All:
I want to
update you regarding the meeting on Thursday January 22 with DISB Associate
Commissioner Philip Barlow and Actuary Robert Nkojo and Birny Birnbaum the
independent contractor retained by DISB to conduct the rate examination.
The meeting was also attended by Justin
Ailes and Wayne Stanley with ALTA, Donna F. Shuler and Tessa Edison with Answer
Title, Ben Soto with Premium Title, Todd Ewing with Federal Title, Amy Klein
with District Title and Elizabeth Russo with MCP Title Services, LLC.
The bottom
line is: DISB will be sending questionnaires
to at least 10 DC settlement companies whom they will select and will expect
answers about how these agents conduct their business. Agents will be selected by DISB and DISB states
that responses will be kept confidential.
DISB’s examiner will then visit the 10 selected companies and spend
about 4 hours interviewing employees and following up on the questions and
answers. This process is permitted in a
regulated industry, as ours now is, and cannot be avoided.
The proposed questions can be found at this link:
DISB - draft request to title agents 1-22-15.pdf
Once DISB
gets this information it will publish a report on the industry in DC and will
make recommendations as to whether DC policy premium rates are too high. THIS WILL HAPPEN.
The question
for DCLTA and its members is: What can we do about it? Our concern is that if DISB’s examination is
not comprehensive enough they will fail to determine the nature and scope of all
the work DC agents perform and expenses they incur to provide first class
service to the DC community.
Phillip Barlow
invited the agents to volunteer examination of their business operations and or
to share any information that they believe would be useful for DISB’s
understanding of the business, even if the information is not included in
the draft requests, attached above. DISB would like information about
title issues unique to DC. DCLTA WILL NEED YOUR COOPERATION IN PROVIDING
THIS INFORMATION EVEN IF YOU ARE NOT ONE OF THE SELECTED AGENTS.
We urge you
to review the draft questions and provide me with your concerns as soon as possible. Also, I need your comments on how best to
inform DISB of the realities of our industry in DC. Finally, please let me know whether you would
be willing to provide DCLTA with your own company’s answers to these questions –
even if you are not one of the selected companies – so that we can compile the
responses and forward them to DISB (without identifying your agency).
THE ENTIRE
BILLING STRUCTURE WILL CHANGE FOR AGENTS IN DC. THE QUESTION IS HOW IT
WILL AFFECT EACH OF OUR MEMBER AGENTS AND WHAT WE CAN DO TO INFLUENCE THAT
CHANGE. DCLTA cannot help without your cooperation.
We encourage
you to get involved and have a voice in the process.
Regards,
Mike Russo,
President, DC
Land Title Association.
DISB - draft request to title agents 1-22-15.pdf
