Dear ITLA Members,
The Idaho Land Title Association hosted a very successful Pacific Northwest Land Title Convention August 6-8, 2015, in beautiful Coeur d’Alene, Idaho. Approximately 225 members from the different associations attended the convention which focused largely on the upcoming CFPB TILA-RESPA Integrated Mortgage Disclosure (“TRID”) Rule. I would like to extend a special thank you to John Holt, Convention Committee Chair and Nikki Droll, Political Action Committee Chair who worked very hard to arrange an excel-lent agenda of expert presenters and panelists for a full day of education, as well as a silent auction which earned a sizable contribution to the very important IPAC funds.
The annual convention also brought the installation of new Officers elected to lead the Association. Quinn Stufflebeam will be moving into his new role as past president and the ILTA would like to thank Quinn for his exceptional leadership as ILTA President this past term. The ILTA also welcomes new board member Cameron McFaddan from Title-One Corporation, who will represent the South West region for the ILTA membership. Along with Cameron, we congratulate and thank the current board members as they con-tinue to serve the ILTA membership in their respective capacities, consisting of J.T Jacob-sen from Kootenai County Title, Daryl Olsen from Alliance Title, Quinn Stufflebeam from Title Financial Corporation and John Holt from Old Republic. We are fortunate to have such a great group of dedicated professionals who are willing to volunteer their time and expertise on behalf of the ILTA membership.
The success of the Association is due in large part to the hard work of the different Com-mittees. The ILTA greatly appreciates the Committee Chairs and the Committee members who work diligently on behalf of the membership to review, monitor, and report on new legislation and important court decisions as well as develop continuing education regard-ing issues related to the land title industry.
All members of the Association have the opportunity to participate in the success of the Association, by joining one of the Committees. I encourage every member to consider participating on a Committee at some point in their career. It is not only gratifying, but is a great opportunity to grow as a leader and to experience how the Association works for the benefit of its membership. Some of the Committee Chairs will be reaching out to the membership in the coming weeks as they build their Committees. If you are interested in participating on a Committee, please don’t hesitate to contact the Committee Chair direct-ly. You can learn more about the purpose and responsibilities of each committee at www.idaholandtitle.com.
Liaison and Convention- John Holt
Legislative – Richard Flory (*protected email*)
Judiciary – Matt Ryden (*protected email*)
Education – Les Lake (*protected email*)
Membership – Michelle Reay (*protected email*)
Political Action Committee – Chair not yet assigned.
Nominating Committee- Quinn Stufflebeam
Are you ready for October 3, 2015?
We are quickly entering the final stretch as our industry prepares for the implementation of the CFPB TILA-RESPA Integrated Mortgage Disclosure (TRID) Rule on October 3, 2015. When the CFPB extended the implementation date to October 3rd, it not only gave our industry more time to prepare, but also provided an extended opportunity to meet with our lender and realtor clients and develop an even stronger relationship.
If there is one piece of advice I can provide, it would be talk to your lenders now. October 3, 2015 marks a major shift in the chain of events and the lender’s liability on most residential real estate transactions. New integrated mortgage disclosure forms will be released that include new cost and timing tolerances as well as changes in the responsibility for their completion. As a title agent, it is imperative to begin engaging your lenders. Each lender will have different expec-tations and process for their transactions. Title companies need to know what their lenders expectations are, how it will impact their processes, and, how it will impact interactions with their referral sources.
I am proud to be a member of the Idaho Land Title Association and I look forward to my term as ILTA President. It is going to be a challenging but exciting year for our industry!
Convention Business Meeting Minutes and Committee Reports
The Business Meeting at the annual convention was called to order and conducted by Quinn Stufflebeam. A summary of the minutes is as follows:
1. 2014 Minutes were reviewed and approved.
2. Financial summary was distributed. The Association is in a healthy state and financials were reviewed and approved.
3. Quinn presented his President’s Report summarizing the years’ highlights:
a. ILTA successfully operated within budget.
b. Membership numbers remained steady – 144 members
c. 11 Board and Liaison Meetings
d. Liaison meeting with membership and DOI covered DOI issues, legislative issues, case law review, etc.
e. 28 years continued communication process with DOI
f. Transitioned thru appointment of Jim Scanlon and the cancelation fee Advisory, new DOI auditing pro-cedures and policies, trade association donations, and the definition of educational seminars, etc.
g. Transitioned thru appointment of new Director – Dean Cameron
h. Redesigned website to a more functional and inviting site with online payment capabilities for conven-tion, ed seminars and dues
i. ILTA attended the ALTA Federal Conference and Annual Convention and reported news to membership
j. Annual ed seminar was successful with approximately 100 in attendance focusing on CFPB
k. Discussed regional ed seminars – Oct-Nov for eastern and panhandle
l. Legislative – CPL passed, Parkwest still an ongoing issue, monitoring oil and gas, Counties stood down on separate fee for multi titled docs
m. Certification and continuing ed was discussed ala Florida program for designations and continuing ed – to improve professionalism of our industry
n. Transition thru retirement of Larry Benton after his injury to Lyn Darrington and Martin Bilbao of Gal-latin PA taking over on legislative issues
o. ILTA hosting the Pacific NW Convention
p. Continued quarterly newsletters
4. Committee Reports were made:
a. Liaison – John advised of the Liaison meeting focus – DOI communication involved transition to Jim Scanlon and the cancelation fee and data call advisory, issues regarding the definition and scope of educational programs conducted by title companies, new DOI audit procedures with a focus on com-pliance to Rules 25, 39 and 56, and the DOI more aggressive formal approach to matters – i.e. letters will all have a more formal approach and point out realm of possible violations and penalties with the intent to formalize so there is no question of impropriety. Unlicensed products or entities involved with title products were discussed as well as consumer issues and marketing activities. Other regular discussions were on legislative issues and miscellaneous issues like upfront charges from HOA’s for information. The Liaison Committee transitioned thru retirement of Larry Benton after his leg injury and began working exclusively with Lyn Darrington and Martin Bilbao of Gallatin PA. The Committee also welcomed new Director Dean Cameron at a recent meeting.
b. Judiciary – Bob Rice gave a brief summary of his case review. Cases for the year have not changed as reported in previous Newsletters.
c. Education – Les advised of another successful ed seminar that focused on Best Practices and CFPB is-sues. Next March’s seminar should be interesting post October 3 TRID implementation date.
d. Legislative – Lyn and Martin gave an update. The ILTA has supported Sen. Dean Cameron in the past as a key legislator and leader in the Senate. Dir. Cameron started off in the title business and was close to Steve and Judith Porch from his hometown of Rupert. He has also been on the Senate Commerce Committee that we work with on legislative issues. Lyn and Martin anticipate a good working relation-ship with Dir. Cameron and the DOI moving into the future. Sen. John Tippets who was chair of the Senate Commerce Committee also moved to a state appointment as head of DEQ. Two key individuals on the Senate Commerce Committee are being replaced that has resulted in the new Chair – Jim Pat-rick as well as four new members. Vito Barbieri is the Chair of the House Business Committee. Lyn & Martin advised that passage of the CPL bill is the only fee related bill passed in the last three years and is accomplishment for the ILTA. We continue to work with Sen. Davis and his legal intern who is taking the bar this summer on their promise to work with us to fully resolve the Parkwest issue. Oil and gas is an ongoing issue The Bankers were brought into the fray at a meeting by the Department of Lands where the oil and gas group took the lenders to task. The Bankers are meeting with the Realtors and ILTA to determine if we have a common position on the issue and can steer the action versus a reac-tive position. Lyn and Martin will be more engaged with the Legislative Committee this year as they strengthen their knowledge of the title industry and key buzzwords to better address issues.
e. PAC – Nikki advised the IPAC fundraising at the ed seminar was very successful. We raised $1,387.00 for the split the pot raffle netting $693.50. We also netted $1,900.00 on the silent auction. The Pacific NW Convention proved even better as we raised $1,732 for the split the pot netting $866.00 and netted $2,280.00 from the silent auction.
f. Convention – John reported that Utah dropped out of the five state region convention even though they were set to host in 2016. Montana would be next in line and they deferred and are also consider-ing leaving the group. Oregon follows and they are working on a convention at Skamania which is a resort just east of Portland on the Washington side of the Columbia River. More details will follow.
g. Awards were presented to the Committee Chairs.
5. Nominating Committee Report – John announced the nominated slate of officers – Cindy Guanell – President; JT Jacobsen – President -elect and VP Panhandle; Daryl Olsen – VP Southeast; Cameron McFaddan – VP Southwest; John Holt – Sec/Treasurer; and, Quinn Stufflebeam – Past President. Quinn called for a vote and there was unanimous approval for the slate of officers who were officially installed at the Closing Banquet by John Hol-lenbeck – President-elect of ALTA.
6. The meeting was Adjourned. The next Liaison and Board meeting will be 10:00 Thursday September 10 at Alli-ance Title Parkcenter.
Pacific NW Convention Education Classes Summary
The 2015 Pacific NW Convention in Coeur d’ Alene had many takeaways from the educational program and networking side. Materials regarding the educational program can be accessed by visiting www.idaholandtitle.com. The green “Communications” button on the home page has a link to the materials as does the “Convention” button on the left sidebar. You can also access materials at the following link: http://idaholandtitle.com/2015-pnw-convention-training-materials/.
The educational program was very informative. John Hollenbeck, ALTA President-Elect advised that ALTA’s focus is on advocacy, education, outreach, policy forms, collaboration, community and working together. Working together is very im-portant as our industry faces big issues and big capable adversaries. The CFPB is a powerful agency that steers the TRID implementation and wields a heavy enforcement hand. Consumers need knowledge and we need to have Best Practices and compliance on market conduct. At its annual convention in October, ALTA will be rolling out its Homebuyer Outreach Program to help educate consumers. Cyber security and marketability issues loom for us as well as a multitude of other is-sues. Advocacy requires participation and grass roots. It is important that as many individuals as possible join TAN and ad-vise ALTA of personal connections with legislators so we can enhance our lobbying efforts. Contributing to TIPAC and attending the ALTA Federal Conference are other important ways of participation to make our industry stronger. The CFPB is powerful and aggressive levying enormous fines. Hollenbeck advised to not think the CFBP will be neutral – the better approach is to be as compliant as possible and avoid the spot light.
Dan Wold, general counsel for Old Republic, laid out other cautionary points. The Dodd Frank Act and the creation of the CFPB was based on their belief that if consumers had been better informed the recent financial crisis could have been avoid-ed. Disclosures became a primary goal for a better informed consumer. The enforcement parameters use words that are overly broad with little definition or guidance – i.e. “deceptive” and “abusive” – which makes exposure an ongoing concern. The CFPB’s lack of a hold harmless period underscores the concerns moving forward with the TRID implementation. Mar-keting services agreements with a producer of title business is a bulls eye for the CFPB so look at them closely. The stakes are high as the CFPB wields extraordinary enforcement powers to the tune of $5,000/day in violations. Size does not matter as the CFBP has gone after small, medium and large targets. The type of business is also irrelevant to the CFPB enforcement as any type of service provider is subject to review. Wold advised that the CFPB has created a wide net where section 8 (c) of RESPA is no longer a safe harbor if you give a referral but get service in return on the general premise that a referral is a referral. Fines levied by the CFPB are meant to hurt and there can be no recovery from a third party source like insurance.
Ruth Dillingham, special counsel for First American, discussed the “quicksand” of the new Disclosure Form. Everything that is a homeowner expense needs to be listed on a per month basis – i.e. homeowner’s association fees; water bill; sewer bill; condo fees; and, private road maintenance fees. Real estate agents license numbers need to be disclosed. Efforts should be made for realtors to disclose their license numbers on purchase agreements.
Ted Jones, Stewart Title’s economist, shared his regional and national stats and thoughts on the economy. The CFPB is a four letter work. Jones queried whether the CFPB is helping or hurting. For example, if the goal is to better inform consum-ers the new Disclosure Form doesn’t have line items and it went from 4 to 10 pages which seems problematic. On the eco-nomic side Jones advised there are more jobs than ever in history. The retail boom is just starting. Terrorism is here to stay.
There are more renters than owners due to millennials needing 20% down because of the high 740 FICO score threshold. The Pacific northwest is doing better as a region for job growth. Idaho has 3.26% growth. Idaho and Washington are num-ber 1 in job growth when ranked on a 1 month, 6 month, 1 year and 5 year basis. Title premiums in Idaho increased 18% from the 2014 1st quarter compared to 2015 1st quarter. Commercial transactions are up. 52% of US households receive some form of government benefits of which 32% are for retirees. The rest are getting government benefits. Jones opined that our government languishes as we have politicians versus leaders. Without term limits, power and re-election are legislators focus versus making America better. The CFPB has no oversight which is worrisome. The CFPB made $216 million in renovations to a building they don’t even own. While the CFPB has exercised its heavy enforcement hand it is curious that they took only one action against a pay day lender or auto title dealer.
The CFPB panel was well received discussing various issues and scenarios. Les Lake, forensic accountant at Lake Forensic Advisors and ILTA Education Committee Chair, provided his insights on cyber security issues. He delved into what the issues are and how you can make best efforts to detect them and the avenues to take for prevention. Bo Edwards, general counsel for Westcor Land Title, outlined several fraud claims that he equated to beating the devil as you need to be diligent with your eyes wide open. He hammered home the point with his banjo diddy in his sequel to “The Devil Went down To Georgia”.
The Friday night banquet concluded with keynote speaker Don Yaeger . Don’s presentation was on “Building Champion-ship Cultures: What Makes the Great Teams Great”. Don has studied great teams and companies to identify the keys in why certain teams/companies sustain success year after year and others rise and fall. Don believes the topic begins and ends with a focus on culture. Winning/Success is sustainable only if there is an emphasis on culture. The winners make culture a pre-mium as there is a link between culture and sustained success. The link is that great culture produces great championship behaviors. Great behaviors produce great habits. And, great habits lead to sustained winning/success. Don defines culture as a set of values, beliefs, underlying assumptions, attitudes and behaviors shared by and expected from a team of people. Don identifies 6 building blocks in building great team culture. 1) Articulate what you stand for very clearly – design it and declare it boldly. 2) Build your culture one piece at a time. It requires commitment, discipline and continuity as it takes time to develop. Great culture is not accomplished over night. 3) Recruiting changes culture faster than anything else. Recruit to fit your culture and not be wowed by a resume or what someone may have accomplished somewhere else. 4) Lead by example. You don’t need posters telling you what your culture is. The actions of leaders speak louder than words. 5) Cele-brate daily victories. Celebrate employees living to those values. Celebrate daily until those values become the fabric of the company. 6) Create a shared vision by holding people accountable for their actions and behaviors.
Before and after a full Friday of education was a fantastic icebreaker and a boat cruise to the golf course where a full luau awaited – roasted pig and all. The Friday reception and banquet was exceptional and also included vendor introductions and raffles of their prizes; a special vendor raffle for those visiting all 21 vendors that included Go Pro and fit bit prizes; a silent auction that raised $2,280.00 for IPAC and included great items (an Apple I Watch, electronic items and a fly rod and reel); a 50/50 raffle that netted the winner and IPAC each $866.00; installation of officers; and, Don Yaeger. Saturday was the golf tournament. The course was in great shape and the tourney was a fantastic outing. The timing for convention was great as the weather was outstanding before fires ravaged the area. Thank you to sponsors and vendors follows. Also, check out the back page of the Newsletter for pictures. Don’t miss out next year. Aside from all that has been reported there is invaluable networking and contacts to be made and vendors to visit.
Newsletter: August 2015 – DOWNLOAD PDF