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An open letter by Jim Hunter - Independent Closer

Posted By ADMIN for: Jim Hunter, Monday, November 20, 2017
Updated: Monday, November 20, 2017

 

Friends:

 

I have been watching this email chain grow.  There have certainly been some useful insights.  With new people paying attention, some for the first time, there has also been a lot of “rediscovery” of things others have looked at before.  Some of the commentary has been uncomfortable to see, knowing DFS, companies & NYSLTA are seeing it.  However, I think it has provided a representation of the state of closers as we approach next month.  Anxiety.  Frustration.  Fear.

 

We can all agree, we are facing difficult and challenging times.  DFS has precipitated a looming disaster and we have all been left to try and survive it.  Companies and closers, alike.   If there is any chance for ALL of us to weather this storm it will require ALL of us to bring to bear our very best efforts and ideas.   NYSLTA, underwriters, company owners and their employees, as well as closers are all facing this challenge.  Our problems are different and there are no ideal solutions arising that will fully satisfy everyone.  This regrettable fact has fed anxiety, eroded trust and hampered our universal need to find workable solutions.   There will be a title insurance industry after December 18.   We need to keep that in mind as we all aspire to remain part of it.  We must find ways to work together.

 

I have spoken to most of the companies for which I close.   This is an existential threat to small companies and the industry is struggling to find workable solutions under the regulations as they are now written.   I get no sense the companies I have spoken to have any interest in preventing closers from being able to make a living.  Many companies are trying to figure out how they will survive, themselves.   This is why I have been exploring solutions that would allow companies and closers to survive.

 

Until we are presented by companies with the policies and procedures they intend to proceed under beginning December 18, I believe it is premature to consider drastic action.   There are likely to be companies that, after sincere and difficult effort will present policies and procedures under which I (or we) may choose to close under.  I do not think it is prudent or responsible (to ourselves, those who depend upon us financially or to the industry in which we participate) to forego exploring any and all solutions to this crisis before undertaking a refusal to work.   The consequences of such an action are numerous and serious.   I have not seen any thoughtful discussion of these consequences and I believe such a discussion would be necessary before such action is undertaken.   I think our industry deserves that.

 

I am glad to see numerous closers have chosen to join NYSLTA.   As I have said before, our best opportunities to help shape industry policies that affect closers is to have a seat at the table.  However, if we wish to participate we must do so responsibly.   We must do our best to understand those issues which concern us, so as to make substantive contributions to the process of addressing them.  We must expect that of ourselves if we wish to be taken seriously addressing the issues we take seriously.   There are advantages to being members of NYSLTA.  Those who choose not to join NYSLTA choose not to afford themselves of them.   Those of us who join have undertaken a duty to participate responsibly.

 

I too, have chosen to contribute to the NYSLTA legal defense fund.  I have no reservations that the Association action will benefit closers.   I recognize we are not the only people adversely affected by the regulations and the ensuing action will challenge the regulations on numerous fronts and in a variety of ways.   I want to do my part.   I hope more closers join us.

 

These are my personal opinions.  I offer them as my contribution to the discussion.  I do so after serious reflection.   I intend to continue to work toward solutions that will allow us all to continue to make a living in this industry because I expect we will find ourselves operating under these frightful regulations come December 18.   I endeavor to make every word and effort count.  

 

Respectfully,

 

Jim Hunter

Independent Title Closer

Member, NYSLTA

 

 

Tags:  Closers  DFS  Reg 208  Regulations 

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DFS regulates title companies use of Closers

Posted By Robert Treuber, Monday, October 23, 2017
Updated: Monday, October 23, 2017

There are many rumors regarding how Closers are affected by the existing TIRSA manual and the new regulations. 

 

While we are still in the process of interpreting the regulations, there are three things we are confident we can say.

  1. Attendance fees continue to be prohibited - see below*
  2. Gratuities to Closers prohibited for residential and commercial closings as of Dec. 18, 2017.
  3. As of Dec. 18, 2017 pick up fees are permitted for independent title Closers, provided they are reasonable and they are disclosed to seller/seller's attorney at least three days prior to closing. 

The NYSLTA Government Regulations Committee is working on a detailed memo.

 


* Attendance fees are prohibited under the TIRSA rate manual. 

 

Attendance at a closing is included in the title premium unless:  

  • closing is in excess of 2 hours, OR
  • if the closing goes beyond normal business hours, or
  • additional attendances are needed, OR
  • travel arrangements and distance warrant.

 

These are the only circumstances when an attendance fee is permitted (pursuant to Part 1, Section 1 (f)) – text below:

 

The Company may impose additional work charges in especially difficult titles. Extra charges may
be made at or after the receipt of the application for examination of title which may involve
additional tax lots, multiple chains of title, land under water, land in bed of streets, rights-of-way,
driveways, easements, strips and gores, foreclosures, proceedings under federal bankruptcy or
state insolvency related statutes, or which involve other unusual difficulties, or for unusual
expenditures for travel, or for recording instruments, telephone, telegraph or delivery charges.
The Company may impose additional charges for closing attendance in excess of two hours and
for any closings extending beyond normal business hours and where additional attendances are
necessary or travel arrangements and distance warrant.

 

Furthermore – this is a quote from the DFS in their response to industry comments:

 

Because having someone represent the title insurance corporation at the closing is an essential component of issuing the policy, an “attendance fee” for the closer is included in the rate manual as a fee that is encompassed by the premium”

Tags:  Closers  DFS  Reg 206  Reg 208  TIRSA 

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Oct EC Meeting Notes

Posted By Robert Treuber, Friday, October 20, 2017
Updated: Friday, October 20, 2017

 

Folks who called in to the conference line for Wednesday’s EC meeting encountered a 90+ minutes interruption due technical issues. NYSLTA appreciates the fast response and assistance from the tech staff at our host First American.

 

This report is not the official minutes of the meeting. It is a recap of the discussion about the new DFS regulations.

 

Call to order at 10:32 AM

 

President Rich Estrella:

 

Welcomes attendees and thanks everyone for joining today’s meeting

 

The regulations are the primary focus of today’s meeting. And the following are some of the issues we should be aware of and may be discussing

 

What do the regs say?

When and how will they be adopted?

Will NYSLTA be able to meet with DFS to discuss the Regulations?

How shall we respond to the DFS press release announcing the Regulations?

What impact will the State Comptroller’s audit of DFS have?

What assistance and support can we expect to receive from the Legislators?

How do the Underwriters plan to respond?

Is litigation an option? What will it cost and what are the odds of success?

What are the consequences of litigation?

 

The Officers, the Government Regulation Committee, the PR Committee, our lobbyist and our communications consultants have been meeting to look at all aspects of the regulations.  We are in the process of gathering information. 

 

We have 60 days before Regulation 208 takes effect. So let’s not act on impulse and understand the consequences of our decisions.

 

 Title Section Report – President Estrella

 

Noted that the Title Section spoke a few days earlier to discuss a press release and the need for the Underwriters to seek direction from their corporate offices as to the direction they should proceed.

 

Government Regulations Committee (Chair- Jean Partridge; Vice Chair-Judy Lanahan):

NOTE – The GR Committee is developing a bulletin comparing emergency reg 206 and the newly published reg 206. It will be issued in a few days, after thorough review by all members of the committee. The following comments are non-comprehensive highlights offered during the meeting.

 

Regulation 206

 

As of today, October 18, regulation 206 is in effect. There are a number of differences from the emergency regulation 206, which we have been operating under for three years.  The GR Committee is going to issue a memo comparing the two versions.

 

DFS now says the common practice of a clearance account or exchange account is acceptable and permissible. The prohibition on co-mingling of funds stands.

 

The DFS does not believe agents “remit” to the UW. The DFS believe the agents portion of the premium is a commission.

 

Affiliated businesses and joint ventures are required to provide all core title services as a distinct business entity. The requirement of “multiple and significant” source of business is removed. The attorney exemption is retained.  Affiliated businesses and joint ventures must compete for clients in the open marketplace.

 

The agent and/or Underwriter liability for Closer actions was reiterated.

 

Regulation 208

 

The DFS’s stated purpose of the regulation is to “protect the consumer and the public welfare. The Department claims agent expenses cause the premium rate to be needlessly excessive.

 

Special attention should be given to the definitions section 228.1.

 

Applicant is defined as the fee insured or owner or purchasers of the property. The real estate attorney is not the applicant.

 

Escrow is only a fee collateral to pay a lien. Agents may charge $50 per escrow. They may be unbundled.  An escrow is not a disbursement or down payment.

 

Residential real property is a 1-4 unit dwelling, coop or condo. Vacant land, hotel, motel and mixed use property is not deemed residential.

 

Section 228.2 has major changes. It contains a listing of permissible and prohibited expenditures for marketing and entertainment. Reference to section 6409d, wherein anything of value is deemed an inducement, including instance where there is no quid pro quo.

 

Comment was made here about bills entered into the legislature in the 2017 session by Sen. Seward and Assembly member Cahill, S6704 and A8467, which clarifies the legislature’s intent in 6409d and counters the DFS re-interpretation.

 

Part 228.2 (b) is the list of prohibited activities, part (c) is the permitted activities. The Association is seeking clarification from DFS on several items which are confusing and inconsistent.

 

Section 228.3 requires a re-statement of data for the previous six years, excluding expensed newly defined as prohibited, for th purpose of rate calculation.  In lieu, the Underwriter may reduce premium rates 5% across the board. This must be completed by June 2018.

 

A number of comments at this time questioned TIRSA’s role. Ms. Shapiro of AmTrust, formerly Executive Director of TISA, explained per statute rates must be based on statistical analysis of data. Furthermore, title agent expenses are not a factor in the rate calculation.

 

Section 228.5 seeks to bring charges for ancillary services under DFS control. The limits apply only to residential properties.  It was clarified that “200%” means a cost to applicant of twice the original expense, not an incremental charge of 200% in addition to the original expense.

 

Problems in the text of the regulation were noted in reference to certain municipals charged directly by the government body or not meeting the definition of a search or a recording.

 

This section also cites restrictions on compensation to Closers. The collection of a payoff or pick-up fee must be disclosed to the applicant three days in advance by the agent and appear on the invoice.  Pick-up fees must be reasonable and consistent.

 

Gratuities to Closers are prohibited and they may not accept payment from the applicant either directly or indirectly.

 

Title Section Report – President Estrella

 

Noted the Title Section had met a few days earlier and agreed they needed to seek direction from corporate as soon as possible.

 

Agent Section Report – Chair Giliotti

 

Characterized the regulations in disparaging terms. He urged the Members to use the 60 days before 208 is in effect to “figure this out” and noted 208 contradicts itself and contradicts the TIRSA rate manual.

 

Rhetorically queried the attendees on options: meet with DFS and seek changes; pursue Senate and Assembly Insurance Committees to hold hearings; seek legislation; litigate; file TRO; article 78 proceeding.

 

Speculated one-third of Closers and one-third of agents could be put out of business.

 

Sentiment of the Agent Section is to support Underwriters against DFS.

 

Comments from Scott Wexler, NYSLTA Lobbyist:

 

Noted that he has identified Deputy Superintendent Cassandra Lentchner as “go to” person for follow-up questions and clarifications. Also, he is pursuing the DFS issued “Full Assessment of Public Comments.

 

Public relations and Advocacy – Noted any news stories that come out following the DFS news release are not significant to the legislative process. Strategic messages that shape the public perception of the NYSLTA are helpful.

 

A meeting with Superintend Vullo can be accomplished but the value of the meeting depends on what the goal of the meeting is. It is possible to be professional and aggressive without being nasty.

 

The Seward/Cahill bills address 6409d only. A senate hearing can be a useful tactic by putting pressure on DFS, give them less wiggle room and to set the stage for legislation.  If NYSLTA had a legislative solution, we would have good (not great) support.

 

The value of litigation is as a tactic that supports a legislative solution.

 

Communications consultant Rich Bamberger

He stressed the short-term issue of responding to the DFS regs versus the long term solution of shifting the perception of the title industry in New York.

 

Next steps

 

NYSLTA is going to organize Town Hall meetings in early November for Members.

“Explainer” bulletins will be issued by the Government Regulations Committee

Options for litigation will be explored pending responses from the underwriters.

 

 

 

Tags:  DFS  EC  Executive Committee  Reg 206  Reg 208 

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October 2017 Executive Committee Agenda

Posted By Robert Treuber, Tuesday, October 17, 2017
Updated: Tuesday, October 17, 2017


EXECUTIVE COMMITTEE MEETING

New York State Land Title Association
First American Title Insurance Company
666 Third Avenue
New York NY 10017
October 18, 2017
10:30 AM


AGENDA

Call to order – President Estrella
President’s Greeting – President Estrella
Approval of September Minutes - Executive Director Treuber
Exec Director Report – Executive Director Treuber
Approval of the 2018 Budget - Executive Director Treuber
Treasurer’s Report – Ms. Pereyo
Discussion of DFS regulations 206 & 208 – President Estrella
     Government Regulations - Chair Partridge
     Section Chairs Keyse & Giliotti

Committee Reports
New Business
Adjourn

The eleven voting members of the Agents and Abstracters Section will be:
Richard Giliotti  

Bill Collins    

Jean Partridge    

Mark D’Addona
DeAnna Stancanelli    

Paul Spano    

Tommy Tafuri    

Susan Donofrio
Terence Guerriere    

Vince Danzi    

Sarah LaBar    

The next Executive Committee Meeting will be held at 10:30 am on November 14, 2017 at First Nationwide Title Agency, 50 Charles Lindbergh Blvd. Uniondale, NY 11553.

Tags:  DFS  EC  Executive Committee  Reg 206  Reg 208  Regulations 

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Final regs posted by DFS

Posted By Robert Treuber, Friday, October 13, 2017

The Department of Financial Services has posted the final regulations on their web site at:

http://www.dfs.ny.gov/insurance/r_finala/rfinal17.htm

 

These regulations are also in the Government Regulations File Library on this site.

 

Regulation 206 takes effect on October 18; regulation 208 takes effect on December 18.

 

The NYSLTA Government Regulations Committee is studying the regulations and will present a preliminary report next week.  Simultaneously, the corporate counsel at the Underwriters are preparing their assessment and guidance for their agents.

 

This Association is also exploring Town Hall type meetings in a few weeks time to assist with the understanding and adaptation to the new regulatory environment.

 

 

Tags:  DFS  EC  Reg 206  Reg 208  Regulations 

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DFS files regulations 206 & 208

Posted By Robert Treuber, Friday, October 6, 2017
Updated: Friday, October 6, 2017

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.

 

 

 

 

Tags:  DFS  Reg 206  Reg 208 

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Cybersecurity Reg Limited Exemption Timeline

Posted By Robert Treuber, Wednesday, August 9, 2017

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.

 


Hey, why not subscribe to this newsblog and get an email notification whenever a new item is posted?

Here's how   Guide - How to Subscribe to News and Reports.

 

 

.

Tags:  Consumer protection  cyber  cybersecurity  data security  DFS  technology 

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Formal Comments on DFS' Proposed Regulations

Posted By Robert Treuber, Monday, June 19, 2017
Updated: Monday, June 19, 2017

On Monday, June 16, 2017 the NYSLTA submitted formal comments to the NY Department of Financial Services via email.

 

The letters are attached to this blog post.

 

The content of the letters was approved by the Executive Committee.

 

The effort to product these comment letters was a led by the Government Regulations Committee with support from the Officers.

 

 

Download File (PDF)

 Attached Files:

Tags:  DFS  EC  Executive Committee  Reg 206  Reg 208  Regulations 

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June Executive Committee Meeting Agenda

Posted By Robert Treuber, Monday, June 12, 2017
Updated: Monday, June 12, 2017

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

Tags:  DFS  EC  Executive Committee  Regulations 

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1 of these 3 may change how you make a living

Posted By Robert Treuber, Tuesday, May 23, 2017
Updated: Tuesday, May 23, 2017

[This is a revised version of a broadly distributed email sent on May 22, 2017]

 

 

Will you stand?

Will you speak?

Will you act?

The proposed DFS regulations have the potential to turn the title industry upside down.  But together, we can do something about it.

Scroll down to see what the NYSLTA is doing to provide you with the tools and opportunities that will keep the people and companies in the title insurance business a vital part of the real estate finance economy in New York State.

Ring the alarm. Put out the fire.

It is not enough to complain and bring grievances to light. No one knows title insurance better than we do and every time we talk about the problems in these regulations, we will be asked, "What do you want to do about it?"

A vigorous discussion is going on the title industry and the Association is working on releasing a statement that meets the needs of underwriters, agents, abstractrers, attorneys, closers and consumers.

Get off your seat.

We are asking our Members to take the lead and we invite all title professionals to join us in taking action.

First - Sign up for lobby day.  The linked page will explain about meeting in your legislators' local office, how we will schedule the meeting for you and prepare you with Talking Points.  This is super important.

And if are not a member of the Title Action Network (TAN) you should sign up today.

Next - If you can possibly make it, attend the Town Hall meeting on Long Island at 10 AM on June 7. This event is free to everyone but we ask that you pre-register.  We are also planning a live webcast Town Hall later in June.

Best - Attend the annul meeting and convention in Syracuse August 20-23. We have more that unites us than opposition to wrong-headed regulations.  Meet with your peers, build your network and learn how to make your business stronger.

Tags:  Convention  DFS  lobbying  Long Island  Reg 206  Reg 208  Regulations  Town Hall 

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The New York State Land Title Association, Inc. advances the common interests of all those engaged in the business of abstracting, examining, insuring titles, and otherwise facilitating real estate transactions. The Association promotes the business and general welfare of its Members and protects real property title holders’ ownership rights.