Dept.of Financial Services (DFS)
The New York State Department of Financial Services was created by transferring the functions of the New York State Banking Department and the New York State Insurance Department into a new department. This transfer of functions became official on October 3, 2011.
The stated mission of the DFS is, “To reform the regulation of financial services in New York to keep pace with the rapid and dynamic evolution of these industries, to guard against financial crises and to protect consumers and markets from fraud.”
New York State Department of Financial Services main office is located at One State Street, New York, NY 10004-1511.
The DFS maintains offices in Albany, Buffalo, Mineola and Syracuse.
The website address is http://www.dfs.ny.gov .
The NYSLTA provides information and resources concerning the DFS regulation of the title insurance industry.
These resources have been moved to a secure site, for the benefit and use of Association Members.
The secure web page is located at: https://nyslta.site-ym.com/?page=DFS
DFS Opinion Letters
With recent news that the CFPB has filed a RESPA enforcement action, and Title Insurance Agent Licensing, it’s easy to forget that the DFS (f/k/a the Insurance Department) has already given Title Insurance Agents fairly clear answers on many issues regarding the Title Insurance business.
Set forth below are links to opinions that clearly state the Departments position on many issues, including but not limited to Insurance Law Section 6409(d) violations, joint venture arrangements, and coercing the use of a particular title insurance provider.
All the included Opinions are currently posted on the DFS website, and are currently considered to be in full force and effect. All title insurance professionals are encouraged to read or re-read these opinions so if you see these behaviors recurring, you can knowledgably inform consumers, colleagues and possibly the NYSLTA or DFS about them.
Reduction in legal fees by Attorney Agents
Joint Venture requirement of multiple sources of business
RESPA conflict and Banking Law
Joint venture requirements
Lender commissions for TI referrals
Charitable donations an inducement
Settlement cost reductions as an inducement
Reduced bank attorney fees as an inducement
Real Estate Broker Referral to Affiliate Title Agent