July 31, 2019

In This Issue:

  • TLTA Digital Closing Resources Rolled Out
  • TDI Quarterly Audit Results Published
  • 6 Questions on the CFPB Plan to End Fannie and Freddie's 'Patch'
  • Applications Now Being Accepted for TLTA's Leadership Academy

TLTA Digital Closing Resources Rolled Out

TLTA | July 29, 2019
Digital closings (eClosings) continue to be a rising trend in the marketplace. In 2018, TLTA formed the Digital Closing Task Force to study digital closings, the impact they will have on the title insurance industry and ways TLTA can keep members and industry partners informed and educated on this growing trend. 
To assist members in navigating this new arena, the task force has compiled Digital Closing Resources on the TLTA website, including a list of technology vendors who provide digital closing products to Texas agents. This list is not intended to be a complete listing of all digital closing vendors, just those we have been able to identify at this point. It is also not an endorsement or recommendation of any of these vendors, but rather is designed to be a helpful tool in researching available vendors. Individual companies should do their own due diligence in selecting which vendor(s) with which to do business. This list is limited to vendors that also appear on the Fannie Mae and/or Freddie Mac approved eMortgage vendor lists. Learn more about their criteria at eMortgage_Team@freddiemac.com and www.fanniemae.com. 
Have a meeting with a digital closing technology vendor? The task force has also developed a list of questions that will help you get the conversation started. 
TLTA's Digital Closing Task Force, led by Marvin Stone, will continue to monitor this issue and the digital closing marketplace to update the list of vendors and provide additional resources. We appreciate their efforts on the industry's behalf. 
See TLTA's Digital Closing Resources »

TDI Quarterly Audit Results Published

TLTA | July 29, 2019
The following is a summary of recent TDI audits, violations and enforcement actions from March through May 2019. 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. This quarter, TDI conducted 79 audits.

Commissioner Orders: This quarter, TDI did not sign any Commissioner Orders. As of this report, 39 cases remain active and under investigation.

Compliance Audit Results: Below are TDI's most common audit findings for the quarter that ended in May. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred:
Number of Agencies
Title Insurance Code
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
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.
Title Bulletin No. 160
All parties receiving portions of the real estate commission not disclosed on settlement statement

Read Full Quarterly Audit Report »

6 Questions on the CFPB Plan to End Fannie and Freddie's 'Patch'

American Banker | July 28, 2019
The Consumer Financial Protection Bureau caught many in the mortgage industry off guard Thursday when the agency said it will retire a policy that gives Fannie Mae and Freddie Mac a competitive advantage in complying with underwriting rules. 

The CFPB's ability-to-repay rule includes a class of loans known as "qualified mortgages" that automatically meet underwriting criteria in light of certain features, such as a 43% debt-to-income limit. But the government-sponsored enterprises have been exempt from that stipulation since 2014; all Fannie- and Freddie-backed loans are QM.
But changes are on the horizon. The CFPB asked for public comment Thursday on possible changes to the QM rule. They include whether the agency will adjust the DTI limit. Any such proposal would have to be subject to more public comment before a new rule is finalized.
Yet one thing is for sure. Even though the GSEs' exemption — now slated for January 2021 — may get temporary extensions, the CFPB is set on eventually letting it expire.

Because of the exemption, known as the GSE QM "patch," nearly one-third of GSE-backed loans exceed 43% DTI but are still compliant. Letting the patch expire therefore raises questions about the future of a large chunk of the GSEs' business, just as the Trump administration prepares to unveil a plan on how to release the two companies from conservatorship. 

Here are six key questions about the future of qualified mortgages and the GSE patch.
Read More »

Applications Now Being Accepted for TLTA's Leadership Academy

TLTA | July 29, 2019
As part of TLTA's mission to help develop the next generation of title industry leaders, we are hosting the Alex H. Halff Leadership Academy Nov. 18-19, 2019, in Austin. 
The two-day Academy, which was created by industry experts, equips young professionals to excel in their jobs and take active roles in our industry's leadership community via the following time-tested tactics:
  • Honing their leadership skills
  • Expanding their industry knowledge
  • Acquainting them with important industry information
  • Helping them build a professional network
The application deadline is Sept. 9, 2019. Space is limited to 50 participants, and applicants will know if they've been accepted no later than Sept. 13, 2019.
Learn More »
Apply Today »

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