Republic Title, Author at Republic Title

Residential neighborhood, aerial view, Baden Wurttemberg, Germany.

HUD Looks to Eliminate Regulatory Barriers to Affordable Housing

The Department of Housing and Urban Development published a request for information to dig into how regulations could be creating barriers to affordable housing.

The RFI is seeking public comment on federal, state, local and tribal laws, regulations, land use requirements and administrative practices that raise the cost of affordable housing and contribute to housing shortages.

“Owning a home is an essential component of the American Dream,” HUD Secretary Ben Carson said. “It is imperative that we remove regulatory barriers that prevent that dream from becoming a reality.”

“Through this request, communities across the country will have the opportunity to identify roadblocks to affordable housing and work with state, federal, and local leaders to remove them,” Carson continued.

Earlier this year, President Donald Trump signed Executive Order 13878, “Establishing a White House Council on Eliminating Regulatory Barriers to Affordable Housing,” saying that, for many Americans, the supply of available housing has not kept pace with the demand for housing by prospective renters and homebuyers, driving up housing costs.

Now, HUD is looking for the following information points:

Specific HUD regulations, statutes, programs, and practices that directly or indirectly restrict the supply of housing or increase the cost of housing
Policy interventions, solutions, or strategies available to State, local, and Federal decision makers to incentivize State and local governments to review their regulatory environment or aid them in streamlining, reducing or eliminating the negative impact of State and local laws, regulations and administrative practices
Ways that State-level laws, practices, and programs contribute to delays in the construction industry and specific laws, practices, and programs that could be reviewed
Common motivations or factors that underlie local governments’ adoption of laws, regulations, and practices that demonstrably raise the cost of housing development, and whether such factors vary geographically
Peer-reviewed research and/or representative surveys that provide quantitative analyses on the impact of regulations on the cost of affordable housing development
Performance measures, quantitative and/or qualitative, the Council should consider in assessing the reduction of barriers nationally or regionally and advantages and disadvantages of each measure
Recommendations on how to best utilize HUD’s Regulatory Barriers Clearinghouse for States, local governments, researchers and policy analysts who are tracking reform activity across the country

This RFI is a part of the work Carson is undertaking as the chair of the White House Council on Eliminating Regulatory Barriers to Affordable Housing. The Council’s eight federal member agencies are engaging with governments at all levels—state, local and tribal—and other private-sector stakeholders on ways to increase the housing supply.

Source: https://www.housingwire.com/articles/hud-looks-to-eliminate-regulatory-barriers-to-affordable-housing/

Deep snow has been shoveled, cleared and piled along the sides of the front yard footpath of this colonial style home. Two small holiday Christmas trees at the end of the walkway are decorated with Christmas ornaments and wide, bright red ribbon Christmas bows. Heavy blizzard snow continues to come down hard and blow around in all directions - already starting to re-coat the slippery surface and cover the fresh footprints. Nothing surprising here - just another early January winter snow storm in a rural suburban residential district neighborhood near Rochester, New York.

Tips for Winterizing Your Home

Winter is coming! See below for a list of top tips for winterizing your home.

CHECK THE EXTERIOR, DOORS AND WINDOWS

Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
Use weather stripping around doors to prevent cold air from entering the home and caulk windows.
Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.

HVAC SYSTEMS

Get your HVAC system serviced, and have your duct work checked to be sure the air flow is uninterrupted and free of holes from pests.
Reverse all ceiling fans in the house. This will help push warm air downward and force it to recirculate.
Change the air filters in your home.
Check the cold air return vents and make sure they are not blocked by furniture. Your furnace needs these to operate at high efficiency.

CHECK FOUNDATIONS

Rake away all debris and vegetation from the foundation.
Seal up entry points to keep small animals from crawling under the house.
Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
Inspect sill plates for dry rot or pest infestation.
Secure crawlspace entrances.

SMOKE AND CARBON MONOXIDE DETECTORS

Install a carbon monoxide detector near your furnace and/or water heater.
Replace batteries in smoke and carbon monoxide detectors.
After replacing batteries, test all detectors to make sure they work.
Buy a fire extinguisher or replace your existing one if it is older than 10 years.

PREVENT PLUMBING FREEZES

Locate your water main in the event you need to shut it off in an emergency.
Shut off the water to your hose bibs inside your house (via turnoff valve), and drain the lines. Then insulate the spigot itself.
Insulate exposed plumbing pipes that pass through unheated areas of your home, like the garage for instance.
Flush your water heater to remove built-up sediment.
If you do go on vacation, leave the heat on, set to at least 55 degrees.

GET THE FIREPLACE READY

Cap or screen the top of the chimney to keep out rodents and birds.
If the chimney hasn’t been cleaned for a while, call a chimney sweep to remove soot and creosote.
Buy firewood or chop wood. Store it in a dry place away from the exterior of your home.
Inspect the fireplace damper for proper opening and closing.
Check the mortar between bricks and tuckpoint, if necessary.

PREPARE LANDSCAPING & OUTDOOR SURFACES

Trim trees if branches hang too close to the house or electrical wires.
Turn off your sprinkler system.
Clear the gutters of fallen leaves and debris.
Ask a gardener when your trees should be pruned to prevent winter injury.
Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
Seal driveways, brick patios and wood decks.
Move sensitive potted plants indoors or to a sheltered area.

Click here for a printable version.

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