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Texas Department of Insurance
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Subchapter A. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas

28 TAC §9.1

1. INTRODUCTION. The Commissioner of Insurance adopts an amendment to §9.1 that adopts by reference a change to the Texas Reverse Mortgage Endorsement, Form T-43, relating to home equity reverse mortgage loans, which form is contained in the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas (Basic Manual). The amended section is adopted without change to the proposed text published in the November 25, 2005, issue of the Texas Register (30 TexReg 7808). There is also no change to the proposed amended endorsement form that is adopted by reference.

2. REASONED JUSTIFICATION. The amendment to §9.1 updates the date of the Basic Manual to accommodate incorporation of the amended Form T-43, Texas Reverse Mortgage Endorsement. The 79th Legislature, Regular Session, adopted Senate Joint Resolution 7 proposing a constitutional amendment authorizing line-of-credit advances for liens securing a reverse mortgage on Texas homestead property. By voter approval on November 8, 2005, Section 50, Article XVI of the Texas Constitution was amended to authorize line-of-credit advances under a reverse mortgage loan. The amendment to endorsement form T-43 in the Basic Manual is necessary to facilitate the issuing of mortgagee title policies insuring home equity liens on homestead property.

3. HOW THE SECTION WILL FUNCTION. The effective date of the amended section is January 20, 2006. The modification to the existing title insurance Form T-43 relating to home equity reverse mortgages refers to the correct and applicable law contained in the constitutional amendment as authorized by Texas voters and sets forth the scope and limitations of the insurance coverage of this form. The amended endorsement will facilitate title insurance companies writing title insurance coverage regarding home equity reverse mortgage lending in Texas.

The department has filed a copy of the adopted amended form with the Secretary of State's Texas Register section. The adopted amended form is available from the Office of the Chief Clerk, Texas Department of Insurance, 333 Guadalupe Street, P.O. Box 149104, Austin, Texas, 78714-9104. To request a copy, please contact Sylvia Gutierrez at 512/463-6327.

4. SUMMARY OF COMMENTS AND AGENCY RESPONSE TO COMMENTS. The department did not receive any comments on the proposal.

5. STATUTORY AUTHORITY. The amended section is adopted pursuant to the Insurance Code §2551.003, Chapter 2703, and 36.001, and Section 50, Article XVI of the Texas Constitution. Chapter 2703 authorizes and requires the Commissioner to promulgate or approve rules and policy forms of title insurance and otherwise to provide for the regulation of the business of title insurance. Section 2551.003 authorizes the Commissioner to promulgate and enforce rules prescribing underwriting standards and practices and to promulgate and enforce all other rules necessary to accomplish the purposes of Title 11, concerning regulation of title insurance. Section 36.001 of the Insurance Code provides that the Commissioner of Insurance may adopt any rules necessary and appropriate to implement the powers and duties of the Texas Department of Insurance under the Insurance Code and other laws of this state. By voter approval on November 8, 2005, Section 50, Article XVI of the Texas Constitution was amended to provide for home equity line-of-credit advances on reverse mortgages.

6. TEXT.

§9.1. Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas. The Texas Department of Insurance adopts by reference the Basic Manual of Rules, Rates and Forms for the Writing of Title Insurance in the State of Texas as amended effective January 20, 2006. The document is available from and on file at the Texas Department of Insurance, Title Division, Mail Code 106-2T, 333 Guadalupe Street, Austin, Texas 78701-1998.

For more information, contact: AgencyCounsel@tdi.texas.gov