August 29, 2024

In This Issue:

  • FinCEN Issues Final Rule on Reporting Requirements for Certain All-Cash Residential Real Estate Transfers
  • Basic Manual Update Series - Countdown to November 1, Installment 4: Simultaneous Issuance or Owner’s Policy and Loan Policy: R-5
  • Texas Must Build Hundreds of Thousands of Homes to Lower Housing Costs, Says Texas Comptroller
  • Compliance Reminder: TS-1 To Be Submitted by Sept. 30
  • TDI Announces Opening for Two Public Members on TTIGA Board - Applications Due Tomorrow, Friday, Aug. 30

FinCEN Issues Final Rule on Reporting Requirements for Certain All-Cash Residential Real Estate Transfers

TLTA | Aug. 28, 2024
On August 28, FinCEN issues their final rule on new reporting requirements for certain all-cash, residential real estate transactions. 

Final rule wil be effective Dec. 1, 2025.
 
TLTA members: What should you know?
These reporting and compliance requirements will have a significant impact on you and your business when handling cash transactions. You should consult with legal counsel to ensure you fully understand your obligations under this new rule.
 
TLTA will produce detailed analysis and educational programming to help guide you as you prepare for this new rule.
 
FinCEN's initial analysis of how the final rule differs from the rule proposal
"FinCEN is issuing a final rule that generally adopts the framework set out in the proposed rule but makes certain modifications and clarifications that are responsive to comments. The final rule imposes a reporting requirement on “reporting persons” that are involved in certain kinds of transfers of residential real property. In response to comments, the rule adopts a reasonable reliance standard, allowing reporting persons to, in general, reasonably rely on information obtained from other persons. FinCEN has also made other amendments in the final rule that are intended to clarify and simplify the reporting requirements, such as clarifying the definition of residential real property.
 
"Additionally, the rule excludes several additional transfers [contemplated in the rule proposal] from needing to be reported, including one designed to exempt certain transfers commonly executed for estate and tax planning purposes. FinCEN also limited the requirement to retain certain records." 
 
Review more of this summary from FinCEN and final rule in Federal Register »
 
The analysis above was produced by FinCEN. Detailed analysis from TLTA and educational materials are in development. We'll alert you when those resources are available.
 
Review Comments TLTA Submitted to FinCEN and Other Background Info »
 

Basic Manual Update Series - Countdown to November 1, Installment 4: Simultaneous Issuance or Owner’s Policy and Loan Policy: R-5

TLTA | Aug. 29, 2024
On May 14, 2024, the Texas Department of Insurance published a proposal to update, correct, and clarify rules and forms in the Basic Manual. The public comment period has passed. A final adoption order will be issued with a Nov. 1 effective date.
 
To ensure TLTA members are prepared for these upcoming Basic Manual changes, we launched a Dateline series, Basic Manual Update - Countdown to Nov. 1, to provide detailed overviews of the modifications that will be implemented in the Basic Manual starting Nov. 1.
 
This multi-part series covers revised rules and forms, helping you understand and implement changes by the November 1 effective date to ensure you and your business are in compliance with state regulations. We are grateful to TLTA Regulatory Committee Chair Roland Love for producing this series, as well as the webinar that you will find below.
 
Learn more about TLTA's role in the development of the new rules being finalized by TDI for implementation in November. 
 
Read installment 4 of this series below:
 

 
Installment 4
Simultaneous Issuance or Owner’s Policy and Loan Policy: R-5
by Roland Love, TLTA Regulatory Committee Chair
 
R-5.F could be more accurately described as the contemporaneous issuance of both an owner’s and loan policy, but the term “simultaneous” emphasizes that this rule applies specifically when issuing a loan policy together with an owner’s policy during the same transaction. In many cases, especially in large non-residential transactions, the purchase portion of the transaction is ready to close before the financing arrangements are finalized.
 
Read Installment 4 »
Read Installment 3 »
Read Installment 2 »
Read Installment 1 »

Looking for additional resources on Basic Manual changes to be implemented Nov. 1? Check out our on-demand webinar.
 
Watch our latest on-demand webinar, 2024 Basic Manual Changes, for a detailed overview of the upcoming rule and form changes presented by TLTA's Regulatory Committee Chair Roland Love.
 

 

Texas Must Build Hundreds of Thousands of Homes to Lower Housing Costs, Says Texas Comptroller

Texas Tribune | Aug. 27, 2024
If Texas wants to rein in its high housing costs, it needs more homes, Texas Comptroller Glenn Hegar’s office said Tuesday — the latest sign that the state’s high home prices and rents have become a growing concern for the state’s top officials.
 
Read More in Texas Tribune »
Review the Comptroller Housing Report »

Compliance Reminder: TS-1 To Be Submitted by Sept. 30

Texas Department of Insurance | Aug. 22, 2024
Form T-S1, Title Agent's Unencumbered Assets Certification, must be submitted annually to the Department between Sept. 1 and Sept. 30 of each year.
 
Form TS-1 »
 
Please submit your TS-1 by the deadline listed above to [email protected].
 

TDI Announces Opening for Two Public Members on TTIGA Board - Applications Due Tomorrow, Friday, Aug. 30

Texas Dept. of Insurance | Aug. 9, 2024
The Texas Department of Insurance is accepting applications for two public members of the Texas Title Insurance Guaranty Association (TTIGA) Board of Directors.
 
Applications are due tomorrow, Friday, Aug. 30, 2024. 
 
Learn more about TTIGA »
Review current TTIGA Board members »
Complete an appointment application »