AgentQ&ARecapRegulations206&208UpdateWebinar

(November21,2017)

MARKETING_________________________________________ClarifywhattheDFSconsidersdeminimusasfarasadvertisingandgiveexamples

DFShasnotissuedanyguidanceonthisasoftoday.Useyourdiscretion,andbepreparedtojustifythevalueofitemsgiven.

Dotheentertainmentandmarketingregsonlyapplytotitleagentsordotheyapplytootherlicensedentities?Inthatcase,arewespeakingwithotherlicensedagentsandseewhattheythinkofthenewregs?

Regulation208appliesonlytotitleinsuranceagentsandunderwriters.

Asalespersonhasbeenaskedtosponsoranevent.Therequestcamefromareal-estatebrokernottiedintothecharity.IsthatOK?

Possibly.Thisfallsunder228.2(c)(6).Paymentmustbemadebynegotiableinstrument(acheck),directlytothecharityinthenameofthetitleagentorunderwriter.Lookingbackatthepreambleofpart(c)itcannotbeconditionedonthereferralofbusiness,orevenwiththeexpectationoffuturereferrals.Thecostcannotbelavishorexcessive.Useyourdiscretion.

Let’ssayatitleinsuranceunderwriterisgoingtobuyafoursomeinagolfoutingthatanagentisaffiliatedwith.Isthatokay?

Section228.2(b)prohibitsprovidingticketsorpayingforoutings,suchasgolfoutings.

WhataboutgiftsforholidaysthathavebeenpurchasedbackinSeptember,canwedistributebeforeDecember18th?

Thisisacceptable,butyoumustconsidertheintentoftheregulation.TicketsorgiftsthatwillbeusedafterDecember18thwillprobablybeviewedasaviolationof228.2evenifyoudeliverthembeforethe18th.Youmustuseyourdiscretionandbepreparedtojustifyanygiftsandthetimingthereof.

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Ifatitleattorneygoestoalawfirmtolectureaboutatitlerelatedlegaltopic(andsupplieswrittenmaterialsand/oraPowerPoint)andthelawfirmserveslunchandappliesforandreceivesCLEcreditforitsownlawfirmattendees(andthetitleagentpresenters),wouldthisbeprohibitedbysection228.2?

Per228.2(c)(4),itwouldhavetobeopentothegenerallegalcommunity.

Whatifanattorneywantstoholdaclosinginourclosingroom?Dowehavetochargethem?

Ifyouarenotinsuringthetransactionyoushouldchargethemforuseofthepremises,pursuantto228.2(b)(7).

Under“providingnon-titleservicesatareducedrate”isthereadefinitionofwhat“titleservices”mustinclude?Itisnotdefinedintheregulation.WhatifyouNEVERchargeanyoneforsomethingsuchasabankruptcysearch?

Ifitisanitemthatisgenerallychargedforinthemarketplacebyothercompanies,furnishingitforfreecouldbeconsideredaninducement,evenifyoufurnishittoeveryoneforfree.Useyourdiscretionandbepreparedtojustifyyourposition.

Whataboutlunchesordinnersforlongstandingclientsforbirthdays,etc.?

Mealsandbeveragesareprohibitedunlessspecificallyauthorizedunder228.2(c)

WehavesentaChristmasarrangementtoourclientsforthepast20years.Thecostisgenerally$50-$70.Isthiswithintheacceptablerange?

Giftsareprohibitedunder228.2(b)(3).Under228.2(c)(2),advertisingorpromotionalitemshavetobeofdeminimusvalueandincludeapermanentlyaffixedlogoofthetitlecompanytobedistributedbyagentsorinsurers.

Iftheagentisalsolicensedinotherstatesthatdonotprohibitentertainment,canyouentertainanationalclientinNYS,presumablyundertheiroutofstatelicense?

Useyourdiscretionorseekindependentlegaladviceonthissubject.

Weboughtseasonticketsforteamsthatplayin2018.Whatwillwedowiththem?

Sections228.2(b)(2)&(3)prohibitinsurersandagentsfromprovidingapplicantsortheirrepresentativesticketstosportingeventsandgiftsasofDecember18,2017.

IfyoudoinfrequentNYbusiness(5%)withaclientwithofficesoutofNYS,butasmallNYofficeservicedbytheagent’sorunderwriter’soutofNYSoffice,canyouentertain?

Useyourdiscretionorseekindependentlegaladviceonthissubject.

Whataboutoutofstateagentscomingintoentertainclients?

IftheyarenotlicensedinNY,theyarenotsubjecttoNYregulations.

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RATES______________________________________________Whenwillthe5%ratereductiongointoeffect?

ItwillbenoearlierthanJune18.Ifthereis,itwillbeacrosstheboard,residentialandcommercial,Zone1andZone2.

Section228.3-WeneedtosubmitannuallytotheDFSstatisticalagentasupplementalexpensescheduleandthenaffirminwritingwithin120daysthattheexpenditureisinaccordancewithInsuranceLawarticle23?Butthenitsaysin2thatwedon’tneedtodothis?

Pursuantto228.3(a)(1),eachyearwhenyousubmitinformationfortheannualdatacallyouwillhavetoaffirminwritingthattheinformationyousubmitteddoesnotincludeanyprohibitedexpenses.Pursuantto228.3(a)(2),youwillalsohavetosubmitasupplementalexpenseschedulethatincludesthelistedexpenses

Willthenextdatacallrequesthaveinstructionsonreportingaccordingtothenewguidelinesfordatacall?

TIRSAworkswiththeDFSontheformatandcategoriesofexpensesonthedatacalleachyear.Presumablythenextdatacallwillincludethereportingrequirementsincompliancewiththenewregulations.

ANCILLARYCHARGES__________________________________Whichregulationsapplysolelytoresidential?

Section228.5(a)istheonlypartofRegulation208thatislimitedtotransactionsinvolvingresidentialproperty.AllotherpartsofSection228.5andtheremainderofRegulation208applytobothresidentialandcommercialtransactions.

Woulditbecost+200%orjust200%ofcost?

DFSindicatedthatitisjust200%,notcost+200%.

Whenitstateswecanmarkupthemunicipals200%pleaseconfirmthatthisdoesNOTincludecountyfee,suchasCofOorpermitcopies.Aretheyjustapass-through?

Youcancharge200%oftheoutofpocketcost.“Outofpocketcost”isdefinedastheactualcostchargedbyanon-affiliatedthirdparty,excludingcostschargeddirectlybyamunicipalitytoconductasearch.

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Canwecharge200%overouractualcost,nomatterwhodoesthesearch,beitthemunicipalityoraservicesuchasSuperiororMunicipalData?

Thisfallsunder228.5(a)(4)coveringasearchthatisconductedandbilledbythemunicipality.Youcanonlycharge100%ofthefairmarketvaluechargedbyanon-affiliatedthirdpartyplusthechargebythemunicipality.

Canwealsoaddontheactualcost?Forexample,asearchchargefromthetownis$500,dowecharge200%of$500plusthe$500?Orifaservicedoesthesearchandourtotalchargesare$500whichincludestheirfeesaswellaswhattheypaidthetown,dowecharge200%pluswhatevertheyhavebilledus?

Thetotalchargecanonlybe200%.

Who/whatwouldbeconsideredanon-affiliatedthirdparty?

Anaffiliatedthirdpartyisdefinedasanentitythatcontrols,iscontrolledby,orisundercommoncontrolwithatitleinsurancecorporationortitleinsuranceagent.Anon-affiliatedthirdpartyissomeonewhoisnotanyofthose.

Canwenowchargeafeeforlocatingasurvey?

ItisnotprohibitedbyRegulation208,butitwouldhavetobereasonable,chargedtolikeinsuredsanddisclosedproperly,pursuanttoSection228.5(b)and(c).

CanIchargeextraforcertifiedcopies?OnsomefilesmyclientwillneedaCertifiedCopyofaMortgageforCEMApurposes.

Certifiedcopiesarenotnormallyrequiredfortheissuanceoftitleinsurancesoyoucanchargeareasonable,andconsistentfeeforthempursuanttoSection228.5(b)and(c).

CanIchargeforextracopiesofdocumentsthatIhavetoorder?Forexample,Ihadtoordercopiesofneighboringdeedsforafiletheotherdaybecausethesellerhadanoutofpossessionissueandhehadtogetboundarylineagreementsfromhisneighborsandhealsoneededthedescriptionsfromtheirdeeds.

Useyourdiscretion.Chargesforfeesnotspecifiedin228.5(a)mustbereasonable.

Sincewearenowconsidered“Fiduciaries”canwechargeanescrowfeefortransfertaxandmortgagetax?

No,thisisanormalrequirementoftheclosing.

Isthe$50escrowfeeperitem?

Section228.5(a)(8)indicates“$50perescrow”

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Whenweaskourexaminersforsurrogatesearches(differentcounty)orwhenwerequestthemtogetaduplicatetaxlienreleaseforanoldtaxlien,whatfeecanwechargeabovetheirservicefee?200%?

Useyourdiscretion.Thefeechargedhastobereasonable.

Pickupfeedisclosure–Isitacceptabletosendwiththetitlereportoratleast3daysprior(isit3daysor3businessdays?)

Section228.5(d)(2)saysnoticemustbeprovidedatleast3daysinadvanceofclosing.

Dotheancillaryfeeprohibitionsapplyto“courtesy”searchesandrecordingoronlytochargesforsearchesandrecordingsdoneinconjunctionwithaninsuredtransaction?

Section228.5(a)appliestofeeschargedinconnectionwitharesidentialrealpropertyclosing.Closingisdefinedin228.1(e)asaneventatwhichaninterestinrealpropertyiscreatedortransferred…,whichisthesubjectofatitleinsurancepolicy.

Likewise,wealsohandlenon-insureddeedsinlieuwherethelenderwantsareportprepared,municipalsandsometimesadeedandotherdocumentsrecorded,buttheydonotrequireinsurance.Again,asthesetransactionsarenotinsured,wearenotboundbythefeessetforthinregulation208?

Section228.5(a)appliestofeeschargedinconnectionwitharesidentialrealpropertyclosing.Closingisdefinedin228.1(e)asaneventatwhichaninterestinrealpropertyiscreatedortransferred…,whichisthesubjectofatitleinsurancepolicy.

Whenweinsureadeedinlieuintothelenderorareferee’sdeedintoHUD,areweboundbythefeessetforthbyregulation208eventhoughtheapplicantwouldnotbeaconsumerbutaninstitutionallender?

Section228.5(a)appliesto“residentialrealpropertyclosing.”ThedefinitionofresidentialrealpropertyinSection228.1(n)doesnotincludearequirementthattheapplicantbeaconsumer.

AdepartmentalsearchfromAISreads:MunicipalFee:$5.00AISfee$15.00TOTAL$20.00.WhatisthemaximumandminimumIcanchargeonmytitlebill?

Youcanchargenomorethan200%oftheoutofpocketcostpaidforthesearch.“Outofpocketcost”isdefinedas“theactualcostchargedbyanon-affiliatedthirdparty,excludingcostschargeddirectlybyamunicipalitytoconductasearch.”Inthiscase,the$5.00chargeappearstobethecostpaidtothemunicipalityforthesearch.The“outofpocket”costisthe$15.00charge.Youcanchargeupto$35.00.

Pleaseexplaintheconceptof“outofpocketexpense”undertheregs.

Seetheexampleabove.

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IfataclosingthetitlecompanycollectstopaytheGeneralandSchoolTaxandseparatelyaVillageTax,howmuchcanbecollectedfortwopayments?

Youcanonlycharge$50perescrow.Inthisexample,youaretakinganescrowfortwodifferenttaxes,soyoucanchargethe$50feeforeachone.

InsomecountiessuchasNassauandSuffolktherearelargeblock/lotcheckfees.Areagentsbeingaskedtoeatthese?

Thesearemunicipalcharges.Youcanbilltheappropriatepartyforthem.

Iftheexaminerchargesanadditionalfeebecauseofthecomplexityofthesearchcanweaddanabstractorextraworkchargetothebill?Canthatchargebemarkedup200%similartothebank/patcharges?

Section1(F)oftheTIRSAManualallowsforanadditionalworkchargeforcomplextitles.Thisisnotanancillaryservice.

Howisthefairmarketvaluedeterminedfortheancillarycharges?

Useyourdiscretion.DFShasnotgivenanyguidanceonthis.

WepresentlychargeaflatfeepersideforPatriotActorBankruptcysearches,nomatterthenumberofnamessearched.Isthisnolongerallowedunderthenewregs?

Sections228.5(a)(1)and(2)prohibitchargingaflatfeeforaspecifiednumberofnamessearched.

Howdowedeterminewhatpartofthethird-partyfeeisthemunicipalportionofthecharge?

Thethird-partyprovidershouldbeabletobreakitdownforyou.

Ifyouarenotsurewhatyourrecordingfeewillendupbeing,canyoutakeanamountforrecordinginescrow(andchargeanescrowservicefee)?

UseyourdiscretiononthisandastowhetheranadditionalescrowfeeiswarrantedorcouldbejustifiedtoDFS.

Ifwedonotknowtheactualcostofthemunicipalsuntilthesearcherobtainsactualcopiesatthetown,howwillwediscloseancillaryfeesatapplication?

Notallancillaryfeesmustbedisclosedatapplication,butyoumusthavethesignedmemorandumofancillarychargesbeforeyouacceptanypaymentfortheancillaryservice.

Forrecordingfee,ifwepaysomeone$10foreachdocumentforrecordinginspecificcounties,canweaddtheir$10feeontopofthe$25perdocument,oristhe$10feeincludedinthe$25?

Youcanonlybepaid$25torecordthedocument.Ifyouchoosetopaysomeoneelsetodoitforyou,theirfeecomesoutofthe$25thatyouarepaidtorecord.

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Whataboutescrowsthatareheldlongerthanintendedbecauseescrowdoesnotcomply?Orweendupdoingtheworkthattheescrowdidnottakecareof?

$50perescrowistheonlyallowedcharge.

Ifpatriotsearchesarefreeareyoupermittedtocharge?

Youareallowedtochargeupto200%ofthefairmarketvalueofthesearchaschargedbyanon-affiliatedthirdparty.

Ifdepartmentalcompanycharges$10foraC.O.searchandthemunicipalitycharges$100forthecopy,whatcanwecharge?200%of$10or200%of$110?

200%of$10plusthecostofthecopy,so$120.

Doovernightmailchargesincludeclosingpackagessenttothecloser?

Gettingthepaperstothecloserissomethingthatisnormallyrequiredtoissueatitlepolicy.Ifyouchoosetodothisbyamethodthatcostsextra,youwouldnotbeabletochargeforit.

Canwechargeadditionalfeesforforeclosurefiles(pullingthewholefileandreviewingthesame)?

Section1(F)oftheTIRSAManualallowsadditionalchargesforespeciallydifficultfiles.Itlistsforeclosuresasanexample,soyoucanchargeanadditionalfee.

Sincetheseregulationsrefertocostswhicharechargedinconjunctiontoprovidingtitleinsurance,areweabletocollect$500upfrontforeverytitlereportthatisorderedinadvance?Sincewearenotprovidingtitleinsuranceatthetimethatweplacetheorder.

Feeschargedshouldbespecificastowhatserviceisbeingprovided.Ifthesetitlereportsareonordersthatareexpectedtogotopolicy,anon-specific$500feewouldnotappeartobejustifiable.

Is$50.00perescroworperfile?

Perescrow.

CanyouchargeaTechnologyfee?

Youcanonlychargeafeeforancillarychargesnotencompassedbythepremium.Useyourdiscretion.Youwouldhavetoprovethatthisfeeisforsomethingspecificandthatitisaservicethatisnotanormalpartofissuingapolicy.

CLOSERS____________________________________________Justwanttobeclearabouttitlecompanyemployeesnotbeingabletogetpickup?

DFShasstatedthatapick-upfeecannotbechargedforanin-housecloser.

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Canacheckbegivendirectlytothecloserandnotputthroughourclosingcosts?Thiswouldcreatemoreworkforourclosingdesktodoandmoremoniestoreconcile.

DFShasstatedthatthepick-upfeemaybepaiddirectlytothecloser.

Whatdowedoonare-fiwherethereisnoseller?Isapickupallowed?

DFShasstatedthatpick-upfeesarenotallowedonre-fis.

Cancloserschargenotaryfees?

DFShassaidnotothis.

Aretherecircumstancesinwhichaclosercanchargefortheirservices,ifperhapstheyperformservicesoutsideofusualclosingfunctions?

NootherchargesareallowedunderRegulation208.

Isthisresidentialonly?Canclosersstillacceptfeesoncommercial?

TheonlyportionofRegulation208thatislimitedtoresidentialpropertyisSection228.5(a).Thisisthesectiondealingwithspecificancillarycharges.Theportionof228.5dealingwithclosersisnotlimitedtoresidentialproperty.

PertheTIRSAmanualwechargeforanyclosingovertwohoursand“whereadditionalattendancesarenecessaryortravelarrangementsanddistancewarrant.”Isn’tthiseveryclosingsincewerarelycloseatthetitlecompany’soffice?Whatistheamountthatcanbechargedafterthetwohours?Andwhatisconsideredtravelling?

Useyourdiscretion.Thesechargesareallowedonlyinunusualcircumstances.OneexampleiswherethecloserhastogotoShelterIslandandhastopayfortheferryandhasadditionalwaitingtimebecauseofthetravel.Thereisnofixedamount,butitmustbereasonable.

Ifthereisa3dayrightofrescissioninwhichaclosermustreturntothebankandpickupfunds/docs3daysaftertheclosing,canacloserchargefortheseservices?Whatcantheagentchargefortheseservices?

Theclosercan’tchargeanextrafeetotheapplicant,butthetitlecompanymightchoosetochargeanextrafeeundertheratemanualprovisions.Thefeemustbereasonable.Useyourdiscretionandbepreparedtojustifyanycharge.

228.5(d)(1)DoestheCloserpickupfeeneedtobeaddedtothetitlebillandthenthetitlecompanycutschecktoCloser?

Thefeehastobeinthetitlebill.DFShasstatedthatthefeecanbepaiddirectlytothecloser.

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Itsaystheycannotreceivecompensationdirectlyorindirectlyfromapplicant.OrcanthecheckbecutfrommortgageloanproceedsbecausethefeeisdisclosedontheClosingDisclosureandtitlebillasaseparatefeetotheCloser?

Thepick-upfeecanbepaiddirectlytothecloser.

Iamtheowneroftheagency.Idothemajorityoftheclosings.228.5(d)(2)statesthatthetitleinsuranceagentcannotchargeaseparatefeeiftheCloserisemployedthere.DoesthatmeanthatIcannotchargeapickupfeewhenIamtheCloser?

TheDFShasstatedthatonlyanindependentclosercanchargeapick-upfee.

Dothenewregulationsnotallowustochargeadditionalfeesforclosingsthatlastmorethan2hoursorafterhourclosingsasallowedpertheratemanual?

Theseshouldstillbeallowed,butDFShasnotspecificallyaddressedthisintheRegulation.

Arethereanykindoffeesthatwemaybeallowedtochargetocoveradditionalcostsfromcloserssincetheywillnolongerbeabletoacceptgratuities?

Titlecompaniesareexpectedtocompensatetheirclosersaspartofthepremiumpaid.Useyourdiscretionwithotherfees,asitwillbenecessarytojustifythem.

Itsaysthatattendancefeescontinuetobeprohibitedexceptundersomelimitedcircumstances.Attheend,itstatesanyattendancefeemustbeapprovedbyANDmusthavebeendisclosedtothepartiesatleast3dayspriortotheclosing.Howdoesanyoneknowhowlongaclosingwilltake3daysprior?

Thisshouldbehandledthesamewaythatyouwouldhandleachargethatcomesupatclosing,likeanextrainstrumentthatwasnotaccountedforinthedeterminationofrecordingfees.

CanweputonthebillaNotaryTravelChargeandAcknowledgmentFees?CananemployeeofacompanygetpaidasaNotaryforthem?

No.

Shouldwebeaddinganotetothetitlereportsadvisingabouttheregulationbarringgratuities/attendancefeetoclosersorifwesendaletteroremailoutisthatsufficient?

Useyourdiscretion.Acommunicationdirectlywiththeapplicantmaybethebestwaytodothis.

Canacloserchargeapick-upfeeforpayingoffajudgmentorsomeothertypeoflien,ortaxes?

ThisisnotaddressedinRegulation208.Useyourdiscretionandbepreparedtojustifyyouractions.

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Wedon’talwaysknowwhichcloserwewillbeusingthreedaysbeforetheclosingandwhattheywillcharge.Doesn’titmakemoresensetohaveaslidingscaleforagentsandunderwritersforclosingcharges?

Ifyouareusingoutsideclosersyouneedtomakethemunderstandthatyouhavetoagreeonafixedamountforyourclosings.Anti-trustconsiderationspreventagentsandunderwritersfromsettinganindustry-widepayscale.

Attorneysgiveclosers$300tomakecopiesofdocumentsandchecks,checkID,reviewdeed.Isitoktoincludethisonthefinalclosingbilltotheattorney?

No.Thisisaprohibitedgratuity.

Whatisareasonablepick-upfee?

Useyourdiscretion.Thereisnoguidanceonthisintheregulation.

Ifapplicant/sellerdoesnotincludeattorneys,arewesupposedtotrackdownthebuyer/sellertopresentnoticesofpickupsandotherfees?

Section35.6(b)ofRegulation206allowsthetitlecompanytoprovidethelistofchargestotheapplicant,ortheapplicant’srepresentative.DFShasstatedthatitisacceptabletosendthenoticeofthepick-upfeetotheseller’sattorney.

Areweresponsibleforprovidinganotaryorcloser?Aren’twemerelyresponsibletopickupalreadyrecordabledocuments?

Yourclosershouldbedoingmorethanjustpickingupdocuments.Youareresponsibleforprovidingacloser.

Canattorneysgivetheclosers“tip”?

No,theycannot.

Areweallowedtohireprivatemessengerservicetodeliverdocumentstotheclosingandbringbacktheentireclosingpackageinsteadofsendingatitlecloser?

Closersshouldbedoingmorethanjustpickingupdocuments.Ifthereisnothingtorevieworclearamessengerservicemightbeacceptable.Useyourdiscretion.

Whatifanemployeeonlyworksparttimeandonotherdaystheyareanindependenttitlecloser?

Iftheemployeeisactingasanin-houseclosertheycannotchargeapick-upfee.Iftheyareactingasanindependenttitlecloser,youshouldfollow228.5(d)(2).

Areemployeesonpayrollallowedtochargepickupsatanafter-hours/week-endclosing?

Anin-houseclosercannotchargepick-upfees.Thefactthatthisisanafter-hoursorweek-endclosingdoesnotmakeadifferenceforthepick-upfee.Section1(F)oftheTIRSAManualallowsforanadditionalcharge(notapick-upfee)forthesetypesofclosings.

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Whataboutsatisfactionfollow-upfeeifthereisnopick-upfeecharged?

Thisisnotcontemplatedbytheregulation.Useyourdiscretion,butbepreparedtojustifyanyfees.

Whatiftheattorneystillgivesatipafterallthis?

Youareresponsiblefortheactionsofyourcloser,includingtheacceptanceofanytipsfromattorneys.Youignorethisbehavioratyourownperil.

Ifahousecloserisused,canwechargeanescrowservicechargeforthemortgagepayoff?

ThisisnotcontemplatedbytheRegulation.Asforanyothercharges,useyourdiscretion,butbepreparedtojustifyanycharges.

ArecloserpickupfeesallowedforZone1?

Theregulationdoesnotdistinguishbetweenzones.

CanyouaddinyourbillthatifclosingtakeslongerthanX,anextrafeeofYwillapply?

Useyourdiscretion,butbepreparedtojustifyanycharges.Also,consulttheTIRSAmanualregardingchargesforextendedclosings.

Isthereasetfeethataclosercanchargeasapickupfee?

TheRegulationdoesnotcontainthisinformation.

Eachclosingtakesmorethantwohoursforpre-andpost-closing?Can’tweaddanextrachargeonallclosings?

Theprovisionsintheratemanualareforclosingattendanceinexcessoftwohours.

Whatifanunusualcircumstancearisesatclosingthatwasunseen?Itwasnotdisclosed3daysinadvance.

Apick-upfeehastobedisclosedthreedaysinadvance.Yourfinalinvoicecanbemodifiedforitemsthatariseatclosing.

Ifweprovideafeesheetwhenwesentoutthetitlereport,isthatenoughtosatisfythenoticerequirement?

TheRegulationdoesnotspeaktothis.Useyourdiscretion,butbepreparedtojustifyyouractions.

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AFFILIATEDBUSINESS__________________________________Whataboutagentsthatarejustaoneortwo-personlawfirm?Doesthisviolatemultiplesourcesruleandthereforecannolongerbeinbusiness?

Themultiplesourcesrulehasbeenchangedto“goodfaitheffort.”Anyattorneyagentthatrepresentstheapplicantasattorneyisonlyrequiredtonotifytheapplicantthattheyarenotrequiredtousetheattorneyasatitleinsuranceagent.

Whenattorneysownpartorallofanagency,aretheyrequiredjusttodisclosetotheirclientsormusttheyadvisetheirclientsthattheyarenotrequiredtousehisorherownagency?

Inanytypeofaffiliatedbusinessarrangement,thepersonreferringtheapplicantisrequiredtodisclosethattheapplicantisnotrequiredtousetheaffiliatedagency.

DISCLOSURES________________________________________20.6FeesSectionCstatesalicenseeshallnotchargeorcollectcompensationwithoutsuchamemorandum,norshallanysuchlicenseechargeorreceivecompensationexceptasprovidedinInsuranceLawsection2119.Doesthepreliminarytitlebill,LoanEstimateandClosingDisclosuresufficeforpickupfeeandancillaryfees?

Itdoesnot.TheremustbeaseparateMemorandumofAncillaryChargesthatissignedbythepartypayingthefee.

Section29.5GovernmentInsuranceDisclosureStatement.Whoisprovidingthistofillout?DowehavetofileitwithDFSeveryApril15?

Youonlyhavetodothisifyouhavedoneaclosingthatmeetstherequirements.Theformcanbefoundinregulation29.6.

Section35.6Disclosureoffeesrequiresagentstopostchargeontheirwebsite.Isitarequirementthatagentshaveawebsite?

Thelanguagerequirestheagenttopostchargesonitswebsite,ifithasone.Agentsarenotrequiredtohaveawebsite.Youmustalsopostyourfeesatyourplaceofbusinessandprovideacopyofthefeestoanapplicantorpotentialapplicantinawrittendocumentwhetherornotyouhaveawebsite.

One'exclusion'dealingwithattorneysisinSec206sec.35.5(c),whichexemptsattorneysfromdisclosurerequirements.....Ifweeverdojointventurewithalawfirm,doesthismeantheywillNOThavetogivethedisclosuresisthatsection35.5?

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Thisexemptionapplieswherethetitleagentalsorepresentstheapplicantasattorney.Ifyouareajointventurewiththeattorney,thejointventureistheagent,nottheattorney,andwouldbesubjecttothedisclosurerequirements.

GENERAL___________________________________________Whoisgoingto“patrol”theregs?

DFSisresponsibleforenforcingtheregulations.

WhenanunderwriterauditsoneofitsagentsandthatcompanyisnotcompliantwiththeseregulationsandtheCyberregulations,whathappens?DoestheunderwriterreportthemtotheDFS?

Wearerequiredtoreporttothestatewhenanagentdoesnotsubmitinformationforthedatacall.

WillthenewrulesbeappliedtofilesclosingasofDecember18th,orforfilesforwhichapplicationissubmittedonDecember18th?

ThenewruleswillapplytofilesclosingasofDecember18th.

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