Bill of the Week & More

Hello Members!

It's Legislative Session time.  I learned today (February 28, 2025) that over 1500 bills have been filed pre-session. That's a lot of bills to look through and make sure there aren't any surprises!

Several things to point out today.

FinCEN/CFPB Confusion. I've heard from our Sales team that several of you may be a little confused about the distinction between FinCEN and CFPB and which agency is being reduced or perhaps eliminated in the reorganization process going on in the federal government. I hope I can shed some light. FinCEN is part of the Department of Treasury. There has been no talk of doing away with FinCEN.  There has been minimal talk of “paring back” the anti-money laundering rule that goes into effect on December 1, 2025, but that’s all. CFPB is definitely being pared back, but it still exists, and the Senate is in the process of confirming a new director. CFPB is the agency that enforces RESPA and TRID. It is not clear what will remain within CFPB's jurisdiction. RESPA?  TRID?  HUD is still around with a newly confirmed director.  HUD used to be the agency that enforced RESPA, so maybe HUD would get RESPA and TRID back. Hope this helps.

Home Equity Investment Agreements. This is a new thing. Investment companies are offering these to homeowners. A lump sum of cash is provided to homeowners in return for a percentage of the home's future appreciation in value. These shared equity agreements are secured by a recorded lien, which impacts title and insurability. There is no requirement for monthly payments or interest, but there is a "shared" interest in the future equity of the property. They vary in structure and repayment terms are often complex. They "come due" in 20 or 30 years. You may come across these in commitments or if clients ask you to review them. I don't have much more information about them but would be interested in learning more! Please reach out to me if you are familiar with these arrangements.

More New Things. Several of my friends in FLTA have come across a situation recently in which the real estate agent has obtained an advance against their commission from a company, sort of like a "payday advance." The company that made the advance has asked the title agent to sign an agreement obligating the title agent handling a closing (in which the real estate agent is involved) to pay any amounts due to the real estate agent directly to the company. Wondering if any of you have encountered this situation? In this tight market, it's a real possibility.

Bill of the Week. HB 805 - “Access to Fair and Transparent Real Estate Listings Act”

This proposed legislation acknowledges that the consequences of the NAR Settlement potentially include a reduction in exposure of a listed property due to the limitations on a buyer’s access to information on properties for sale through the MLS, which might reduce the number of offers on a listed property to the seller’s disadvantage. The bill provides that brokers must share “information” on any listed property within 1 calendar day after its listing and market the property for sale on a publication, platform, or website that is broadly accessible to the general public. The bill includes an opt-out provision for the seller. As you can imagine, a large marketing platform that rhymes with “willow” might have an interest in legislating around the new NAR Settlement restrictions that otherwise prevent brokers from sharing broker compensation information in the MLS. Here's a link to the bill. https://www.thefund.com/member/general-counsel-blog/hb-805.pdf

That's all for this week!

Let me know how we can help you.

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