Liaison Minutes June 12, 2024
Liaison Minutes June 12, 2024
Members,
The Liaison Committee met Wednesday, June 12, 2024, at 10:00 at John’s office and via ZOOM. Some of the issues discussed included:
1. Matt gave a DOI update. There were no new consumer issues. Matt advised 2024 exams continue to progress. He had a couple escrow issues to report: escrow disbursements not being broken down in detail; buyer funded with personal check and wire went out the same day.
2. Matt also advised of several marketing issues seen in the exams that the DOI is reviewing – gifts to producers; using the negotiable rate as an inducement for business; using out of county rates as marketing ploys; terms in the purchase contract that seller will pay for title insurance but only if you use ABC title company; unlicensed entities acting as title agents; door prizes to realtor open houses – seems questionable. Swag can be left at an open house but within the Rule caps. Matt advised to document your records. Questionable actions regarding the marketing rules are ramping up and causing some concern to the DOI.
3. Matt further advised that using legal descriptions in property profiles without charging is a violation. If you include you need to charge.
4. Martin gave a legislative report. The HOA Mgmt and fee issue passed into law and will be effective July 1. It is imperative to be diligent and document charges and send the documentation to Martin or John.
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. 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.
7. Short term rentals, homeowners exemption, and flip transactions were realtor driven bills that didn’t make it this year. We will be meeting with the realtors to see if these are on their agenda for 2025.
8. 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.
9. 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.
10. Matt advised the DOI is reviewing our proposed Good Funds amendments. A public meeting will be held July 23 at the DOI followed by additional review and then a follow up meeting in September or October ahead of the 2025 Legislative session. Martin advised that the realtors, bankers and credit unions had reviewed our proposed language favorably.
11. The Secure Doc issue is making progress in north Idaho although domestic violence redaction is still an issue. DOI is on standby to look deeper into this issue. This issue ties to new contact from the SOS on redacted forms.
12. Vacant land fraud was discussed. Robin shared a new wrinkle where the fraudster deeds from the real owner to a fraudulent name. The fraudster waits a few weeks and then acts as the new owner. This scheme purportedly creates another layer to try and legitimize the fraud scam.
13. Home equity agreements were discussed. A couple of the underwriters were familiar with this concept from a number of years ago but no one was familiar with it currently.
14. Mike Koloski advised about 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. It was discussed that a subscription did not seem tantamount to a lease.
15. This month’s issues 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.
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. The next meeting is on Wednesday July 10 at 10:00 at Martin’s office at 599 W Bannock and via ZOOM.
