A few days ago, the Department of Financial Services filed regulations 206 and 208 with the Department of State.  The regulations will be published in the October 18 issue of the State Register. 

These are final regulations and there is no comment period.

Regulation 206 becomes effective October 18, 2017 upon publication. Regulation 208 takes effect 60 days after publication on October 18, 2017.

In the two days since the regulations were filed, I have seen supposedly "bootleg" versions of the final regulations. These document are in wide circulation and they are NOT the final regs.

At best you may be seeing the proposed regs issued in May. Furthermore, I have no way of knowing if other supposed regulation documents are altered as a prank or spoof.

NYSLTA is seeking advance copies so we may advise and enable Members to be in compliance on October 18. Common sense says we need to see the regualtoin to be able to follow it.

I find it inconceivable how a business can be in compliance instantaneously. 

There is no guarantee we can secure copies pf the final regulations before October 18 but if we can, we will advise the Members accordingly.

Until then, be smart and stay focused on your business.

The cybersecurity regulation has the first of many interim deadlines arriving on Aug. 28, 2017.

We have posted a file called the "Cybersecurity Limited Exemption Timeline" (access restricted to signed-in members only).

If you need help with the regulation, please contact the consultants listed on our cybersecurity compliance page. These firms have agreed to provide discounted services to NYSLTA Members.

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EXECUTIVE COMMITTEE MEETING
New York State Land Title Association
First Nationwide Title Agency
50 Charles Lindbergh Boulevard
Uniondale, NY 11553
June 13, 2017
10:30 AM


AGENDA
1.    Call to order – President Collins
2.    President’s Greeting – President Collins
3.    Approval of May Minutes - Executive Director Treuber
4.    Exec Director Report – Executive Director Treuber
5.    Nomination of Officers for the 2017-2018 Membership Year – Executive Director Treuber
a.    The Executive Committee will take nominations for President-elect and Treasurer
6.    Treasurer Report – Ms. Pereyo
7.    Title Section Report – Chair Bagwell
8.    Agent Section Report – Chair Giliotti
9.    Government Regulations Committee Report – President Collins
a.    Update on the progress of the response to proposed regulations
b.    Time frame to completion
c.    War gaming/scenario planning for outcomes
d.    Options for Litigation – Legislation
e.    Next steps – phone vote, July EC meeting
10.    Adjourn

A Message to NYSLTA Members and all NY State Title Insurance Professionals

Two weeks ago, the NYS Department of Financial Services (DFS) introduced two new proposed regulations covering our industry.

This letter is a report on what your Association has done to date and our planned next steps.

We are analyzing the regulations for their impact on the title industry and the real estate marketplace.

We have created an action plan and a time line for our response.

The proposed regulations would affect almost every aspect of the business of title insurance, from when you first market to a client to when you close a file and remit the premium

    Requires underwriters to take an immediate 5% rate reduction on all polices or instead restate their data for the preceding six years

    Limits charges for ancillary services

    Prohibits all marketing and advertising activities including, but not limited to CLE’s, sporting events, meals and even giving away a ballpoint pen

    Eases regulation of joint ventures and controlled businesses, much less strictly than RESPA

    Changes significantly the compensation of closers, including elimination of “pick-ups” and gratuities

    Changes the closing process and the accounting/remitting processes in both Zone1 and Zone2

We strongly encourage you to click on the links below and thoroughly read the regulations for yourself.

The Officers, the Executive Committee, the Government Regulations Committee, Association Staff, our lobbyists and our communication firm are focused on the challenges posed by the regulations.

We have until June 19 to submit comments to the DFS. We recommend that you study the regulations and determine how they will affect your business.

There is an important role for the Members and your voices are needed to accomplish our goals.

We are developing ways for you to express your opinions so as to have the most impact. Stay in contact with the Association and spread the word to your staff, your clients and other real estate professionals.

By misunderstanding how the title insurance industry operates, the DFS has proposed regulations that will not serve the consumer but will impede the real estate marketplace and inflict irreplaceable damage to the livelihood of thousands of people.

A very great deal is at stake here.

The DFS Secure Portal is now accepting the filing of Notice of Limited Exemption, as cited in § 500.19 of 23 NYCRR 500.

Here is a link to the Portal - https://myportal.dfs.ny.gov/web/cybersecurity/

COMPLIANCE TIMELINE

FOR COVERED ENTITIES WHO MEET THE LIMITED EXEMPTION REQUIREMENTS (§ 500.22)

March 1, 2017 - Effective Date of Regulations

August 28, 2017 - Transitional Period ends – compliance requirement begins for most provisions of the regulation (§500.22)

February 15, 2018 - Notice of exception must be  filed with the DFS (and each year thereafter on 2/15) (§500.17)

March 1, 2018 – Risk Assessment to be completed (§ 500.09)

August 30, 2018 – Policy must be in place for periodic disposal of NPI (§ 500.13)

March 1, 2019 - Develop a Third Party Service Provider Security Policy (§500.11)