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#2071840 - 03/31/16 03:57 PM
Gty Fee - Where does this go?
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Power Poster
Joined: Aug 2001
Posts: 7,351
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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?
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#2071845 - 03/31/16 04:05 PM
Re: Gty Fee - Where does this go?
swiggles
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10K Club
Joined: Jul 2001
Posts: 83,371
Galveston, TX
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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.
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#2071851 - 03/31/16 04:09 PM
Re: Gty Fee - Where does this go?
swiggles
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Bless you, Randy.
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#2071852 - 03/31/16 04:11 PM
Re: Gty Fee - Where does this go?
swiggles
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Gold Star
Joined: Aug 2010
Posts: 378
W. TX
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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?
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#2071860 - 03/31/16 04:19 PM
Re: Gty Fee - Where does this go?
swiggles
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10K Club
Joined: Jul 2001
Posts: 83,371
Galveston, TX
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Most likely and that fee (paid by owner or seller) would appear in Section H.
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#2071911 - 03/31/16 06:19 PM
Re: Gty Fee - Where does this go?
swiggles
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Gold Star
Joined: Aug 2010
Posts: 378
W. TX
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As always, you are correct Randy. Whomever pays each insurance also pays that $3.00 fee.
Last edited by Compl101TX; 03/31/16 06:44 PM. Reason: spelling
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#2071970 - 03/31/16 08:22 PM
Re: Gty Fee - Where does this go?
swiggles
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Power Poster
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Posts: 7,351
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I remembered how I used to see it on the Settlement Statement.....just confused me with respect to the Closing Disclosure.......
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#2079356 - 05/19/16 04:06 PM
Re: Gty Fee - Where does this go?
swiggles
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Member
Joined: Nov 2012
Posts: 82
East Texas
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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?
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#2079410 - 05/19/16 06:37 PM
Re: Gty Fee - Where does this go?
swiggles
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Gold Star
Joined: Aug 2010
Posts: 378
W. TX
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"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.
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#2079664 - 05/20/16 06:31 PM
Re: Gty Fee - Where does this go?
swiggles
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Member
Joined: Nov 2012
Posts: 82
East Texas
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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.
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#2079677 - 05/20/16 06:50 PM
Re: Gty Fee - Where does this go?
swiggles
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Posts: 47,532
Bloomington, IN
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We have a similar fee (TIEFF) in IN however under state law the fee must appear with the title charges regardless who pays it.
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#2226706 - 12/04/19 04:40 PM
Re: Gty Fee - Where does this go?
swiggles
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New Poster
Joined: Feb 2019
Posts: 10
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"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?
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#2226707 - 12/04/19 04:44 PM
Re: Gty Fee - Where does this go?
swiggles
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10K Club
Joined: Jul 2001
Posts: 83,371
Galveston, TX
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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.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2226708 - 12/04/19 04:46 PM
Re: Gty Fee - Where does this go?
swiggles
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New Poster
Joined: Feb 2019
Posts: 10
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Thank you, Randy. And on the owner's policy, the guarantee fee would be shown as "optional", correct?
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#2226712 - 12/04/19 05:00 PM
Re: Gty Fee - Where does this go?
swiggles
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New Poster
Joined: Feb 2019
Posts: 10
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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.
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#2226714 - 12/04/19 05:05 PM
Re: Gty Fee - Where does this go?
swiggles
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10K Club
Joined: Jul 2001
Posts: 83,371
Galveston, TX
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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.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com
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#2226719 - 12/04/19 05:27 PM
Re: Gty Fee - Where does this go?
swiggles
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Joined: Feb 2019
Posts: 10
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Woops, thank you for that clarification.
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