Texas Department of Insurance (TDI) on TRID

CFPB has created a challenge in Texas and a few other states where a simultaneous issue of the Owner's Policy and the Lender's Policy results in a discount of one of the policies.  In Texas, when both policies are issued simultaneously, the Lender's policy is discounted to $100.  Purchased separately, the Lender's Policy costs nearly the same amount of the Owner's Policy.  CFPB requires that they be listed on the Closing Disclosure at the non-discounted price even when purchased simultaneously.

The problem is that the CD is supposed to be an accounting of the actual costs the buyer and seller pay.  Listing the title policies at their full price and not the actual price, causes the CD to fail it's primary mission.

To resolve this, TDI has adopted a rule which would separately disclose this issue to the buyer and seller so that they would have records of the actual costs.

Lenders must disclose on the LE the full cost of both policies, however, the TDI document only applies to the closing.  The price of the Owner's Policy is based on the sales price and the Mortgagee's Policy (Lender's Policy) is based on the loan amount.

You can see an announcement about this on the Texas Land Title Association website by clicking here.

You can read the rule on the TDI website by clicking here.

The new form can be viewed on the TDI website by clicking here.

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