Oct. 26, 2022

In This Issue:

BREAKING NEWS: FinCEN Expands GTO to Include Harris, Montgomery and Webb Counties, Renews Order for Dallas, Tarrant and Bexar Counties
TDI Quarterly Audit Results Published
Upcoming TDI Compliance Deadlines for Agents and Underwriters
VA Updates Lenders Handbook to Include Insured Attorney Opinion Letters as Alternative Title Product
Early Voting for General Election Underway Through Nov. 4
Institute Early Bird Rate Expires This Tuesday, Nov. 1 - Register Now to Save Money on this Must-Attend Educational and Networking Event

BREAKING NEWS: FinCEN Expands GTO to Include Harris, Montgomery and Webb Counties, Renews Order for Dallas, Tarrant and Bexar Counties

U.S. Dept. of Treasury | Oct. 27, 2022
The Financial Crimes Enforcement Network (FinCEN) today announced the renewal and expansion of its Geographic Targeting Orders (GTOs) that require U.S. title insurance companies to identify the natural persons behind shell companies used in non-financed purchases of residential real estate.

FinCEN expanded the geographic coverage of the GTOs to Harris, Montgomery and Webb counties, as well as renewing the GTOs that cover Dallas, Tarrant, Bexar counties and other major U.S. metropolitan areas.

The terms of this order for purchases of properties within the Texas counties of Harris,
Montgomery, or Webb, are effective beginning November 25, 2022, and ending on April 24, 2023. The terms of this order for purchases in all other counties covered by this order are effective beginning October 27, 2022, and ending on April 24, 2023.

Read FinCEN's Press Release »
Review GTO »
FAQs Regarding GTOs »

TDI Quarterly Audit Results Published

TLTA | Oct. 26, 2022
The following is a summary of recent TDI audits, violations and enforcement actions from June 2022 through Aug. 2022. Read TDI's complete summary of operations for the quarter, or review key statistics below.

Compliance Audits: TDI's goal is to comprehensively audit agencies at least once every two years. This quarter, TDI conducted 66 audits.

Commissioner Orders: This quarter, TDI signed no Commissioner Orders. As of this report, 9 cases remain active and under investigation.

Compliance Audit Results: Below are TDI's most common audit findings for the quarter that ended in May 2022. The numbers below represent how many agencies had an infraction, not the number of times the infraction occurred:

Number of Agencies

Category

Description

Guaranty Files

Form T-S1 not submitted as required or agency failed to meet Min. Cap. requirement.

Abstract Plant

Section 2702.053 - Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed

Procedural Rules

P-73: Failure to prepare/maintain Form T-64 (TD) when CD used, or Form T64 was not signed by all parties. Prepared incorrectly.

Minimum Escrow Accounting Procedures & Internal Controls

#16 - Every disbursement not supported by invoice or sufficient other evidence.

Minimum Escrow Accounting Procedures & Internal Controls

P-21: Schedule D of commitment not in file or premium split not disclosed on commitment.

Review Complete Quarterly Audit Report »

Upcoming TDI Compliance Deadlines for Agents and Underwriters

TLTA| Oct. 26, 2022

AGENTS

Form TS-5 (Title Agent Certification of Agent's Quarterly Tax Reports) Due by Nov. 15

Form TS-5 must be submitted to TDI on a quarterly basis. Submit form for current quarter by Nov. 15 to T[email protected].

Agent Data Call Due Nov. 7

The Texas Department of Insurance issued its call for agent statistical data to each agency in Texas in accordance with Texas Insurance Code §2703.153, which requires each title insurance company and title insurance agent engaged in the business of title insurance in Texas to annually submit certain data to TDI. TDI uses this data to set title insurance premium rates.

Agent Data Call for 2021
Report File and Affidavit are due Nov. 7, 2022
Reporting period Jan. 1, 2021 - Dec. 31, 2021

Review TDI Commissioner's Bulletin Announcing the Call and Providing Instructions »

UNDERWRITERS

Meeting on Maintenance Tax and Exam Assessments Next Wednesday, Nov. 2

The Texas Department of Insurance will have a stakeholder meeting on projected rates for insurance maintenance taxes and exam assessments at 11:00 a.m., Central time, November 2, 2022, via Zoom.

Learn more »
Register for the meeting »

Underwriter Data Call Due Dec. 5

The Texas Department of Insurance (TDI) issued this mandatory data call under Insurance Code Section 2703.153, which requires title insurance underwriting companies to submit data to TDI annually. TDI uses this data to set title insurance premium rates, as required by Insurance Code Section 2703.151. This data call requests income, expense, and policy data from calendar year 2021.

Underwriter Data Call for 2021
Report File and Affidavit are due Dec. 5, 2022
Reporting period Jan. 1, 2021 - Dec. 31, 2021

Review TDI Commissioner's Bulletin Announcing the Call and Providing Instructions »

VA Updates Lenders Handbook to Include Insured Attorney Opinion Letters as Alternative Title Product

TLTA | Oct. 26, 2022
The U.S. Veterans Administration recently updated their lenders handbook with reference to insured attorney opinion letters in the section that provides guidance on title insurance.

Review the VA's Updated Lenders Handbook »

TLTA Editor's Note: The discussion of the use of alternative title products continues at the federal and state level and TLTA is actively engaged in those discussions. As reported in previous editions of Dateline, the GSEs have issued updated selling guides with a revised stance on use of insured attorney opinion letters in lieu of title insurance.

ALTA has created a page dedicated to this issue. It includes, among other things, this one-pager that outlines ALTA concerns about the risk to consumers, as well as this letter to FHFA.

Learn more below:

Fannie Mae Issues Selling Guide Update Regarding Use of Attorney Title Opinion Letters. Tracks Changes Freddie Mac Made in 2020.

FHFA Announces Intent to Establish a Federal Advisory Committee on Affordable, Equitable, and Sustainable Housing

Fannie Mae's Report: Barriers to Entry – Closing Costs for First-Time and Low-Income Homebuyers

Early Voting for General Election Underway Through Nov. 4

TLTA | Oct. 26, 2022
Early voting for the upcoming General Election (i.e., midterm election) is underway and runs through Nov. 4. Election Day is Nov. 8.

All U.S. representatives, state senators, and state representatives are up for election after the redrawing of political districts last year based on the 2020 census.

As always, if you would like to discuss any of the candidates on your ballot or the impact of this election on our industry, please contact TLTA's Government Affairs Director, Aaron Day.

Early Voting: Oct. 24 - Nov. 4
General Election: Nov. 8

Who's on the ballot, where to vote and more »

Voter turnout in Texas is the among the lowest in the nation, so please make a plan to vote early, and be sure to remind your family, friends, neighbors and coworkers that voting is one of our nation's most cherished liberties.

Institute Early Bird Rate Expires This Tuesday, Nov. 1

Designed for real estate and title attorneys, advanced closers and examiners, owners and managers, and anyone seeking advanced education on legal topics, the annual Texas Land Title Institute brings top title professionals to the beautiful Hyatt Regency Hill Country Resort for world-class training and networking.

You won't want to miss this opportunity to learn the latest, network with the best in the business, and earn valuable CE from the most talented and experienced minds our industry has to offer!

Review the full Institute schedule

Register Now to Take Advantage of Institute Early Bird Rate

Book your hotel room

Looking for more educational tools? Check out TLTA's collection of more than 80 on-demand webinars and videos!