Saturday, September 10, 2011

NAIC Provides Forum for Ivory Tower Attack on Self-Insurance

The National Association of Insurance Commissioners (NAIC) has never been known as an organization where the self-insurance/alternative risk transfer industry is treated fairly, but its penchant for bias became even more visible this past week. Worse yet, this bias is now being fomented by an “ivory tower” expert.

Professor Timothy Stoltzfus Jost is the designated “consumer representative” on the NAIC’s ERISA (B) Subgroup , which is tasked with developing various policy recommendations related to how states should adapt their insurance regulations to better coordinate with PPACA implementation. The esteemed professor is not shy in sharing his opinion that smaller self-insured group health plans, facilitated by stop-loss insurance, should be made extinct.

During the Workgroup’s last conference call, Professor Jost presented a formal statement entitled The Affordable Care Act and Stop-Loss Insurance. This scholarly work was quite the hit piece on self-insurance disguised with big words, extensive footnoting and misleading legal references.

His central thesis is that smaller employers should not be allowed to self-insure because they do so primarily to escape state regulation, and going forward to sidestep new PPACA regulation. He also pushes the dubious argument that self-insured plans contribute to adverse selection (see my earlier blog post on this subject).

Virtually all of Professor Jost’s points can and will be rebutted privately and publicly as this NAIC policy development process moves forward, but first let’s take some time to consider the source.

He is currently a law professor at the Washington and Lee University of Law, with multiple other academic appointments dating back to 1979. Along the way, he has written several books and academic papers on the subject of health care with titles such as The Threats Facing our Public Health Care Programs and a Rights-Based Response; and Health Care at Risk: a Critique of the Consumer-Driven Movement.

And by the way, he is a graduate of the University of California at Santa Cruz. In case you are not familiar with this school, it makes U.C. Berkley look like a bastion of conservatism.

So what about private sector experience over his 35 year career? You guessed it, zero. How about past experience as a regulator who at least could interact with the private sector? No again. What we have here is the classic liberal elite academic who looks at the world through prisms of theory and ideology.

Professor Jost holds himself out to be a patient’s rights advocate and clearly views the NAIC as a forum to present his “ivory tower” perspective. OK fine, there’s certainly room for a diversity of qualified opinions as part of the policy development process.

The problem is that while Professor Jost may well have valid perspectives to contribute on true consumer (patient) protection issues, he’s out of his league in commenting on how health care delivery should be financed.

Moreover, if he was truly concerned about the ability of individuals to receive quality, affordable health care, Professor Jost should actually be a proponent of self-insured health plans (regardless of size) because these plans generally do a better job on both counts as compared to the fully-insured marketplace.

It appears the professor is in need of some timely continuing education.

Friday, September 9, 2011

RRG Legislation Snagged by Dodd-Frank Creation

After some initial good progress in moving federal legislation to modernize the Liability Risk Retention Act (LRRA), a new rhetorical roadblock has been raised.

The Risk Retention Modernization Act (H.R. 2126) includes a dispute resolution provision whereby RRGs who believe they are being illegally regulated in non-domiciliary states can access the equivalent of a federal arbitration process as an alternative to initiating costly legal action.

An earlier version of the legislation provided that this dispute resolution mechanism would be administered within the Treasury Department due to technical jurisdiction requirements, but left discretion Treasury to fit this function in as part their exiting organizational chart.

Fast forward to the recent passage of the Dodd-Frank financial reform legislation, which among other things created a new Federal Insurance Office (FIO) to be housed within the Treasury Department. As a result of this development, the current version of the legislation specifically designates FIO as the entity responsible to arbitrate RRG disputes with state regulators.

Supporters of the legislation have always known that there would be some push back in Congress from members concerned that such a dispute resolution would infringe on the authority of state insurance regulators. Of course, the opposite is actually true and this position has gained traction in recent months.

But just as the policy argument has largely been settled, at least one member of Congress key to the legislation’s eventual message has raised a new concern. In a meeting earlier this week to discuss the legislation, Rep. Judy Biggert (R-IL), chairwoman of the House Subcommittee of Capital Markets within the House Financial Services Committee, voiced strong concerns about this new responsibility assigned to the FIO.

Her objection was not really specific to RRG regulation, but rather reflects a broader view held by many Republicans that the FIO is being given too much authority. In hindsight, this objection was not particularly surprising.

While PPACA has garnered the lion share of public attention for those critical of government expanding its regulatory reach, the distaste for Dodd-Frank is significant among most Republican members of Congress. As a result, any manifestation of this law, such as the FIO, can spark a reflexive push back as demonstrated by Rep. Biggert’s comments.

It is important to note that this new wrinkle does not mean that H.R. 2126 cannot pass. The lobbying process on Capitol Hill is inherently complicated and this is just the latest example.

In the end, if the case can be made that the practical advantages this legislation offers to small and mid-sized companies trump more abstract political concerns, the LRRA will be successfully modernized.

Stay tuned for additional inside reports on how this legislation is progressing on Capitol Hill.

Regulatory Overreach Compromises Workplace Safety Initiatives

In case you had any doubt that the current public debate over the scope of federal regulation is more about political ideology rather than practical reality, look no further than OSHA’s ramped up oversight of workplace safety issues.

Now on the surface, this may sound like a laudable focus because almost everyone agrees that there is a role for government in making sure that sensible workplace safety standards are established and adhered to. But of course, in this current political climate Obama regulators just don’t know when to say when.

Specifically, OSHA has recently started to subpoena workplace safety audits prepared by workers’ compensation self-insurers and insurance carriers. Keep in mind that that these audits are prepared on voluntary basis so that employers/insurers are better able to proactively address any safety deficiencies that may exist. Such audits are particularly important tools for workers’ compensation self-insurers because they “own” every dollar saved on payments to injured workers.

Historically, OSHA has not attempted to access such audits because everyone understood that employers would likely stop preparing these risk management tools if they could be used against them in regulatory enforcement and/or legal proceedings.

This precedence has been overturned by a recent federal district court ruling stating that OSHA does have the right to subpoena safety audits and related documentation. Specifically, the ruling in the case of Solis v. Grinnell Mutual Reinsurance Company concluded that audit subpoena are generally enforceable if:

1) They reasonably relate to an investigation within OSHA’s authority;
2) The requested documents are relevant to OSHA’s investigation;
3) The request is not too vague
4) Proper administrative procedures have been followed; and
5) The subpoena does not demand information for an “illegitimate purpose”

According to OSHA’s internal policy regarding voluntary self-audits, the agency will not “routinely” request such audits at the beginning of an inspection, or use the audits to identify hazards to inspect.
But now with a favorable court ruling in their back pocket, it’s very reasonable to expect that OSHA regulators will, in fact, make safety audit subpoenas a routine part of their investigative process.

Of course, and ironically, the real victims are the workers as many employers are likely to curtail such formal audits in response to OSHA’s invasive zeal. Another classic example of “no good deed goes unpunished” apparently embraced by this administration.

Thursday, September 8, 2011

Inside Politics in Michigan Demonstrate That Self-Insurance Priorities Are Too Easiliy Dealt Away

Michigan Governor Rick Snyder is poised to sign legislation that would impose a one percent tax on medical claims paid by health plans, including self-insured group health plans. This is big news and is certainly a disturbing development for those concerned about the erosion of ERISA preemption. But there is a more interesting story behind the headlines that is instructive for self-insured employers in other states as well.

In anticipation of this legislative development, I spoke with senior representatives from a leading Michigan employer organization to explore possible response options, including litigation coordination if necessary. When asked specifically what their appetite was for legal action assuming the legislation is signed into law, their answer was pretty clear – “zero.”

Given that this association represents many self-insured employers such strong push back was surprising to say the least. Then the “off the record” discussion began.

It turns out that there had been some significant wheeling and dealing between the Legislature, the governor and the business community in order to craft various budget reform initiatives designed to head off a projected deficit.

My contacts confided in me that their organization is privately opposed to the health plan tax proposal but will not go on record to say so, much less getting involved in possible litigation. They cite two reasons for this seemingly contradictory stance.

First, their membership includes health insurance companies in addition to self-insured employers and they believe an outspoken defense of self-insurers would alienate this other membership constituency. The other rationale is if the boat was rocked on this issue, then some of the other “deals” presumed to be favorable to the employer community could fall apart.

Of course, the big picture was not taken into account. They acknowledge that the immediate negative financial impact for self-insured employers is bad but manageable. Not considered was that if state efforts to tax and/or regulate self-insured health plans are left unchecked, self-insurance may cease to be an attractive option for employers in Michigan and elsewhere, which would effectively trap employers in the traditional health insurance marketplace – a much more ominous situation than being subject to a one percent tax as problematic as that may be.

My contacts appreciated this analysis and agreed that there are, in fact, bigger issues at play. That said, the bottom line is that many within the leadership of their very influential organization would likely applaud an effort to push back against the health plan tax, but this would be private support with no organizational fingerprints.

So there you have it. The very important fight over ERISA preemption has been dealt away in Michigan in favor of other business community priorities that likely are less important to employers from a P&L perspective. It’s uncertain how things will eventually play out in Michigan, but this look behind the curtain on the relationship between state employer organizations and government exemplifies why the self-insurance industry has an ongoing challenge at the state level.

While the ability of employers to self-insure is more significant than most tax and regulatory initiatives (again from a P&L perspective), self-insurance issues simply do not get much attention for state organizations, which tend to have more broad-based legislative agendas. To be fair, this is understandable because these groups generally have diverse membership constituencies and not have the resources to focus on issues that only a single constituency. Moreover, the member representatives do not generally insist that their organization put self-insurance issues front and center.

To the extent that employers can be mobilized to rattle the cages of state business associations to pay more attention to self-insurance issues we may be able to turn “private support” to visible public advocacy on the future threats that are almost certain to arise.

Let the cage rattling begin.

Wednesday, September 7, 2011

lenders on the RESPA hot seat for reinsurance partnerships




In exchange for the their business, companies such as Citigroup Inc, Wells Fargo & Co, SunTrust Banks Inc. and Countrywide allegedly required reinsurance partnerships on generous terms that violated the Real Estate Settlement Procedures Act, a 1974 law prohibiting abusive home sales practices.

During a two-day presentation in the summer of 2009, HUD's team presented DOJ attorneys with a thick

lenders on the RESPA hot seat for reinsurance partnerships




In exchange for the their business, companies such as Citigroup Inc, Wells Fargo & Co, SunTrust Banks Inc. and Countrywide allegedly required reinsurance partnerships on generous terms that violated the Real Estate Settlement Procedures Act, a 1974 law prohibiting abusive home sales practices.

During a two-day presentation in the summer of 2009, HUD's team presented DOJ attorneys with a thick

Friday, September 2, 2011

on robosignings


NEW YORK (AP) — Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.The suspect documents could create legal trouble for homeowners for years.Already, mortgage papers are being invalidated by courts, insurers are hesitant to write policies,

on robosignings


NEW YORK (AP) — Counties across the United States are discovering that illegal or questionable mortgage paperwork is far more widespread than thought, tainting the deeds of tens of thousands of homes dating to the late 1990s.The suspect documents could create legal trouble for homeowners for years.Already, mortgage papers are being invalidated by courts, insurers are hesitant to write policies,

Wednesday, August 31, 2011

procedures

Having managed lots of folks over my career I respect that individuals think and learn differently, that we aren't automotons and need some degree of personal discretion in our work.  I also know that mandatory procedures are necessary to maintain quality of service and product and, of course, meet contractual and legal requirements.  This is a constant managerial task - finding balance in the

procedures

Having managed lots of folks over my career I respect that individuals think and learn differently, that we aren't automotons and need some degree of personal discretion in our work.  I also know that mandatory procedures are necessary to maintain quality of service and product and, of course, meet contractual and legal requirements.  This is a constant managerial task - finding balance in the

Tuesday, August 30, 2011

all is right with the world, the mortgage banking world, that is

WAH?  That's right and do you know how I can tell?  Everyone is complaining about underwriters.  That's a sign of normalcy and that's what has been missing for over a decade.

Ah, the sweet sound of prudence.

all is right with the world, the mortgage banking world, that is

WAH?  That's right and do you know how I can tell?  Everyone is complaining about underwriters.  That's a sign of normalcy and that's what has been missing for over a decade.

Ah, the sweet sound of prudence.

Thursday, August 25, 2011

New York takes aims at steering by real estate broker to affiliated title agencies

A law aiming to prevent improper quid pro quos for title insurance agents just got a new set of sharp teeth -- causing a furor in the already embattled industry. In late May, the Office of the General Counsel of the state's Insurance Department issued an opinion about whether it's legal for a residential brokerage to place lawyers on "recommended" lists, which are distributed to homebuyers, in

New York takes aims at steering by real estate broker to affiliated title agencies

A law aiming to prevent improper quid pro quos for title insurance agents just got a new set of sharp teeth -- causing a furor in the already embattled industry. In late May, the Office of the General Counsel of the state's Insurance Department issued an opinion about whether it's legal for a residential brokerage to place lawyers on "recommended" lists, which are distributed to homebuyers, in

Wednesday, August 24, 2011

Fitch on ORI

The affirmation of ORI's ratings reflects operating performance of its core property/casualty (P/C) as well as title insurance operations that remain in line with Fitch's expectations and similar rated peers. The Negative Outlook reflects the continued uncertainty of mortgage market exposure on ORI's operations.


Read more on Market News.

Fitch on ORI

The affirmation of ORI's ratings reflects operating performance of its core property/casualty (P/C) as well as title insurance operations that remain in line with Fitch's expectations and similar rated peers. The Negative Outlook reflects the continued uncertainty of mortgage market exposure on ORI's operations.


Read more on Market News.

Wednesday, August 17, 2011

query: how do you correct a HUD-1 post closing

So long as you have the consent of the mortgage lender, if there is one, and all parties, you simply create a new version of the HUD-1.  I like to put a bold easily found notation on the top of the first page that says something like:

REVISED August 16, 2011 to correct the blah blah.

You could also say that the earlier version of the HUD-1 is null and void.  Have folks initial this statement

query: how do you correct a HUD-1 post closing

So long as you have the consent of the mortgage lender, if there is one, and all parties, you simply create a new version of the HUD-1.  I like to put a bold easily found notation on the top of the first page that says something like:

REVISED August 16, 2011 to correct the blah blah.

You could also say that the earlier version of the HUD-1 is null and void.  Have folks initial this statement

Monday, August 15, 2011

complying with privacy rules when managing a request for post closing data

This happens infrequently but enough that it warrants a post.  I received a request from a consulting company who is performing a post closing audit.  In this case they are performing the audit for a private mortgage insurance company.

Presented as evidence of the authority to make the request is the typical quality control authorization signed by most borrowers at closing.  By signing the form

complying with privacy rules when managing a request for post closing data

This happens infrequently but enough that it warrants a post.  I received a request from a consulting company who is performing a post closing audit.  In this case they are performing the audit for a private mortgage insurance company.

Presented as evidence of the authority to make the request is the typical quality control authorization signed by most borrowers at closing.  By signing the form

Thursday, August 11, 2011

query: should sheriff sign a HUD-1 for sheriff sales

I have never heard of a HUD-1 form being used by a sheriff.  I wouldn't expect to see documents that you would normally see in a real estate transaction.  This isn't a typical consumer transaction.  Read everything carefully and unless you have some experience with sheriff sales, I'd seek the advice of a competent real estate attorney.

query: should sheriff sign a HUD-1 for sheriff sales

I have never heard of a HUD-1 form being used by a sheriff.  I wouldn't expect to see documents that you would normally see in a real estate transaction.  This isn't a typical consumer transaction.  Read everything carefully and unless you have some experience with sheriff sales, I'd seek the advice of a competent real estate attorney.

query: if I pay off my mortgage early is title insurance refundable

No.   The loan policy protected the lien position for the mortgage lender.  It was a one time non-refundable premium.

query: if I pay off my mortgage early is title insurance refundable

No.   The loan policy protected the lien position for the mortgage lender.  It was a one time non-refundable premium.

Tuesday, August 9, 2011

RESPRO continues fight for fair treatment

Just the RESPA News headline is enough to make me chuckle.


RESPRO continues fight for fair treatment

Just the RESPA News headline is enough to make me chuckle.


query: what is a fully executed HUD-1

Thank you for the query.  This one really points to the regular use of industry lingo that is unfamiliar to most consumers.  We toss around phrases like this and just expect that people know what the heck we are talking about, eh?  ;)

HUD-1 refers to a form created by the federal government under the Real Estate Settlement Procedures Act, RESPA.  The form is used in most real estate related

query: what is a fully executed HUD-1

Thank you for the query.  This one really points to the regular use of industry lingo that is unfamiliar to most consumers.  We toss around phrases like this and just expect that people know what the heck we are talking about, eh?  ;)

HUD-1 refers to a form created by the federal government under the Real Estate Settlement Procedures Act, RESPA.  The form is used in most real estate related

Saturday, August 6, 2011

parallel worlds of real estate sales, mortgage lending, and title insurance

Most homebuyers - as consumers - must navigate procedures, language, documents and all sorts of mumbo jumbo created by these three industries just to buy a house.  What's horrendously confusing is that all three industries serving the consumer in the same transaction are not cross trained.  They operate in seemingly separate but parallel worlds with very little understanding of core documents and

parallel worlds of real estate sales, mortgage lending, and title insurance

Most homebuyers - as consumers - must navigate procedures, language, documents and all sorts of mumbo jumbo created by these three industries just to buy a house.  What's horrendously confusing is that all three industries serving the consumer in the same transaction are not cross trained.  They operate in seemingly separate but parallel worlds with very little understanding of core documents and

Two articles on the CFPB caught my attention this week...

and since neither permit comments on their sites, I'll comment here.


The first is an article on Housing Wire.  Here's a blurb:


"Elizabeth believes in markets and in capitalism, but lying, cheating and stealing are not capitalist virtues. Honesty and trust are necessary conditions for a functioning market, and Elizabeth understands that," Fried told HousingWire. "It's obvious. Those who made

Two articles on the CFPB caught my attention this week...

and since neither permit comments on their sites, I'll comment here.


The first is an article on Housing Wire.  Here's a blurb:


"Elizabeth believes in markets and in capitalism, but lying, cheating and stealing are not capitalist virtues. Honesty and trust are necessary conditions for a functioning market, and Elizabeth understands that," Fried told HousingWire. "It's obvious. Those who made

Friday, August 5, 2011

query by email: title agent pays off wrong mortgage

Hi, Diane,

How are you?  I was looking for help on the web and your blog came out.  I know you said that you are not an attorney but you have more knowledge on the title insurance more that I do.  Thus, can you please hear me out and provide me with your opinion?

I refi my house back to April of this year.  The title company a mistake on the pay off of my mortgage.  Instead paying off house A,

query by email: title agent pays off wrong mortgage

Hi, Diane,

How are you?  I was looking for help on the web and your blog came out.  I know you said that you are not an attorney but you have more knowledge on the title insurance more that I do.  Thus, can you please hear me out and provide me with your opinion?

I refi my house back to April of this year.  The title company a mistake on the pay off of my mortgage.  Instead paying off house A,

RESPRO doesn't like Dodd-Frank...does this surprise you?


In response to the Federal Reserve Board’s rules to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act’s “ability to repay” standards, the Real Estate Services Providers Council Inc. (RESPRO) submitted comments to the Fed warning the agency that its rules will harm affiliated business arrangements (AfBAs).
“Unless federal regulators act now, the Dodd-Frank Wall Street Reform

RESPRO doesn't like Dodd-Frank...does this surprise you?


In response to the Federal Reserve Board’s rules to implement the Dodd-Frank Wall Street Reform and Consumer Protection Act’s “ability to repay” standards, the Real Estate Services Providers Council Inc. (RESPRO) submitted comments to the Fed warning the agency that its rules will harm affiliated business arrangements (AfBAs).
“Unless federal regulators act now, the Dodd-Frank Wall Street Reform

Is Old Republic's mortgage insurance business in run off mode?

"Absent approval to underwrite new production through the separately capitalized subsidiary, it is most likely that the flagship insurance carrier's existing book of business would be placed into run off operating mode. In this circumstance, the Company's interest would be to manage the business within constraints of this segment's current capital base of $445.1 and thereby limit a possible

Is Old Republic's mortgage insurance business in run off mode?

"Absent approval to underwrite new production through the separately capitalized subsidiary, it is most likely that the flagship insurance carrier's existing book of business would be placed into run off operating mode. In this circumstance, the Company's interest would be to manage the business within constraints of this segment's current capital base of $445.1 and thereby limit a possible

Tuesday, August 2, 2011

Demotech withdraws rating of New Jersey Title Insurance Company

Read the press release.

Defalcations are the problem and will continue to be the problem in our industry until and unless we get serious with licensing standards and realize there is alot money moving through agencies with little or no oversight.

Demotech withdraws rating of New Jersey Title Insurance Company

Read the press release.

Defalcations are the problem and will continue to be the problem in our industry until and unless we get serious with licensing standards and realize there is alot money moving through agencies with little or no oversight.

Sunday, July 31, 2011

state slow to respond


When a private investigator finally tracked down the owner of Choice Title of South Florida in the fall of 2009, the contents of her office were in a pile on her living-room floor and homeowner complaints were mounting in Tallahassee.Milissa Hernandez's company was facing fraud, conspiracy and breach of contract lawsuits. Its underwriter, the respected Old Republic National Title Insurance Co.,

state slow to respond


When a private investigator finally tracked down the owner of Choice Title of South Florida in the fall of 2009, the contents of her office were in a pile on her living-room floor and homeowner complaints were mounting in Tallahassee.Milissa Hernandez's company was facing fraud, conspiracy and breach of contract lawsuits. Its underwriter, the respected Old Republic National Title Insurance Co.,

Saturday, July 30, 2011

local condominium units posted for sheriff sale...for a day

These are tough times.  There are a few unsold units left in the development.  The developer failed to pay property taxes and the sheriff came and posted signs on ALL units.  The signs stayed up for a day, then presumably the taxes were paid and the signs came down.

This story was told to me last night by a unit owner who seemed slightly perplexed.  All I can say is that there are really nice

local condominium units posted for sheriff sale...for a day

These are tough times.  There are a few unsold units left in the development.  The developer failed to pay property taxes and the sheriff came and posted signs on ALL units.  The signs stayed up for a day, then presumably the taxes were paid and the signs came down.

This story was told to me last night by a unit owner who seemed slightly perplexed.  All I can say is that there are really nice

Thursday, July 28, 2011

nasty allegations against Tanya Blackwell, PA attorney


Ally Financial (GJM: 23.23 -0.13%) said it discovered a foreclosure defense attorney was working for its mortgage unit and pilfering confidential information on the company's foreclosure operations.

That's according to a lawsuit filed against the terminated employee, Tanya L. Blackwell, an attorney actively licensed to practice in Pennsylvania, according to the Pennsylvania State Bar

nasty allegations against Tanya Blackwell, PA attorney


Ally Financial (GJM: 23.23 -0.13%) said it discovered a foreclosure defense attorney was working for its mortgage unit and pilfering confidential information on the company's foreclosure operations.

That's according to a lawsuit filed against the terminated employee, Tanya L. Blackwell, an attorney actively licensed to practice in Pennsylvania, according to the Pennsylvania State Bar

Wednesday, July 27, 2011

Office of Thrift Supervision closes as functions shift


The Office of Thrift Supervision’s functions, including the regulation of federal savings associations, have moved to theOffice of the Comptroller of the Currency, the OCC announced Wednesday.Section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandated the OCC take over the functions of the OTS. The OTS will cease to exist on Oct. 19. OTS employees packed  up and

Office of Thrift Supervision closes as functions shift


The Office of Thrift Supervision’s functions, including the regulation of federal savings associations, have moved to theOffice of the Comptroller of the Currency, the OCC announced Wednesday.Section 312 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 mandated the OCC take over the functions of the OTS. The OTS will cease to exist on Oct. 19. OTS employees packed  up and

Tuesday, July 26, 2011

Bethany McLean of Slate's right on

I believe that government regulations like those that the controversial new Consumer Financial Protection Bureau may hand down are a poor substitute for bankers choosing on their own to behave ethically and responsibly, and for consumers digging into the details on products that sound too good to be true. But let's get serious. Bankers aren't going to change their behavior, and consumers aren't

Bethany McLean of Slate's right on

I believe that government regulations like those that the controversial new Consumer Financial Protection Bureau may hand down are a poor substitute for bankers choosing on their own to behave ethically and responsibly, and for consumers digging into the details on products that sound too good to be true. But let's get serious. Bankers aren't going to change their behavior, and consumers aren't

required use and affiliated title agencies

There is a title insurance agency in Pennsylvania called Bankers Settlement.  It's owned by several community banks.  We do closings and title insurance on occasion for some of these community banks. Though they may not send us direct referrals, if a consumer wants to use The Closing Specialists, that's always been okay. Since our advertising is consumer focused and we have a terrific deal in our

required use and affiliated title agencies

There is a title insurance agency in Pennsylvania called Bankers Settlement.  It's owned by several community banks.  We do closings and title insurance on occasion for some of these community banks. Though they may not send us direct referrals, if a consumer wants to use The Closing Specialists, that's always been okay. Since our advertising is consumer focused and we have a terrific deal in our

It's fascinating to me that ALTA is now lobbying for title insurance as an inclusion

in the final definition of Qualified Mortgage as juxtaposed with their successful lobby against inclusion of insurance as a regulated business under Dodd Frank.

So, isn't that kind of like HELP US SELL MORE TITLE INSURANCE BUT DON'T LOOK AT US WHILE WE DO IT?

Anyway, here's a blurb from HW.


"Prudent underwriting of a borrower’s ability to repay would require that a creditor evaluate the title

It's fascinating to me that ALTA is now lobbying for title insurance as an inclusion

in the final definition of Qualified Mortgage as juxtaposed with their successful lobby against inclusion of insurance as a regulated business under Dodd Frank.

So, isn't that kind of like HELP US SELL MORE TITLE INSURANCE BUT DON'T LOOK AT US WHILE WE DO IT?

Anyway, here's a blurb from HW.


"Prudent underwriting of a borrower’s ability to repay would require that a creditor evaluate the title

Monday, July 25, 2011

Tips to Choosing a Health Insurance

Health is the most important asset in life, we do anything to maintain health is included in the cost anticipate unexpected costs by choosing one health insurance to facilitate the financing.

Whatever your situation, there are a number of resources you can use to locate the right type of health insurance for your budget and needs.

Local Agents

A key step to finding health insurance is to research agents that are right in your own backyard. Insurance agents are typically listed in your local phone book, which makes them quite easy to find. For instance, you can peruse the “insurance” category of your traditional printed Yellow Pages and discover a wide variety of providers. The insurance companies will typically be listed alphabetically, and some will have descriptive ads that spell out the type of insurance products they offer. However, most simply list an address and a phone number you can contact for more information. You can also use the white pages of the local telephone book to search for specific agents—if you already know their individual names. Or if your prefer, you can take advantage of yellowpages.ca to conduct a quick online search for insurance providers.

Online Resources

There are myriad Websites with information about health insurance companies. A popular option is Yahoo! Directory Canada. The database displays numerous listings for Canadian insurance brokerages under the Health Insurance Providers section. The listings are arranged alphabetically and offer a brief description of the types of insurance products available. Yahoo! Directory Canada provides quick click access to the providers’ Websites, as well as their contact phone number.

Another extensive online source for health insurance information is InsuranceCanada.ca. This comprehensive site offers a wealth of information, as well as a directory of providers that deliver online health quotes. The directory section of the site features a range of organizations that offer Web-based information and online quoting for some or all of their health and related products. Many of the products can be purchased online or face-to-face through local representatives, depending on your comfort level. The secure Website allows visitors to shop online for employee, individual (personal/family), or student health insurance all from the convenience of home.

Canadian Insurance Directory also features a broad selection of insurance agents and brokers. The site has nearly 9,500 brokers representing nearly every Canadian province and territory.

Important Things to Keep in Mind

When searching for health insurance, it’s important to keep in mind that some agents sell insurance exclusively for one company. Others act as independent brokers who promote a variety of insurance products from various organizations. Whether agents sell insurance for a single company or multiple providers, you can call them to receive a free rate quote over the phone. Or you can opt to visit their office for a personal consultation.

Prior to contacting an agent or broker, you should evaluate your situation and identify your specific health insurance needs. Be prepared to shop around to ensure you obtain the most appropriate health coverage for you and your family. Steer clear of plans that don’t offer insurance coverage, but provide discounts on the cost of health care services. Here are some other factors to consider as you explore different insurance options:

• Make sure you understand exactly what medical services are covered and whether the policy fits your requirements.
• Know your deductible, the amount you are responsible for before insurance begins paying for services. Likewise, determine what amounts you will be required to pay after you meet the deductible.
• Find out if the plan covers health problems you already have.
• Know which doctors are covered in the provider’s network and how much extra you would have to pay to visit physicians that are not included.

4 Ways to Choose Cheap Insurance

Ways to Choose Cheap InsuranceWhenever you need cheap insurance you must be informed first. Whether you want to supplement your existing coverage or simply purchase insurance to meet a specific for you.

Currently everyone is are looking for ways to cut their costs because of the bad economy that is still haunting the US. And one of the most common objects of such cost-cutting tendencies is auto insurance. Because it's mandatory in all states and can be rather costly people often feel that they don't really need it. Some car owners even choose to drop it and then face serious financial and law problems when having an accident without any kind of coverage. You, on the other hand, can be smarter and simply employ the following cost-cutting methods to save some money on insurance :

1. Cut your coverage

If you have financed your car through a loan and have already paid it off you can consider dropping some coverage types to make your policy cheaper. First of all you can exclude gap coverage that is only useful during the loan pay out period. If there's no significant market value to your car then consider dropping collision coverage as well. Uninsured motorist coverage can be particularly useful but if you're driving mostly in areas with no uninsured drivers then there's no sense in paying for this type of coverage. It's really important that you review your policy every year and adjust it to your current insurance needs that will definitely change over time.

2. Raise the deductible

The deductible, as you may already know, is the amount of money you have to pay from own pocket before the coverage kicks in. In other words, it's the amount of damage you can pay for without using auto insurance coverage. And the higher is the amount the lower are your rates, because there's a lower risk of filing a claim for the insurance company. So make sure to avoid keeping the deductible low because it will raise your rates. By increasing the deductible from the standard $250 to $500 you can actually get up to 15% off your premium. But keep in mind that raising the deductible too high doesn't make much sense because you should actually afford paying it when an accident happens in order to trigger coverage.

3. Get your discounts

Your insurance provider may not advertize their discounts but this doesn't mean that there aren't any. All insurance providers have different types of discounts to encourage their customers. And here are some of the most common discounts you can find with most insurance companies to get cheap car insurance: low yearly mileage, multiple cars, multiple policies, good driver, good student, defensive driving course certificate, improved car security and many others. So it really makes sense to ask around your insurance provider in order to get all the possible discounts.

4. Shopping around is a must

If you have never been shopping around for cheap car insurance in the first place then you've done a big mistake. You can be really surprised to learn how much money you can save my just shopping around a bit and comparing insurance quotes from different providers. Every company has it's own methods of calculating rates and this results in different rates for the same coverage bundle.

What RESPA complaints or inquiries now that CFPB has taken over?

CFPB_RESPAInquiries@cfpb.gov

What RESPA complaints or inquiries now that CFPB has taken over?

CFPB_RESPAInquiries@cfpb.gov

Friday, July 22, 2011

CFPB issues interim rule


Today, the CFPB is issuing an interim rule effective immediately to fill a regulatory gap.Some lenders are chartered or licensed by states, while others operate under federal charters. For years, state lenders have been able to rely on a federal law called the Alternative Mortgage Transaction Parity Act (or AMTPA, for short) to make variable rate loans and other “alternative” mortgages,

CFPB issues interim rule


Today, the CFPB is issuing an interim rule effective immediately to fill a regulatory gap.Some lenders are chartered or licensed by states, while others operate under federal charters. For years, state lenders have been able to rely on a federal law called the Alternative Mortgage Transaction Parity Act (or AMTPA, for short) to make variable rate loans and other “alternative” mortgages,

title/settlement agents and the RESPA GFE provider list

We have a major national lender generating GFEs [Good Faith Estimate] on a computer model which creates a provider list containing ONLY their affiliated companies.  There is no option for a loan officer to ADD referrals to non-affiliated providers.  This wouldn't be an issue except that loan officers employed by this lender are making referrals to other providers and have no way to create a

title/settlement agents and the RESPA GFE provider list

We have a major national lender generating GFEs [Good Faith Estimate] on a computer model which creates a provider list containing ONLY their affiliated companies.  There is no option for a loan officer to ADD referrals to non-affiliated providers.  This wouldn't be an issue except that loan officers employed by this lender are making referrals to other providers and have no way to create a

Tuesday, July 19, 2011

on PA closing costs

Diane Cipa, general manager for The Closing Specialist in Ligonier, said that if Bankrate used good faith estimates to compile their data, the numbers could be inflated because the good faith quote is usually higher than the actual costs at closing.

"The current form for good faith estimates encourages lenders to quote high numbers for closing costs," Ms. Cipa said. "If they give a quote

on PA closing costs

Diane Cipa, general manager for The Closing Specialist in Ligonier, said that if Bankrate used good faith estimates to compile their data, the numbers could be inflated because the good faith quote is usually higher than the actual costs at closing.

"The current form for good faith estimates encourages lenders to quote high numbers for closing costs," Ms. Cipa said. "If they give a quote

Monday, July 18, 2011

query: earnest money need to show on the HUD-1

Yes, earnest money aka hand money should be shown on the HUD-1.  The exception is a case in which the funds haven't transferred or a mortgage lender has not been able to verify that the funds have transferred.  In these cases, the deposit is not credited on the HUD-1 because we do not want to imply that there was a deposit if in fact, one did not exist.

Sellers and agents should always deposit

query: earnest money need to show on the HUD-1

Yes, earnest money aka hand money should be shown on the HUD-1.  The exception is a case in which the funds haven't transferred or a mortgage lender has not been able to verify that the funds have transferred.  In these cases, the deposit is not credited on the HUD-1 because we do not want to imply that there was a deposit if in fact, one did not exist.

Sellers and agents should always deposit

query: whose liability would it be if the title insurance company issued a final policy on a construction loan and the house never got built

I don't see the issuance of a title policy as having anything to do with the construction of the house.  Title insurance does not insure construction.  For the mortgage lender, it insures the validity of their lien.  For the owner, it insures the ownership of the land.

Any property owner or mortgage lender involved in a construction transaction must keep their own eyes on the construction and

query: whose liability would it be if the title insurance company issued a final policy on a construction loan and the house never got built

I don't see the issuance of a title policy as having anything to do with the construction of the house.  Title insurance does not insure construction.  For the mortgage lender, it insures the validity of their lien.  For the owner, it insures the ownership of the land.

Any property owner or mortgage lender involved in a construction transaction must keep their own eyes on the construction and

Sunday, July 17, 2011

ALTA's Anne Anastasi Testifies Before the Financial Services Subcommittee



1. If ALTA believes what Ms. Anastasi says about the important function of a title insurance agent at the closing table, why does ALTA take no stand against the use of notary signing agents who are not employees, likely not licensed and even more likely not well trained, if at all?

2. Owner title insurance is a product that protects the buyer and is rightly, in my view, a product purchased on

ALTA's Anne Anastasi Testifies Before the Financial Services Subcommittee



1. If ALTA believes what Ms. Anastasi says about the important function of a title insurance agent at the closing table, why does ALTA take no stand against the use of notary signing agents who are not employees, likely not licensed and even more likely not well trained, if at all?

2. Owner title insurance is a product that protects the buyer and is rightly, in my view, a product purchased on

former Ohio Attorney General Richard Cordray slated for CFPB director nomination

On Sunday the White House announced that the president would nominate the agency's current head of enforcement, former Ohio Attorney General Richard Cordray to lead the bureau. Cordray's selection will be announced at a White House event on Monday.

Read more on The Hill.

former Ohio Attorney General Richard Cordray slated for CFPB director nomination

On Sunday the White House announced that the president would nominate the agency's current head of enforcement, former Ohio Attorney General Richard Cordray to lead the bureau. Cordray's selection will be announced at a White House event on Monday.

Read more on The Hill.

Thursday, July 14, 2011

1500 pending RESPA violations cases moving to CFPB

In November 2008, HUD issued new RESPA regulation, establishing a standard Good Faith Estimate form and process and an expanded HUD-1 Settlement Statement. To be in compliance with RESPA, and help assure fair prices for consumers, actual costs at closing must fall within established tolerance ranges. These new disclosures were implemented in January 2010.

Since then, HUD opened more than

1500 pending RESPA violations cases moving to CFPB

In November 2008, HUD issued new RESPA regulation, establishing a standard Good Faith Estimate form and process and an expanded HUD-1 Settlement Statement. To be in compliance with RESPA, and help assure fair prices for consumers, actual costs at closing must fall within established tolerance ranges. These new disclosures were implemented in January 2010.

Since then, HUD opened more than

query: getting a replacement copy of title insurance policy

This one's easy.  If your original policy is lost and you do not just want a photocopy of the policy and need an original, just go to your title insurance agent and request a DUPLICATE copy of your policy.  The agent may not know that they CAN issue a duplicate but if they contact their underwriter for instructions they can do it.

The typical procedure is for the agent to reprint the policy and

query: getting a replacement copy of title insurance policy

This one's easy.  If your original policy is lost and you do not just want a photocopy of the policy and need an original, just go to your title insurance agent and request a DUPLICATE copy of your policy.  The agent may not know that they CAN issue a duplicate but if they contact their underwriter for instructions they can do it.

The typical procedure is for the agent to reprint the policy and

Wednesday, July 13, 2011

I don't know. This phrase is just so bizarre, I can't think of anything to say. ;)

"prejudicing consumers against considering these services by using loaded terms like ‘not required,’"

Read more on Business Wire.

I don't know. This phrase is just so bizarre, I can't think of anything to say. ;)

"prejudicing consumers against considering these services by using loaded terms like ‘not required,’"

Read more on Business Wire.

coupla chuckles

CHUKLE #1  "Brown said the treatment of home warranties under the Real Estate Settlement Procedures Act, which prevents kickbacks for referrals among settlement service providers, is one of the issues facing real estate firms, home warranty companies and consumers. Since home warranties are not a requirement for a mortgage origination or home sale, NAR believes that including the optional

coupla chuckles

CHUKLE #1  "Brown said the treatment of home warranties under the Real Estate Settlement Procedures Act, which prevents kickbacks for referrals among settlement service providers, is one of the issues facing real estate firms, home warranty companies and consumers. Since home warranties are not a requirement for a mortgage origination or home sale, NAR believes that including the optional

HUD continues to clean house on RESPA violation cases

WASHINGTON, DC - July 13, 2011 - (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) today announced an agreement with Prospect Mortgage, LLC (Prospect) to settle allegations the California-based mortgage lender created sham affiliated business arrangements for the purpose of paying improper kickbacks or referral fees in violation of Federal Housing

HUD continues to clean house on RESPA violation cases

WASHINGTON, DC - July 13, 2011 - (RealEstateRama) — The U.S. Department of Housing and Urban Development (HUD) today announced an agreement with Prospect Mortgage, LLC (Prospect) to settle allegations the California-based mortgage lender created sham affiliated business arrangements for the purpose of paying improper kickbacks or referral fees in violation of Federal Housing

query: how does an insurer cancel title insurance

Hmmm....as far as I know, once issued, the title insurance policy cannot be cancelled.  Now, if you are talking a title insurance commitment, that's different.  An insurer can refuse to insure, even if a commitment has been issued.

query: how does an insurer cancel title insurance

Hmmm....as far as I know, once issued, the title insurance policy cannot be cancelled.  Now, if you are talking a title insurance commitment, that's different.  An insurer can refuse to insure, even if a commitment has been issued.

Monday, July 11, 2011

FNF agreed to cease the practice of paying real estate brokers.....THANK YOU HUD.

FNF agreed to cease the practice of paying real estate brokers that place orders via the software platform for title insurance and other services.

"RESPA is very clear that paying fees or providing anything of value for the simple act of referring business is a violation of law," said Acting FHA Commissioner Bob Ryan. "This agreement should be a signal to others that these business

FNF agreed to cease the practice of paying real estate brokers.....THANK YOU HUD.

FNF agreed to cease the practice of paying real estate brokers that place orders via the software platform for title insurance and other services.

"RESPA is very clear that paying fees or providing anything of value for the simple act of referring business is a violation of law," said Acting FHA Commissioner Bob Ryan. "This agreement should be a signal to others that these business

Sunday, July 10, 2011

free CE credits and other stuff

free CE credits and other stuff

being nostalgic today about Radical Title Talk

Radical Title Talk was born in anger. Every post was passionate and most people reading and commenting did so with passion. That takes a tremendous amount of energy. I am not a personal who walks in anger. I get angry, I deal with the issue and be done with it. I love to laugh and be a goof and have fun. Once Radical found its voice and its mission, I had to commit and follow it

being nostalgic today about Radical Title Talk

Radical Title Talk was born in anger. Every post was passionate and most people reading and commenting did so with passion. That takes a tremendous amount of energy. I am not a personal who walks in anger. I get angry, I deal with the issue and be done with it. I love to laugh and be a goof and have fun. Once Radical found its voice and its mission, I had to commit and follow it

query: what is a marked up title commitment and how soon should I get one before closing

Great question.  ;)

A title commitment is marked up by the title agent when they have completed the transaction and are prepping the file notes for the issuance of the title policy.

The mark up takes place during the closing process and is therefore not available prior to closing.

If you are given a marked up title commitment prior to closing it isn't a genuine mark up.

Consumers and lenders

query: what is a marked up title commitment and how soon should I get one before closing

Great question.  ;)

A title commitment is marked up by the title agent when they have completed the transaction and are prepping the file notes for the issuance of the title policy.

The mark up takes place during the closing process and is therefore not available prior to closing.

If you are given a marked up title commitment prior to closing it isn't a genuine mark up.

Consumers and lenders

Thursday, July 7, 2011

Life Insurance and Income Protection Insurance

Life Insurance and Income Protection InsuranceWhile going to opt for the life insurance or Income protection insurance, it’s important that you get the proper advice for the same. For that, you can easily find the several websites on the Internet to get optimistic advices form the globally recognized and valued company.

It's very simple to organize your own life insurance policy and after all absolutely overlook it. However it is crucial to analyse your own life insurance policy regularly. Particularly within conditions in your life alter. Simply because the insurance policy rates have came lower substantially, it might simply seem sensible that you should say goodbye to your own aged as well as costly life insurance policy as well as consider a fresh one in the marketplace. A big change is definitely encouraged, when the modification is perfect for the life. The insurance plan must be modified as well as revised regularly.

Based upon the actual adaption that you experienced you need to frequently update the actual plan in order that it fulfils your own rising requirements. It will be wise and sensible move to proceed to close your old and costly policy and get brand new one in the marketplace. It’s purely visible that life insurance is the reliable way to make the life of our loved ones safe and secure. However, we do have to take policies, it’s important to review it once. Along with that, it’s also important to make the necessary changes as the life takes turn.

Basically the Income protection insurance or any other policy is really assurance towards loss or even damage. There are numerous kinds of insurance policies such as life insurance policy, medical health insurance, auto insurance, company insurance coverage; transportation insurance policy, and so on. All sorts associated with insurance policies offer benefits to the holder.

You never know when you are going to facade any problem, it’s certainly unpredicted. There are few problems such as unemployment or illness when you become helpless, if you are not holder of the Income protection insurance. The Income protection insurance it devoted to pay you for the specific time of period during your idleness due to any crisis.

In contrast to other forms associated with insurance plans, the Income protection insurance is actually organized towards the people from month to month, to enable them to deal with what's needed associated with everyday life. They're not really supplied the actual lump amount, that is generally provided within other forms associated with insurance plans.

Wednesday, July 6, 2011

CFPB Forum has been launched by Jonathan Foxx

The CFPB Forum has been launched by Jonathan Foxx, president of Lenders Compliance Group, as a "discussion forum" for news and views regarding the new Consumer Financial Protection Bureau (CFPB), an independent bureau within the Federal Reserve System
created by the Dodd-Frank Act. The CFPB Forum is not associated or affiliated with the Consumer Financial Protection Bureau.

Read more here.

CFPB Forum has been launched by Jonathan Foxx

The CFPB Forum has been launched by Jonathan Foxx, president of Lenders Compliance Group, as a "discussion forum" for news and views regarding the new Consumer Financial Protection Bureau (CFPB), an independent bureau within the Federal Reserve System
created by the Dodd-Frank Act. The CFPB Forum is not associated or affiliated with the Consumer Financial Protection Bureau.

Read more here.

commenting to CFPB concerning defining larger participants

There was a technical issue on www.regulations.gov which has now been resolved.  If you tried to post a comment and had a problem, give it a go now.  I just did and it worked!  Cool site. ;)

commenting to CFPB concerning defining larger participants

There was a technical issue on www.regulations.gov which has now been resolved.  If you tried to post a comment and had a problem, give it a go now.  I just did and it worked!  Cool site. ;)

Tuesday, July 5, 2011

comment to CFPB

I am a title insurance agent. I operate what might be considered a small regional agency. I have had roughly $22,000,000.00 move through my escrow account YTD. The procedures I have in place to account for and safely guard these funds were developed with little or no oversight. These funds include down payments collected from home buyers,

comment to CFPB

I am a title insurance agent. I operate what might be considered a small regional agency. I have had roughly $22,000,000.00 move through my escrow account YTD. The procedures I have in place to account for and safely guard these funds were developed with little or no oversight. These funds include down payments collected from home buyers,

Sunday, July 3, 2011

Ms. Shelp is suing her title insurance company.

When Theresa Shelp bought 544 Eynon St. in Scranton two years ago, she said she thought she was living a dream.

But Ms. Shelp, 43, now says she is stressed over the house, which continues to have problems such as mold. The property also is at the center of a lawsuit Ms. Shelp has filed against the city and three companies. She claims in the lawsuit that she suffered financial distress and

Ms. Shelp is suing her title insurance company.

When Theresa Shelp bought 544 Eynon St. in Scranton two years ago, she said she thought she was living a dream.

But Ms. Shelp, 43, now says she is stressed over the house, which continues to have problems such as mold. The property also is at the center of a lawsuit Ms. Shelp has filed against the city and three companies. She claims in the lawsuit that she suffered financial distress and

Thursday, June 30, 2011

helping a consumer with a Good Faith Estimate error

I was recently contacted by a new title insurance consumer, a homebuyer, who asked if I had worked with the mortgage lender he had selected.  I didn't recognize the name of the company but assured him that we work with many diverse lenders and would help this lender with the nuances of Western Pennsylvania customs in real estate, if needed.  This homebuyer then said he had talked with some local

helping a consumer with a Good Faith Estimate error

I was recently contacted by a new title insurance consumer, a homebuyer, who asked if I had worked with the mortgage lender he had selected.  I didn't recognize the name of the company but assured him that we work with many diverse lenders and would help this lender with the nuances of Western Pennsylvania customs in real estate, if needed.  This homebuyer then said he had talked with some local

CFPB

CFPB

Saturday, June 25, 2011

get to know Elizabeth Warren


get to know Elizabeth Warren


query: what is the difference between a title commitment and title insurance

If you have ever applied for a mortgage loan, then think of the title commitment as being the same as the mortgage loan commitment letter.  The purpose of the title commitment is to formally state that the property has been approved for title insurance subject to certain conditions.

A smart consumer will obtain a copy of the title commitment prior to closing and READ IT.  This is your chance to

query: what is the difference between a title commitment and title insurance

If you have ever applied for a mortgage loan, then think of the title commitment as being the same as the mortgage loan commitment letter.  The purpose of the title commitment is to formally state that the property has been approved for title insurance subject to certain conditions.

A smart consumer will obtain a copy of the title commitment prior to closing and READ IT.  This is your chance to

Friday, June 24, 2011

I watched this video this morning and tried to post a comment. I was blocked by the site's blacklist. WAH???

Here's my comment:


I hope for good results from the Consumer Financial Protection Bureau.

In response to your video, the bigger issue with these so-called "in-house" providers is the underlying conflict of interest.

The consumer loses their position as owner of the transaction as providers are motivated to serve their customer, the source of referrals.

I've been in this industry for over 35

I watched this video this morning and tried to post a comment. I was blocked by the site's blacklist. WAH???

Here's my comment:


I hope for good results from the Consumer Financial Protection Bureau.

In response to your video, the bigger issue with these so-called "in-house" providers is the underlying conflict of interest.

The consumer loses their position as owner of the transaction as providers are motivated to serve their customer, the source of referrals.

I've been in this industry for over 35

Wednesday, June 22, 2011

Google is cramping my blogging style.

For years I've been able to blog on the fly with two email browsers up and running.  One for dianecipa@gmail.com and the other for dcipa@tcsclosing.com.  They both sit on Google platforms.  The gmail account was based on my original tcsclosing email address and so now Google doesn't want to have conflicting accounts open at the same time.

Google - You're killing me!!!

My blogs are accessed

Google is cramping my blogging style.

For years I've been able to blog on the fly with two email browsers up and running.  One for dianecipa@gmail.com and the other for dcipa@tcsclosing.com.  They both sit on Google platforms.  The gmail account was based on my original tcsclosing email address and so now Google doesn't want to have conflicting accounts open at the same time.

Google - You're killing me!!!

My blogs are accessed

tsk tsk Mr. Allen ....bad CEO bad CEO

ALEXANDRIA, Va. — The CEO of what had been one of the nation's largest privately held mortgage lenders was sentenced Tuesday to more than three years in prison for his role in a $3 billion scheme that officials called one of the biggest corporate frauds in U.S. history.

The 40-month sentence for Paul R. Allen, 55, of Oakton, Va., is slightly less than the six-year term sought by federal

tsk tsk Mr. Allen ....bad CEO bad CEO

ALEXANDRIA, Va. — The CEO of what had been one of the nation's largest privately held mortgage lenders was sentenced Tuesday to more than three years in prison for his role in a $3 billion scheme that officials called one of the biggest corporate frauds in U.S. history.

The 40-month sentence for Paul R. Allen, 55, of Oakton, Va., is slightly less than the six-year term sought by federal

Saturday, June 18, 2011

I want to teach the world to sing in perfect harmony. ;)

Hey, why not, eh?

Here's some news.  Yours truly, the Title Insurance Talk lady is looking for a new path, a new challenge.  I have a wonderful replacement, an employee who I trust implicitly, to buy my business so I can move on when I find that next thing I want to do.  It's time. ;)

What do I WANT to do?  I'd love to find a place in which to help restore good practices in mortgage lending and

I want to teach the world to sing in perfect harmony. ;)

Hey, why not, eh?

Here's some news.  Yours truly, the Title Insurance Talk lady is looking for a new path, a new challenge.  I have a wonderful replacement, an employee who I trust implicitly, to buy my business so I can move on when I find that next thing I want to do.  It's time. ;)

What do I WANT to do?  I'd love to find a place in which to help restore good practices in mortgage lending and

Life Line for New York SIGs Falling Short While National Attention on Funds Sharpens

It appears my recent story “A New Life Line for Group Workers’ Comp Funds in New York” was overly optimistic and the obituary for SIGs in that state may indeed be published in the not too distant future.

According to knowledgeable sources, preliminary discussions about finding a reasonable compromise to allow well run New York SIGs to continue to operate have not panned out. At issue has been the posting of security to satisfy regulator concerns about solvency going forward.

The state’s workers’ compensation board pushed back against formulas proposed by industry that would allow funds sufficient access to cash to pay claims and other operating expenses. As a result, a new law has been passed requiring funds to post security equal to 160% of expected claims. With such a high bar, it is likely that the baby will be thrown out with the bath water.

There is some uncertainty, however, as the regulations to implement the new law has yet to be written and industry continues to press its case to the Governor and the Legislature that this law will have significant negative ramifications for the state’s workers’ compensation system. So stay tuned as there may additional twists to this story in months ahead.

But while New York has been the epicenter of actual legislative/regulatory activity affecting SIGs, it’s worth noting that the New York experience has spurred discussions in national forums.

Just last month at the National Council of Self-Insurers (NCSI) Annual Meeting, representatives from the California Self-Insurers Security Fund presented a session on SIGs. Although some good objective data was provided, there was an obvious bias evidenced by the fact that they were quick to point out the isolated problems within the SIG industry without acknowledging that the overwhelming number of SIGs are well run and provide smaller employers an important risk financing option.

It should not be surprising that the presentation concluded with comments suggesting that national standards for SIG regulation should be considered.

This discussion promises to pick up again next month Southeastern Association of Workers’ Compensation Administrators (SAWCA) Annual Meeting as one of the featured sessions will discuss “warning signs for a SIG default.” This meeting typically attracts a large number of regulators so the meeting room is likely to be filled with those who may be inclined to make it more difficult for SIGs to operate.

While a serious regulatory push with national reach may not be right around the corner, those who have an interest in maintaining sensible SIG regulation should nonetheless pay attention to the discussions that are going on because developments can accelerate with little warning.

Not only do you have regulators encouraging each other to conform to group think about how to deal with SIGs, but the traditional insurance industry never misses an opportunity to stir the pot by trying to make funds look bad. The confluence of these dynamics should keep SIG industry stakeholders on their toes.

So we’ll watch to see how things continue to play out in New York while keeping an eye on other states who may not be able to resist on messing with a good thing.

Thursday, June 16, 2011

Here's a fraud case to watch.

MURRIETA, Calif. (KABC) -- A family is being told the house they thought they bought in Murrieta actually belongs to someone else. The family says they can't stop making their mortgage payments. 
"Even though you've made your payments in full every month, you could get a knock at the door saying get out," said would-be homeowner Charlie Zahari. "If you look at it, we're renters in a house

Here's a fraud case to watch.

MURRIETA, Calif. (KABC) -- A family is being told the house they thought they bought in Murrieta actually belongs to someone else. The family says they can't stop making their mortgage payments. 
"Even though you've made your payments in full every month, you could get a knock at the door saying get out," said would-be homeowner Charlie Zahari. "If you look at it, we're renters in a house

Monday, June 13, 2011

Obsessed With Adverse Selection

In case you haven’t heard, self-insurance is the gateway to adverse selection in the health insurance marketplace. Federal and state regulators have been sending up warning flares on this subject, but not surprisingly, their aim misses the mark.

This discussion has heated up as policy-makers look ahead to 2014 when state insurance exchanges are slated to come on-line and they try to predict market conditions and that time. For PPACA supporters, there’s a lot riding on making sure the exchanges work as promised so they are taking aim at any real or perceived obstacles. Adverse selection drivers are at the top of the list.

We saw this first in the HHS Report on the Large Group Market, which was published in March. In the report HHS commented that if low attachment point policies in the reinsurance (read stop-loss) market become more widely available by 2014, a significant number of fully-insured employers with “low risk” employees will switch to self-insurance, therefore creating adverse selection in the marketplace.

This section of the report concludes that “these results highlight the importance of closely monitoring the availability and pricing of reinsurance (stop-loss insurance) and closely monitoring decisions made by small employers to self-insure.”

A working draft of a recent NAIC white paper on the subject of adverse selection also points the finger at self-insurance as contributing to adverse selection. The NAIC writes: “Employers with favorable risk demographics have an incentive to self-fund while those with less desirable risks would tend to opt for fully-insured plans either through the exchange or in the outside market.”

Neither HHS nor the NAIC acknowledges one very important fact as part of their analysis, which is that most companies with fewer than 100 employees simply do not know if their group is a good risk because claims data is generally not available to them. In this regard, their “premeditation” argument is compromised.

Now it’s true that employers that switch to self-insurance can often improve the aggregate risk profile of their groups over time, regardless of the baseline at the time of transition, through wellness programs and other innovative plan design strategies, but shouldn’t that be the objective of all group health plans?

Let’s also recognize the importance of the HHS comment about “closely monitoring” the stop-loss market as way to guard against adverse selection. As described in my previous blog posting, Treasury Department Gets Schooled on stop-Loss Insurance, federal regulators now have a keen interest in stop-loss insurance for a variety of reasons.

This new federal attention combined with the ongoing desire by state legislators to expand their authority over self-insured health plans creates a very uncertain environment for future legislative/regulatory activity that could affect the ability of small and even mid-sized companies to self-insure.

There’s one last development on this subject worth mentioning. Some key House Republican staffers have indicated a renewed interest in introducing association health plan (AHP) legislation, but are holding back because of anticipated criticism that self-insured AHPs would contribute to adverse selection. So the education process continues on multiple fronts.

Friday, June 10, 2011

There hasn't been too much to talk about in title lately.

Or maybe I'm just not feeling compelled to post.  Hmmm....what is an interesting case?

Well, here's an interesting situation.  It's not new but it's always good to do a repeat.

We have a terrific program called Choose and Save.  We're closing a transaction today in which the consumer found us and our program while shopping on the web.  He was  tough shopper and checked with  numerous title

There hasn't been too much to talk about in title lately.

Or maybe I'm just not feeling compelled to post.  Hmmm....what is an interesting case?

Well, here's an interesting situation.  It's not new but it's always good to do a repeat.

We have a terrific program called Choose and Save.  We're closing a transaction today in which the consumer found us and our program while shopping on the web.  He was  tough shopper and checked with  numerous title

Monday, June 6, 2011

Well, here's a case that will cause regulators to notice escrow accounts.

MINEOLA, N.Y. (CN) - TitleServ, one of the largest title agencies in the country, swiped $7.9 million from customers' escrow funds, the underwriter WFG National Title Insurance Co. claims in Nassau County Court.
     New Jersey Title Insurance Co. has filed a similar complaint against TitleServ, which "was authorized to write title insurance policies in at least 26 states, including New York

Well, here's a case that will cause regulators to notice escrow accounts.

MINEOLA, N.Y. (CN) - TitleServ, one of the largest title agencies in the country, swiped $7.9 million from customers' escrow funds, the underwriter WFG National Title Insurance Co. claims in Nassau County Court.
     New Jersey Title Insurance Co. has filed a similar complaint against TitleServ, which "was authorized to write title insurance policies in at least 26 states, including New York

Thursday, May 26, 2011

Treasury Department Gets Schooled on Stop-Loss Insurance

Earlier this year, I wrote about how the Treasury Department/IRS had taken a keen interest in stop-loss insurance as evidenced by a request for comment notice regarding PPACA code section 162 m. At issue is how stop-loss insurance figures into new tax rules mandated by the health care reform law restricting the tax deduction health insurance companies can take for compensation paid to certain employees.

More precisely, Treasury/IRS is suspicious that self-insured health plans with low attachment point stop-loss policies are really fully-insured plans in disguise. This was made clear in a meeting this week with senior Treasury Department and IRS officials when Treasury’s point person on the issue commented that “obviously products that look, smell and breathe like health insurance have our attention.”

While the audience was new the line of interrogation was not.

In meetings with HHS and DOL officials late last year in connection with the preparation of PPACA-mandated reports on self-insured group health plans, pointed questions were raised about “sham self-insurance,” which has become a popular catch phrase among the regulator class.

Of course, this suspicion did not materialize immaculately. The HHS/DOL team volunteered that they had been lead to believe that sham self-insurance is commonplace. While they did not disclose their sources, it is reasonable to believe that our friends from AHIP were among those whispering in their ears.

Getting back to the meeting this week, Treasury/IRS picked up where HHS and DOL left off although without any obvious bias. Stop-loss was clearly a new animal to them and my sense was that they were truly interested to understand it better.

Joining me was the “Seal Team Six” of stop-loss insurance experts who deftly responded to questions about low attachment point stop-loss polices by pointing out that this does fit the business model of carriers which control the vast majority of the marketplace.

As part of this discussion it was pointed out that contrary to the hype that small employers are moving to self-insurance in big numbers (and buying low attachment point policies) to avoid PPACA regulatory requirements, the facts don’t bear this out. In fact, the carrier representatives noted that that the lack of claims data is a major hurdle for companies with fewer than 100 employees for making the switch to self-insurance. They reported that the real growth in the stop-loss marketplace is actually coming from larger employers who may have not utilized stop-loss insurance in the past but are buying it now in response to unlimited lifetime limits.

Oh and by the way, the contention that there is a motivation among smaller employers to self-insure to avoid new regulatory requirements is specious because for non-grandfathered self-insured plans there really are no significant regulatory advantages.

We also highlighted the fact that states regulate stop-loss insurance separately than health insurance, PPACA regulatory guidance has acknowledged the difference, and legal precedent supports this position. All in all we made a pretty compelling case why stop-loss insurance should not be construed as health insurance.

While a contrary interpretation would create tax complications for stop-loss carriers, the broader concern is that if the IRS comes out with a new definition of stop-loss insurance this could completely disrupt the current regulatory environment.

Our audience maintained poker faces throughout the meeting (which I suppose is typical of tax people) so it was tough to get a read on how they were digesting our input. We’ll know for sure when the proposed rule comes out, but that won’t like be published for a while because the new compensation rules are not scheduled to take effect until 2013.

In the meantime, it should be instructive to those in the self-insurance industry that federal regulators are watching what is going in the marketplace. For companies pushing the envelope with “innovative” stop-loss products beware that you may be inviting negative attention.

Thursday, May 19, 2011

new disclosures in the making

Elizabeth Warren and the Consumer Financial Protection Bureau revealed two prototypes of mortgage disclosure forms Wednesday as part of the agency's effort to simplify documents for homebuyers shopping for mortgages.

The two prototypes combine the federal Truth in Lending Act mortgage disclosure form with the Real Estate Settlement Procedures Act to remove redundant information and allow

new disclosures in the making

Elizabeth Warren and the Consumer Financial Protection Bureau revealed two prototypes of mortgage disclosure forms Wednesday as part of the agency's effort to simplify documents for homebuyers shopping for mortgages.

The two prototypes combine the federal Truth in Lending Act mortgage disclosure form with the Real Estate Settlement Procedures Act to remove redundant information and allow

Thursday, April 28, 2011

FBI raids Titleserv

The FBI raided Titleserv in Woodbury Wednesday morning, a little more than two weeks after the national title insurance agent closed suddenly.

FBI spokesman Jim Margolin said agents went with a search warrant as part of an "ongoing investigation." The search started at 8 a.m. and continued into the early afternoon, ending with agents leaving with boxes of records, he said.

Read more on

FBI raids Titleserv

The FBI raided Titleserv in Woodbury Wednesday morning, a little more than two weeks after the national title insurance agent closed suddenly.

FBI spokesman Jim Margolin said agents went with a search warrant as part of an "ongoing investigation." The search started at 8 a.m. and continued into the early afternoon, ending with agents leaving with boxes of records, he said.

Read more on

Tuesday, April 19, 2011

What? You think you should keep the $25,000?

We closed a transaction last month.  We made a mistake.  Everybody makes mistakes.  That's why you need to buy an owner title insurance policy.

Our seller is a local appraiser, a popular appraiser who has been in the business for a long time.  Our title search revealed two mortgages.  We got two mortgage payoff letters.  The mistake happened in the HUD-1 preparation.  For some reason someone

What? You think you should keep the $25,000?

We closed a transaction last month.  We made a mistake.  Everybody makes mistakes.  That's why you need to buy an owner title insurance policy.

Our seller is a local appraiser, a popular appraiser who has been in the business for a long time.  Our title search revealed two mortgages.  We got two mortgage payoff letters.  The mistake happened in the HUD-1 preparation.  For some reason someone

Friday, April 15, 2011

tsumani of defalcations? well, maybe not but there sure has been loads of them

I remember sitting down with a group of regulators a few years ago making an effort to help them understand this business.  One of my goals was getting them to embrace the concept that a title insurance agent handles millions of dollars with little or no oversight.  The most frustrating part of that effort was the assignment of regulatory authority and that the oversight for management of escrow

tsumani of defalcations? well, maybe not but there sure has been loads of them

I remember sitting down with a group of regulators a few years ago making an effort to help them understand this business.  One of my goals was getting them to embrace the concept that a title insurance agent handles millions of dollars with little or no oversight.  The most frustrating part of that effort was the assignment of regulatory authority and that the oversight for management of escrow

Sunday, April 3, 2011

Self-Insurance Receives Seal of Approval

For the past several months I have been managing expectations about the content of separate reports on self-insured group health plans being developed by DOL and HHS. Or more to the point, I have preparing people for reports that conclude all sorts of awful things about self-insured plans. Not that I believe such anticipated criticisms are valid, but rather that it was obvious that self-insurance was “set up” to take a hit based on the PPACA legislative language mandating the studies, in particular the HHS study on the large group market. The stated objective of this study was to compare self-insured plans with fully-insured plans, which is fair enough. But Section 1254 instructs the HHS to investigate multiple perceived problems with self-insured plans while not including similar guidance for fully-insured plans, therefore essentially setting up a one-way fishing expedition. And by the way, this section along with the preceding section mandating the DOL report, were inserted at the last minute as part of the reconciliation process almost certainly at the request of the health insurance industry. So the fix was in from the jump. It has also been my view that there is a negative bias toward self-insurance within the regulatory agencies which would taint the review and reporting process. I say this based on fact that some key officials within these department have previously worked for members of Congress and/or think tanks that have been critical of self-insurance. My suspicion of such bias was heightened after a meeting with HHIS-contracted researchers who asked a series of very pointed about self-insurance that seemed to be “planted” by those with an interest in making self-insurance look bad. The researchers took a particular interest in what they termed “sham self-insurance,” translated to mean self-insured health plans utilizing stop-loss insurance with low attachment points. Now this line of questioning was easily dealt with of course, but we did get the impression that this could well be a situation where the agencies were digging for evidence to support pre-determined conclusions. But apparently there was not a thumb on the scale after all based on a review of the final reports that were released this week. So much for my prescient reputation! The main concern about the DOL report was that they would use bad and/or insufficient data to conclude there are solvency problems with self-insured health plans. But the agency acknowledged that they could not reach any policy conclusions due the lack of quality data. The HHS report appeared to be an opportunity for a host of self-insurance criticisms to be validated by the federal government. You know, the regular canards such as self-insured plans are less costly than traditional issuance because they deny lots of claims and offer skimpy benefits. But I am sure to the consternation of our friends at AHIP and others with market share or other motivations, the HHS report effectively refuted all of the common self-insurance criticisms by concluding little or no difference as compared to fully-insured plans. And for the icing on the cake, consider a little nugget tucked into an appendix of the DOL report which noted that from 2009 to 2010 for employers with more than 200 covered lives, the average fully-insured premium increased by $808 compared to an average increase of $248 for self-insured premiums. So instead of getting branded with a regulatory scarlet letter, self-insurance has effectively received a seal of approval. What an interesting turn of events.

Friday, April 1, 2011

RESPANews if reporting LO compensation rule stalled by court

On the evening of March 31, the U.S. Court of Appeals for the District of Columbia Circuit stalled the implementation of the Federal Reserve’s loan originator compensation and steering rule. The court decided to delay the rule’s implementation until it could review the cases filed by National Association of Mortgage Brokers (NAMB) and the National Association of Independent Housing

RESPANews if reporting LO compensation rule stalled by court

On the evening of March 31, the U.S. Court of Appeals for the District of Columbia Circuit stalled the implementation of the Federal Reserve’s loan originator compensation and steering rule. The court decided to delay the rule’s implementation until it could review the cases filed by National Association of Mortgage Brokers (NAMB) and the National Association of Independent Housing

Friday, March 25, 2011

A False Alarm at the IRS for TPAs

We normally report on actual legislative/regulatory developments, but this post discusses a false alarm coming from the IRS that appeared to subject health care TPAs to burdensome new reporting requirements in order to help head off any potential industry confusion.

At issue is Department of Treasury Final Rule 6050 W, which was published way back in August of last year. The rule is intended to define “third party transaction settlement organizations” in furtherance of the IRS’ goal of creating a mechanism to better track the flow of money within the economy.

A section in the preamble labeled “Healthcare Networks and Self-Insured Arrangements” got the belated attention of small circle of IRS observers who have a health care focus. The actual preamble language for this section (just three paragraphs) is as follows:

The proposed regulations included an example to demonstrate that health insurance networks are outside the scope of section 6050W because a health care network does not enable the transfer of funds from buyers to sellers. Instead, health carriers collect premiums from covered persons pursuant to a plan agreement between the health carrier and the covered person for the cost of participation in the health care network. Separately, health care carriers pay healthcare providers to compensate providers for services rendered to covered person pursuant to provider agreements. This example is retained in the final regulations.

A commenter requested that the final regulations clarify that a self-insurance arrangement is also outside the scope of Section 6050W. According to the commenter, a typical self-insured arrangement involves a health insurance entity, health care providers, and the company that is self-insuring. The company submits bills for services rendered by a health care provider to the health insurance entity. The health insurance entity pays the healthcare provider the contracted rate and then debits the self-insuring company’s bank account for the payments made to the healthcare providers.

This suggestion was not adopted because this arrangement could create a third party payment network of which the health insurance entity is the third party settlement organization to the extent that the health insurance entity effectively enables buyers (the self-insuring companies) to transfer funds to sellers of healthcare goods or services. If so, payments under a self-insurance arrangements are reportable provided the arrangement meets both the statutory definition of a third party payment network and de minimis threshold (that is, for a given payee, the aggregate payments for year exceed $20,000 and the aggregate number of transactions exceeds 200).

First, it was curious that the IRS received a single comment regarding self-insurance. Moreover, the commentator described self-insured arrangements in an odd way by using the term “health insurance entity” in an apparent reference to TPAs

Based on this interpretation, it would seem that the IRS did construe TPAs as third party payment networks. As a practical matter, this would mean that TPAs would have to expand their current 1099 Misc. reporting procedures to include payments to providers broken down on a monthly basis, which would be complicated and burdensome.

But upon a more detailed legal review of the full text of the regulations, it was concluded that TPAs did not meet the statutory definition of third party payment networks. One of the key considerations is that it is the employer and not the TPA which contracts with provider networks.

In this regard, it seems that the IRS may have indeed wanted to make TPAs subject to the rule, but the statutory language does appear not support this intent, possibly due to ignorance on the part of the Agency on how self-insured health plans operate and the role of the TPA.

Of course, it’s not uncommon for IRS rules to be tested in court so we will be watching to see if any enforcement actions and/or legal challenges arise on this issue.

A New "Life Line" for Group Workers' Comp. Funds in New York

In the wake of several high profile group workers’ compensation funds (SIGs) failures a few years ago, the future for other SIGs operating in that state has been looking bleak.

With the state on the hook for unpaid claims totaling between $300 million and $800 million (depending if you believe industry or government estimates) , policy-makers were formally recommending that most funds be shut down and impose such rigorous new regulations on the remaining funds that it would be almost impossible for them to continue to operate.

But just as the obituary for the state’s SIG industry was being written, the conversation has apparently turned from focusing on shutting everything down to finding a solution for letting the well run SIGs continue thanks to an effective lobbying campaign initiated by industry leaders and Group participants.

Specifically, a serious proposal has been floated to allow SIGs to post some form of security in amounts calculated based in their anticipated liabilities to satisfy regulatory concerns about solvency issues going forward.

This proposal may well serve as the framework for a solution, but there are key details which still need to be resolved in order secure “buy in” from both the state and the industry.

The first detail to determine how the security amount should be calculates so that it satisfies regulator concerns but still allows funds sufficient access to cash to pay claims. This is not such an important issue for well-established SIGs with large cash reserves, but is critical to those SIGs that have not had the opportunity to build up such large reserves.

Another open question is the specific "security vehicle" the state would require and the additional transactional expense to the Group. Industry experts have expressed concerns about surety bonds that are fully secured with irrevocable letters because the bond underwriter has the LOC in their hand, so SIGs could never use that cash until it is given back and then replaced with a lesser LOC (assuming it goes down), which can be a difficult process and can be further complicated if the state remains inflexible to changing requirements that could occur depending on cash needs.

As an alternative, it has been suggested the security vehicle be in the form of a restricted investment/ cash account that would require signoff by the state Workers’ Compensation Board but is not wrapped up in an instrument such as an LOC or surety bond.

Another alternative suggestion would be to utilize Reg 114 trusts in which the reinsurer post the cash, freeing up SIG assets to capitalize a captive.

We’ll see how all this plays out but at least there is a viable “lifeline” in the water for the state’s well run SIGs.

In the meantime, we are aware that the state has received proposals for loss portfolio transfer arrangements in order transfer future liabilities back to the private sector, but out sources tell us that disagreement regarding the amount of the liabilities has prevented any deals from being finalized so far

Finally, we continue to wait on an appeal from a State Supreme Court ruling that determined it was constitutional for the state to assess member companies of financially solvent SIGs for the claims liabilities incurred by now insolvent funds.
This should be an easy ruling assuming an objective review of the law, but this is New York after all, so stay tuned. We will report on the ruling when it is announced.

Stop-Loss Insurance, Reinsurance and "Partially Self-Insured" -- We Need to Talk

Forgive me for stating the obvious, but words mean things. I make this seemingly odd comment because I continue to observe a couple words being misused by self-insurance industry professionals on a regular basis and we all need to get on the same page.

Perhaps most aggravating is the term “partially self-insured,” which continues to get tossed around to describe self-insured health plans that utilize stop-loss insurance. Of course there is no such thing as being “partially” self-insured so the term is sloppy at best and can actually be harmful.

I say harmful because from a lobbying perspective, we are continually emphasizing the distinction between fully-insured and self-insured health plans. This “partial” description is often thrown back in our face in attempt to undermine our public policy and legal arguments, so this objection to the term is strictly academic. And those who use it against us have picked it up….from us!

The more subtle yet equally problematic imprecise word choice is when “reinsurance” is used interchangeably with “stop-loss” insurance. Reinsurance involves an insurance contract between two insurance entities, so by saying reinsurance when you really mean stop-loss insurance this implies that self-insured employers are insurance entities, which confuses policy-makers and has created legal uncertainty in some cases. Again, we have only ourselves to blame.

And that concludes our self-insurance vocabulary lesson (and sermon) for the day.

almost forgot to share this closing adventure

We've all got crazy closing stories, right?  Well, the other night we had an in office closing set for 5pm.  Folks started arriving a few minutes early just as our severe weather warning siren started blowing.  As the buyers walked in they got a call from a friend who was at the Walmart about 8 miles away.  They had been instructed to get on the floor and away from the windows.  A tornado was on

almost forgot to share this closing adventure

We've all got crazy closing stories, right?  Well, the other night we had an in office closing set for 5pm.  Folks started arriving a few minutes early just as our severe weather warning siren started blowing.  As the buyers walked in they got a call from a friend who was at the Walmart about 8 miles away.  They had been instructed to get on the floor and away from the windows.  A tornado was on

Thursday, March 24, 2011

getting back to the REO transaction and the odd POA scenario

It hits me that this attorney isn't even in touch with the principal on the POA.  According to her the REO company may not even have current contacts for that company.  This attorney is apparently throwing darts at the public record trying to find a POA that might fit her transaction.  What the hey?

The vested lender is vested on the sheriff's deed because the foreclosure attorney filed an

getting back to the REO transaction and the odd POA scenario

It hits me that this attorney isn't even in touch with the principal on the POA.  According to her the REO company may not even have current contacts for that company.  This attorney is apparently throwing darts at the public record trying to find a POA that might fit her transaction.  What the hey?

The vested lender is vested on the sheriff's deed because the foreclosure attorney filed an

Wednesday, March 23, 2011

Big Win for Captives in the Big Sky State -- And Related News

The Montana State Legislature only meets for two months every two years so getting a bill passed requires a certain amount of precision. So it is particularly impressive that legislation to significantly improve the state’s captive insurance statute cleared the House and Senate by near unanimous votes and is expected to be signed into law by the governor.

Among other things, the legislation allows for the formation of incorporated cell and special purpose captives, which will make Montana one of the most progressive captive domiciles in the United States.

The interesting backstory is the amount of meaningful consultation that took place between industry proponents and key regulators within the state auditor’s office in developing the legislative language. There was genuine push and pull over the course of several meetings spanning several months. The final product met industry’s objective in creating new opportunities for captive formations, while incorporating sufficient safeguards to provide the regulators with a level of comfort.

We will now be watching to see if companies take advantage of the new law.

In related news, an incorporated cell captive bill is now pending in the Vermont state Legislature. Perhaps they were inspired by Montana.

The long slog continues in South Carolina to push through captive legislation dealing with incorporated cell captives and other updates to the statute there. The outcome still remains uncertain but headwinds seem to prevail.

Rounding out our domicile legislative round-up, a captive bill has been introduced in the Tennessee Legislature that was put together by taking the best provisions from captive laws in multiple domiciles. It’s too early to say whether the legislation will pass this year, but if it does Tennessee is sure to attract national attention.

A new era of captive regulatory structures seems to be emerging across the country. Will our industry’s “big thinkers” be up to the challenge on delivering the next generation of innovative ART programs to prove the potential is real?

Tuesday, March 22, 2011

Here's a different approach ...affiliate as "single person"

NAILTA supports the FRB's definition of the term "affiliate" as a "single person" for the purposes of the Rule.
An AfBA, according to NAILTA's view, is a single entity and, accordingly, should be subject to the "single person" compensation requirements. Indeed, the trade associations refer to the "affiliate" as a "one-stop" shop.
Therefore, treating them differently for purposes of the Rule

Here's a different approach ...affiliate as "single person"

NAILTA supports the FRB's definition of the term "affiliate" as a "single person" for the purposes of the Rule.
An AfBA, according to NAILTA's view, is a single entity and, accordingly, should be subject to the "single person" compensation requirements. Indeed, the trade associations refer to the "affiliate" as a "one-stop" shop.
Therefore, treating them differently for purposes of the Rule

Saturday, March 19, 2011

Facebook connections continue to evolve...

"It is great to see that the courts are willing to embrace new technology," says a British lawyer given permission to serve a summons to a difficult-to-reach debtor via Facebook.

Source techPresident.

Facebook connections continue to evolve...

"It is great to see that the courts are willing to embrace new technology," says a British lawyer given permission to serve a summons to a difficult-to-reach debtor via Facebook.

Source techPresident.

criminy...here's a morning chuckle or maybe not - just pretend it's a Monty Python short

You be the judge.

What follows is a transcript of the deposition of Lawrence Patterson, acting head of information technology for the recorder's division of the county fiscal office. The questioner is attorney David Marburger, who filed the lawsuit on behalf of title companies. Another attorney, Matthew Cavanagh, represents the county and raises objections.

Read more on Cleveland.

Thanks