FRIDAY FAST FACTS
DFS UPDATE
The New York State title insurance industry has been subject to New York State Department of Financial Services (DFS) Regulation 208 since December 18, 2017.
The regulations by the DFS had imposed numerous prohibitions on entertainment, closer gratuities and fee restrictions on the title insurance industry. The New York State Land Title Association ( NYSLTA ) etal. commenced an Article 78 proceeding against the DFS and was successful with their case. By order dated July 5, 2018, Justice Eileen Rakower annulled Insurance Regulation 208 in its entirety. The NYS Department of Financial Services has elected to appeal the order and has requested a stay.
Since the regulations are currently nullified certain items are permitted once again.
- Entertainment is permitted.
- Closer gratuities and closer pickups on refinances.
- Fee restrictions or ancillary charges are no longer in effect.
We are grateful you have remained loyal to us during this most difficult period for the title insurance industry.
Should successful outcome of the appeal by DFS or a stay of the order become a reality, the circumstances may change again in the future.
We hope you understand and appreciate the changing conditions are a result of the regulators.
Please feel free to contact us to discuss any comments you may have with respect to the aforementioned.
Thank you for your loyalty.