June 27, 2018
In This Issue:
- TDI Proposes More Rule Amendments to Basic Manual
- TLTA Submits Comments to BCFP (Formerly "CFPB") re: Simultaneous Issue and TRID
- Secretary of State Pushes Back Remote Online Notary (RON) Adoption Goal
- TDI Adopts Updates to Credit for Reinsurance Rules
- White House Wants Fannie Mae and Freddie Mac Privatized
- Federal Judge Rules That BCFP Is Unconstitutional
TDI Proposes More Rule Amendments to Basic Manual
Proposals Focus on Licensing and Continuing Education
TLTA | June 20, 2018
On Wednesday, June 20 the Texas Department of Insurance announced it has proposed rule amendments to the Title Insurance Basic Manual. The amendments include changes to:
- Comply with legislative changes.
- Streamline licensing, renewal, and other notifications.
- Change escrow officer license expiration dates to the last day of the license holder's birth month.
- Require registration and certification of continuing education programs.
TDI will publish the proposed rules with the Secretary of State, which is the repository of official TDI rules, on June 29. Those rules can be accessed directly from the Texas Register, Office of Secretary of State (when they are published). Written comments on the proposed rules must be received no later than 5 p.m. Central time, on July 30, 2018.
TLTA will review the published version of the rule proposals and provide comment before the July 30 deadline. If you have questions or comments, please submit them to Aaron Day at email@example.com or call at 512.810.8800.
In addition, TLTA will provide a thorough analysis of the changes prior to their implementation.
See the full proposal
and reference materials
TLTA Submits Comments to BCFP (Formerly "CFPB") re: Simultaneous Issue and TRID
TLTA | June 19, 2018
Under the Bureau of Consumer Financial Protection's (BCFP) TRID regulation, consumers are required to receive inaccurate information on BCFP's mandated disclosures about the true cost of title insurance. In its current form, the regulation does not permit title agents to disclose available discounts for lender’s title insurance (e.g., simultaneous issue discounts). This lack of transparency creates inconsistencies in mortgage documents and causes confusion for consumers.
As BCFP reviews potential changes to adopted regulations, TLTA submitted comments requesting that BCFP amend the TILA-RESPA Integrated Disclosure (TRID) rules to correct this inaccurate and confusing disclosure.
Read TLTA's Letter to BCFP »
As reported in last week's Dateline, the U.S. House Appropriations Committee included in the FY19 Financial Services General Government Appropriations Act a fix for the simultaneous issue problem. However, the Senate passed their version of the appropriations bill on Thursday, and they did not include the TRID fix. After the appropriation bills pass their respective chambers, the House and Senate will meet in conference committee to work out the differences in the chambers' bills.
Secretary of State Pushes Back Remote Online Notary (RON) Adoption Goal
TLTA | June 22, 2018
The Office of the Secretary of State's (SOS) proposed rulemaking regarding Remote Online Notary (RON) was published in the May 4, 2018, issue of the Texas Register. After receiving extensive public comments, SOS plans to issue a revised set of proposed rules for comment by July 1. Depending on the scope of this second round of comments, the agency may adopt the revised rules by Aug. 1, 2018.
The online notary application system will begin accepting applications on July 1, 2018. The procedures and policies regarding online applications will be consistent with the earlier proposed rules and will not be impacted by the delayed adoption of the RON rules.
Learn more »
TDI Adopts Updates to Credit for Reinsurance Rules
TDI | May 29, 2018
The Texas Department of Insurance has adopted updates to the rules insurers must follow to obtain credit for reinsurance. The adopted rules include new rules allowing for reduced collateral in reinsurance transactions.
Check TDI's website
for a copy of the adopted changes.
White House Wants Fannie Mae and Freddie Mac Privatized
Bloomberg | June 21, 2018
The Trump administration wants Congress to remove the federal charters for Fannie Mae and Freddie Mac as part of a plan to release the mortgage giants from U.S. control, according to a sweeping proposal for reorganizing the government released Thursday.
The two companies, which have been under U.S. conservatorship since 2008, could have their market dominance challenged by new competitors under the plan. Fannie, Freddie and any rivals would be overseen by a government entity with power to approve guarantors, change regulations and ensure market participants are adequately capitalized, the report said.
Read More »
Federal Judge Rules That BCFP Is Unconstitutional
Washington Post | June 21, 2018
A New York federal judge ruled Thursday that the structure of the Consumer Financial Protection Bureau is unconstitutional and that the watchdog agency should be eliminated.
Senior U.S. District Judge Loretta A. Preska threw out the bureau’s lawsuit against a New Jersey company that the bureau alleged had scammed former NFL players and 9/11 emergency medical workers out of millions of dollars.
Preska’s ruling contradicts a decision by a U.S. appeals court on the issue this year and increases the likelihood that the CFPB’s constitutionality could become fodder for the Supreme Court. Noting that the decision by the U.S. Court of Appeals for the District of Columbia Circuit was not binding in New York, Preska said she “respectfully” disagreed.
Read More »
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