Commissioner republishes rule changes
As reported to you in the August 4 Breaking News, Texas Department of Insurance Commissioner Mike Geeslin has requested republication of agenda items that were considered during the 2004 Texas Title Insurance Biennial Hearing.  With a proposed effective date of November 1, 2005, these agenda items have been published in the Texas Register for comments from the public. The deadline for comments is September 12, 2005.

To view items as published in the Texas Register, click here.
To view the individual agenda items as proposed, click here.

Again, These items have not been formally adopted. We will notify you when the Commissioner rules after the September 12 deadline.

The following is a summary of changes that are proposed to be in effect November 1, 2005:

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
Adopts the New Assignment of Rents/Leases Endorsement Form T-27. This coverage is additional coverage that is not provided by the standard Mortgagee Policy but is essential 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. The endorsement insures that the assignment of rents or leases was properly executed and that no existing prior assignment (unless excepted) appears in the public records. 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 #2004-10
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
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.

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 #2004-29 
The department will not go forward with the submission regarding exceptions from coverage in the forms of title insurance policies as they relate to “filled-in lands.” However, they will continue to work with interested parties in revising this submission for further proposal at a later date.

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

The commissioner rules to WITHDRAW the following agenda items:
Agenda Item #2004-37
Submission to adopt a new procedural rule regarding persons or entities using the word “Title” in the name of their businesses. The department withdrew the item in light of existing statutory prohibitions against false information and advertising.

Increase in filing fees effective Sept. 1
Confusion over the effective date of House Bill 950 by Rep. Carter Casteel has prompted the Texas Association of Counties (TAC) to distribute a memo to all its county officials. This bill which passed during the 2005 regular legislative session and includes a September 1, 2005 effective date, increases the real and personal property records filing fees to $5.00 for the first page and $4.00 for each additional page containing a visible mark. Confusion stems from the Comptroller of Public Account’s recent listing of fee bills in the Texas Register. The Comptroller is required by law to identify and publish a list following each regular session of certain mandatory costs or fees and to include the effective implementation date in the published list. The recently published list includes the personal and real property records filing fees prescribed by HB 950 and indicates a January 1, 2006 date to begin collecting the fees. However, county officials along with TLTA question the inclusion of this fee on the Comptroller’s list. The fees are not court-related and no portion of the fees is required to be remitted to the Comptroller.  At press time there is no indication that the Comptroller is going to publish a revision regarding the inclusion of House Bill 950 fees for the January 1, 2006 effective date. According to the TAC memo, they are suggesting that counties should begin collecting the increased real and personal property record filing fees on September 1, 2005. If you are doing business in multiple counties and have questions or concerns about the effective date, we suggest you contact the local County Attorney. We also suggest you share the TAC’s memo with them, click here to view memo. We will update the membership if there are changes or new reports on this issue.

During the interim, the TLTA Legislative Committee will look at revising Section 51.607 of the Government Code which establishes the uniform implementation date for legislation affecting certain state court costs.

PAC Board of Trustees Update
The PAC Board of Trustees met by conference call recently to discuss details on the upcoming Online Silent Auction. Don’t be surprised if you are approached by a Trustee urging you to donate an item to the online auction. They will be seeking donations from other TLTA members who live or work in their designated areas. The Trustees also approved PAC contributions to be distributed to legislators and statewide officials over the next year.  Director of Government Affairs Mindy Carr and TLTA Legislative Consultant Allen Place will be setting up in-district appointments and we are seeking local TLTA members to help distribute checks. If you are interested, please contact Mindy at the TLTA office.  If you know your elected officials or would like to get to know them, please click here to fill out our BLOC grassroots form. 

GIVE US THE GOODS! - Donate to the Online Auction:
tlta-bay Oct. 31^st-Nov. 11^th
The Annual PAC Auction will be held online and we need your help to make it a huge success. For the past several years, TLTA has asked member companies to donate an item and because of their support, the silent auction has been a huge success.  We hope to continue the tradition by hosting this year’s Online Auction which benefits the TLTAPAC. Why an online auction? An online auction provides a greater opportunity for all TLTA members to participate. In addition to the ability to raise a lot more money! But to make it a success and fun for everyone, we need items!!! So far we have received some really exciting items such as week-long stay in a private condo on S. Padre Island, fashionable & trendy jewelry and sporting goods! For questions and comments, please e-mail andrea@tlta.com or call 800.472.1711.

Donating to the silent auction is as easy as 1-2-3!
1 Give us the Goods- Donate a new or unused item to the online auction.
2 Show us the Money- Send your personal or corporate monetary donation today and we’ll do the shopping.
3 Payback Time- Solicit places you do “business” with such as your local florists, restaurants, and clothiers to donate an item or gift certificate. Click here for the Silent Auction Donation Form.
 
TLTAPAC - Investor Recognition Program
The TLTAPAC has gone through some positive changes in the last year. We have increased the size of the PAC Board of Trustees, updated the Bylaws, increased fundraising opportunities and created an investor program. The investor program is designed to reward recognition to those who invest in the PAC as well as help promote the PAC when attending TLTA events.  Click here to view our investor program levels and benefits.

Remember, the new PAC cycle began July 1, 2005 and will end June 30, 2006.  Click here to make your annual investment online today. Anyone who invests $20.00 or more will receive a certificate suitable for framing. Those who invest in our highest levels will receive a beautiful lapel pin to display their support of the TLTAPAC. If you are not sure if you have made your investment for this year, click here to view the current list of 2005-2006 PAC Investors. If you have any questions, please contact Andrea Hutlock or Mindy Carr at the TLTA office at 800.472.1711 or e-mail andrea@tlta.com or mindy@tlta.com.

Special Session Update
Regulars around the capitol began referring to the special sessions as “Groundhog Day”, referencing the Bill Murray movie in which the protagonist awakens every morning to exactly the same day he lived through the day before. By the end of the special sessions, the proper movie reference was more like “Weekend at Bernie’s”. All they seemed to be doing was dragging around a dead corpse, a.k.a. the school finance reform bill. As you probably are aware, the second called special session ended with unsuccessful attempts to address school finance and it is unlikely that the Governor will call a third. Instead, it will be up to the courts to decide. Lt. Governor Dewhurst has promised to study this issue, once again, during the interim. The House and Senate did agree on passing a bill which addresses the recent Supreme Court ruling on eminent domain. Senate Bill 7 by Sen. Kyle Janek (R-Houston) limits the state and local governments from taking private property if the primary purpose is for economic development. The TLTA Legislative Committee will monitor this issue during the interim and examine its impact on the title insurance industry.

RESPA Roundtable Meetings Update
HUD wrapped up it series of RESPA reform roundtable meetings and will now begin drafting a proposed rule. Representatives from TLTA participated at two of the 7 scheduled meetings and voiced concerns regarding HUD’s proposed changes to RESPA. During the roundtable meetings, most of the discussion focused on such hot-button issues as Yield Spread Premiums, Good Faith Estimates, packaging and Section 8 exemptions that prohibit kickbacks. There were a number of TLTA members representing the industry at the August 11 meeting held in Ft. Worth. The focus of this meeting was to discuss the impact RESPA reform changes would have on small business. For a more detailed report on this meeting and the July 28 meeting in D.C., click here to read this month’s President’s Message.

It is unclear what direction HUD will take on the proposed reforms but TLTA will remain active in discussions with HUD, Congress and other settlement service groups. For more information, go to HUD’s website at http://www.hud.gov/respareform/index.cfm

On the Campaign Trail . . .
Legislators to retire
Senator Jon Lindsay (R-Houston) announced in June he wouldn’t seek re-election. A former Harris County Judge, he has served eight years in Senate District 7. So far, only Rep. Peggy Hamric (R-Houston) has officially announced her candidacy; however there is discussion of other candidates assembling their teams and campaign plans. Houston City Councilman Mark Ellis will announce on Aug. 26. State Rep. Joe Nixon (R-Houston) has announced his plan to run. Houston mortgage banker and unsuccessful congressional candidate Ben Streusand is still considering whether to run. Former 190^th District Judge and unsuccessful congressional candidate John Devine is also polling on the race and hopes to make a decision by Labor Day. The race is expected to generate millions of dollars in campaign spending. A city council campaign can easily cost a half-million dollars and a crowded race in a high-dollar media town is likely to run around a million dollars per candidate. The list of candidates to replace Rep. Terry Keel (R-Austin) is growing. Keel is retiring from the Texas House to run for a seat on the court of appeals. On the list of candidates who want that spot are Alex Castano, Bill Welch, Scott Sanders, Jimmy Evans, Richard Reynolds, and Rich Phillips.

Candidates assemble for possible Senate race
The impending departure of state Sen. Todd Staples (R-Palestine) to campaign for Texas Agriculture Commissioner opens Senate District 3 in East Texas. This race is crowding already, with four Republicans announcing their candidacies and a promise from the Democrats to add a challenger to the field. Today, there are four GOP candidates: Frank Denton of Conroe; David Kleimann of Willis; Robert Nichols of Jacksonville; and Bob Reeves of Center. This largely rural district is composed of all or part of 16 East Texas counties, taking in part of Tyler in Smith County at its northernmost tip, venturing east to the Louisiana border and then plunging down to Montgomery, Hardin, Jasper and Newton counties.

Governor’s race draws Democrats
Democrat Chris Bell announced his candidacy to run against Perry. Bell, a Houston lawyer and a former reporter, was a former city councilman and one-term congressman. He lost his congressional seat after the Legislature drew his district to his disadvantage. Bell is one of two Democrats running for governor. Felix Alvarado of Fort Worth, a middle school principal and a political unknown, says he'll be on the ballot and that his sister, Maria Luisa Alvarado of Austin, is running for lieutenant governor.

How many lobbyists does it take to pass a bill?
The Washington D.C -based Center for Public Integrity recently published numbers on the nation’s lobbying efforts. As usual, Texas was among the “big shots” ranking second with total lobbying spending of $162.1 million, or just over $895,000 per lawmaker. According to 2004 figures, there were, on average, eight lobbyists for every state lawmaker in Texas. You can look over more interesting details by clicking on http://www.publicintegrity.org/hiredguns/report.aspx?aid=728.

Builders/Remodelers cited for registration violations
The Texas Residential Construction Commission (TRCC) levied 170 administrative fines and approved agreed orders against builders and remodelers that failed to renew their registrations by their expiration date. During the 2003 Legislative Session, the Texas Association of Builders helped pass a law that made it mandatory for all builders and remodelers to register with the TRCC in order to legally operate in Texas. TRCC Chairman Patrick Cordero said the commission believed administrative actions were necessary to send a strong message to builders and remodelers of their responsibility to maintain their registration and remain in good standing.