Banks, Bank Holding Companies and Title Insurance: a Non-Technical Guide Through the Labyrinth of Applicable Law and Regulation

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Banks, Bank Holding Companies and Title Insurance: a Non-Technical Guide Through the Labyrinth of Applicable Law and Regulation TITLENeWSST 1989 ;J}-('I , I ..- -r-:rr - ~- c1 1 ALTA ) r) r J I . .~fc " ~) · ~ -j: i ~ -~~ ANNUAL ::r~-'- -.­ CONVENTION Depend on the best ... with products and services from TRW. More than 300,000 times a day, TIPS™-TRW Integrated title insurance companies turn Property Service Informa­ to TRW's Real Estate Dramatically reducing the time latest in tion Services for the it takes to prepare a property tax real property title and profile, TIPS gives you owner­ array of information. Our wide ship, property tax, sales gives you products and services comparables, and property access to the most convenient improvement information in comprehensive property one complete on-line product. anywhere. information available As a valuable marketing and Title Information Service customer service tool, TIPS is the answer to providing your TRW's Title Information high quality Service provides you with customers with quickly. automated title plant indexes, property information furnishing relevant public TRW Smart Title System sM on an on -line indexing records Our latest innovation, the TRW system. Source documents from Smart Title System, is a major Recorder's office the County breakthrough in title informa­ , key entered, are abstracted tion systems. Delivered through and computer edited verified, an intelligent work station, the rienced data entry by expe Smart System combines title, accuracy personnel to assure tax, and general property and completeness. information into a single Tax Information Service integrated system. Our Tax Information Service Your workload is performed in automates county tax, assess­ just half the time. Fast searching, ment, and payment data relating quick browsing of previous to individual parcels of property. screens, and color highlighting Our Tax Information Service of key information give you gives you the most current capabilities you've never had payment information available. before. Critical information, And because our database is the such as delinquent taxes or liens most timely and dependable on in the title chain, is viewed and the market, TRW assumes printed in color to reduce errors liability for its accuracy. and tax losses. Our commitment to customers TRW's dedication to customer service has made us the leading supplier of tax, title, and property data systems. You can depend on us for the competitive edge in providing superior service to your customers. TRW··~·· Real Estate 714.385.2100 Information Services ©TRW Inc. 1989 TITLE NeWS" Volume 68, Number 3 Editor: Adina Conn FEATURES Cover Wustratlon: John Peter Halford. Mr. Hafford is a British artist 4 San Francisco: The City of As October quickly approaches, Title News and and designer and longtime resident Everyone's Heart the ALTA begin their preparations for the 1989 of the United States, with a broad Annual Convention. Exciting tours, speakers and city. spectrum of work in illustration, the­ events are in store for visitors to the colorful Read all about the San Francisco Convention so and radio. An atre, film, television you can begin making plans of your own. owner of his own graphic design com­ By Lynn D. Wilkinson pany. Mr. Halford is a well-traveled experienced jack-of-all-trades. 1 0 Dedication of An Honor The Annual Convention brings with it three new ALTA Honorary Members. In a special dedica­ tion piece, the individuals are honored before the convention via a montage of letters written by fellow industry members, colleagues and With Introduction By friends. Adina Conn 14 Banks, Bank Holding Written by an outside counsel to the ALTA, this Companies and Title article provides a primer on an issue of great im­ Insurance portance to the title insurance industry-the establishment of title companies by banks and BHCs to capture the title insurance business gen­ erated by their mortgage lending activities. By Sheldon Hochberg 20 On The Road Again Ever taken a business trip and wished you stayed at home or in the office? Have you lodged in places with insects the size of SSTs, with roller coaster sloped beds, positioned under leaky air conditioners? In this piece, whimsical tales of road travel are recalled by a member of the in­ By Charles DeWitt dustry. DEPARTMENTS 3 A Message From The President 24 Names In The News 26 New ALTA Members 28 Across The Homefront 28 New Arrivals 29 1989 Affiliated Association Conventions 32 Calendar of Meetings Maximize your profits! The bottom line says it all. Only Genesis can make it happen. If your current computer system isn't making money for you in terms You can complete work in seconds that previously took hours. of reduced errors, expanded services and significantly increased Genesis lets you search 400,000 records in 3 to 5 seconds - all output, you're wasting money. cross referenced, all accurately filed. Genesis will transform your entire operation into a profit center with - Speed and accuracy give you the edge. • 13 state-of-the-art title programs, Today's technology is simply faster than it was a few years ago . • Flexible forms generation, Genesis lets you process information 2 to 4 times faster than • Automatic integration and transfer of data, systems just a few years old. • User defined calculations, • Integrated accounting, That means you can do twice the work in half the time. And that is • Guaranteed results, and much more. why most Genesis systems are purchased to replace other computer systems. Prove it to yourself. Seeing is believing. Join us for a hands-on demonstration, and see how easy it is to put Genesis to work for you. Call today for information or demonstration. In Colorado at (303) 220-8288 or outside Colorado at (800) 525-8526. Genesis An investment you can count on ASSOCIATION OffiCERS A MESSAGE FROM THE PRESIDENT President Charles 0. Hon , Ill , The Title Guaranty & Trust Co. of have always had fond memories of my times in Colo· Chattanooga, Chattanooga, Tennessee rado Springs at the June Board of Governors' meeting. President-Elect I Now, however, my memories of past Governor meet­ Richard P. Toft, Chicago Title Insurance Company, ings in Colorado will be tempered with a certain sense of Chicago, Illinois Joss over the death of one of Chattanooga's most re­ spected figures in the title industry. It was during my stay in Chairman, Anance Committee Colorado, that I received a call from my office informing David R. Porter, Transamerica Title Insurance Company, me of the death of S. P. "Shade" Hale, a Chattanooga title Los Angeles, California insurance agent, and a competitor of mine. "Shade" had Treasurer been in the title insurance business for almost 50 years. ParkerS. Kennedy, First American Title Insurance During the past 20 years, I had come to know and respect Company, Santa Ana, California "Shade" Hale as my father and grandfather did before me. "Shade" was a title insurance person in the truest sense. Chairman, Abstracters and example of what our industry should be striving for: an independent agent Title Insurance Agents Section He was an of substance rather than glitter, and an agent who knew Bill Thurman, Gracy Title Co., Austin, Texas and strong underwriter-full the true meaning of the principal-agent relationship. "Shade" will be missed. Chairman, Title Insurance We should be proud of our performance in many facets of our industry. We have sur­ Underwriters Section vived in the hardest of times, and we have bounced back. It is a natural phenomenon Richard A. Cecchettini, Title Insurance Co. of Minnesota, that the market place changes, and we have done an exceptional job in keeping up Minneapolis, Minnesota with the rapid changes by constantly revamping our product and the methods of its dis­ Section Representatives, semination. Board of Governors We must change our product only by careful and thoughtful study and not by unrea­ Thomas A. Griffin, Mid-South Title Insurance soned underwriting or expansion of coverage by employees or agents having no actual Corporation, Memphis, Tennessee authority to do so. its close, I am happy to report many successes for our Association. Richard J. Oliver, Smith Abstract & Title, Inc., Green As my term nears Comptroller of the Currency has not approved Citibank's application to Bay, Wisconsin Thus far, the obtain title insurance underwriting authority. We are fortunate to have received much Co. , Los Ange les, William T. Seitz, Ticor Title Insurance help from ,Rep. Gonzalez, chairman of the House Banking Committee. California Counsel for ALTA testified on April 7, 1989, before the Federal Reserve Board in fa­ Herbert Wender, Commonwealth Land Title Insurance vor of the Fed's proposed rescission of that portion of Regulation Y, allowing subsidiar­ Company, Philadelphia, Pennsylvania ies of state banks which are part of bank holding companies, to engage in insurance Immediate Past President activities. Marvin C. Bowling Jr., Lawyers Title Insurance The Judge has yet to rule on the government's motion to dismiss in the suit that Corporation, Richmond, Virginia ALTA, in conjunction with the Texas Land Title Association, brought against the OCC regarding its interpretive letter stating that banks may write title insurance. ASSOCIATION STAFF At both the federal and state levels, the issue of whether banks and bank holding companies may engage in title insurance activities surfaces almost daily. In light of this Executive VIce President activity, we believe that it is very important that the membership be conversant not only James R. Maher with the policy arguments for and against banks having authority to underwrite and/or Vice President-Public Affairs sell title insurance, but also with the legal framework that controls the policy debate. Gary L Garrity Given the complexity of this legal framework, I have commissioned outside counsel to Director of Resesrch ALTA Sheldon Hochberg, of the firm of Pierson Semmes and Finley, prepared a primer Richard W.
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