February 6, 2019

In This Issue:

  • Legislative Update: Governor's State of the State, Property Tax Reform, Day at the Capitol
  • CFPB Update: FAQs on TRID Rule Published
  • U.S. Sen. Crapo Shakes Up GSE Reform With Housing Finance Plan of His Own
  • Lawmakers Need to Decide Nature of Texas Windstorm Insurer, Sunset Commission Says
  • FHFA Names New Chief of Staff

Legislative Update

Gov. Greg Abbott, Lt. Gov. Dan Patrick and Speaker of the Texas House Dennis Bonnen held a joint press conference last week to celebrate the filing of two identical pieces of property tax reform legislation – SB 2 by Bettencourt and HB 2 by Burrows. The state's "Big 3" leaders committed to remain united in their pursuit of property tax reform. Watch the press conference
The governor's property tax reform agenda was reiterated in his State of the State Address delivered to a joint session of the Texas House and Senate on Tuesday. He named five emergency items for the 86th Session of the Texas Legislature:
  • property tax reform
  • school finance and increased pay for teachers
  • school safety
  • Texas Mental Health Care Consortium
  • disaster response
You can watch the governor's State of the State, or read the text.
Texas lawmakers have filed more than 2,000 bills to-date. Staff at TLTA are currently monitoring the development of these bills and other issues that could impact our industry or industry partners. 
Additionally, TLTA's legislative team is working to advance our Legislative Agenda for the 86th Session. Our priorities include maintaining Texas’ successful title insurance system, modernizing the Texas Title Insurance Guaranty Association, clarifying the Remote Online Notary (RON) statute approved last session, and certificates of authority for entities.
Please make a plan to join us for TLTA's Day at the Capitol in Austin Feb. 12-13. We'll go office to office at the state Capitol, sharing our industry's powerful story with legislators, staff and other influencers. Register today.

CFPB Update: FAQs on TRID Rule Published

TLTA | Feb. 4, 2019
After years of requests from the mortgage industry, new leadership at the CFPB has issued informal written guidance on the TILA/RESPA Integrated Disclosure (TRID) Rule in the form of FAQs published last week.
Three of the FAQs are related to Closing Disclosure, and the fourth speaks to model forms:
  • If there is a change to the disclosed terms after the creditor provides the initial Closing Disclosure, is the creditor required to ensure the consumer receives a corrected Closing Disclosure at least three business days before consummation?
  • Is a creditor required to ensure that a consumer receives a corrected Closing Disclosure at least three business days before consummation if the APR decreases (i.e., the previously disclosed APR is overstated)?
  • Does Section 109(a) of the Economic Growth, Regulatory Relief, and Consumer Protection Act affect the timing for consummating a transaction if a creditor is required to provide a corrected Closing Disclosure under the TRID Rule?
  • Does a creditor’s use of a model form provide a safe harbor if the model form does not reflect a TRID Rule change finalized in 2017?


U.S. Sen. Crapo Shakes Up GSE Reform with Housing Finance Plan of His Own

National Mortgage News | Feb. 1, 2019
Senate Banking Committee Chairman Mike Crapo, R-Idaho, released a new plan Friday to overhaul the U.S. housing finance system more than 10 years after the government put the government-sponsored enterprises Fannie Mae and Freddie Mac into conservatorship.
“We must expeditiously fix our flawed housing finance system,” Crapo said in a press release. “My priorities are to establish stronger levels of taxpayer protection, preserve the 30-year fixed rate mortgage, increase competition among mortgage guarantors, and promote access to affordable housing. I invite my Senate and House colleagues, the Administration and all interested stakeholders to work together to enact this critically needed reform.”
Crapo’s plan would turn Fannie Mae and Freddie Mac into private guarantors to support the timely repayment of principal and interest to investors for eligible mortgages that are securitized through a platform operated by Ginnie Mae. The plan would also allow for other private guarantors to compete.
Read More »

Lawmakers Need to Decide Nature of Texas Windstorm Insurer, Sunset Commission Says

Insurance Journal | Feb. 4, 2019
To be the insurer of last resort for wind and hail insurance along the Texas coast — without state support and reliant on premium dollars and debt financing for funding, or to be a true insurance company that derives funding primarily from premium dollars?

That’s the key question posed by Texas Sunset Advisory Commission (SAC) staff in its legislatively required review of the Texas Windstorm Insurance Association (TWIA), which provides wind and hail insurance for property owners in counties along the Texas Gulf Coast who are unable to secure coverage in the private insurance market.

The question is also one that the SAC declined to answer during a Jan. 9 meeting to consider staff recommendations in its report on TWIA. Instead, the commission concluded that the issue is one that needs to be addressed by the full Legislature.

TWIA was created by the Legislature in 1971 after Hurricane Cecilia heavily damaged the Texas coast, causing the private property insurance market to significantly pull back from offering coverage there. This is the first time TWIA has been subject to review by the Sunset Advisory Commission. It is not a state agency and under the Sunset Act it is subject to review but not abolishment.

In the report released late last year, Sunset staff found that “Texas has a continuing need for adequate windstorm insurance, but TWIA’s current structure, particularly its funding arrangement, is too uncertain to endorse.”
Read More »

FHFA Names New Chief of Staff

HousingWire | Jan. 31, 2019
The Federal Housing Finance Agency has named John Roscoe its new chief of staff.

Roscoe, who currently serves as special assistant to the president in the White House Office of Presidential Personnel, worked previously at the Ohio Treasurer’s Office and on the presidential campaigns for Mitt Romney and President Donald Trump.

Roscoe will report directly to FHFA Acting Director Joseph Otting.

“John is a dynamic and collaborative leader with a track record of success.  He brings to the position the solid judgement that comes from working at a very high level across all branches of government,” Otting said. “I look forward to working with John to carry out the mission of the FHFA.”

TLTA has scheduled a variety of live webinars for 2019! Register now, or explore our library of more than 80 On-Demand webinars and videos covering the title industry topics you need!