The Texas Title Insurance Guaranty Association (TTIGA) is once again assessing a fee, starting tomorrow. We haven't had this fee for a couple of years. The TTIGA is a non-profit, unincorporated association of all Texas-licensed title insurance companies. It exists to protect Texas title insurance policyholders and claimants when a title insurance company fails. The fee is a whopping $3 per policy.

Where should this fee be placed on the LE and CD?

I think it is no more than another title fee and goes under Section C labeled as Title - Guarantee Fee. I would list it payable to the title company on the CD. These are not paid to TTIGA per transaction and are paid by the title company as a lump sum monthly.

Bless you, Randy.

We did what Randy suggested on a CD we issued yesterday for a home equity loan.

What I'm wondering is, if the seller usually pays for the owner's title policy, will the seller also pay the $3.00 fee? Do you know swiggles?

Most likely and that fee (paid by owner or seller) would appear in Section H.

As always, you are correct Randy. Whomever pays each insurance also pays that $3.00 fee.

I remembered how I used to see it on the Settlement Statement.....just confused me with respect to the Closing Disclosure.......

If the buyer is paying for the Owner's Title Policy, which is still disclosed in H as (optional), does the corresponding guaranty fee also go in section H? And would it receive the (optional) designation as well?

"Does the corresponding guaranty fee also go in section H? And would it receive the (optional) designation as well?"

That's how we have been disclosing it since the fee is part of the owner's title ins and without owner's title insurance there would be no fee.

You would of course have the guaranty fee for the lender's title insurance in section B or C.

Thank you Compl101, I'm working on my first purchase loan since the new fee & wouldn't be so worried about it if the borrower wasn't paying for the fee. Amazing how much trouble a $3 fee can be.

We have a similar fee (TIEFF) in IN however under state law the fee must appear with the title charges regardless who pays it.

"Does the corresponding guaranty fee also go in section H? And would it receive the (optional) designation as well?"

That's how we have been disclosing it since the fee is part of the owner's title ins and without owner's title insurance there would be no fee.

You would of course have the guaranty fee for the lender's title insurance in section B or C

This is an old post, so I wanted to check to see if everyone is still handling the guaranty fee this way?

Yes - the guarantee fee would appear in Section H for the fee associated with the owner's title policy, just like any specific homeowner's title policy endorsements they choose to get.

Thank you, Randy. And on the owner's policy, the guarantee fee would be shown as "optional", correct?

ray_worth, just to clarify, what guarantee fee are you talking about? Are you in Iowa and asking about Iowa Title Guranty because that's a whole different animal that does not go in H because it's what they use instead of title insurance.

Truffle, I'm in Texas. TTIGA collects the guaranty assessment recoupment charge, or “GARC,” from title insurance agents and direct operations to fund claim payments and administrative expenses related to insolvent title insurance companies.

There is no longer GARC fee, It is now back to the Guaranty Fee, The GARC fee (when effective) goes to a different fund and was discontinued 12/31/2018.

Woops, thank you for that clarification.