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.

Article 78 Litigation – Key Dates

Originally filed on February 20^th, our litigation to oppose DFS regulation 208 is reaching a critical juncture.

On April 13^th the Attorney General’s Office, as attorney for DFS, filed their response to our petition.

At this time, our legal counsel Gibson Dunn Crutcher is preparing our reply to the DFS.  The reply document will consist of only two dozen pages. It will be filed on May 1^st with the Supreme Court of New York, county of New York.

The judge, Hon. Eileen A. Rakower, will hear oral arguments on May 8^th.

What happens next is not certain.

Judge Rakower may issue her ruling from the bench on May 8^th or she may decide to issue a written decision at a later date of her choosing.

The Officers have been working closely with our legal counsel to inform their filing with technical information about the title industry and the history of our relationship with the DFS and the Insurance Department.

While this matter makes its way through the court, the Association continues to lobby our legislators for support of bills which will correct many of the problems created by the DFS and their regulation 208.

Whatever the outcome of the litigation, the title industry needs to pass the Seward-Cahill bill (S6704/A8467) and the Golden-Abbate bill (S7901/A10207) to establish limits on the DFS and to protect homebuyers.

All title professionals, Members and non-members, are urged to attend Lobby Day in Albany on May 15th and to respond to the Title Action Network Alerts.

(If you want more background on this, look at the previous Newsblog item titled “The Long Game”, posted on April 12, 2018)