November 24, 2020

In This Issue:

  • TLTA Advocacy Update
  • ICYMI: Update on 2020 Court Decisions for Cases in Which TLTA Filed Amicus Letters
  • Mnuchin Decision Cuts Fed Lending Power, but Sources Say Emergency Programs Can Be Revived
  • What Is FIRPTA, and Why You Need to Understand It

TLTA Advocacy Update

TLTA | Nov. 23, 2020

Sen. Kelly Hancock addresses TLTA Board of Directors during board's quarterly meeting

During TLTA's Quarterly Board meeting Nov. 17, Sen. Kelly Hancock, Chairman of the Texas Senate's Business and Commerce Committee, addressed the board, sharing his insights on the upcoming legislative session and his thoughts on protecting small businesses during the pandemic.
Chairman Hancock said legislators are working on a plan for the upcoming 87th Session that balances the practical realities of governing with protecting the safety of legislators, staff and guests. He also talked about the need to keep our economy going safely, including the importance of providing certainty for small businesses under the challenging conditions created by the pandemic. 

TLTAPAC giving, virtual meetings with Texas legislators continue

The 87th Session of the Texas Legislature begins in January, and the lines of communication with the legislators who oversee our regulated industry are wide open.
TLTAPAC giving continues, and we have until Dec. 12 to execute our association's giving strategy prior to the state's moratorium on political contributions during a legislative session, which includes the 30 days prior to the session's start Jan 12. 
We had several more virtual meetings this week with state lawmakers and TLTA members who serve as Local Legislative Liaisons (LLLs). We are grateful for the opportunity to continue making these crucial connections with legislators, which are strengthened by the participation of LLLs and other TLTA members. While public health restrictions will hinder our industry's traditional Day at the Capitol activities this year, the virtual Zoom meeting model we've developed this year will be an important part of our legislative communications strategy this session.
If you are not an LLL but would like to be a part of a Zoom call with your state legislators, please contact Aaron Day

ICYMI: Update on 2020 Court Decisions for Cases in Which TLTA Filed Amicus Letters

Leslie Johnson, TLTA Judiciary Committee Chair | Nov. 17, 2020
2020 has been a busy year for the title industry, and the same is true for TLTA’s Judiciary Committee . As we approach the end of the year, the Committee would like to highlight the 2020 court decisions from cases in which the committee filed amicus letters.
Read Leslie Johnson's Article With Clickable Links for Court Decisions »
TLTA's Judiciary Committee, which is chaired by Leslie Johnson, is responsible for recommending to our board of directors TLTA's position on court decisions that could affect the defense of title companies and title agents. Review the library of Amicus Letters filed by TLTA on the industry's behalf.

Mnuchin Decision Cuts Fed Lending Power, but Sources Say Emergency Programs Can Be Revived

CNBC | Nov. 20, 2020
Treasury Secretary Steve Mnuchin’s decision to allow several of the Fed’s emergency lending programs to expire on Dec. 31 will dramatically reduce the central bank’s ability to backstop the financial system.

But people familiar with the situation say the Fed will still have considerable lending power in the event of a shock to the system.

Mnuchin announced Thursday he will not extend the Fed’s programs that used Congress’ CARES Act funds. Created in response to the financial panic that accompanied the lockdowns in the spring, those programs gave the Fed the ability to lend up to $4.5 trillion into various financial markets. Mnuchin argued it was the intent of Congress for the funds to expire.

The Fed, in an unusual statement, made public its disagreement with Mnuchin’s decision, saying, “The Federal Reserve would prefer that the full suite of emergency facilities established during the coronavirus pandemic continue to serve their important role as a backstop for our still-strained and vulnerable economy.”

What Is FIRPTA, and Why You Need To Understand It

Texas Realtors | Nov. 1, 2020
FIRPTA imposes a tax on capital gains derived by foreign people from the disposition of U.S. real property interests. Withholding of the funds is required at the time of sale, and the payment must be remitted to the IRS within 20 days following closing.

The job of making sure the IRS gets its money within 20 days falls to the buyer in most cases. The title company normally facilitates this function, but this does not imply the buyer has escaped the obligation to act as withholding agent.

Read More »
TLTA Editor's Note: Want to learn more about FIRPTA? Check out TLTA's on-demand webinar, FIRPTA for Escrow Officers »

In addition to the live webinars listed below, you have access to our library of more than 80 On-Demand webinars and videos  covering the title industry topics you need to earn continuing education credits and stay ahead of the curve on the latest industry trends!