The Liaison Committee met Wednesday March 4, 2015 at the Red Lion Downtown. Some of the issues discussed were:
- Jim Scanlon gave a DOI update at the ed seminar. The 5 year audits are ready to start. As a reminder, the procedures are different then in prior years in several respects. Differences include the DOI goal to do as much as possible online. Financial review will also be more in depth. The procedure includes the DOI requesting all the information they require 3 months in advance of the audit. The DOI will pick files from the info provided that they will focus on for compliance with Rules 25, 39 and 56. The audit will include follow up questions and analysis. A final invoice to be paid to the examiner will be submitted from Jim after his analysis of the bill with any comments from the agent. Agents undergoing audits covering multiple offices will receive invoices broken out per license. There will be more formality in letters from the DOI to preserve appearances that audits are above board. Regarding the 3 year escrow audits, Jim advised that the submission of underwriter audits submitted in accumulation over a 3 year period would most likely satisfy the DOI. Escrow rate filings are also coming due. Rates are to be filed with justification on a go forward basis. Jim is working under the assumption that prior filings were justified. Jim also advised that he has contacted his counterparts in other states and the interactive relationship and ongoing dialogue and meetings the DOI has with the ILTA is an unprecedented valuable relationship the other states don’t have.
- Lyn provided a legislative update. The Supreme Court decision on the Parkwest matter did not fully address the issues outlined in our amicus brief. Counsel Tom Dvorak felt the decision was partially what we wanted in terms of limiting its scope to mechanic liens. He advised the Supreme Court felt we made good arguments but the full matter would need to be addressed through legislation. We just learned Sen. Davis is introducing his own legislation to address the trustee issue in the mechanic lien scenario. We are working with Sen. Davis’ office to see if we can supplement his bill to address all the Parkwest issues.
- We continue to monitor oil and gas lease issues. ALTA Mesa made a presentation at the ed seminar as did associate member, Hethe Clark of Spink Butler. There appears to be some disconnect with lenders on understanding the issues.
- Lyn and the underwriters have been working/negotiating with the realtors and lenders on the CPL issue. The realtors had some amendments that were negotiated to satisfaction. We are trying to iron out some language with the lenders. We should have a bill ready next week.
- Quinn advised that Lincoln and Madison Counties have tried to overlay GIS mapping with legal descriptions. If they don’t match up the County is making its own determination regarding the adequacy of the legal description. If you are aware of this happening in your County please let a Board member know as this is an issue we will want to review further as it could be problematic.
- The Board discussed a certification program that would result in professional designations. The ILTA would create a committee to oversee this program inclusive of testing. The goal is to enhance the professionalism of our industry in Idaho especially since there is no individual licensing. Please respond to these minutes if you believe this program is worth exploring and moving forward on. Any comments are welcome as we are trying to gage the interest in expending time and money on this project.
- Please also mark your calendar for the 2015 Pacific NW Convention hosted by Idaho at the Coeur d’ Alene Resort August 6-8. The ed program will include important ALTA updates and CFPB updates a week after the August 1 implementation date.
- The next Liaison meeting will be at 10:00 Thursday April 9 at Alliance Title Parkcenter.