Speaker: John A. Lartz,
Deputy Director of IDFPR Department of Financial Institutions
This is a cutting edge meeting about a cutting edge issue — Proposed Guidance for Title Insurance Agent Compensation and subsequent regulation. All IRELA members are invited to attend this special meeting to hear John A. Lartz of the IDFPR describe the problem as the Department perceives it and to interact with regulatory officials before regulatory steps are taken.
IDFPR has indicated that people in the title insurance industry have raised concerns about the process by which title insurance underwriters compensate their agents. This process of paying a percentage of the premium and/or closing fees that are assessed, known as “splitting premium” or “splitting fees,” appears to be “significantly increasing the costs of closing residential transactions”.
Before it is formalized, the Department of Financial and Professional Regulation (IDFPR) is proposing guidance and is seeking comments from the title insurance industry, affected peripheral industries (real estate brokers and lenders, etc.) and the general public. This proposed guidance is neither official legal opinion nor interpretation of law. IDFPR’s Guidance on Regulation of Title Insurance Agent Compensation can be accessed and downloaded at:
IDFPR has asked that we review the proposed regulation and provide feedback. Comments may be directed to Deputy Director John Lartz of the Division of Financial Institutions, at email@example.com. Please send a copy to firstname.lastname@example.org. The Comment period has been extended to March 20th.
In addition, ATG’s President and CEO, Peter J. Birnbaum, has submitted a Public Comment on the issues involved and the proposed regulation which can be accessed at:
ATG Public Comment
ATG’s Public Comment discusses the need to curb industry abuses, and brings up other market practices which merit the attention of the Department. The ISBA Ethics Opinion 10-02 mentioned in ATG’s Public Comment is the one dealing with captive title insurance companies and the requirement of avoiding compromising of independent judgment which we have addressed before. It was promulgated by the ISBA during IRELA Founder and Chair John O’Brien’s term as ISBA President.
Whether you are a title agent or not, please plan to attend this important meeting.
IRELA President Ralph J. Schumann will provide updates on continuing issues with limitations on recording of documents by the Cook County Recorder of Deeds, the IDFPR’s developing position on Title Agent Compensation, the new Illinois Department of Revenue’s State Tax Lien Registry and how it is affecting search procedures and underwriting, the latest developments in the ISBA v. IDFPR litigation regarding the IDFPR’s prosecution of attorneys for the alleged “Unlicensed Practice of Appraisal”, as well as other hot topics.
We wish to thank our meeting sponsor, Attorneys’ Title Guaranty Fund, Inc..
Check out ATG’s new “There’s Only One” video featuring IRELA Past President Aurora Austriaco, IRELA Board Member T. Nicholas Tyszka, IRELA Chairman and Founder John O’ Brien, and IRELA President Ralph Schumann.
The Illinois Real Estate Lawyers Association believes that all buyers and sellers should be able to retain a qualified, independent attorney to represent their interests in transactions which, more often than not, involve the largest dollar amounts of their lives.
For more information, call 312.600.7720, or email to email@example.com or firstname.lastname@example.org.
P.O. Box 4956
Oak Brook, IL 60522-4956
Telephone: (312) 600-7720
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