January 31, 2018

TDI Quarterly Audit Results Published

Texas Department of Insurance | Jan. 30, 2018
The following is a summary of recent TDI audits, violations and enforcement actions from September through November 2017. Read TDI's complete summary of operations for the quarter or read the key statistics below.

Compliance Audits: TDI's goal is to comprehensively audit agencies at least once every two years. That means this quarter (within the last three months), TDI conducted 75 audits.
Commissioner Orders: From September through November 2017, TDI had no Commissioner Orders. As of this report, 51 cases remain active and under investigation.
Compliance Audit Results: Below are TDI's most common audit findings from September through November 2017. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred.

Number of Agencies
Texas Insurance Code
Section 2702.053 – Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed.
Escrow Accounting
Outstanding checks not cleared timely.
Minimum Escrow Accounting Procedures and Internal Controls
#16 – Every disbursement not supported by invoice or sufficient other evidence.
Procedural Rules
P-21: Schedule D of commitment not in file or premium split not disclosed on commitment.
Guaranty Files
Funds not disbursed or escheated to state.
Procedural Rules
P-73: Failure to prepare/maintain Form T-64 (TD) when CD used.

See TLTA's Recent T-64 Compliance Update » 

CFPB News: Leaked Mulvaney Memo – CFPB Must End Regulation by Enforcement

HousingWire | Jan. 23, 2018
A leaked memo attributed to Consumer Financial Protection Bureau Acting Director Mick Mulvaney says the bureau’s mission and governing mission is going to be refocusing on ending regulation by enforcement.
The memo, posted as part of an article by investigative journalism nonprofit ProPublica, was sent to CFPB staff and attacks former Director Richard Cordray, and details how the bureau, established to protect consumers, will now “protect the industry.”
Read More »

CFPB News: Appeal to Unseat Mulvaney Gets Expedited

PYMNTS | Jan. 24, 2018
It looks like the fight over who will lead the CFPB is coming to an end, as a federal appeals court agreed to expedite the appeal seeking to unseat acting Director Mick Mulvaney.

According to American Banker, after District Court Judge Timothy J. Kelly denied Leandra English’s temporary restraining order against Mulvaney last month, English filed an appeal, which has now been expedited by the U.S. Court of Appeals for the District of Columbia.

A three-judge panel will hear the case, and briefs are expected to be filed by the end of this month.

 U.S. Regulators Ready to Ease Check on Property Values: Sources

Reuters | Jan. 26, 2018
U.S. bank regulators plan to relax commercial real estate lending rules by allowing more deals to go ahead without an independent appraisal of the property’s value, according to several sources familiar with the discussions.

The revised rules will be welcomed by banks that have long-argued that appraisals on small-dollar loans are costly and unnecessary, but consumer advocates have warned it could increase risks.

Under existing rules, commercial real estate worth more than $250,000 must have an independent third-party check on the property value before a bank can lend against it.
Read More »

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