Industry Check-Up and Shoutout to Chuck Kovaleski

Issues with portals, fraud attempts, and CFPB proposed rule changes

Dear Members,

At a recent ALTA meeting of large agents from across the country, I observed that the more things change, the more they seem the same (please excuse the obvious plagiarism!). This group of agents meets twice a year to discuss topics of common concern and interest. Because these folks manage large, high volume agencies, they often have a unique perspective on the challenges facing our industry. The meeting started with very familiar topics: portals, cyber fraud and politics. And as I listened, I didn't hear anything too different from what I hear from Fund Members as I travel around the State and read your emails.

First, the portals aren't working. Some have incredibly complicated registration protocols. Orders come in through the portal but then, because the portals don't work, the lender and settlement agent revert to the "old fashioned" way of communicating (email and fax) and the agent still gets charged for the opening of an order in the portal! Despite all of this, the consensus is that the lenders want to use portals and therefore we have to hang in there with the hope the issues will eventually be worked out.

Second, I was very concerned to hear of the steady increase in attempts to steal money through intercepting emails, faxes, cell phones, etc. It is clear that thieves now know settlement agents have a lot of data and money and they are targeting you with a lot of enthusiasm. I urge each and every one of you to take this very seriously. Sit down with your staff and talk about the various ways that the bad guys try (and succeed) to intercept wire instructions and redirect the funds. Come up with office procedures to ensure that you take all reasonable steps to protect the transaction from this type of criminal activity.

Otherwise, everyone is busy and is enjoying a strong real estate market.

You might wonder what is going on with the proposed rule changes CFPB announced they were going to make. I have heard nuthin’. However, Director Cordray has indicated that when the proposed rule changes are issued, they will NOT include any change to the way in which title insurance premiums are disclosed. Are you surprised? I am not. However, this does not mean that the industry should back off of our position that the rule does a huge disservice to the consumer. ALTA sent a very strongly worded letter to CFPB recently, urging them to consider certain changes. Here is a link to the letter. As soon as the rule changes are issued, I will alert you and our team will be "on it."

Lastly, I want to send a shout out to Chuck Kovaleski, who retired (almost…) on June 30. Chuck served as President of Attorneys' Title Insurance Fund, Inc. from 1985 through 2009. When the joint venture was created, Chuck transitioned to serving as our liaison with Old Republic and served on the Board of Governors for Attorneys’ Title Fund Services, LLC. Chuck shared some thoughts and observations with Members at this year’s Fund Assembly. Although he has retired from Old Republic, he will continue to serve on the Board of Governors for the joint venture and we will continue to benefit from his leadership and perspective! Best wishes to Chuck in his retirement.

As always, thank you for your support of The Fund.

Best Regards,

Melissa Jay Murphy
Senior Vice President and
General Counsel