Rule P-9 to add a new subparagraph b.(15) to conform to the issuance of the proposed new Condominium Endorsement Form. This endorsement maybe issued only after collection of the premium for the endorsement if a rate rule is later adopted by the commissioner setting the premium amount for the endorsement.

Agenda Item #2004-18
Repeals certain Bulletins in the Basic Manual of Rules, Rates, and Forms for the Writing of Title Insurance in the State of Texas. The Bulletins requested to be withdrawn are either out of date or superseded by the promulgation of Rules or Forms. Those withdrawn include: #89 Chattel Mortgage Liens, #113 Irrigated Farms Loans – Water Rights, #134 The Loan Proceeds Draft is in the Form of an Envelope, #137 Construction of Rule R-10, #147 Board Order No. 26940, Correction of Policy or Binder, #156 Commissioner’s Order for Title Agent’s Licensing and #159 The Recent Constitutional Amendment on Home Equity Loans.

Agenda Item #2004-20
Amends Procedural Rule P-16, Mortgagee Title Policy Binder on Interim Construction Loan (Interim Binder) to re-define situations in which an Interim Construction Binder may be issued.

Agenda Item #2004-21 
Adopts New Texas Master Indemnity Agreement Form T- 29. For use by Title Insurance Underwriters.

Agenda Item #2004-22
Amends Procedural Rule P-11 to provide for the use of the new Texas Master Indemnity Agreement Form.

Agenda Item #2004-23  
Amends the Texas Title Insurance Statistical Plan. Only Paragraph E of this Agenda Item has been adopted. It is combined with Agenda Item 2004-43.

Agenda Item #2004-24
Amends Administrative Rule L-1, Title Insurance Agent regarding notice to TDI from a title insurance underwriter of cancellation of a title insurance agents’ appointment by the underwriter.

Agenda Item #2004-25
Amends Administrative Rule L-2, Title Escrow Officer regarding notice to TDI from a title insurance agent or direct operation of cancellation of an escrow officers’ appointment by the title insurance agent or direct operation.

Agenda Item #2004-26 
Amends Procedural Rule P-58, Report on Directly Issued Policy to clarify that the gross premium reported is that for the policy and all endorsements to the policy that are issued in the transaction.

Agenda Item #2004-30 
Amends Procedural Rule P-53, Rebates and Discounts Prohibited. The department combined agenda items 30 & 31 to conform to the legislative changes made by HB 2565 and minor changes made by TDI. (Click here for more detailed analysis on changes to P-53).

Agenda Item #2004-31 
Amends: Procedural Rule P-53, Rebates and Discounts Prohibited. The department combined agenda items 30 & 31 to conform to the legislative changes made by HB 2565 and minor changes made by TDI. (Click here for more detailed analysis on changes to P-53).

Agenda Item #2004-33
Amends Procedural Rule P-1, Definitions, aa. Directly Issued Policy and cc. Commitment for Title Insurance. The amended agenda item conforms the rule to the statutory definition of a commitment as including the mortgagee title policy binder on interim construction loans.

Agenda Item #2004-34
Amends Minimum Standards, Specific Instructions and Report Forms for Audit of Trust Funds Required of Texas Title Insurance Agents, Direct Operations, Title Attorneys and Attorneys Licensed as Escrow Officers. It clarifies signature requirements and conforms this provision with Administrative Rule L-2, concerning title insurance escrow officers.

Agenda Item #2004-35
Repeals the existing and adopts a New Policy Guaranty Remittance Form (T-G1) in Section V of the Basic Manual.

Agenda Item #2004-36
Amends Procedural Rule P-28, Requirements for Continuing Education for Title Agents and Escrow Officers. This proposal updates language and clarifies the monthly calculation for required continuing education hours.

Agenda Item #2004-38
Amends Section VI, Administrative Rules of the Basic Manual regarding notice to TDI in the event of a change in the employment status of an escrow officer who remains licensed with that same title insurance agent or direction operation.

Agenda Item #2004-39
Adopts new Procedural Rule P-61, Regarding the Timely Issuance of Title Policies. This proposal will establish a firm deadline for providing policies to insureds while protecting compliance with Schedule C requirements.

Agenda Item #2004-40
Adopts New Procedural Rule P-62, Regarding the Licensing and Location of Title Agents and Direct Operations. This rule will require that a title insurance agent or direct operation may not maintain an office in any county in which the title insurance agent or direction operation is not licensed.

Agenda Item #2004-41
Amends the Mortgagee Title Policy Binder on Interim Construction Loan Form (T-13) to clarify number references.

Agenda Item #2004-42
Amends Procedural Rule P-21, Additional Requirements for Contents of Commitment for Title Insurance to conform the procedural rule with the Commitment for Title Insurance.

Agenda Item #2004-43
Amends the Texas Title Insurance Statistical Plan.

The commissioner rules NOT TO ADOPT the following agenda items:
Agenda Item #2004-13
Would have adopted new Procedural Rule (P-__) regarding deletion of exception to marital rights.

Agenda Item #2004-16
Would have adopted a new Survey Endorsement (Form T-__) to insure that the surveyed land is the same as the insured property.

Agenda Item #2004-17
Would have adopted a new Procedural Rule (P-__) for the proposed new Survey Endorsement (Form T-__).

Agenda Item #2004-19
Would have amended Procedural Rule P-24, Payment for Services Rendered by a Title Insurance Company, Title Insurance Agent, or Direct Operation to Another Title Insurance Company, Title Insurance Agent, or Direct Operation.

Agenda Item #2004-27  
Would have amended Procedural Rule P-21, Additional Requirements for Contents of Commitment for Title Insurance.

Agenda Item #2004-28
Would have amended Procedural Rule P-1.f, Definitions Closing the Transaction.

Agenda Item #2004-29 
The department has withdrawn this submission relating to the "filled-in lands" exception in title insurance policies, but will continue to work with interested parties in revising this submission for further proposal at a later date.

Agenda Item #2004-32
Would have amended Procedural Rule P-12, Abstract Plants.

Order your Basic Manual Updates NOW
Place your order now for the most recent update to the Basic Manual. This update pertains to the rules that have been recently promulgated by the Texas Department of Insurance as a result of the 2004 Rule Hearing. These rules are effective November 1, 2005.
***ADDED BONUS!!! Searching for the T-42.1 but don’t know the name? Use the new REVERSE INDEX of Forms, Rates & Rules listed by their number rather than name.

Click here to order your update online at the TLTA Online store.

To download an order form, please click here.

Teleconference held on Regulatory and Legislative changes
TLTA held a Teleconference on October 11 to discuss the recent rule changes adopted by the Department of Insurance and legislation passed by the 79^th Legislature. TLTA Legislative Consultant Allen Place and Stewart’s Vice President and General Counsel Jim Gosdin updated participants on legislation that passed during the last session that impacts the title insurance industry. Most of those changes were effective September 1, 2005. TLTA General Counsel Tom Rutledge and Jim Gosdin discussed specific agenda items adopted by the Texas Department of Insurance relating to the 2004 Rule hearing. The hottest issue discussed was changes related to Procedural Rule P-53. Thanks to everyone who participated in the teleconference.  

Jim Gosdin (l), Mindy Carr and Tom Rutledge (r)
respond to questions during the Oct. 11 Teleconference.

Don’t forget to vote November 8!
There will not be any “big” names on the November 8 ballot but there will be nine propositions amending the Texas Constitution and several of them could affect the real estate industry. For more information on each of the items, visit the Secretary of State’s office at the following link: http://www.sos.state.tx.us/elections/voter/2005novconsamend.shtml.

• Proposition 5 authorizes the Legislature to exempt commercial loans from interest rate caps. “Commercial loans” are loans made primarily for business, commercial, investment, agricultural, or similar purposes and no primarily for personal, family or household purposes.
• Proposition 7 allows line-of-credit advances under a reverse mortgage. Passage of proposition 7 would authorize new options for reverse mortgage agreements for senior homeowners, allowing them to draw advances at unscheduled intervals, if and when needed, and only in the amounts needed during the loan term.
• Proposition 8 provides for the clearing of land title by relinquishing and releasing any state claim to sovereign ownership or title to interest in certain land in Upshur County and in Smith County.   

Constitutional amendments take effect when the official vote canvass confirms statewide majority approval unless a later date is specified. Statewide election results are tabulated by the secretary of state and must be canvassed by the governor 10 to 30 days following the election.
**A little known fact - Texas voters have approved 432 amendments to the State Constitution since its adoption in 1876.

Special election set for Nov 8^th 
The Governor has called a special election for House District 143. Rep. Joe Moreno (D-Houston) died in a tragic automobile accident during the regular legislative session.  Several candidates, all democrats, who have announced their plans to run include: Houston lawyer Al Flores, corrections officer Charles George, attorney Ana Hernandez, and leading administrator Laura Salinas.

Speaker appoints interim committee members
Speaker Tom Craddick (R-Midland) released the names of appointees to the Interim Committee to Study the Use of the Power of Eminent Domain. Rep. Beverly Woolley (R-Houston) will serve as co-chair of the Committee. Other appointees are Rep. Frank Corte (R-San Antonio), Rep. Aaron Pena (D-Edinburg), Rep. Marc Veasey (D-Fort Worth), and Rep. Phil King (R-Weatherford). The Committee will study the use of the power of eminent domain for economic development purposes and the issue of what constitutes adequate compensation for property taken through the use of this power. They will prepare a report for the Lieutenant Governor and the Speaker by December 1, 2006. The interim committee was established by statute under Senate Bill 7 relating to limits on the use of the power of eminent domain. At this time, the Lieutenant Governor has not yet made his Senate appointments to the committee.

TLTA member appointed by Attorney General
TLTA member Jay Sibley was recently appointed by Attorney General Greg Abbott to serve on the Open Records Steering Committee. This committee provides valuable guidance to the AG on administration of the Public Information Act and gives insight on how our open records laws are working. Jay is the president and chief executive officer of Title Data, Inc. (TDI), one of the larger title plant maintainers in the country, serving a southeastern Texas population of over 6 million.  Jay’s appointment is not a surprise since he has extensive experience on issues related to open records. He serves on TLTA’s Legislative Committee providing insight on changes to Texas’ open records and recording laws.  He currently sits on the state’s Electronic Recording Advisory Committee, chairs the American Land Title Association’s Improvement of Land Title Records Committee, is co-chair of the Property Records Industry Association’s Parcel Code Committee and is a board member of the Freedom of Information Foundation of Texas.

TLTAPAC News . . .

Trick or Treat? tlta-bay online auction begins soon!
To give more members the opportunity to participate in PAC fundraising events, we will be kicking-off the 2005 TLTAPAC Online Auction beginning October 31. During the two-week event, TLTA members will have the opportunity to bid on a great selection of incredible items. Click here to view a few of the tempting treats that have already been donated. If you have never participated in an online auction the process is easy so don’t be afraid to give it a try. We will post the names of the highest bidders twice a day so make sure you check back regularly. The auction will close promptly at 4:00 p.m. on Friday, November 11^th and winners will be posted before the close of business.

TOP FIVE REASONS TO BID ON tlta-bay: 

• There are only 67 shopping days left until Christmas
• You can support the PAC and get something back
• You won’t find a better deal anywhere else
• Bid on 2-night stay in Tahoe and attend the TLTA 2006 Annual Conference
• You can sleep in the same bed that Terry Grantham slept in!!!

Please help us make this event successful and logon to the TLTA website on October 31.
Remember to BID early and often!!!

On the Campaign Trail
More legislators to retire . . .
After 30 years in office, Sen. Gonzalo Barrientos (D-Austin) will retire. So far the only candidate to announce is former Austin mayor, Kirk Watson.  Rep. Bob Griggs (R-North Richland Hills) has decided to retire at the end of his term. He is a former school superintendent has served two terms in the House. So far the field of candidates in this very Republican district (House District 91) include: Kelly Hannock, a trustee in Birdville ISD, Pat Carlson, Tarrant County GOP Chair, and Charles Scoma, the former mayor of North Richland Hills.  After serving 10 years in the House, Rep. Suzanna Hupp (R-Lampasas) will retire. Rep Jim Solis (D-Harlingen) will retire after serving 12 years in the House. After 20 years in office and with a diagnosis of prostate cancer, Rep. Bob Hunter (R-Abilene) will not seek re-election. Republican Rob Beckhan who lost a challenge to former U.S. Rep. Charlie Stenholm in 2002 says he will run. Rep. Richard Raymond (D-Laredo) has decided to run for higher office challenging the current Congressman from Laredo, Henry Cuellar. Also announcing his retirement is Rep. Jim Solis (D-Harlingen).

Legislators raise funds for re-election
It’s that time of the year! State legislators are hosting fundraisers in Austin and in their hometowns to raise money for the upcoming elections. The primary election will be held Tuesday, March 7, 2006 and the general election is schedule for Tuesday, November 7, 2006. It has been an expensive year for legislators with the regular session and two special sessions.
Not only do they use their campaign coffers to fund their re-election efforts but these funds also are used to help with living expenses while they are in Austin. So far, the TLTAPAC has approved over $36,000 to be given to selected legislators during this PAC cycle.

Director of Government Affairs Mindy Carr, Legislative Consultant Allen Place and Executive Vice President Leslie Midgley have attended several fundraisers on behalf of the TLTAPAC. Special thanks to several TLTA members who have attended fundraisers or met with their local legislators: Jack Rogers, AmeriPoint Title San Antonio, Ronnie Yates, Central Texas Land Titles, Celia Flowers, Arnold Abstract Company and Bruce Boyer, AmeriPoint Title, New Braunfels.






     TLTA Director of Government Affairs Mindy Carr
           visited with Sen. Kip Averitt in September.


TLTA to work with open records organization
Leslie Midgley and Mindy Carr recently spoke at the Freedom of Information Foundation of Texas (FOIFT) board meeting in Austin. The purpose of their participation was to educate the group about TLTA and our common interest on issues relating to access to public records. TLTA member Jay Sibley who also sits on the FOIFT board facilitated the meeting hoping that we could work together on privacy and access issues during the legislative session.  FOIFT is organization whose purpose is to encourage, sponsor and facilitate a greater appreciation, knowledge and understanding of the First Amendment. Working to ensure that the public's business is conducted in public, the FOIFT has successfully helped citizens access open meetings and documents that should be a matter of public record. Fore more information about this organization, please visit their website at http://www.foift.org/.

National News
Financial Data Protection Act of 2005 introduced
H.R. 3997 was recently introduced by several members of the House Financial Services Committee is intended to help safeguard sensitive consumer information, fight identity theft and create a uniform standard for notifying consumer of data breaches. Also known as the Financial Data Protection Act of 2005, the bill includes provisions that would prevent data breaches by mandating a strong national standard for the protection of sensitive consumer information; require institutions to notify consumers that their information has been compromised and could be used by identity thieves and require institutions to provide consumers with a free six month nationwide credit monitoring service upon notification of a breach. We will update you as this bill moves through the process.

RESPA Reform update
As we reported to you in the September issue of Dateline Austin, HUD had wrapped up its series of roundtable meetings on RESPA reform. As of publication, HUD has not yet published a proposed rule. We expect the department has been busy due to housing issues related to hurricane Katrina. However, TLTA has continued to remain active on this issue and is in the process of working with other real estate industry groups, Texas Association of Realtors, Independent Bankers Association of Texas and the Texas Mortgage Bankers Association of Texas, on a letter to submit to HUD and the Texas Congressional delegation. HUD believes the greatest obstacles confronting potential homebuyers are the downpayment and closing costs. They believe that a simpler, more transparent and less expensive homebuying process will help even more families to share in this American Dream. Our goal is to find a consensus among Texas real estate industry groups that might provide HUD with some valuable feedback. Don’t forget to visit HUD’s RESPA Reform page at http://www.hud.gov/respareform/index.cfm.

Senate confirms HUD assistant secretary
The Senate has confirmed Kim Kendrick to be assistant secretary of fair housing at the Department of Housing and Urban Development. Kendrick was nominated by President Bush on June 30 to be Assistant Secretary of Housing and Urban Development. The Senate Committee on Banking, Housing and Urban Development held a hearing to consider Kendrick’s confirmation on Sept. 15. Kendrick currently serves as HUD Secretary Alphonso Jackson’s senior counselor on RESPA reform. She previously served as general counsel at Covenant House Washington, which helps homeless and poor teenagers and young adults.