MD COMMISSION AND SENATE MEETINGS --  TITLE PRODUCER ISSUES

Introduced and read first time: February 26, 2010

Assigned to: Rules

Committee Report: Favorable with amendments

Senate action: Adopted

Read second time: March 25, 2010

Waiting for O’Malley to Sign

See Ruling Click Link

http://mlis.state.md.us/2010rs/bills/sb/sb1050t.pdf

and

HOUSE BILL 1470

March 22, 2010

(Title Insurance Producer Independent Contractors)

(Notary Witness Closers) 

Department of Legislative Services

Maryland General Assembly

2010 Session

FISCAL AND POLICY NOTE

Economic Matters

By: Delegate Rudolph, et al.

Waiting for O’Malley to Sign

See Ruling Click Link

http://mlis.state.md.us/2010rs/fnotes/bil_0000/hb1470.pdf  

Hearing(s) and Testimony Results:

Next Schedule Hearing:

Tuesday, March 23, 2010

1:00 pm

Commission to Study Title Insurance

Hearing in Annapolis on Bill -- SB 1050

sponsored by Sen. Kelley

There is a provision that says that TIPICS won't have to provide their own surety bond but should be covered under the fidelity bond of the title company. 

Also, it statess that there will be form added to the Deed of Trust where the Title Insurance Producer must provide their license number.

These are some of the things that we've been fighting for. 

Please type your concerns on paper and bring several copies for the Commission and others.

WHERE: 

Miller Building -- 3rd Floor

Senate Finance Committe Room

11 Bladen Street, Annapolis MD 21401

FREE PARKING: 

available at the Calvert Street Garage located at

19 Saint Johns Street, Annapolis, MD

REPORT OF THE COMMISSION TO STUDY THE TITLE INSURANCE INDUSTRY IN

MARYLAND

JANUARY 2010

BRIEF OVERVIEW

        A sole proprietor, limited liability company, partnership, or corporate applicant for a license as a title insurance producer, other than an attorney or law firm, must file with the Commissioner a blanket fidelity bond covering appropriate employees and title insurance producer independent contractors and a blanket surety bond; or a letter of credit. Unless the Commissioner approves a lesser amount, each bond or letter of credit must be for $150,000.

        The Commission received extensive testimony regarding the general practice in Maryland – who are TIPICs are witnessing most real estate settlements in Maryland. Even though TIPICs are licensed title insurance producers, they do not underwrite the risk, issue the title insurance policy, hold funds in escrow for mortgage payoffs, taxes, closing costs, commissions for real estate brokerage services, and other costs related to settlement or closing. These main responsibilities are usually handled by the lender or licensed title insurance producer who sent the TIPIC to the real estate settlement. TIPICs collect a fee for witnessing the signing of the closing documents and are generally prohibited by the party who sent the TIPIC to the settlement from answering questions regarding the loan terms or other settlement charges. Since the TIPIC is more like an agent of the party who sent the TIPIC to the settlement or closing, the Commission recommends that this principal-agent relationship be deemed a legal relationship in which the principal is responsible for all actions, including non-intentional conduct, of the TIPIC. The TIPIC should be covered by the principal’s fidelity bond, thus relieving the TIPIC from the requirement to hold a separate surety bond.

       For more detailed information on the Commissions recommendation click this link.

HERE IS THE SENATE BILL 1050 -- Click to see  BILL 

June 25, 2009

The Commission took testimony from various firms within the Title Industry.  For those who testified were:  ALTA, MLTA, Cheseapeak Insurance, Mobile Notaries Group, TIPIC, various law firms and Title Companies. 

Topics of discussion were: 

• Increase in surety bond
• Qualifications of TIPIC
• Qualifications of Licensed Notary Witness Closers
• Education and CE issues
• Non-license individual and firms
• Harsh Penalities for Non-license notaries
• HUD-1  line item 1106 (Disbursement) for payment for notaries - licensed title producers)
• Senate Bill 86
• Fraud
• DemoTech
• MoneyStore
• Law firms vs. TIPIC
• Making Maryland an Attorney State
• Problems with lenders
• RESPA
• CRESPA -- Penalty
• Residential/Commerical closings
• Loan Officers
• Explaining documents to consumers before the closing
• Truth-In-Lending
• Title companies and their partnership with (non-licensed signing companies)
• Premium Rates
• Consumers
• Bond for Notary Witness Closers
• Signing companies and etc.,
• GAO Report

WHO TESTIFIED ON BEHALF OF LICENSE TITLE PRODUCERS INDEPENDENT CONTRACTORS

March 23, 2010

Barbara Taylor, LA/TIPIC

Testimony -- SB 1050

Mobile Notaries Group, Inc.

For copies of testimonies please contact the

Maryland Insurance Administration.

IN ATTENDANCE WERE:

Barbara Taylor, LA/TIPIC

Mobile Notaries Group, Inc.

Celestine Shird, TIPIC

Member (Written Testimony)

Sheila Howard, TIPIC

Non-Member (Written Testimony)

Elaine Wright, TIPIC

Non-Member (Written Testimony)

Nicole M. Clement, TIPIC

Non-Member (Written Testimony)

Kenneth Walter,  TIPIC

Non-Member

Wanda Moore, TIPIC

Non-Member (Written Testimony)

Ganiyu Raji, TIPIC

Non-Member (Written Testimony)

NOT PRESENT

Kenneth Roseborough, TIPIC

Member (Written Testimony)

September 17, 2009 

Barbara Taylor, LA/TIPIC

Mobile Notaries Group, Inc.

For copies of testimonies please contact the

Maryland Insurance Administration.

Good News!  It is with great possibility the Surety Bond may be dropped for us Notary Witness Closers. 

Senator Kelly stated that they now understand our position and it is with great consideration that we licensed notaries may be relabled, and may not need to pay for a bond of that magnitude since we do not handle Trust Funds. That burden will fall on the Title Companies, since we are considered agents / contractors.   Also stated that the HUD/ Settlement Statement, Premium Rate  and the Consumer Guidelines need to be researched further.

To get more clarification.   Contact the MIA for information on September 17, 2009 hearing.

I did my best.  I will post when the next hearing will be or you can go onsite to the MIA Producer Search for information

IN ATTENDANCE WERE:

Barbara Taylor, LA/TIPIC

Mobile Notaries Group, Inc.

Celestine Shird, TIPIC

Member

Sheila Howard, TIPIC

Non-Member

July 16, 2009 

Barbara Taylor, LA/TIPIC

Mobile Notaries Group, Inc.

Kenneth Roseborough, TIPIC

Member

Josephine Wheeler, TIPIC

Non-Member

Celestine Shird, TIPIC

Member

Sheila Howard, TIPIC

Non-Member

Elaine Wright, TIPIC

Non-Member