The Trusted Adviser
February-March 2018 | Volume 11 · Number 2

IDFPR to Hold Second Town Hall Meeting on Title Agent Compensation

Henry L. Shulruff photoMarch 5, 2018
The Drake Oakbrook Hotel
1:00 - 3:00 p.m.
See PDF for more information

In January, the Illinois Department of Financial and Professional Regulation (IDFPR) held a Town Hall Meeting to discuss its Proposed Regulatory Guidance on Title Agent Compensation. As we reported in the January issue of The Trusted Adviser, there was a disturbing undercurrent of lawyer-bashing at the first meeting, which was attended mostly by underwriters. Ironically, underwriters and agent representatives alike blamed lawyers for the compensation programs, which the IDFPR believes may violate State and Federal law. We pointed out that it is unfair and inaccurate to blame lawyers for the agent compensation schemes created by some title underwriters and some service companies.

The Proposed Regulatory Guidance addresses three issues:

  1. Improper Inducements or Compensation;
  2. Improper Splitting of Premium; and
  3. Improper Splitting of Fees.

We encourage all title agents to familiarize themselves with the IDFPR Proposed Regulatory Guidance and to attend the March 5 meeting. These efforts by the IDFPR are likely the beginning of a process that will impact the title industry in Illinois. From the Department:

Before it is formalized, the Department of Financial and Professional Regulation (IDFPR) is proposing guidance and is seeking comment from the title insurance industry, affected peripheral industries (real estate brokers and lenders, etc.) and the general public. This proposed guidance is neither official legal opinion nor interpretation of law.

The IDFPR is seeking public comment on the Proposed Regulatory Guidance until March 20, 2018. Submit your comments to Deputy Director, John Lartz of the Division of Financial Institutions, johnlartz@illinois.gov.

This Proposed Regulatory Guidance and the department's concerns about title agent compensation underscore the importance of carefully choosing which title insurer you work with and carefully analyzing how you get paid.

We look forward to seeing you at the meeting.

Henry L. Shulruff
ATG Senior Vice President - Business Development

[Last update: 2-27-18]

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