Guaranty Fee Goes Into Effect April 1
As reported in Dateline on Feb. 17 and March 2, the Texas Title Insurance Guaranty Association board voted to reinstate the Policy Guaranty Fee at $3 per policy for all transactions closed on or after April 1, 2016
. This Compliance Update is to remind all TLTA members of this policy.
According to the TTIGA Guaranty Fee Frequently Asked Questions
, "The charging of the Guaranty Fee is determined by the closing date, or more specifically, the date the closing documents are signed. For example, if a transaction has closing documents signed in March, but the transaction does not fund until April, then no fee should be collected. If the closing documents are signed April 1 or later, the fee to be collected is $3.00...The guaranty fee should be disclosed on the Closing Disclosure and, if not separately itemized on the closing disclosure, the policy guaranty fee should be shown on the Texas Disclosure (Form T-64) in the Other Disclosures section." In addition, "Guaranty Fees are reported on the Guaranty Fee Remittance Form (TDI’s Form No. T-G1) on a quarterly basis with one form and one check submitted to TTIGA."
As mentioned in the Feb. 17 Dateline story: If no closings occurred during the quarter and no policy guaranty fees were received, the form must be sent in with the amount of "0." All remittances must be postmarked on or before the remittance due date, and all remittance checks must be made payable to "Texas Title Insurance Guaranty Association."
The remittance form is available in two formats (PDF fillable and printable for writing by hand) on the TTIGA website. The Guaranty Fee FAQs
appear on the Guaranty Fees page
of the TTIGA website
The address for submitting the policy guaranty fees is:
Texas Title Insurance Guaranty Association
500 W. 5th St., Ste. 1150
Austin, TX 78701