January 22, 2020

In This Issue:

  • TLTA Submits Comments in Response to CFPB's Study of TILA-RESPA TRID Rule
  • TLTA Requests Payoff Statement Revisions in Letter to Texas Department of Savings and Mortgage Lending
  • CFPB Planning to Eliminate DTI Requirement from QM Lending Rules
  • Joint Statement on Heightened Cybersecurity Risk Issued by Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency
  • Texas House Speaker Bonnen Names Appointees to Texas Privacy Protection Advisory Council
  • Property Records Industry Association Offers Special Title Industry Registration Rates for Winter Symposium in Austin, Feb. 24-27

TLTA Submits Comments in Response to CFPB's Study of TILA-RESPA TRID Rule

TLTA | Jan. 20, 2020
In response to the Consumer Financial Protection Bureau (CFPB) invitation to submit public comment on a planned assessment of Integrated Mortgage Disclosures Under the Real Estate Settlement Procedures Act (Regulation X) and the Truth In Lending Act (Regulation Z)—or TRID rule—TLTA submitted comments to CFPB on our industry's behalf Jan. 20.
 
CFPB's regulation of TRID and the resulting disclosure form directly impacts thousands of Texas consumers every day. TLTA’s comment letter highlights the fact that consumer confusion is resulting from the required misrepresentation of the title charges in the TRID disclosure.
 
The existing disclosure form requires title charges to be incorrectly described when the Seller pays for the closing costs on behalf of the Buyer in the residential transaction.  When both the Owner’s and Loan title insurance products are purchased simultaneously, the current TRID disclosure form does not allow for proper disclosure of how the Seller typically pays for these policies, and as a result, the actual costs to the buyer. 
 
The Texas Department of Insurance has adopted the "Texas Disclosure" form to address the problem, and the Texas title insurance industry has invested heavily in the various steps necessary to comply with and successfully implement the TRID disclosure. Although bills have progressed in Congress to correct this issue, relief has yet to be provided for the Texas consumer.
 
Our letter emphasizes that TLTA does not believe a significant revision of the TRID disclosure is necessary. But, TLTA believes the CFPB's assessment is a great opportunity for the CFPB to obtain data on a problem that was created by the new forms under TRID.
 
Read TLTA's Letter to CFPB »
Read ALTA's Letter to CFPB »
 

TLTA Requests Payoff Statement Revisions in Letter to Texas Department of Savings and Mortgage Lending

TLTA | Jan. 20, 2020
The Texas Department of Savings and Mortgage Lending (TDSML), operating on behalf of the Finance Commission of Texas, recently 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. 
 
TLTA seeks 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.
 
Shortly after the TDSML published a proposed form in the Texas Register seeking comments, TLTA submitted comments to TDSML reasserting our industry's desire to see a place for this information on the form. 
 
Read TLTA's Letter »
 

CFPB Planning to Eliminate DTI Requirement from QM Lending Rules

HousingWire | Jan. 21, 2020
Over the last several months, a number of the nation’s largest lenders and housing trade groups have called on the Consumer Financial Protection Bureau to make changes to the Ability to Repay/Qualified Mortgage rule.
 
More specifically, Bank of America, Quicken Loans, Wells Fargo, Caliber Home Loans, along with the Mortgage Bankers Association, the American Bankers Association, the National Fair Housing Alliance, and others asked the CFPB to do away with the QM rule’s debt-to-income ratio requirement.
 
And now, it looks like they’re going to get their wish.
 
In a letter sent last week to several prominent members of Congress, CFPB Director Kathy Kraninger said the bureau has decided to propose an amendment to the QM Rule that would “move away” from DTI as a factor in mortgage underwriting.
 
Specifically, Kraninger said the CFPB has decided to shift from the DTI standard and move to an “alternative, such as a pricing threshold (i.e., the difference between the loan’s annual percentage rate and the average prime offer rate for a comparable transaction).”
 
According to Kraninger, the proposed alternative would be “intended to better ensure that responsible, affordable mortgage credit remains available to consumers.”
 
The Ability to Repay/Qualified Mortgage rule was enacted by the CFPB after the financial crisis and requires lenders to verify a borrower’s ability to repay the mortgage before lending them money.
 
This includes a review of a borrower’s debts and assets to ensure they have the ability to repay the loan, with a stipulation that their DTI ratio does not exceed 43%.
 
But, Fannie Mae and Freddie Mac are not bound to this requirement, a condition known as the QM Patch. Under the QM Patch, loans sold to Fannie or Freddie are allowed to exceed to the 43% DTI ratio.
 
Read More »
 

Joint Statement on Heightened Cybersecurity Risk Issued by Federal Deposit Insurance Corporation, Office of the Comptroller of the Currency

FDIC and OCC | Jan. 16, 2020
The Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency are issuing this statement to remind supervised financial institutions of sound cybersecurity risk management principles. These principles elaborate on standards articulated in the Interagency Guidelines Establishing Information Security Standards as well as resources provided by the Federal Financial Institutions Examination Council (FFIEC) members, such as the FFIEC Statement on Destructive Malware. When financial institutions apply these principles and risk mitigation techniques, they reduce the risk of a cyber attack’s success and minimize the negative impacts of a disruptive and destructive cyber attack. While preventive controls are important, financial institution management should be prepared for a worst-case scenario and maintain sufficient business continuity planning processes for the rapid recovery, resumption, and maintenance of the institution’s operations.
 
Read the Joint Statement on Heightened Cybersecurity from FDIC, OCC »
Additional Information and Tools Are Available Among TLTA's Cyber Fraud Resources »
 

Texas House Speaker Names Appointees to Texas Privacy Protection Advisory Council

TLTA | Jan. 17, 2020
In 2019, the 86th Texas Legislature 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 Speaker of the House announced the House's appointments late last week:
  • Rep. Gio Capriglione, Co-Chair
  • Rep. Rafael Anchia
  • Rep. Matt Shaheen
  • Audra Sawicki of Austin
  • Dusty Hoffpauir of Austin
As previously reported in Dateline, Governor Abbott and Lt. Governor Patrick appointed the following people to serve on the Council:
 
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
HB 4390, the legislation that created the Council, also requires Texas businesses to provide notice within 60 days if they experience an online data breach or other unauthorized access of customer's personal information. Learn more »
 
If you have comments, concerns or questions, please contact us at 512.472.6593 or tlta@tlta.com.
 

Property Records Industry Association Offers Special Title Industry Registration Rates for Winter Symposium in Austin, Feb. 24-27

PRIA | Jan. 21, 2020
The Property Records Industry Association (PRIA), which develops and promotes national standards and best practices for the property records industry, will host its Winter Symposium in Austin Feb. 24-27.
 
PRIA is inviting title industry professionals to register at a discounted rate that matches PRIA's early bird registration rate for members. 
 
PRIA's 2020 Winter Symposium
February 24-27
Special Rate for Title Industry Professionals
Renaissance Austin
9721 Arboretum Blvd, Austin, TX 78759
 
Learn More About the Special Rate for Title Industry Professionals »
Register »

 

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