January 8, 2020

In This Issue:

  • Texas Businesses Must Report Data Breaches Under New Law Effective Jan. 1, 2020
  • TDI Issues Underwriter Data Call
  • TLTA Submits Letter to TREC Broker Lawyer Committee Regarding Revision of Termination Option Language in TREC Contract Forms
  • Texas Department of Savings and Mortgage Lending Publishes Proposed Revision to Payoff Statement

Texas Businesses Must Report Data Breaches Under New Law Effective Jan. 1, 2020

TLTA | Jan. 6, 2020
NOTE: TLTA recommends that title agents and underwriters review their internal procedures and consult with legal counsel to ensure your business is prepared to comply with this new Texas law.
 
Under HB 4390, which was approved by the Texas Legislature in 2019, businesses operating in Texas are now required to provide notice within 60 days if they experience an online data breach or other unauthorized access of customer’s personal information. 
 
Under the revised statute, notifications to affected customers must include the following information:
  • a detailed description of the nature and circumstances of the breach, or the use of sensitive personal information acquired as a result of the breach;
  • the number of residents of this state affected by the breach at the time of notification;
  • the measures taken by the person regarding the breach;
  • any measures the person intends to take regarding the breach after the notification under this subsection; and
  • information regarding whether law enforcement is engaged in investigating the breach.
Furthermore, if more than 250 Texans are impacted by a data breach, Texas businesses are required to report the breach to the state’s attorney general. 
 
The revised law also created the Texas Privacy Protection Advisory Council, which is responsible for conducting a global study of privacy laws related to the protection of identifiable information connected to a specific individual, technological device, or household. The Council must report any recommendations for statutory changes intended to enhance data security to the Texas Legislature no later than Sept. 1, 2020.  
 
The council is made up of 15 members (five appointed by the Governor, five appointed by the Speaker of the Texas House, and five appointed by the Lt. Governor). The Governor and Lt. Governor have appointed the following people to serve on the Council (note: the Speaker of the House has not appointed the House’s public or legislative members):
 
Governor’s Appointments:
  • Bart Huffman of San Antonio
  • Justin Koplow of Dallas
  • Jeanette “Jeannie” White of Keller
  • Lemuel Williams, Jr. of Austin
  • Michael Wyatt of Austin
Lt. Governor’s Appointments:
  • Sen. Jane Nelson (co-chair)
  • Sen. Carol Alvarado
  • Sen. Kelly Hancock
  • Joseph Schneider of Dallas
  • Buffy Dyess of Longview
If you have comments, concerns or questions, please contact us at 512.472.6593 or tlta@tlta.com.
 

TDI Issues Underwriter Data Call

Texas Department of Insurance | Jan. 8, 2020
The Texas Department of Insurance has issued a mandatory data call to all companies writing title insurance in Texas. The purpose of this data call—required under Insurance Code Section 2703.153—is to provide TDI with information needed to set premium rates. Title insurance companies subject to this data call must return their submission according to the instructions no later than April 1, 2020.
 
The data call is for the calendar year ended Dec. 31, 2018. If your company has no experience to report for 2018, you must submit a "none" report. Please see the instructions for additional information on submitting a "none" report. Additionally, if your company did not issue any policies or collect any premiums but still has expense to report, fill out the report as stated in the instructions.
 
If you have questions about this data call, please contact TDI's Property and Casualty – Actuarial Division at 512.676.6687 or PCDataCallTitle@tdi.texas.gov.
 
Instructions, Forms and More »
 
 

TLTA Submits Letter to TREC Broker Lawyer Committee Regarding Revision of Termination Option Language in TREC Contract Forms

TLTA | Jan. 7, 2020
In response to concerns raised by TLTA's Regulatory Committee, TLTA submitted a letter to the Texas Real Estate Commission's (TREC) Broker Lawyer Committee regarding proposed changes to the termination option language included in TREC contract forms.
 
The letter proposes revising Paragraph 23 to remove the “Option Fee” and instead have a portion of the earnest money provide the previous function of the option fee, as is the case in many commercial transactions today.
 
Additionally, TLTA recommended a clarifying change in Paragraph 18B.
 
Read TLTA's Letter »
 

Texas Department of Savings and Mortgage Lending Publishes Proposed Revision to Payoff Statement

TLTA | Jan. 6, 2020
The Texas Department of Savings and Mortgage Lending, operating on behalf of the Finance Commission of Texas, published proposed revisions to the payoff statements used in Texas mortgage transactions. The proposed changes were developed in coordination with the Texas Department of Banking and Office of the Consumer Credit Commissioner. 

At a joint stakeholder meeting hosted by the agencies involved in September 2019, TLTA staff told the group that TLTA’s Regulatory Committee recommended the inclusion of additional information on the loan number and the original loan amount, in order to distinguish loans when multiple loans exist on the same property with the same lending institution. Unfortunately, the proposed revisions published this week do not include TLTA’s recommendations. 
 
TLTA staff will continue to engage the agencies to learn more about their approach and continue advocating for our industry’s recommended revisions.
 
If you have comments, concerns or questions, please contact us at 512.472.6593 or tlta@tlta.com.

Comments on the proposed amended form must be submitted in writing to Ernest C. Garcia, General Counsel, Department of Savings and Mortgage Lending, 2601 North Lamar Boulevard, Suite 201, Austin, Texas 78705-4294 or by email to smlinfo@sml.texas.gov no later than Feb. 1.  
 
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