The Executive Committee meeting scheduled for February 12th has been cancelled due to a forecast of harsh weather and bad road conditions.

The February and March EC meetings will be combined and held on February 26th.

Please see the CALENDAR for details - https://nyslta.site-ym.com/events/event_list.asp

If you registered for the Feb 12th meeting, you will have to re register.

EXECUTIVE COMMITTEE MEETING
New York State Land Title Association
Benchmark Title Agency
222 Bloomingdale Road, White Plains NY
December 11, 2018


AGENDA
1.    Call to order – President Stancanelli
2.    President’s Greeting – President Stancanelli
3.    Approval of November Minutes - Executive Director Treuber
4.    Exec Director Report – Executive Director Treuber
5.    Treasurer Report – Mr. Frates
6.    Guest Speaker – Ms. Nagy, Executive Director TIRSA
7.    Legislative Advocacy Report – President Stancanelli
8.    Title Section Report – Chair Keyse
9.    Agent Section Report – Chair Giliotti
10.    Charitable works Committee – Chair Roper
11.    New Business
12.    Adjourn

The recent decision by Judge Rakower and the ensuing developments have been overwhelming to understand at times.  Much of this complexity was explained at the two Town Hall meetings but of course every member was not able to attend those sessions.

Therefore, we are providing you with a brief summary of the status of the litigation below.  I will do my best to keep this simple and concise.

•     We brought our suit in the NY State Supreme Court in New York County.
•     The case was assigned to Judge Rakower and pleadings were filed by our attorneys.
•     The Attorney General’s (AG) office representing the DFS replied to our pleadings and we responded.
•     A hearing was held before Judge Rakower on  June 14, 2018.
•     Judge Rakower rendered a decision on July 5th.
•     The decision effectively nullified Regulation 208 in its entirety.
•     The AG filed a notice of appeal on July 6th.
•     The AG immediately notified our attorneys of their intention to seek an emergency stay of the judge’s decision. An emergency stay, If granted , would postpone the judge’s ruling of annulling the regulation and “reimpose” the Regulation 208 until the case was heard on appeal in the Appellate Division).
•     The AG later informed our counsel that they would NOT be seeking an emergency stay.
•     Both the AG and NYSLTA must file additional pleadings with the Appellate Division prior to the next court appearance.

The earliest this matter could come before the Appellate judges is October. Given the congestion of the court’s schedule, it could slip to late October or later.  Until then, the regulation 208 is annulled.   All other regulations pertaining to the title industry remain in effect.

 We will continue to keep you advised.

To NYSLTA Members –

As you may have seen in the New York Times, The NY Law Journal, Crain’s NY and The Real Deal, on July 5, 2018, Judge Eileen Rakower in New York County Supreme Court ruled in favor of the NYSLTA, Venture Title and Great American Title Agency by declaring NYDFS Regulation 208 annulled in its entirety.

The following day, the DFS filed an appeal with the Appellate Division.

The judge’s ruling and the DFS appeal can be viewed online, here: https://bit.ly/2KO7u8T

There is a natural exuberance at our victory in Supreme Court and a sense of vindication. These emotions are to be enjoyed but tempered with an understanding of the “big picture” and the realization that this matter is not yet settled.

First, act professionally.
When this is all behind us, there will still be a DFS and we will still be a regulated industry. Heed the advice of Ron Burgundy and “stay classy”. This is not a time for grandstanding and chest-thumping.

Second, be mindful of everything we have learned about DFS in this process.
We can assume greater scrutiny, an expanded market conduct investigation and efforts to provide evidence for the DFS claims of deceptive practices. Don’t give your adversary the rope she will use to hang you.

The “safe harbor” is to operate one’s business conservatively.  Are your disclosures in order? Are you fully in compliance with Regulation 206? Does your cybersecurity program meet all requirements of the regulation?

Third, silence is golden.
Resist the lure of a request for comment from a reporter “on a tight deadline”. If you have seen some of the news stories, you can see how innocuous statements can appear disparaging to the entire industry.

As we learn more about the implications of the DFS appeal, more information will be forthcoming to Members. Town Halls are being planned for Westchester and Long Island. Details to follow.

The Underwriters and the Agent Members have funded a significant victory for the title industry. A handful of people have dedicated hundreds of hours to prosecuting this case for the benefit of everyone.

Thank you for your support.

Thank you for being the New York State Land Title Association.