August 19, 2020
In This Issue:
- TLTA Submits Results of Closing Disclosure Survey to CFPB
- Sullivan to Step Down as Insurance Commissioner
- TREC Proposes New Contract Form Language; Proposal Includes Termination Option Language Recommended by TLTA
- Consumer Financial Protection Bureau Proposes New Category of Qualified Mortgages to Encourage Innovation and Access to Affordable Mortgage Credit
TLTA Submits Results of Closing Disclosure Survey to CFPB
Texas Land Title Association | Aug. 18, 2020
Recently, TLTA representatives had a phone call with staff from the Consumer Financial Protection Bureau (CFPB) to share our ongoing concerns with the way title insurance rates are required to be disclosed on the Closing Disclosure (CD) when there is a simultaneous issue rate involved. CFPB staff were very interested in the confusion this can cause for consumers, as well as extra work it creates for title agents, who have to explain and help complete a separate form to properly disclose. CFPB staff asked us to supply them with data to help guide their consideration of our concerns. In response, we sent a survey to TLTA members via Dateline, and we are pleased to report that approx. 125 respondents provided thoughtful, helpful answers to that survey – thank you to all who responded.
TLTA submitted those survey results to CFPB today, along with additional documentation to help explain why the CD should be changed, including a transcript from the Texas Department of Insurance referencing the disclosure document Texas promulgated to address CD concerns.
Read the Cover Letter for Our CFPB Submission »
Review a Summary of the Survey Responses »
Review the Complete Survey Responses »
Read the TDI Transcript Submitted Along With Survey Results »
Sullivan to Step Down as Insurance Commissioner
Texas Department of Insurance | Aug. 18, 2020
Kent Sullivan has notified Governor Abbott that he will resign as Texas Insurance Commissioner in September to return to the private sector. Sullivan became head of the Texas Department of Insurance (TDI) in October 2017 and has led a major modernization effort in his three years at the agency.
“Texas is grateful to Kent Sullivan for his leadership at the Texas Department of Insurance,” Governor Abbott said. “Under his tenure, TDI was responsible for protecting insurance consumers in the aftermath of Hurricane Harvey—the largest natural disaster in Texas history. The Lone Star State is better today because of Kent’s service, and I wish him well as he returns to private practice.”
“Governor Abbott asked me to lead this agency shortly after Hurricane Harvey ravaged the Texas coast, and I was happy to help out in a challenging time,” Sullivan said. “TDI staff are sincerely committed to protecting consumers, and I’m proud of the work we’ve done to help them do their jobs more effectively.”
The agency has reduced its reliance on paper, streamlined rule development, and increased automation, training, and technical support in its call center operations. It made a seamless transition to remote work in response to the COVID-19 pandemic, and it just implemented an artificial intelligence project that holds the promise of transforming state policy reviews.
Read More »
TREC Proposes New Contract Form Language; Proposal Includes Termination Option Language Recommended by TLTA
TLTA | Aug. 15, 2020
In response to concerns raised by TLTA's Regulatory Committee in 2019, 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.
During TREC's meeting on Aug. 10, 2020, the commission voted to submit new language for comment replacing the Broker-Lawyer Committee's previously proposed changes to the termination option. The new language proposed at TREC's August meeting maintains the previous proposal’s payment of the earnest money and termination option fee to the escrow agent, as recommended by TLTA.
The earliest these changes could be adopted would be at TREC's meeting in November.
Read a Recap of TREC's August Meeting »
Consumer Financial Protection Bureau Proposes New Category of Qualified Mortgages to Encourage Innovation and Access to Affordable Mortgage Credit
CFPB | Aug. 18, 2020
The Consumer Financial Protection Bureau (Bureau) issued today a notice of proposed rulemaking
(NPRM) to create a new category of seasoned qualified mortgages (Seasoned QMs) in order to encourage innovation and help ensure access to responsible, affordable mortgage credit in the mortgage credit market.
This announcement follows two NPRMs from June of this year regarding QMs
. The first NPRM proposes to amend the General QM definition in Regulation Z to replace the DTI limit with a price-based approach. Through a recent speech and otherwise, Director Kraninger has emphasized the importance of receiving public comment from stakeholders in response to this NPRM, especially on possible standards to help the Bureau identify verification safe harbors for inclusion in final rules. The second NPRM proposes to amend Regulation Z to extend a temporary QM definition known as the Government-Sponsored Enterprise Patch to expire upon the effective date of the final rule proposed in the first NPRM.
Read More »
Read the New NPRM Issued Aug. 18 »
TLTA's professional education department is pleased to offer these upcoming, live webinars:
(Thursday, Aug. 27, 1:30 p.m. - Intermediate)
FIRPTA for Escrow Officers
(Tuesday, Sept. 1, 10:30 a.m. - Intermediate)
And don't forget, our library of more than 80 On-Demand webinars and videos
covers the title industry topics you need to earn continuing education hours and stay ahead of the curve on the latest industry trends!
Check out these new additions to our on-demand video library, which were recorded during the 2020 Virtual Annual Conference and Business Meeting: