The Idaho Land Title Association (ILTA) is hosting its annual ILTA Education Seminar on March 6 & 7, 2014, and again this year, the Education Committee has scheduled relevant topics that are consistent with the current title and escrow operating environment. The Education Seminar begins with a two hour overview of ALTA Best Practice imple-mentation and Consumer Financial Protection Bureau (CFPB) issues and compliance. Other agenda highlights are Data Protection from Cyber Threats and the Agent and Un-derwriter Panels discussing, again, current matters important in their respective operating environments. We are looking forward to seeing everyone at the Education Seminar, and the ILTA Board thanks the Education Committee for assembling the presentations.
Also, the ILTA Legislative Committee, chaired by Kris Ellis, has been very busy represent-ing the ILTA during this year’s State of Idaho Legislative Session. Two items specifically have been active, Multi-Titled Document Recording and the definition of Trustee as it re-lates to notice in non-judicial foreclosure. The first matter, Multi-Titled Document re-cording, the ILTA was responding to the Idaho Association of Counties proposal to up-date their Recording Manual requiring separate recordings for multi-titled documents; the ILTA opposed this Recording Manual update and proposed legislation. After many meetings and discussions the Idaho Association of Counties tabled the matter for this legislative session, but they plan to regroup in May 2014 with an eye toward next year’s legislative session.
The second Legislative Committee item, definition of a Trustee as it relates to notice in a non-judicial foreclosure brought forth by a State of Idaho Supreme Court decision last year, has turned out to be quite a project. The ILTA Legislative Committee proposed leg-islation, but key State of Idaho Legislators, the Banking Association, the Association of General Contractors have all become involved and the project scope from the ILTA’s per-spective has changed materially, therefore, the ILTA’s Legislative Committee has recom-mended to back off for now. The ILTA Board and Liaison Committee will discuss this matter at the next scheduled Board and Committee meetings scheduled for February 21, 2014. The ILTA Board greatly appreciates the work performed by ILTA Legislative Com-mittee.
In closing, on behalf of the ILTA Board and Committees Chairs, we continue our mission to serve ILTA Membership, and look forward to seeing everyone at the March 2014 ILTA Education Seminar.
Brian J. Stone
Recent Issues Focus of ED SEMINAR
Similar to last year a major focus of the past year and the first quarter has been the Consumer Financial Protec-tion Bureau (“CFPB”) and new rules and procedures to follow together with the vetting of operations. Our fast approaching Ed Seminar is again focused with this in mind and features the ALTA discussing BEST PRAC-TICES. Speakers for Thursday’s session include:
Leslie Wyatt, from Soft Pro, will speak as a representative of ALTA and discuss implementation of BEST PRAC-TICES emphasizing what the verification process will look like and how you know you are in compliance. Leslie will also discuss current CFPB rules and issues like the “Know Before You Owe” – which is the Bureau’s new program to develop what consumers should know before they close their transaction.
We also have Gary Karnes from DL Evans Bank who will discuss the CFPB rules from the lender’s perspective and Neal Custer of Custer Agency/Reveal Digital Forensics who will discuss prevention, detection and mitigation strategies regarding cyber threats.
Other speakers include Ben Slaughter and Daniel Glynn of the firm Jones, Gledhill, Fuhrman and Gourley who will provide lessons in Rule 25; Kris Ellis for a legislative update; Bob Rice on case law review; Arlene Barrie for a Department of Insurance update; and, Cameron McFaddan for a PAC update.
Please also plan to attend the Thursday evening 3rd Annual Casino Night IPAC Fundraiser that follows Thurs-day’s education session. Casino Night is at the Red Lion at approximately 5:30. Please support our industry with this fun fundraiser activity. In addition to the casino action and dinner buffet we will have a silent auction and raffles. Please bring auction items and participate in this fun fundraiser.
Friday’s seminar session is an agent panel discussion followed by an underwriter panel discussion. Larry Benton will act as moderator for this informative dialogue that will center on the questions outlined below:
Agent Panel members: Ric Eborall, Alliance Title; Quinn Stufflebeam, Title Financial Corporation; Cameron McFaddan, Title One; Clarence Stark, Washington County Title; and, Carolyn Carlson, Community Title
Panel Questions (lead person in bold)
1. What do you see as the biggest challenges facing title agents in the next 5 years? Ric Eborall
2. How do you differentiate and distinguish your company in business development and customer service? Carolyn Carlson
3. What issues are you experiencing regarding implementation of Best Practices? Cameron McFaddan
4. What are the benefits of being an active participant in the ILTA, ALTA and legislative process? Quinn Stufflebeam
5. Do you see marketing for escrow business in adjacent Counties as a marketing issue?
6. What responsibilities do agents have to their underwriters and what expectations should agents have from their underwriter’s? Clarence Stark
Underwriter Panel members: Cindy Guanell, First American; Matt London, Fidelity Group; Glen Roberts; Stew-art Title; Jeff Wiener, Old Republic; Bob Rice, Westcor; David Moore, North American Title
Underwriter Questions (Lead person in bold)
1. What do you see for trends, forecasts and the business model of the title industry? Glen Roberts
2. What expectations do you have for implementation of Best Practices and vetting of agents? David Moore
3. What role do you see for E&O insurance? Cindy Guanell
4. How do you handle claims with respect to agents in terms of liability, notification, communication, and the importance or relevance of loss ratios? Jeff Wiener
5. What is the aftermath of the WA Sup. Ct. case holding an underwriter liable for the illegal marketing prac-tices of its independent agent? Matt London
6. What service should underwriters provide their agents and what should underwriters expect from their agents? Bob Rice
Thursday – March 6th Continental Breakfast Provided
8:00 A.M. Registration
8:15 A.M Welcome – Brian Stone, ILTA President
8:20 A.M. American Land Title Association – Leslie Wyatt, SoftPro
Best Practices and CFPB issues – Implementation of Best Practices – what is the verification process going to look like and how do you know you are in compliance
9:20 A.M. Morning Break
9:30 A.M Leslie Wyatt – Best Practices and CFPB issues continued – CFPB – “Know Before You Owe” – what consumers should know before they close their transaction
10:30 A.M. “Cyber Threats – Prevention/Detection/Mitigation. Your call to action” – Neal Custer, Custer Agency/Reveal Digital Forensics. Are you ready for a data breach? What you need to know and do when you discover your data has been compromised. Important prevention, detection & mitigation strategies that comply with “Best Practices” for your office
11:30 A.M. Kris Ellis, Benton, Ellis and Associates Idaho Legislative Update
Cameron McFadden – PAC Update
12:00 P.M. Hosted Lunch
1:15 P.M. “Cyber Threats – Prevention/Detection/Mitigation. Your call to action” – Neal Custer, Custer Agency/Reveal Digital Forensics. (Continued session with panel discussion)
2:00 P.M. “Lessons in Regulation 25” – Ben Slaughter and Daniel Glynn, with Jones, Gledhill, Fuhrman, Gourley. Importance of words & consequence of conscious disregard. Do your clients understand? Discussion of risks
3:00 P.M. Afternoon Break
3:15 P.M New CFPB Rules – a Lender’s Perspective – Gary Karnes, DL Evans Bank
4:15 P.M. Department of Insurance Update
Judiciary Committee – Case Law Update
Bob Rice, Regional Counsel, Westcor Land Title Ins. Co.
5:00 P.M. Thursday Session Adjourns
5:30 P.M. Casino Night and Dinner Buffet to benefit IPAC (held at the Red Lion DownTowner)
Friday – March 7th Coffee Provided
8:00 A.M. Agent Panel – Discussion of agent issues
9:30 A.M Break/Checkout
10:00 A.M. Underwriter Panel – Discussion of underwriter issues
11:30 A.M Adjourn
By Bob Rice
Johnson v. Highway 101 Investments, LLC, Idaho Supreme Court, Docket No. 39160 (February 7, 2014).
The dominant owners of an easement filed suit against the servient owner after the servient owner constructed a permanent sign within the easement. The sign installed by the servient owner effectively reduced the width of the easement from twenty-five feet to nineteen feet at one point along its length.
The Idaho Supreme Court held that the erection of a permanent structure within an easement of definite location and dimen-sion is per se unreasonable.
Renshaw v. MERS, Idaho Supreme Court, Docket No. 40512-2012 (December 18, 2013)
The Idaho Supreme Court affirmed its prior decisions by holding that “having MERS the named beneficiary as nominee for the lender conforms to the requirements of a deed of trust under Idaho law.” Edwards v. MERS, 154 Idaho at 517 (2013). Renshaw attempted to distinguish the case from Edwards on the basis that the promissory note in the instant case had been assigned several times. The Supreme Court rejected that argument and stated that “the assignment of the promissory note does not alter the right of the new holder of the note to have MERS be the named beneficiary as the nominee of the new holder.”
By Cameron McFaddan
It is incredibly hard to effect political change. We all need to do our part. The title industry still faces threats at the federal level that could seriously impact our business. Now more than ever, it is critical to showcase a cohesive and energized voice for our industry. The Title Insurance Political Action Committee (TIPAC) is a great way to make sure the voice of our industry is heard at the National level.
The focus of 2014 will continue to be on protecting the interests of our industry, especially related to Consumer Financial Protection Bureau (CFPB) regulation. Washington DC is a long way away, but the issues are here in Idaho and we are all dealing with them every day. Compliance has always been mandated by my wife. Now I suffer it at work and I know every-one reading this does as well.
TIPAC donations are targeted and balanced across the party lines. TIPAC uses its resources to directly help elect and re-elect members of Congress who support the title insurance industry. The focus is on members of the House Financial Services Committee and the Senate Banking Committees. Last year, TIPAC disbursed 52% of the contributions to Republicans and 49% to Democrats on these committees along with other candidates and incumbents who have a vested interest in our issues.
Last year TIPAC raised $420,000 from 696 contributors. Already this year they have raised $118,000. That is a 15% increase over last year at this time, but we are far from our goals.
Help Idaho be part of the process. Donating is easy. You can contribute online at www.tipac.org. You can make a donation through, me, your TIPAC trustee. My contact information is Cameron McFaddan, TitleOne Corporation, 1101 W. River St., Suite 201, Boise, ID 83702, 208-424-8511, *protected email*. Please contact me with any questions.
I look forward to seeing everyone at the Ed Seminar!
Newsletter February 2014 – Download PDF