I confess. This query has me fascinated. An unlicensed person is using a licensed person's signature?
TIRBOP rules don't cover this. They are a rating bureau and cover pricing for the title insurance and related services.
This is licensing matter and you probably want to chat with the PA Department of Insurance.
You should also chat with the title underwriter with whom the licensee has their agency.
It is unlikely that the state or the underwriter would be happy about an unlicensed party signing the name of the licensee. The whole idea of licensure is that a fully trained, tested, and responsibly vetted person is serving the consumer. A licensee may certainly have staff who assist in this endeavor but no one would want unlicensed staff to act in their place.
Showing posts with label tirbop. Show all posts
Showing posts with label tirbop. Show all posts
Wednesday, July 18, 2012
Friday, June 01, 2012
a comparison of the old versus new PA title insurance rates for a refinance
Closings on or after July 1, 2012 will be charged according to a new rate schedule which offers only two rate categories, SALE and NON-SALE. For our example, today, I am using a $150,000 refinance.
Under the old system I would need to know when the last insurable transaction took place because our old rate categories are tiered based on a timeline. For our example I am presuming that the last transaction was three years ago. That would make our consumer eligible for the 80ML/Refinance rate. At $150,000 the premium would be $798.30.
Under the new system there is no timeline, only a distinction between a sale or non-sale transaction. The NON-SALE rate at $150,000 is $1002.50.
Today is June 1, 2012. If a consumer is considering refinancing today - and interest rates are great BTW - they may have a shot at closing before July 1, 2012 and avoiding the $204.20 rate increase.
We have made a marketing decision here at The Closing Specialists and with the implementation of the new rate structure we are amending our fee structure to ELIMINATE THE SETTLEMENT FEE. We've only been charging $150 for out of office closings anyway and that's a very competitive rate, however, we've decided to just make things easy. The $150 is GONE.
To keep things simple, we are also eliminating our Choose and Save Program. So all of our consumers, even those who do not give us a deposit up front will save the $150 and HAVE NO SETTLEMENT FEE.
We think that's a rocking good deal!
So, FYI, starting with closings July 1, 2012 we'll be charging the all-inclusive PA title rates which will include out of office and after hours closings in our market area.
We will still charge for optional additional insurance or services such as:
Under the old system I would need to know when the last insurable transaction took place because our old rate categories are tiered based on a timeline. For our example I am presuming that the last transaction was three years ago. That would make our consumer eligible for the 80ML/Refinance rate. At $150,000 the premium would be $798.30.
Under the new system there is no timeline, only a distinction between a sale or non-sale transaction. The NON-SALE rate at $150,000 is $1002.50.
Today is June 1, 2012. If a consumer is considering refinancing today - and interest rates are great BTW - they may have a shot at closing before July 1, 2012 and avoiding the $204.20 rate increase.
We have made a marketing decision here at The Closing Specialists and with the implementation of the new rate structure we are amending our fee structure to ELIMINATE THE SETTLEMENT FEE. We've only been charging $150 for out of office closings anyway and that's a very competitive rate, however, we've decided to just make things easy. The $150 is GONE.
To keep things simple, we are also eliminating our Choose and Save Program. So all of our consumers, even those who do not give us a deposit up front will save the $150 and HAVE NO SETTLEMENT FEE.
We think that's a rocking good deal!
So, FYI, starting with closings July 1, 2012 we'll be charging the all-inclusive PA title rates which will include out of office and after hours closings in our market area.
We will still charge for optional additional insurance or services such as:
- endorsements [as application with the typical being $150]
- closing services letter $75
- printing electronically delivered lender document packages $50
- courier for lender doc return $10
- document prep, if needed, $95 [for things such as deed or specific POA]
- outgoing wire $25
- incoming wire $5
If you have any questions, please shoot me an email.
Sunday, May 06, 2012
Wednesday, May 02, 2012
Pennsylvania title insurance rates are changing.
Effective July 1, 2012 you'll no longer see basic and reissue rates. Other rate categories have also been eliminated. We'll simply use SALE or NON-SALE rates. More info to follow.
Monday, July 06, 2009
TIRBOP revises rate filing
They have withdrawn their request to change the rate premium structure. They are still seeking approval of a new CSL including an increase in the CSL fee from $35 to $75.
Amended Rate Filing
Original Rate filing
Here's my comment to the PA Dept. of Insurance concerning the amended rate filing:
I'd like to offer these comments concerning the request by TIRBOP to increase the CSL fee to $75 and extend coverage to consumers.
Let's give consumers a choice.
We know mortgage lenders will require a CSL, most do. Do purchasers need or desire the type of coverage offered in the CSL? Perhaps. Should a purchaser in a mortgage transaction be forced to pay for the coverage if they do not want it?
I would think the purchaser most at risk of financial loss in a defalcation is the purchaser buying property without a mortgage, paying cash. If there is value in the extra coverage offered in the CSL, will it be available to cash purchasers and should they be forced to pay for lender coverage?
In addition, there are two other parties who suffer when a title agent goes south with the money, and that's the seller and a borrower in a refinance. I realize that neither of those parties are purchasing a title insurance policy and perhaps for that reason the coverages offered under a CSL cannot be extended to them for a fee.
From a title agent point of view, this new CSL isn't going to impact me directly. As a professional who tries to keep the interest of the consumer in the radar of decisionmakers, I think the underlying question is really what causes losses covered by the CSL and how best to prevent these losses so that our title companies remain solvent an the public isn't damaged.
I continue to be a proponent of annual independent CPA audits of title agents. Raising the bar of quality in our licensing and regulatory process will do more to fix our solvency problems and uncovered consumer/lender losses than just tossing money in the CSL bin.
I know there are some in the industry who will argue that consumers do not understand the risks and therefore will not understand that they need this coverage. I tend to trust consumers to make their own decision about how they want to spend their hard earned dollars provided they have been given sufficient data and a chance to think.
Sincerely,
Diane Cipa
Amended Rate Filing
Original Rate filing
Here's my comment to the PA Dept. of Insurance concerning the amended rate filing:
I'd like to offer these comments concerning the request by TIRBOP to increase the CSL fee to $75 and extend coverage to consumers.
Let's give consumers a choice.
We know mortgage lenders will require a CSL, most do. Do purchasers need or desire the type of coverage offered in the CSL? Perhaps. Should a purchaser in a mortgage transaction be forced to pay for the coverage if they do not want it?
I would think the purchaser most at risk of financial loss in a defalcation is the purchaser buying property without a mortgage, paying cash. If there is value in the extra coverage offered in the CSL, will it be available to cash purchasers and should they be forced to pay for lender coverage?
In addition, there are two other parties who suffer when a title agent goes south with the money, and that's the seller and a borrower in a refinance. I realize that neither of those parties are purchasing a title insurance policy and perhaps for that reason the coverages offered under a CSL cannot be extended to them for a fee.
From a title agent point of view, this new CSL isn't going to impact me directly. As a professional who tries to keep the interest of the consumer in the radar of decisionmakers, I think the underlying question is really what causes losses covered by the CSL and how best to prevent these losses so that our title companies remain solvent an the public isn't damaged.
I continue to be a proponent of annual independent CPA audits of title agents. Raising the bar of quality in our licensing and regulatory process will do more to fix our solvency problems and uncovered consumer/lender losses than just tossing money in the CSL bin.
I know there are some in the industry who will argue that consumers do not understand the risks and therefore will not understand that they need this coverage. I tend to trust consumers to make their own decision about how they want to spend their hard earned dollars provided they have been given sufficient data and a chance to think.
Sincerely,
Diane Cipa
Thursday, April 05, 2007
query: difference between title commitment and preliminary title report
Well, some people use the terms interchangably so it's confusing. Just remember that title commitment has a specific meaning while preliminary title report does not.
Here's the TIRBOP definition of a title commitment:
“Commitment”, as used herein, is the agreement of an Insurer to issue its policy or policies of title insurance to a proposed Insured, as owner or mortgagee of an estate or interest in the land described therein, all subject to the provisions set forth in the Schedules and Conditions and Stipulations of said Commitment. The Commitment sets forth the requirements including payment of premium and Charges, that must be complied with prior to the issuance of the policy or policies.
So, a title commitment is like a mortgage approval or commitment letter, but it's for title insurance. It tells you the title insurance agent has approved the property for title insurance subject to certain conditions.
When someone uses the phrase "preliminary title report" they might mean title commitment or title abstract or even an attorney's opinion of title. So, when you hear someone use that phrase, ask them to be more specific.
Here's the TIRBOP definition of a title commitment:
“Commitment”, as used herein, is the agreement of an Insurer to issue its policy or policies of title insurance to a proposed Insured, as owner or mortgagee of an estate or interest in the land described therein, all subject to the provisions set forth in the Schedules and Conditions and Stipulations of said Commitment. The Commitment sets forth the requirements including payment of premium and Charges, that must be complied with prior to the issuance of the policy or policies.
So, a title commitment is like a mortgage approval or commitment letter, but it's for title insurance. It tells you the title insurance agent has approved the property for title insurance subject to certain conditions.
When someone uses the phrase "preliminary title report" they might mean title commitment or title abstract or even an attorney's opinion of title. So, when you hear someone use that phrase, ask them to be more specific.
Monday, April 02, 2007
TIRBOP Polices and Rates, continued
5.1 OWNER'S TITLE INSURANCE
A. An owner's policy issued at the time of the purchase of the property shall be based on the full consideration, including the aggregate unpaid principal sum of any mortgage(s) or other liens, claims, taxes and any other municipal charge not being paid. A policy may be issued in an amount in excess of the full consideration where agreed to by the Insurer and the Insured. In a transaction involving the sale of real estate, an owner's policy must be issued unless the new owner has waived, in writing, the purchase of an owner's policy in accordance with 31 Title Pa. Code 126.1. (See Supplemental Form TIRBOP - 31 PA Code 126.1 Waiver of Owner's Title Insurance (01/01/02).)
B. Where an owner desires that an owner's policy be issued after acquisition of title, the rate shall be based upon any amount the owner may request but not less than the present fair market value of the property as of the time the owner's policy is issued.
C. When the lender insured under a loan policy acquires title to the land by foreclosure or by voluntary conveyance in extinguishment of the debt and requests owner's title insurance, such lender may be issued an owner's policy and the applicable Charge shall be based upon the fair market value of the property at the time the owner's policy is issued.
A. An owner's policy issued at the time of the purchase of the property shall be based on the full consideration, including the aggregate unpaid principal sum of any mortgage(s) or other liens, claims, taxes and any other municipal charge not being paid. A policy may be issued in an amount in excess of the full consideration where agreed to by the Insurer and the Insured. In a transaction involving the sale of real estate, an owner's policy must be issued unless the new owner has waived, in writing, the purchase of an owner's policy in accordance with 31 Title Pa. Code 126.1. (See Supplemental Form TIRBOP - 31 PA Code 126.1 Waiver of Owner's Title Insurance (01/01/02).)
B. Where an owner desires that an owner's policy be issued after acquisition of title, the rate shall be based upon any amount the owner may request but not less than the present fair market value of the property as of the time the owner's policy is issued.
C. When the lender insured under a loan policy acquires title to the land by foreclosure or by voluntary conveyance in extinguishment of the debt and requests owner's title insurance, such lender may be issued an owner's policy and the applicable Charge shall be based upon the fair market value of the property at the time the owner's policy is issued.
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