Reminders, Resources and Important Updates

A lot to mention this week. Updated CFPB FAQs and Title Insurance Fact Sheet. Support for RON closings. ATIDS is as up to date as possible!​

Dear Members,

A lot to mention this week.  Let's start with this week's Title Now PopUp Webinar.  We will be talking about force majeure clauses in various types of contracts related to real estate.  This is a topic many of you have asked about so here is your chance to hear some discussion about how to view these situations.  My guests will be Manny Faruch and Mike Hargett, two Fund Members with a lot of experience in real property litigation issues.  Thursday, June 25.  Noon.  FREE!  Here is a link to register.

Updated CFPB FAQs and Title Insurance Fact Sheet.  Don't get excited.  CFPB has updated their FAQs and has issued a new Title Insurance Fact Sheet but there has been NO CHANGE in the way in which TRID requires title insurance premiums to be disclosed.  ALTA continues to work on this issue but there is little hope of a change.  The new FAQs include a change in two areas.  Providing Closing Disclosures to Consumers covers the situation where separate CDs are provided to the seller and borrower.  The FAQ confirms the two-page seller CD need only contain information applicable to the seller’s transaction.  Even so, the borrower’s five-page CD must include all information, even seller-paid costs. The Optional Signature Line FAQ concerns situations where the lender wants the borrower to sign the “acknowledge receipt” line on a loan estimate or CD.  Under those circumstances the lender must provide two copies of the form so that one can be signed and returned, and the other kept by the consumer.

While the new Factsheet reaffirms the CFPB’s position on disclosing the title insurance costs using a formula which produces results contrary to state law, it also includes a couple of interesting items.  It first references an “enhanced” owner’s policy several times which may confuse some members who are unaware the ALTA forms version of the enhanced policy is not approved for use in Florida. 

Second, is the example it provides for disclosing the seller credit when seller is obligated to pay the premium for the owner’s policy.  The CD may either reflect an apportionment of the loan policy cost to make up the difference; or be disclosed in the Summaries of Transactions as either a portion of the sum of all seller credits or as a stand-alone seller credit.  Of course, this is a lender decision for which the member may wish to provide a suggestion.

Finally, the Factsheet explains in another example how to disclose an Owner’s policy cost as a negative number in situations where the cost of the loan policy by itself could be more than the combined costs of both policies when simultaneous rating is required.  Such could be the case in Florida when the owner’s policy qualifies for our reissue rate.  Following this guidance will make the numbers work on the CD but a seller credit would still need to be provided in a “seller pays” situation.

Here's a link to both the updated FAQs and the Fact Sheet

Support for RON closings. If you need to get documents signed via Remote Online Notarization, we have a group of Members that are willing to help guide you through the process and handle the remote notarization for you.  This is our Fund Member Remote Online Notary list and it lives on our Vendor Marketplace.  Here is a link to the list for quick reference. Please reach out to any of these folks for help but they have not agreed to do this free of charge.  You will need to work out a fee arrangement with them.  It is a great way for you to get familiar with the process.

ATIDS is as up to date as possible!  We were behind in posting documents to ATIDS as a result of the pandemic.  Clerks were behind in sending data to us.  We got behind as a result of moving our staff to working remotely.  But we are now as caught up as we can be, based on what the counties send us.  Most counties are within 30 days.  Kudos to our Title Plant staff that handles this for us!  Please use ATIDS as much as possible for your updates; it's probably faster and you control the timing of getting your update.

That's all for this week.  Next week I will begin reporting on bills that have been signed into law by Governor DeSantis. In the meantime, stay safe!  Let us know how we can help you.

Melissa Jay Murphy
Executive Vice President, Chief Legal Officer,
General Counsel and Secretary