Agent Q&A Recap Regulations 206 & 208 Update Webinar (November 21, 2017) MARKETING _________________________________________ Clarify what the DFS considers de minimus as far as advertising and give examples DFS has not issued any guidance on this as of today. Use your discretion, and be prepared to justify the value of items given. Do the entertainment and marketing regs only apply to title agents or do they apply to other licensed entities? In that case, are we speaking with other licensed agents and see what they think of the new regs? Regulation 208 applies only to title insurance agents and underwriters. A sales person has been asked to sponsor an event. The request came from a real-estate broker not tied into the charity. Is that OK? Possibly. This falls under 228.2(c)(6). Payment must be made by negotiable instrument (a check), directly to the charity in the name of the title agent or underwriter. Looking back at the preamble of part (c) it cannot be conditioned on the referral of business, or even with the expectation of future referrals. The cost cannot be lavish or excessive. Use your discretion. Let’s say a title insurance underwriter is going to buy a foursome in a golf outing that an agent is affiliated with. Is that okay? Section 228.2(b) prohibits providing tickets or paying for outings, such as golf outings. What about gifts for holidays that have been purchased back in September, can we distribute before December 18 th ? This is acceptable, but you must consider the intent of the regulation. Tickets or gifts that will be used after December 18 th will probably be viewed as a violation of 228.2 even if you deliver them before the 18 th . You must use your discretion and be prepared to justify any gifts and the timing thereof. 1
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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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