Fund Assembly Recap and the Challenges that Lie Ahead

The 52nd Assembly held last week was really something! There was so much energy between the presentations, the Expo and the networking. It was a wonderful experience to see old friends and make new ones. I look forward to reviewing the feedback from those that attended on what they liked, didn't like and their suggestions for improvement. We may never satisfy everyone, but we will always try to improve!

Here is the summary of the issues I addressed in my remarks:

1. TRID continues to be the focus of much discussion. Future challenges will include the portals (will they ever work?), updated software to provide more flexibility, MISMO and those scary new loan closing instructions. Both ALTA and FLTA are working on raising the visibility of new provisions in loan closing instructions to aim towards a resolution that is supportive of our industry. Speaking of this, FLTA is conducting a survey of its members to get some information about loan closing instructions. Fund members have been invited to participate. If you are interested in helping out, here is a link to the survey.

2. Best Practices/3rd Party Certification: Now that we have gotten past the first few months under TRID, I think this is going to become a priority for many lenders. The Fund wants you to have the tools to understand the issue, understand the different products that are out there and be able to evaluate what is best for your office. You will begin to see more information from us over the summer on this issue.

3. CFPB Enforcement Philosophy: I have a strong concern (as do others) that CFPB's interpretation of RESPA Section 8 will be very different from existing precedents under HUD. This may call into question business practices that until now were acceptable under RESPA. There is a suit pending before the U.S. Court of Appeals for the District of Columbia that could end up being quite significant - the plaintiff is challenging CFPB's interpretation of RESPA, but, more significantly, is arguing that CFPB is unconstitutional because its structure violates the separation of powers doctrine. A decision for this suit is expected by the end of the summer.

4. Turning to Florida, we have the new unlawful inducement rule, which is already in amendment mode to address costs advanced by title agents prior to closing. This discussion began because of an issue associated with the advancement of fees for estoppel certificates but has morphed into a discussion of all types of costs advanced by title agents/attorneys prior to closing. One workshop has been held. Some of us in the industry are concerned that the Department of Financial Services might be reaching beyond their statutory authority to regulate in this area because it has no authority to regulate closing services fees. Stay tuned - at this point we are waiting on DFS to tell us what the next move will be.

5. We have a new insurance commissioner, David Altmaier. Mr. Altmaier is currently a Deputy Commissioner with oversight of property and casualty insurance in the Office of Insurance Regulation. At this point, I do not have any knowledge of his perspective or philosophy about title insurance. It is obvious that the industry needs to learn more about Mr. Altmaier, reach out to him when he is officially in his new position and build a relationship with him and his staff.

6. Data Call and Rate Review: Two years of data from insurers and licensed agents is in and we are in the initial stages of reviewing the data and determining our best strategy. It is possible that OIR will propose new rates based on their analysis of the data. If so, a series of workshops and public hearings will be held to argue the merits of the proposed rates. When/if OIR proceeds with a final rule there will likely be challenges. Ultimately, the Florida legislature will have to ratify any rule changes (up or down), and I don't expect this to be until the legislative session in 2018. Nevertheless, this is a very critical issue that you must all be aware of because we may be in the fight of our business lives over rate revision.

7. If the data call and rate review aren't enough to convince you of the importance of advocacy in Tallahassee, I don't know what is. It is imperative that we get the opportunity to talk with legislators about this issue. To do this, we have to support them financially in their election campaigns this summer and into fall before the November election. It is imperative that each of you do what you can to support our political committee, Title Insurance Through Lawyers (TITL). Every contribution is valuable. The folks that attended Assembly were convinced and many of them made a contribution. I would really like to hear from every member who has not yet contributed. You can make a contribution via credit card or get instructions for check contributions here. Please help TITL be your voice in Tallahassee.

Governor Scott has declared the week of May 15 - 21, 2016 as Paralegal Week. What a wonderful way to spotlight your staff that help you out so much! Here is a link to his proclamation.

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

Best Regards,

Melissa Jay Murphy
Senior Vice President and
General Counsel