TLTA Board approves positions on 2002 agenda items
The Rule portion of the 2002 Texas Title Insurance Biennial Hearing will take place on September 24, 2003 at 10:00 a.m. in Room 100 of the William P. Hobby Jr. State Office Building, 333 Guadalupe Street in Austin. The Rate portion is currently set for December 15, 2003 at 9:30 a.m. For a complete list of TLTA’s positions, please click here.

The TLTA Board of Directors recently adopted positions for the remaining agenda items that had previously been tabled by the Rates, Rules & Forms committee for further study. (Click here for a list of positions voted on at the September 8^th Board meeting)

Perry calls third special session
Governor Rick Perry has called a third special session of the Legislature that began at noon on Monday, September 15. The call includes 8 items such as congressional redistricting, postponing the March 2 primaries, state fiscal management, toll roads, government reorganization and appropriations. The Governor had called a second special session in August, but 11 of the 31 Senators broke a quorum by leaving the state to show their opposition of congressional redistricting. The Senate democrats have returned to Texas and have vowed to fight this issue on the floor. None of the 8 issues under consideration directly affect the title industry; however the TLTA lobby team will continue to monitor all bills being considered.

TDI completes homeowners insurance rate reviews
The Texas Department of Insurance (TDI) spent most of the summer evaluating all of Texas homeowner’s insurance rates which was mandated by the Texas Legislature under the provisions of SB 14. TDI’s first round of reviews examined 32 of the larger homeowner insurance companies writing in excess of $10 million in Texas premiums each year. They were ordered to lower their rates from between 0 percent to 31 percent. These 32 companies represent nearly 95 percent of the market. The results of its second and final round of examinations showed that 29 companies were reviewed and 5 insurers were ordered to reduce rates from between 10 percent to 22.4 percent. These 29 insurance company groups represent 1 percent of the Texas homeowners insurance market.

TDI link to TTIGA Quarterly Reports!
TDI has added the Texas Title Insurance Guaranty Association Quarterly reports to their website. For your convenience we have added a direct link to the reports on the TLTA Legislative and Regulatory Web page.

Latest on RESPA Reform
HUD Secretary Mel Martinez was a recent guest on CNBC’s Power Lunch in which he discussed his plans for the upcoming release of the revised proposed rule relating to RESPA changes. He announced that it was HUD’s intention to do three things: 1) make sure that the broker fees are disclosed when there is a mortgage broker involved and the fee that person charges is clear and known to the consumer, 2) the good faith estimate should be an accurate estimate and 3) to allow deregulation in the marketplace.  Martinez also stated he believes that RESPA reform is a regulatory function but acknowledged that he is working with Congressional representatives as he moves closer to issuing a final RESPA reform rule sometime soon.

Grassroots efforts continue on HUD’s attempt to reform RESPA
TLTA has continued to call upon its membership to meet with members of Congress while they are back in Texas. Special thanks go out to TLTA members Jeff Davis, Safeco Land Title Company of Fort  Worth  and Larry Townsend, Rattikin Title Company of Fort Worth who met with Congressman Joe Barton (R-Ennis) and Allen Shindler, Lawyers Title Company of Houston who met with Kevin Brady (R-The Woodlands). In-district meetings were aimed at educating members of the Texas Congressional delegation about HUD’s RESPA reform proposal and how those changes will affect the real estate industry. Other real estate industry groups such as the mortgage brokers, independent bankers, surveyors and realtors were invited to attend.

HUD reaches settlement with Realtors regarding free virtual home tours
In July’s Dateline Austin, we informed you about the latest on HUD’s attempt to fine title companies for allegedly violating Section 8 in relation to virtual tours. HUD’s latest action is aimed at real estate agents who allegedly accepted free internet-based virtual home tours from title companies in the Austin area. HUD alleged that the real estate brokers and their agents accepted virtual tours in exchange for the referral of business, in violation of Section 8(a) of RESPA. In two separate settlement agreements, the brokers agreed not to engage in the practice and to notify their agents in writing that accepting virtual tours at a reduced rate or for no cost violates RESPA. The brokers have arranged to make payments to the U. S. Treasury totaling $19,200.

FCC postpones DO-NOT-FAX rule
On July 3, 2003, the Federal Communications Commission released an order revising facsimile advertising rules pursuant to the Telephone Consumer Protection Act of 1991. The FCC determined that an established business relationship is not sufficient proof of consent by a business to receive unsolicited fax advertisements.  The order now requires signed written consent from recipients.  Petitions from a variety of associations and businesses, including the National Association of Realtors requested clarification and a one-year stay.  The FCC recognized that immediate implementation would have an adverse effect on many businesses, and therefore has extended implementation until Jan. 1, 2005.

U.S. Senate Banking Committee Chairman Shelby plans hearing
Senator Richard Shelby has announced a September 2003 hearing on “the state of the industry.” The hearing will include a variety of issues including the impact of the Sarbanes-Oxley Act and the Gramm-Leach-Bliley Act. He is also accepting recommendations for additions to the hearing agenda. Shelby said the hearing will anticipate future issues rather than focusing on the recent past.

PRIA proposes National Standard for First Page Indexing Requirements
The Property Records Industry Association (a national association whose membership is composed of major participants in the property records industry, including public officials, associations and the private sector) recently posted a draft of a white paper on its website [www.pria.us] entitled "First Page Indexing Requirements, Proposed National Standard." The white paper suggests the preparer or filer of the document  essentially abstract it---place on the front page all of the information a county clerk needs to create his/her index to Official Public Records. This is what title industry professionals commonly refer to as a "grantor/grantee index" or a "reverse and direct index". The county clerks attempted to pass a bill that would have mandated a cover page during the 2001 Texas legislative session. The problems associated with adopting a national standard are, who is responsible for completing the cover page, and who is liable when the cover page and the body of the document conflict. Click here to view the white paper in its’ entirety. PRIA has asked for comments and needs to hear from the title industry. If you are interested, please forward to the following people:

Kathi Guay
Merrimack County,NH
Register of Deeds (NACRC)
kguay@aol.com

Darren G. Ross
Stewart Information Services Corporation
Director of Electronic Commerce
dross@stewart.com

We would also ask that you send a copy of your comments to mindy@tlta.com.