Commissioner Issues Order on Withdrawn and Disapproved Agenda Items
This week TDI Commissioner Eleanor Kitzman issued an order addressing certain aspects of the recent title insurance rule hearing, which you can read here. It is important to note that this order only addresses agenda items that were withdrawn and disapproved by the Commissioner. This order does not address the items that will be adopted and we expect to receive that notice in the near future.
A couple of items in particular in the list of withdrawn and disapproved agenda items are important to note.
First of all, TLTA is pleased to report that although the Commissioner took up for consideration the potential repeal or modification of P-53, she determined that TDI would not repeal or modify P-53 as a result of the February 28, 2012, hearing. TLTA’s P-53 Task Force will meet in the very near future to determine ways in which we can work with TDI and OPIC to address issues of concern regarding this important rule.
Significantly, the Commissioner also disapproved a proposed amendment to P-35 that could have allowed settlement agents to sign short sale affidavits that go beyond the coverage in the promulgated forms. The order specifically states that, "Requiring title agents to execute short sale affidavits violates P-35 as written. Short sale affidavits seek assurances beyond the expected scope of the title agents' knowledge." This is much welcomed clarity offered by the Commissioner, which unequivocally states that the short sale affidavits requested by loan companies in accordance with Freddie Mac guidelines are not allowed in Texas as they are a violation of procedural rule P-35.
We encourage you to read the full order and stay tuned for a report in the near future on the items from the hearing that the Commissioner will propose for adoption.