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UPDATE - Insurance Department Data Call

 

On February 18, 2010, the Pennsylvania Insurance Department issued a demand for data and information to 498 PA title agents, roughly 20% of all PA licensed agents (“Data Call”). Selected agents ranged from the largest to the smallest, geographically distributed across the Commonwealth.

PLTA and its agent members supported the data call idea as an opportunity to better educate the Department and to demonstrate all the title agents do to make a real estate transaction go smoothly. Unfortunately, and by contrast, this Data Call has been anything but “smooth”. In a letter to the Department dated March 18th, PLTA voiced the concerns of many of its agent members stating, “[T]here can be, however, a major difference between an idea and its execution. On this point, and very unfortunately, we are compelled to agree with the following comment made by a title agent selected for this Study:

This entire project is poorly planned, executed and managed. It is an embarrassment for Pennsylvania and the Title Insurance industry. We will be shocked if any good can come from this charade."   - Monroe County

PLTA’s March 18th letter, which includes the text of e-mails from members, raised the following concerns:

  • Insufficient consultation with stakeholders prior to issuance of Data Call;
  • Fundamental unfairness of requiring the disclosure of retroactive data where agents had not been warned of the need to collect such data;
  • Data Call design failed to consider that, unlike agents in New Mexico and Texas who have been annually reporting data for years, PA agents have had no such experience;  
  • Staggering amount and complexity of the data requested;
  • Huge cost of compliance in time and expense;
  • Near impossibility of “small” agents being able to comply and stay in business;
  • Threat of License Revocation for non-compliance;
  • Danger of bad data produced by permitting guesstimates v. accurate hard data;
  • Incredibly bad timing given the state of the economy and implementation of the new HUD-1 settlement statement.

    [click here to read letter]

As this remains as fluid situation, the outcome is unknown. However, what can be said with absolute certainty is that PLTA members, big and small, from Allegheny County to Wayne County, have shown their passion and have pulled together over this issue. PLTA will continue to vigorously represent the interests of it members will keep you informed of developments as they occur.

 

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