November 2019 - Republic Title

Important Compliance Update from TREC

Realtors Subject to New TREC Rules Prohibiting Pay-to-Play Programs

Reminder: RESPA, P-53 and Anti-Rebating Statutes Remain in Effect for Title Agents and Are Enforced

The Texas Real Estate Commission (TREC) recently amended their rules related to rebates and specifically highlighted the prohibition of pay-to-play arrangements in the real estate marketplace. TREC said their amended rules are intended to strengthen settlement service provider independence and provide clarity for TREC license holders regarding consumer protections that also exist under state and federal rules and statutes.

To enhance your understanding of TREC’s expanded regulations, we recommend you read TREC’s explanation of their pay-to-play rule revisions.

Here’s TREC’s expanded §535.148 related to receipt of undisclosed commissions or rebates:

(d) A license holder may not pay or receive a fee or other valuable consideration to or from any other settlement service provider for, but not limited to, the following:

the referral of inspections, lenders, mortgage brokers, or title companies;
inclusion on a list of inspectors, preferred settlement providers, or similar arrangements; or
inclusion on lists of inspectors or other settlement providers contingent on other financial agreements.

(e) In this section, “settlement service” means a service provided in connection with a prospective or actual settlement, and “settlement service provider” includes, but is not limited to, any one or more of the following:

a federally related mortgage loan originator;
a mortgage broker;
a lender or other person who provides any service related to the origination, processing or funding of a real estate loan;
a title service provider;

Read TREC’s explanation of the changes »

Title Agents Are Subject to P-53, RESPA, and Anti-Rebating Statutes

Title agents are subject to federal and state rules and statutes–including the Real Estate Settlement Procedures Act (RESPA) and TDI’s Rule P-53–prohibiting marketing-related rebating practices.

In response to questions from title industry professionals regarding the continued applicability of TDI’s P-53 rule, TLTA has compiled background information, FAQs, and other helpful resources related to the state and federal statutes that prohibit marketing-related rebating practices.

TLTA’s Anti-Rebating Resources for Title Professionals »

Background
In 2004, the Texas Department of Insurance (TDI) adopted Procedural Rule 53 (P-53), which prohibits rebates and discounts for the soliciting or referring of title insurance business. P-53 is an important market conduct rule that serves to protect consumers and maintain an ethical Texas title insurance industry.

There are also federal and state statutes that prohibit marketing-related rebating practices, as follows:

Federal Law

Under the federal government’s Real Estate Settlement Procedures Act (RESPA), kickbacks and unearned fees are prohibited, and a person cannot give or accept anything of value for a referral incident relating to or part of a settlement service involving a federally related mortgage loan. Consumer Financial Protection Bureau (CFPB) is responsible for enforcing RESPA, as well as state attorneys general.

Review the federal statute: RESPA – Section 8
Review CFPB’s rule: 12 CFR § 1024.14

State Law

The state statute goes a step further than federal law, specifically citing the title insurance industry. In addition to prohibiting rebates and discounts, the statute states that any “thing of value” may not be “directly or indirectly paid, allowed, or permitted by a person engaged in the business of title insurance or received or accepted by a person for engaging in the business of title insurance or for soliciting or referring title insurance business.”

Review the state statute: Texas Insurance Code §2502.051

FAQs

Is P-53 enforced?
Yes, TDI’s disciplinary orders include P-53 violations. Disciplinary orders dated 2013 and older must be requested via open records request.

What is the difference between RESPA and P-53?
RESPA is the federal statute addressing the referral of settlement services and includes the typical activities of Texas title agents. RESPA is enforced by the CFPB. Procedural Rule 53 implements and clarifies the Texas statute as it relates to discounts and things of value used to solicit or refer title insurance business. TDI enforces P-53.

How do I determine if I’m in compliance?
In general, the TDI rule and other applicable statutes were not written with black-and-white examples to guide you. If you’re unsure about your actions and how P-53 might be applied to them, please consult your regulatory counsel.

The statute and rule do offer some clear guidance on how to comply, however. For instance, a title agent or company cannot give a thing of value conditioned on the referral of title insurance or provide a rebate to the consumer.

Past examples of violations include any activities that subsidize or pay for what would be business expenses for a Realtor or any other producer of title insurance business, such as printing sales materials or providing meeting or office space. Additional examples include reducing other fees in the transaction such as an escrow fee on an ad hoc or conditional basis. These are just some examples and there are many others – this is not intended to be an exhaustive list. Again, the best course of action if you are unsure is to consult legal counsel to ensure you are in compliance.

What should I do if I have information about a P-53 violation?
First, consider contacting the management at the companies involved, and alert them that they are engaged in activity that concerns you. If the suspected violation of P-53 does not stop, you can submit a formal complaint to the Texas Department of Insurance. Once you file a complaint, TDI will keep you informed of the progress and final resolution of the complaint.

The complaint you submit will be publicly available (i.e., this is not an anonymous process).

Source: TLTA

Does Extending the Closing Date Extend a Contingency Date?

Below, please find helpful information that was posted on TexasRealEstate.com.

October 30, 2019 | Texas REALTORS® Staff

Members have called regarding situations where a contract is signed with an attached Addendum for Sale of Other Property by Buyer (TXR 1908) and the buyer will not obtain proceeds from the sale of her other home by the contingency date stated in Paragraph A. Callers ask if extending the closing date on the sales contract will also extend the contingency date in Paragraph A, thereby giving the buyer the additional time she needs to obtain her proceeds. No. An amendment extending the closing date does not automatically extend the contingency date in Paragraph A. Paragraph A of the Addendum for Sale of Other Property by Buyer states that if the contingency is not satisfied or waived by the contingency date then the contract will terminate automatically. A buyer wishing to continue in a transaction past the contingency date without having obtained her proceeds would have to waive the contingency. Alternatively, if the parties want to change the contingency date in Paragraph A, then that change must be specifically addressed in an amendment.

Source: www.texasrealestate.com

DFW Area Holiday Events

It is that special time of year. We have compiled this list for local events around our area that are great for the whole family.

Click here if you would like a printable version.

Dallas Ranks #2 on Forbes List for Best Places for Business and Careers

The Dallas metro division has the sixth-largest population in the U.S. with 5 million people. Dallas has developed a strong industrial and financial sector, as well as becoming a major inland port, due largely to the presence of Dallas/Fort Worth International Airport, one of the largest and busiest airports in the world. The city is home to University of Texas Southwestern Medical School, Texas Woman’s University, University of North Texas at Dallas, Paul Quinn College as well as a number of religious affiliated and community colleges. The most notable event held in Dallas is the State Fair of Texas, which has been held each year at Fair Park since 1886, bringing an estimated $350 million to the city’s economy annually. The Red River Shootout, which pits the football teams of University of Texas at Austin and University of Oklahoma against one another at the Cotton Bowl, also brings significant crowds to the city.

At a Glance

Population: 5,007,200
Major Industries: Technology, Financial services, Defense
Gross Metro Product: $380.5 B
Median Household Income: $72,205
Median Home Price: $284,000
Unemployment: 3.3%
Job Growth (2018): 2.4%
Cost of Living: 12% above nat’l avg
College Attainment: 37.1%
Net Migration (2018): 11,570

Source: https://www.forbes.com/places/tx/dallas/

Close-up view on conceptual keyboard - Digital Signature (blue key)

Four Imperatives as Lenders Evaluate eClosing Options

Shifting consumer expectations, increasing market pressures and momentum for regulatory changes may make 2019 the year the mortgage and title industries accelerate the adoption of eClosing.

It’s no secret that consumers demand a more digital, more efficient real estate closing process. At the same time, mortgage lender profits are under pressure amid a cooling housing market and rising mortgage rates. And, across the U.S., state legislation is maturing in areas of eNotarization and Remote Online Notarization. These factors, along with widely available eSignature standards, are poised to accelerate broader acceptance of fully digital eClosings in real estate transactions in 2019.

Consider also that 65 percent of lenders who expect profit margins to increase in the next three months believed technology would be the most important reason for the expected increase, according to Fannie Mae’s fourth quarter 2018 Mortgage Lender Sentiment Survey (http://www.fanniemae.com/resources/file/research/mlss/pdf/mortgage-lender-sentiment-survey-findings-q42018.pdf).

Settlement providers are adapting as well. First American Chief Economist Mark Fleming recently surveyed title agents and real estate professionals and found 65 percent of respondents anticipate needing software support for Remote Online Notarization and eClosing, and secure collaboration and communication portals, in the next 12 months (https://blog.firstam.com/economics/will-fintech-adoption-among-real-estate-professionals-accelerate-in-2019).

It appears that in 2019 the industry may make significant strides toward delivering a real estate transaction closing experience that aligns with the digital home search and loan application experience that has become commonplace. As with most opportunities, there are real challenges to overcome. Lenders are wise to thoroughly evaluate how to best offer eClosing options to consumers, as there are many important considerations to study and some of the industry hype around eClosings can be misleading.

Settlement providers have a unique perspective on many of these challenges given their role in closing real estate transactions. First American recently launched an eClosing solution and is engaged with multiple customers on pilot tests. In the process, we’ve gained significant experience and uncovered some important findings that, if handled appropriately, may have the ability to enhance the progress towards adoption of eClosings (https://www.firstam.com/news/2018/eclosing-solution-launch-20181015.html).

1. The Workflow Matters
Switching from a traditional paper-based signing event to an eClosing with a digital signing event requires more than the ability to eSign documents on a portal. Coordination, communication and document preparation are paramount regardless of whether the consumer signs with a pen or the click of a mouse.

In order to scale, the workflow must be more efficient than today’s paper process for both the lender and the title and settlement provider to accelerate adoption. Minimizing any additional work needed by loan processors or title and settlement agents to prepare for an eClosing versus a paper closing can facilitate greater adoption, which will help lenders more quickly reap the potential benefits of eClosings–enhanced efficiency and reduced cost to close transactions. Understanding the full signing process, including scheduling, communication, coordination, lender and title document preparation and final execution, is critical to creating an improved, digital version of the paper process.

2. Recordability is in the Eye of the County Recorder
There are thousands of county recorders in the U.S. and their views on the recordability of eSigned and native digital documents, which are used in RON and in-person eClosing transactions, can vary greatly. We’ve interviewed dozens of staff at county recorders in states that recently passed legislation supporting RON eClosings, and found varying degrees of readiness for eSigned and native digital documents. That’s important because, if documents do not adhere to state and local laws, eSigned debt obligations can be reversed in bankruptcy court, for example.

3. Build it vs. Buy it
Mortgage lenders have a variety of options on how to approach eClosing, including building their own proprietary technology, purchasing an eClosing platform from a technology vendor or working with an established settlement provider to handle digital settlement. Each mortgage lender will choose the path that best serves their customers and operations. However, for lenders who choose to bring some settlement processes in-house, it’s important to remember that doing so entails assuming the risk, control and coordination of the signing event and signing process, which many lenders and lender staff do not traditionally coordinate.

Similarly, most lenders work with many different settlement providers. So, lenders that choose to purchase or build their own eClosing platform will need to train their settlement providers on how to use the lender’s platform, including how to incorporate the title documents into the eClosing package. In a purchase market, and with typical industry turnover rates, this training process becomes an ongoing effort and expense.

4. Settlement-Driven eClosing
Some lenders may prefer their title and settlement provider handle eClosing and thus maintain the coordination and management of the signing event, along with the responsibility and risk associated with it. Each individual lender’s approach to eClosing will differ somewhat and title and settlement providers need flexibility to accommodate nuances between various approaches. This would, however, eliminate the need for lenders to own, pay for and manage the process and platforms used.

While the changes that come with bringing eClosing to the market are new, lenders and settlement providers have a long history of working in concert to complete real estate transactions with high quality. Open communication and collaboration will continue to deliver the best results for lenders, settlement providers and consumers as the real estate industry marches toward the secure, scalable adoption of eClosings.

Disclaimer: This article is intended for educational and informational purposes only. The views and opinions expressed in this article are solely those of this author, and do not necessarily reflect the views, opinions, or policies of this author’s employer, First American Mortgage Solutions.

(Views expressed in this article do not necessarily reflect policy of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA Insights welcomes your submissions. Inquiries can be sent to Mike Sorohan, editor, at [email protected]; or Michael Tucker, editorial manager, at [email protected].)

Source: https://www.mba.org/publications/insights/archive/mba-insights-archive/2019/four-imperatives-as-lenders-evaluate-eclosing-options

Sold house sign in Midwest suburban setting. Focus on sign.

Texas Home Sales Continue To Increase In 3rd Quarter

Texas home sales increased 6.4%—to 100,733 sales in the third quarter of 2019—compared to the same period last year, according to the 2019 Q3 Texas Quarterly Housing Report released today by Texas REALTORS®.

The statewide median home price for the quarter also increased to $245,000, a 4.3% increase over the third quarter of 2018. Of all sales during the third quarter of 2019, 33.4% were priced from $200,000 to $299,999. Homes priced from $100,000 to $199,999 represented 26.9% of sales for the quarter.

“Texas ended the summer selling season with continued growth in home sales and median price in most of the major markets,” said Tray Bates, chairman of Texas REALTORS®. “Our housing market remains healthy due to strong demand and steady increases in housing inventory.”

There was an increase of active listings from the previous year of 3.5% for 111,013 listings in the third quarter of 2019. Texas homes spent an average of 54 days on the market, two days longer than the same quarter last year.

“The Texas housing market continued to spur strong demand during the third quarter,” said Jim Gaines, Ph.D., chief economist with the Real Estate Center at Texas A&M University. “Based on sales activity, we saw prices, months of inventory, and active listings all experience significant growth in most of the markets across the state. During the remainder of the year, we expect attractive interest rates to incentivize homebuyers. In addition, new home construction will continue to pick up in markets such as Houston and Dallas, leading to an increase in housing inventory availability.”

Source: https://www.texasrealestate.com/members/posts/texas-home-sales-continue-to-increase-in-3rd-quarter/

How To Stay Safe If You’re Caught On The Road In A Hailstorm

With all of the crazy weather we have in our area, here is some great suggestions on how to stay safe when you are caught on the road during a storm.

Texas is known for some severe weather. It can cause fear in even the most seasoned of drivers, but being prepared in advance can help alleviate that fear. If you’re caught driving in a hailstorm, you can always get to safety in short order, but there are precautionary steps you can take. Driving during one of these disastrous storms can be terrifying and has the potential of causing accidents, injury, and sometimes worse. Be aware of your surroundings, and if you suspect that a hail storm is on its way, try to make arrangements to get off the road at your earliest and safest convenience. If you’re unable to do so, here are some tips for staying safe on Texas roads when driving in a hailstorm:

Turn on your low beam headlights. reduce your speed, and maintain awareness of other vehicles.
If you have to continue driving until you can find safety, give yourself three times the normal distance between your vehicle and the one ahead, to avoid any rear-end collisions.
Pull over to the side of the road or the nearest spot with shelter and stay inside the vehicle. However, do not park under an overpass and impeded the flow of traffic. With the high rate of speed that hail falls at, people are easily injured in its path. This may also mitigate damage to your windshield or windows. since driving can compound the impact. Also, if you’re on the shoulder of the road, ensure your vehicle is completely out of the line of traffic.
Avoid ditches due to the possibility of rising water.
If possible, ensure your vehicle is such that the hail hits the front of it. With reinforced glass, windshields are able to better withstand the pelting of some hail.
If you’re able to, lie down in the vehicle, with your back to the windows. And, if one is handy, cover yourself with a blanket to prevent injury from possible debris.

Stay Safe!

Source: texashillcountry.com

Can Your Unlicensed Assistant Do That? – TexasRealtors.com

Along with setting rules for licensees, the Texas Real Estate Commission also governs what your unlicensed assistants can do on your behalf. The latest Texas REALTORS® legal explainer video tests your knowledge of what tasks your unlicensed assistant can handle and what you as the licensee need to take care of yourself.

Source: www.texasrealtors.com

Time Change This Weekend

Don’t forget that the time changes this weekend. Remember to set you clocks back on hour on Saturday night. These spring and fall clock changes continue a long tradition started by Benjamin Franklin to conserve energy.

Below is a look at its history, why we have it now and some myths and interesting facts about the time change.

When does daylight saving time start and end?

Historically, daylight saving time has begun in the summer months and ended for winter, though the dates have changed over time as the U.S. government has passed new statutes, according to the U.S. Naval Observatory (USNO).

Starting in 2007, DST begins in the United States on the second Sunday in March, when people move their clocks forward an hour at 2 a.m. local standard time (so at 2 a.m. on that day, the clocks will then read 3 a.m. local daylight time). Daylight saving time ends on the first Sunday in November, when clocks are moved back an hour at 2 a.m. local daylight time (so they will then read 1 a.m. local standard time).

This year, DST began on March 10 and will end on Nov. 3, 2019. You will then move your clock forward an hour on March 8, 2020, and the cycle will begin again.

How did daylight saving time start?

Benjamin Franklin takes the honor (or the blame, depending on your view of the time changes) for coming up with the idea to reset clocks in the summer months as a way to conserve energy, according to David Prerau, author of “Seize the Daylight: The Curious and Contentious Story of Daylight Saving Time” (Thunder’s Mouth Press, 2005). By moving clocks forward, people could take advantage of the extra evening daylight rather than wasting energy on lighting. At the time, Franklin was ambassador to Paris and so wrote a witty letter to the Journal of Paris in 1784, rejoicing over his “discovery” that the sun provides light as soon as it rises.

Even so, DST didn’t officially begin until more than a century later. Germany established DST in May 1916 as a way to conserve fuel during World War I. The rest of Europe came onboard shortly thereafter. And in 1918, the United States adopted daylight saving time.

Though President Woodrow Wilson wanted to keep daylight saving time after WWI ended, the country was mostly rural at the time and farmers objected, partly because it would mean they lost an hour of morning light. (It’s a myth that DST was instituted to help farmers.) And so daylight saving time was abolished until the next war brought it back into vogue. At the start of WWII, on Feb. 9, 1942, President Franklin Roosevelt re-established daylight saving time year-round, calling it “War Time.” [Learn more about the crazy history of Daylight Saving Time]

After the war, a free-for-all system in which U.S. states and towns were given the choice of whether or not to observe DST led to chaos. And in 1966, to tame such “Wild West” mayhem, Congress enacted the Uniform Time Act. That federal law meant that any state observing DST — and they didn’t have to jump on the DST bandwagon — had to follow a uniform protocol throughout the state in which daylight saving time would begin on the first Sunday of April and end on the last Sunday of October.

Then, in 2007, the Energy Policy Act of 2005 went into effect, expanding the length of daylight saving time to the present timing.

Why do we still have daylight saving time?

Fewer than 40 percent of the world’s countries observe daylight saving time, according to timeanddate.com. However, those who do observe DST take advantage of the natural daylight in the evenings. That’s because the days start to get longer as Earth moves from the winter season to spring and summer, with the longest day of the year on the summer solstice. During the summer, Earth, which revolves around its axis at an angle, is tilted directly toward the sun (at least its top half). [Read more about the science of summer.]

Regions farthest away from the equator and closer to the poles get the most benefit from the DST clock change, because there is a more dramatic change in sunlight throughout the seasons.

Research has also suggested that with more daylight in the evenings, there are fewer traffic accidents, as there are fewer cars on the road when it’s dark outside. More daylight also could mean more outdoor exercise (or exercise at all) for full-time workers.

Energy savings

The nominal reason for daylight saving time has long been to save energy. The time change was first instituted in the United States during World War I, and then reinstituted again during World War II, as a part of the war effort. During the Arab oil embargo, when Arab members of the Organization of Petroleum Exporting Countries (OPEC) stopped selling petroleum to the United States, Congress even enacted a trial period of year-round daylight saving time in an attempt to save energy.

But the evidence for energy savings is slim. Brighter evenings may save on electric lighting, said Stanton Hadley, a senior researcher at Oak Ridge National Laboratory who helped prepare a report to Congress on extended daylight saving time in 2007. But lights have become increasingly efficient, Hadley said, so lighting is responsible for a smaller chunk of total energy consumption than it was a few decades ago. Heating and cooling probably matter more, and some places may need air-conditioning for the longer, hotter evenings of summer daylight saving time.

Hadley and his colleagues found that the four weeks of extra daylight saving time that went into effect in the United States in 2007 did save some energy, about half of a percent of what would have otherwise been used on each of those days. However, Hadley said, the effect of the entire months-long stretch of daylight saving could very well have the opposite effect. A 1998 study in Indiana before and after implementation of daylight saving time in some counties found a small increase in residential energy usage. Temporary changes in Australia’s daylight saving timing for the summer Olympics of 2000 also failed to save any energy, a 2007 study found.

Part of the trouble with estimating the effect of daylight saving time on energy consumption is that there are so few changes to the policy, making before-and-after comparisons tricky, Hadley told Live Science. The 2007 extension of daylight saving time allowed for a before-and-after comparison of only a few weeks’ time. The changes in Indiana and Australia were geographically limited.

Ultimately, Hadley said, the energy question probably isn’t the real reason the United States sticks with daylight saving time, anyway.

“In the vast scheme of things, the energy saving is not the big driver,” he said. “It’s people wanting to take advantage of that light time in the evening.”

Who observes daylight saving time? (And who doesn’t?)

Most of the United States and Canada observe DST on the same dates. But of course, there are exceptions. Hawaii and Arizona are the two U.S. states that don’t observe daylight saving time, though Navajo Nation, in northeastern Arizona, does follow DST, according to NASA.

And, every year there are bills put forth to get rid of DST in various states, as not everyone is keen on turning their clocks forward an hour. In 2018, Florida’s Senate and House passed legislation called the Sunshine Protection Act (a PDF of the legislation) that would ask the U.S. Congress to exempt the state from the federal 1966 Uniform Time Act. If approved, Florida would remain in DST year-round. In order to allow Florida’s year-round DST, however, the U.S. Congress would have to amend the Uniform Time Act (15 U.S.C. s. 260a) to authorize states this allowance, according to The New York Times.

In the fall of 2018, California voted in favor of Proposition 7 that would attempt to repeal the annual clock changes. Next, the state legislature needs to vote on the proposition, followed by the Congress, according to an article on Vox.

Other states have also proposed exemptions from the federal time act. For instance, Sen. Ryan Osmundson, R-Buffalo, introduced Senate Bill 206 into the Senate State Administration Committee in February 2017, which would exempt Montana from daylight saving time, keeping the state on standard time year-round, according to the bill. Three bills put forth in 2017 in Texas aimed to abolish DST for good: House Bill 2400, Senate Bill 238 and House Bill 95, according to the broadcast company kxan. Nebraskans may be off the hook for clock changes as well. In January 2017, state Sen. Lydia Brasch, a Republican of Bancroft, proposed a bill called LB309 to eliminate daylight saving time in the state, according to the bill.

Some regions of British Columbia and Saskatchewan don’t change their clocks. These include the following areas in British Columbia: Charlie Lake, Creston (East Kootenays), Dawson Creek, Fort St. John, and Taylor; In Saskatchewan, only Creighton and Denare Beach observe DST, according to NASA.

Most of Europe currently observes daylight saving time, called “summer time,” which begins at 1 a.m. GMT on the last Sunday in March and ends (winter time) at 1 a.m. GMT on the last Sunday in October. However, even the European Union may propose an end to clock changes, as a recent poll found that 84 percent of 4.6 million people surveyed said they wanted to nix them, the Wall Street Journal reported.

If the lawmakers and member states agree, the EU members could decide to keep the EU in summer time or winter time, according to the WSJ.

The United Kingdom moved their clocks forward on March 31, 2019, and will move them back again to standard time on Oct. 27, according to the U.K. government.

The DST-observing countries in the Southern Hemisphere — in Australia, New Zealand, South America and southern Africa — set their clocks an hour forward sometime during September through November and move them back to standard time during the March-April timeframe.

Australia, being such a big country (the sixth-largest in the world), doesn’t follow DST uniformly: New South Wales, Victoria, South Australia, Tasmania and the Australian Capital Territory follow daylight saving, while Queensland, the Northern Territory (Western Australia) do not, according to the Australian government. Clocks in the observing areas spring forward an hour at 2 a.m. local time on the first Sunday in October and push back an hour at 3 a.m. local daylight time on the first Sunday in April.

Russia instituted year-round daylight saving time in 2011, or permanent “summer time,” which seemed dandy at first. But in the depths of winter, sunrise occurred at 10 a.m. in Moscow and 11 a.m. in St. Petersburg, Prerau, author of “Seize the Daylight: The Curious and Contentious Story of Daylight Saving Time,” said. This meant Russians had to start their days in the cold, pitch-dark. The permanent summer is coming to an end, however, as now Russian president Vladimir Putin abolished DST in 2014, according to BBC News. As such, the country will remain in “winter time” forever, or until another law is passed.

Myths and interesting facts

Turns out, people tend to have more heart attacks on the Monday following the “spring forward” switch to daylight saving time. Researchers reporting in 2014 in the journal Open Heart, found that heart attacks increased 24 percent on that Monday, compared with the daily average number for the weeks surrounding the start of DST.
Before the Uniform Time Act was passed in the United States, there was a period in which anyplace could or could not observe DST, leading to chaos. For instance, if one took a 35-mile bus ride from Moundsville, West Virginia, to Steubenville, Ohio, he or she would pass through no fewer than seven time changes, according to Prerau. At some point, Minneapolis and St. Paul were on different clocks.
A study published in 2009 in the Journal of Applied Psychology showed that during the week following the “spring forward” into DST, mine workers got 40 minutes less sleep and had 5.7 percent more workplace injuries than they did during any other days of the year.
Pets notice the time change, as well. Since humans set the routines for their fluffy loved ones, dogs and cats living indoors and even cows are disrupted when, say, you bring their food an hour late or come to milk them later than usual, according to Alison Holdhus-Small, a research assistant at CSIRO Livestock Industries, an Australia-based research and development organization.
The fact that the time changes at 2 a.m. at least in the U.S., may have to do with practicality. For instance, it’s late enough that most people are home from outings and setting the clock back an hour won’t switch the date to “yesterday.” In addition, it’s early enough not to affect early shift workers and early churchgoers, according to the WebExhibits, an online museum.

Source: https://www.livescience.com/amp/56048-daylight-saving-time-guide.html