The Illinois Real Estate Lawyers Association (IRELA) and and its members have been invited to attend a special Town Hall Meeting at the James R. Thompson Center. The discussion will focus on Proposed Guidance for Title Insurance Agent Compensation and subsequent regulation.
IDFPR has indicated that certain 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 firstname.lastname@example.org. Please send a copy to rjs@SchumannLaw.com.
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.
WHEN: Wednesday, January 3, 2018 | 9:00 AM to 11:00 AM
WHERE: James R. Thompson Center Auditorium, Lower Level | 100 West Randolph Street, Chicago, IL
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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