May 29, 2019


In This Issue:

  • Legislative Update: 100% of TLTA's Legislative Priorities Approved by Lawmakers
  • TDI Rate Hearing Held in Austin May 23
  • TREC Proposes New Rules for Settlement Service Providers
  • First American Issues Statement Re: Their Ongoing Information Security Investigation
  • Here Are 5 Things the CFPB Will Focus on in 2019
  • Calabria: U.S. Government Could Stagger Fannie, Freddie Privatization

Legislative Update

The Texas Legislature adjourned sine die on Monday, May 27, and we are proud to report that 100 percent of TLTA’s legislative agenda was approved by lawmakers and has been sent to Gov. Abbott. TLTA sought and won passage of the following four priority pieces of legislation:
  • HB 3228 - clarifies who has access to participate in TDI rate hearings
  • HB 1614 - updates and modernizes TTIGA statute 
  • SB 2128 - clarifies RON-related statute related to 'papering out' and recording e-notarized documents and e-closing documents
  • HB 1833 - establishes a mechanism by which the authority to sell real properties on behalf of partnerships and limited liability corporations can be assigned for transactions under $1,000,000.
    These important bills are now waiting in the governor's office, where he can sign them, veto them no later than June 16, or allow them to become law without his signature. 
 
In a typical legislative session, four of every five bills die before achieving passage. TLTA's overwhelming success this session should be attributed to the following people:
  • TLTA's Board of Directors, who approved our legislative priorities.
  • Legislative Chair Steve Streiff, who spent many hours at the Capitol and worked daily to advance our legislative mission.
  • TLTA's Legislative Committee, who reviewed countless bills and provided input on their potential impact as well as identified solutions to address concerns.
  • TLTA members who testified and advocated on our behalf at the Capitol, including Denise Holmes, Roland Love and Steve Streiff.
  • TLTA's Local Legislative Liaisons, who delivered on-demand, personal support that significantly improved our communication with legislators.
  • TLTAPAC Board of Directors and supporters, whose work helps us educate lawmakers.
  • TLTA's team of professional advocates, who helped us work with legislators and stakeholders to improve and advance our legislative priorities.
  • Of course, none of this would be possible without the legislators who filed and championed our legislative priorities, including Chairman Kelly Hancock, Sen. Brandon Creighton, Sen. Bryan Hughes, Rep. Sergio Munoz, Rep. Tom Oliverson, Rep. Tan Parker, and Rep. John Wray. Chairman Eddie Lucio III deserves special appreciation for his stewardship of the House Insurance Committee, which handled several of our priorities this session.
A full legislative report on the bills listed above, as well as other legislation that could impact our industry and our allies, will be delivered to you after the Governor's bill signing and veto period ends on June 18.
 
Leslie Midgley and Aaron Day will present a TLTA Legislative and Regulatory Update at our 2019 Annual Conference and Business Meeting. Their update will detail outcomes of the TLTA legislative priorities discussed above, as well as other legislative action that impacts our industry. Learn more, or register now.

TDI Rate Hearing Held in Austin May 23

TLTA | May 28, 2019
The Texas Department of Insurance held a formal hearing May 23 to consider TLTA’s proactive package of rate and rule proposals. We expect a ruling in the near future. 
 
TLTA’s legal team, along with our actuarial and economic experts, presented TLTA’s case. Thank you to TLTA members John Bruce and Claire Hartman, who testified in support of our industry's proposals and provided TDI with important background. OPIC also testified in support of TLTA’s proposals and thanked TLTA and TDI for their work throughout the process.
 

 Claire Hartman of First Community Title Speaks in Favor of TLTA's Rate and Rule Proposals

These are the materials that were discussed at the hearing:
 
TLTA Rate Briefing Book 
TLTA Recommendation 
Amended Actuarial Report
 
When TDI issues a final order, we will alert you and provide details of their decisions. We anticipate an early fall effective date.
 
If you have questions, please contact us.  
 


TREC Proposes New Rules for Settlement Service Providers

TLTA | May 28, 2019
The Texas Real Estate Commission met May 6 to adopt new rules and discuss proposed rules related to a variety of subjects, including payments to settlement service providers.
 
The proposed settlement provider rule appears to restate RESPA rules, clarifying that they apply to brokers/agents. Our team is analyzing this proposal to determine its impact, and we will update you when we know more. If you have comments about TREC's proposal, please share them with us.
 
Read the Proposed Rules »
Other Rules Adopted at TREC's Meeting »
 

First American Issues Statement Re: Their Ongoing Information Security Investigation

First American Financial | May 28, 2019
First American Financial Corporation advises that it shut down external access to a production environment with a reported design defect that created the potential for unauthorized access to customer data. The company is working diligently to address the defect and restore external access.
 
Read More »


Here Are 5 Things the CFPB Will Focus on in 2019

HousingWire | May 28, 2019
The Consumer Financial Protection Bureau recently published its spring 2019 rulemaking agenda, showing the regulatory matters it reasonably anticipates having under consideration during the period of May 1, 2019 to April 30, 2020.

The CFPB explained that the new permanent Director Kathy Kraninger is now ready to begin rulemaking activities after having recently completed a listening tour.

“A permanent director of the Bureau took office in December 2018,” the CFPB said in a statement. “The director recently completed a listening tour to engage with bureau stakeholders, employees and outside experts, building on feedback submitted through more than 88,000 public comments in response to the Bureau’s 2018 Call for Evidence initiative.”

“The bureau expects to communicate further information about future planning and priorities in the coming months,” the bureau continued. “In the meantime, this Spring 2019 Agenda reflects ongoing rulemaking activities, including initiatives to implement statutory requirements and to address the potential sunset of statutory and regulatory provisions.”

The agenda includes finishing propositions from its fall 2018 agenda as well as proposing new ones and future requests for information. There are several different rules in various stages the bureau says it will be focusing on in the coming year, but according to law firm Buckley, there are five that stand above the rest.
 
Read More »
 


Calabria: U.S. Government Could Stagger Fannie, Freddie Privatization

Reuters | May 23, 2019
Mortgage giants Fannie Mae and Freddie Mac could be returned to the private market at different times, especially if the government moves to float them on the public markets, the head of the U.S. housing finance regulator told Reuters in an interview.

It may be preferable to stagger that process due to the complexities involved in getting the government-backed firms, which have different business models, ready for private ownership, said Mark Calabria, director of the Federal Housing Finance Agency, which oversees Fannie Mae, Freddie Mac and the U.S. housing finance system.

“I’m open to seeing what makes sense...that kind of sequencing hasn’t been decided, but obviously if you tried to engineer them both at the same time, you’re depending on more things going right at the same time,” he said. “One may be ready before the other, it just depends.”
 
Read More »

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