The Texas Department of Insurance (TDI) conducts annual compliance audits on title agents and completed audits on 567 agents through its fourth quarter ending August 2015. Ninety percent of the agents audited in that year had been audited within the previous two years.
Below is a list of the most frequent violations or discrepancies with the numbers representing the number of agencies where the infraction occurred and not the number of times it occurred.
Take a look at your company’s procedures and make sure you have systems in place so that it doesn’t contribute to this list of violations!
|Violation or Discrepancy||# Agencies|
|Section 2651.301 – Failed to maintain separate escrow account (commingled escrow and operating funds.||30|
|Section 2704.001 – Signed commitments and/or policies not maintained as part of complete evidence of insurability.||30|
|Escrow bank accounts not styled as “escrow” or “trust.”||33|
|Section 2652.001 – Unlicensed person acting as an escrow officer.||34|
|Records did not include copies of all checks, invoices, deposit slips, and receipt items.||34|
|Deposit-in-transit list and/or outstanding check list prepared incorrectly.||51|
|Incorrect premium charged (violation of one or more rate rules).||56|
|P-22 – No T-00 in file or T-00 incorrect or incomplete.||61|
|Legal documents not recorded timely with county clerk or evidence of timely recording not in file.||62|
|Disbursement sheet missing, incomplete, or incorrect.||71|
|Funds not disbursed or escheated to State.||80|
|P-21 – Schedule D of commitment not in file or premium split not disclosed on commitment.||97|
|Title Bulletin No. 160 – All parties receiving portions of the real estate commission not disclosed on settlement statement.||110|
|Every disbursement not supported by invoice or sufficient other evidence.||122|
|Outstanding checks not cleared timely.||133|
|Section 2702.053 – Actual receipts and/or disbursements not in agreement with settlement statement or premium split not disclosed.||157|