October 25, 2005

As President of TLTA, I attended the ALTA Convention two weeks ago in New York City. It was a thrill to be in NYC, as always, and special for me because it was my first time back in the city since 9-11.  Leslie Midgley, our Executive Vice President of TLTA, also attended on behalf of TLTA.  Probably the most important event for us was the special meeting held for all state association leaders and staff.  While I knew some of the leaders from surrounding states, it was very nice to meet others from all over the US and share experiences and concerns.  While the differences in laws and the way the title business is done in other states is often dramatically different than how we function here in Texas, the current challenges expressed were often very similar. 

Nearly everyone is dealing with “privacy” legislation in their states and trying to keep access to the public real estate records open and available to the industry.  Loan fraud is a common problem everywhere and some states are putting onerous requirements on the settlement services provider to police transactions for fraud.  Frustrations and problems with lender requirements and closing instructions were discussed. The captive reinsurance investigations, originated in Colorado and California and now in at least 17 other states continue to draw negative press about our industry. And finally, the continued proliferation of affiliated business agreements (AfBA) and their impact and integration into the industry was mentioned frequently.

Of course there was a lot of talk during the whole convention about RESPA reform, with most experts believing that HUD will proceed with a reform proposal that will focus on revision of the Good Faith Estimate (GFE) used to disclose costs to a borrower at the beginning of the loan process. Those experts also felt that HUD had certainly heard the almost universal consensus against mortgage packaging and mandated fixed-cost settlement services packaging.  If this turns out to be true, it is really great news especially for small businesses in Texas.

Two keynote speakers were outstanding. Terry McAuliffe, former Chairman of the Democratic National Committee, gave a robust and critical analysis of the functions of our two party system of government. While he truly is the most brashly political person I have ever met, his insight as to the current strengths and weaknesses of both parties and their leadership was detailed and fascinating. His ego almost overwhelmed the room but was tempered by his frequent humor which brought the needed perspective to his talk. 

We also had the great fortune to hear former NYC Republican mayor, Rudy Guiliani speak about his common sense approach to leadership and his life dealing with 9-11 and prostate cancer.  He is a dynamic and mesmerizing speaker and truly held the audience at rapt attention.  One of his points of leadership was to “courageously accept change.”  While all his ideas on leadership were important, I felt the one on courage was particularly relevant to the future of our industry.

Like TLTA, ALTA is an important organization that promotes and protects our industry.  In the past, because Texas operates with its unique insuring forms and regulatory structure, ALTA has not paid as much attention to Texas as it should.  I think that is changing.  I think more and more states and ALTA are looking at Texas and experiencing a new found respect for our regulatory structure, all inclusive premium, and general business environment.  This is very positive change.  We are fortunate to have Jack Rattikin, III from Fort Worth as a member of the ALTA Board of Governors carrying the Texas message to the national level. But I think more Texans need to be visible and vocal in ALTA.  I encourage anyone who wants to be more involved in the dynamics of the industry from a national perspective to join ALTA, not in lieu of TLTA which remains your primary provider of services to the industry in Texas, but in addition to TLTA.

Two side notes:
I went to Ground Zero.  My wife, Anna, who visits NYC fairly often, never had and really did not want to, but I felt compelled.  It was a journey I needed to take. Seven weeks before the attack, Anna and I took our children to see the twin Trade Towers. Though now gone, the vision remains. Ground Zero is just a big hole in the ground, but the feelings and emotions of heroism mixed with overwhelming loss permeate the area. All buildings surrounding the area have been restored to pristine condition, except one which is slated for demolition because it remains structurally unsound, having been hit by the second tower collapse.  Historic St. George’s Church on the east side of the site has become a shrine to the rescuers and volunteers that took care of the survivors in the weeks immediately following the tragedy.  It is impossible to walk through the still-functioning church with all the pictures and exhibits illustrating humanity’s capacity for caring, kindness and compassion without shedding tears.

While we were in NYC there was a significant, high level terrorist alert targeting the subways. It was issued early one morning but by mid afternoon, city officials were urging New Yorkers and tourists to resume riding the subways and to not let fear rule the day. I am proud to announce that Leslie and her husband, Mike as an intentional act against terrorism and a unique show of patriotism, twice rode the subways that afternoon including one line that went through Penn Station that had been the site of one of the threats. I applaud Leslie and Mike for their courage and willingness to take a stand.

Sincerely,