Liaison Minutes July 10, 2024
Liaison Minutes July 10, 2024
Members,
The Liaison Committee met Wednesday, July 10, 2024, at 10:00 at Martin’s office and via ZOOM. Some of the issues discussed included:
1. Announced the retirement of Allan Knight – Congrats Allan!! Attached please see the announcement for the Retirement Open House for Allan on July 19 from 11:00 am – 2:00 pm at Fidelity’s office at 1144 S. Silverstone Way, 5th Floor, Meridian, ID 83642.
2. Matt gave a DOI update. There was one consumer issue regarding alleged unfair claims practices as the insured did not believe the underwriter was timely responding. Matt advised 5 exams are complete. Issues of note is that escrow disbursement with just a total is improper. A breakdown is required. There was also receipt of a personal check that closed the same day which is a violation of collected funds. Improper/excessive gifts to producers of title were also noted. Matt also clarified that the property profile should not be inclusive of verification of the legal description without a commensurate charge. Matt further advised of a new title insurer receiving a license in Idaho- First National Title Ins. Co. out of Texas. He also noted that Timberline Title sold and the representative of the new ownership- James Wescott – was present in the Liaison meeting.
3. DOI rules hearing is set for July 23 from 2-4 at the DOI. This hearing covers all DOI rules which are inclusive of title insurance rules and the good funds amendments we proposed.
4. Martin gave a legislative report. Robin advised the HOA Mgmt and fee issue is still alive despite repeated legislative attempts to put the issue to bed. HOA’s continue to charge to receive the statement in violation of law. They have a third-party agent provide the statement who charges and the HOAs say this is not their charge and is just a processing fee. If you have examples, please contact Martin and provide documentation. We are looking at setting up a meeting with the AG to advise of the history of the issue and the repeated offenses. Enforcement is necessary.
5. The data privacy bill will most likely resurrect itself in 2025 from insurers in the other lines of insurance and we will monitor.
6. ILTA will sponsor a homestead bill (Bob’s Bill). The proposed language has been circulated to the realtors and lenders without note. The bill would eliminate the need for a spouse to sign when separate property of one spouse is being sold or encumbered.
7. We will work with Judy Boyle, who was the sponsor of the foreign investment law, on amendments to include divestiture and enforcement procedures. We will utilize the ALEC draft bill as a model to present these amendments.
8. Short term rentals, homeowner’s exemption, and flip transactions remain on the agenda and we will monitor with the realtors to see if they will be on their 2025 legislative agenda. The homeowner’s exemption bill from the realtors focuses on the pro ration. However, a new wrinkle has developed where Counties are inconsistent in their interpretation of the requirement of a driver’s license or state card as part of the exemption application. Some Counties are requiring the driver’s license or state card be Idaho issued. This impacts incoming owners who don’t have an Idaho license or state card. Uniformity would be helpful. Discussion with the realtors and Counties may be in order. There was some discussion that although uniformity would be helpful, is this really a title business issue.
9. Another tentative realtor issue regards disclosure of docs – i.e. by laws.
10. Martin and Michelle met with the SOS on secured docs. SOS understood the title issue that not reporting secured docs creates. The issue is being further reviewed.
11. UWM and AOL’s was discussed. After UWM met with the DOI many months ago the DOI never had any follow up from them. Information is that UWM is now transacting in Idaho and issuing AOL’s as a title insurance substitute. Please keep your ear to the ground and gather documentation so that the info can be presented to Matt. If UWM is also acting as an escrow company, they would need to be licensed at least by the Department of Finance.
12. Tied to this is the mission creep of Fannie Mae and the pilot title waiver program that Pres. Biden touted in his SOTU as a means to save first time homebuyers money in real estate purchases – total unsubstantiated nonsense. The GSE’s acting as title insurers is not only outside their charter but in violation of state regulation – much like what it sounds like UWM is doing with AOLs. We need to be vigilant and get documentation to the DOI.
13. Vacant land fraud was discussed briefly as a continuing issue and ed topic.
14. Last month identified a company meeting with the Ada County Recorder to copy the plant and sell subscriptions. This same company is doing this in Reno. Matt advised the DOI receives a number of calls about nonresident licenses and ways to avoid the plant law. The DOI does not consider a subscription tantamount to a lease.
15. Conditional payoffs from lenders seems to be an issue in other states but not in Idaho at this time.
16. ILTA social media presence was discussed. Members and affiliates are encouraged to follow the ILTA on LinkedIn, Facebook and Instagram. Invite your contacts to follow.
17. Issues discussed underscore the importance of advocacy and that we all need to participate and be vigilant in protecting our industry as we face an onslaught of attacks on multiple fronts.
18. The next meeting is on Wednesday August 14 at 10:00 at Martin’s office at 599 W Bannock and via ZOOM.
