The Best Texas Escrow Services? Really?

If you Google the words “Texas escrow services,” many links of title company information will pop up for your viewing. Of course, every title company from large to smallest promises their company’s service is the best. In all reality, if you do your homework, you will find that several of these companies have been penalized or fined for various errors by the Department of Insurance, or the reviews from consumers are not up to par. With the internet being a plethora of information, how do you know who you can trust?

When scouting a title company with which to place your order, you may want to consider several items. For example: size of the title agency, number of escrow officers, how many departments, how long has your escrow officer been licensed, what is their knowledge level, how easy can you contact their attorneys or higher-ups for those tough files, etc. Depending on your company’s needs, these questions may be answered differently; however, they should definitely be considered.

At Griffin Law Firm, we go as far as to invite our customers into our office for a visit. If you do not know who you are working with personally, then you are working with a file number and possibly an email address. We believe in relationships. By building a rapport with our clients, we have found the process and transaction is smoother and expectations are met quickly. Our goal is not only to have the best “Texas Escrow Services” but to service our clients by meeting their individual needs.

If you are looking for a different experience, please stop by or give us a call at 817.520.6000. We look forward to hearing from you.

MyTexasTitle.com: Order Your Title Commitment Online!

“Sense” you asked—

Yes, you can order title commitments on line at www.mytexastitle.com 24 hours a day, 7 days a week from the comfort of your desk. Actually, this is the preferred method of ordering title commitments by most of our clients. When this webpage was designed, it was designed and tested for the benefit of not our company, but our clients—you!

Our webpage was designed to be informative and user-friendly. Here are some features to consider about MyTexasTitle.com before you manually complete your order request for your next title commitment:

• Personal login and password provided
• Stores all of your order information so you personally can see your pipeline
• Update Schedule A
• Clear Schedule C
• Texas Title Insurance Premium Calculator (calculate your own R-8 credit for your Good Faith Estimates)
• Check the status of your order
• And much more!

These are just a few of the benefits of ordering online. If you think about the calls you make to a title company, they are usually in regards to one of the items listed above, right? Now you don’t even have to make a call! Just go online, make your request and save time. It’s that simple.

New Texas Title Insurance Rates: Rate Hearing in Progress

Texas title insurance rates are subject to change soon. The Biennial Rate Hearing began September 14th and is underway. In such hearing, various industry witnesses and government agencies, such as the Texas Department of Insurance, provide testimony regarding what is the appropriate price for title insurance in Texas.

In February of this year, TLTA (Texas Land Title Association), a trade association for the Texas title insurance industry, called for an increase of the current basic premium rate level by 13.55%. TLTA bases its recommendation on the fact that, despite Texas’s economy being more robust, the outlook for housing activity in Texas is still weak. The Texas Department of Insurance recommends no change in the Texas basic title premium rate. Meanwhile, the Office of Public Insurance Counsel recommends that the current basic premium rate is excessive and should be reduced by 11%.

The one fact I have not read much discussion on yet is the increase in the number of claims and how that might affect title insurance rates (and perhaps I just have not come across it yet). However, when talking to underwriting attorneys, who are charged with the decision whether or not to remove questionable liens from a title commitment, they have a heightened fear of litigation than they have in the past. Additionally, when reading the annual reports of the major title insurance companies, they report claims increasing. An increase in claims would surely put upward pressure on title insurance rates. However, whether or not it countervails the downturn in the real estate markets we have experienced during the last few years is another question.

RESPA Changes: Are You Ready For Some RESPA?

At this point, I am sure you have at least heard new rules regarding Good Faith Estimates and HUD Settlement Statements are on the way. If you are like most people, you are probably waiting for your company superiors to funnel the information to you or your team, which you will probably receive right before the Christmas holiday—which means you will retain maybe 1% of what your training covers.

In a perfect world, everyone at your company would jump on board, read the rules and inculcate them into their brain. I mean, what’s the worst that could happen if you don’t learn the new rules??? Well, how about a “tolerance violation”? Let’s face it: Anything with the word “violation” can’t be good for you. However, as usual in life there are consequences for not following the rules; and just as usual, many companies do not take the time to train up their employees to avoid such costly mistakes. Honestly, it is worth the time to read and understand what challenges you, your team or your company might be facing if you do not follow the new RESPA guidelines.

For example, did you know a loan originator will no longer be able to charge any fees prior to issuing a Good Faith Estimate except a credit report? Only after the applicant receives the Good Faith Estimate and acknowledges an intention of proceeding with the loan indicated in that particular Good Faith Estimate can you, as lender or mortgage broker, collect fees beyond the cost of a credit report for origination-related services.

How about the fact that the lender is responsible for ascertaining if the Good Faith Estimate has been provided by its mortgage broker? If the Good Faith Estimate is not provided in 3 business days, then the lender is in violation of Section 5 of RESPA, not just the mortgage broker.

Being that I am a settlement agent and familiar with the following scenario, this is one of my favorites. If a loan originator pressures a settlement agent into lowering their fees to reduce the charges, or otherwise “cover the difference,” as a condition of receiving future referrals of business, it may be considered a potential violation of RESPA Section 8(a). A complaint can be filed at RESPA and ILS if this is violated.

I realize not everyone wants to read a litany of rules, but you should check out the Q & A page, which gives a good overview of the new rules effective January 1, 2010 at http://bit.ly/19W3d3.

May 2010 be your best yet!

Legislative Changes to Texas Title Insurance: Title Insurance Companies Can Now Charge for Electronic Filing Fees

H.B. 3073 alleviates a statutory uncertainty, allowing title insurance companies to charge for the actual, or reasonably estimated, cost of electronic filing fees by changing Tex. Ins. Code § 2501.008.

There has been some debate within the title insurance community whether or not electronic filing fees could be passed down to the consumer as a separate charge from the title insurance premium. Because of the potential inability to pass the cost on to the consumer, many title companies have been reluctant to adopt electronic filing of real estate documents.

Electronic filing of real estate documents provides a benefit to all parties involved: the county clerks, the consumer and the title companies. The county clerks, should they have an electronic filing system, benefit from “more immediate filing, better notice, and reduced labor and recording costs.” See Bill Analysis at http://bit.ly/enj6R. The consumer benefits from “immediate filing.” Id. The title company benefits from “reduced losses due to gaps in filing.” Id. Clearly, an electronic system provides a more seamless system with less room for errors or problems than a system that relies upon certified or overnight mail and bureaucrats shuffling unending stacks of paper.

To read H.B. 3073, go to http://bit.ly/31Zg38.

Legislative Changes to Texas Title Insurance: Continuation of Coverage

Beginning January 1, 2010, owner's title insurance policy on residential real property will provide for continuation of coverage beyond the original named insured in the following circumstances:

(1) to a person who inherits the title to the original named insured's real property on the original named insured's death;

(2) to the original named insured's spouse who receives title in a dissolution of marriage with the original named insured;

(3) to the trustee or successor trustee of a trust established by the original named insured to whom the original named insured transfers title after the date of the policy; and

(4) to the beneficiaries of the type of trust as in (3) on the death of the original named insured.

These continuations of coverage benefit the Texas residential property owners greatly, allowing Texas title insurance to adjust to the events of death and divorce--which our modern society cannot seem to avoid. Additionally, by extending the continuation of coverage to a trust created by the original named insured, Texas residential property owners have greater freedom to conduct nontestamentary planning without losing the benefits they receive under their title insurance policy.

Finally, these changes by the Texas legislature probably bring the law and title insurance coverage more in line with the Texas residential property owner's expectations for when they should be able to rely upon their title insurance policy for protection. I am willing to bet most people already think their title policy covers them in these situations and would only find out when they would file a claim and their lawyer breaks the bad news to them. The legislature made a good change.

To read the new statute, see Tex. Ins. Code § 2703.101(g).

Legislative Changes to Texas Title Insurance: Title Insurance Company Affidavit As Release of Lien

The Texas Legislature passed a law allowing Texas title companies to execute an affidavit confirming that a mortgage on a one- to four- family residence has been paid in full and released. This affidavit, in effect, constitutes a release of lien. Albeit, this new power of a title company does not relieve a mortgagee (the releasing mortgage company) from any obligation it may have to execute and deliver its own release.

This new power given to title companies should allow them to speed up the lien-clearing process. In the past, as required by Procedural Rule P-11, a title company could not clear a lien unless it received the mortgage company’s release of lien or the appropriate Master Indemnity Agreement. The new law gives the Texas title company another option to use to help their customer when, say, the mortgage company no longer exists or was subsumed by a larger lender and no one knows who has authority to sign for the old mortgage company.

Do not expect all title agencies or direct operation title insurance companies to immediately begin to use this new tool. With so much power placed in the title insurance company’s hands to clear title liens, expect them to be careful using it—else open themselves up to an unnecessary liability they did not have before. Title companies probably will restrict the authority to sign such affidavits to a limited few of their officers or legal counsel—and not to any and all of their escrow officers. To read the new statute allowing this affidavit, see Tex. Prop. Code § 12.017 at http://bit.ly/viXUM.