Beginning December 18, 2017, New York State Department of Financial Services Regulation 208 will prohibit the tipping of title insurance closers by anyone!
Some reading this might say, ‘No big deal’ because real estate deals will still come and go.
But, in essence, it is potentially a very big deal because GOOD title insurance closers, often independent contractors who are representing the title or abstract company and by extension the buyer, are an essential and key cog in the process who work with the title insurance company to ensure that clients are being protected!
Protected in what may be the single largest asset purchase of their lives!
This is an email we sent to clients this week explaining Regulation 208 as it stands now vis a vis title closers…
ON DECEMBER 18, 2017, NYSDFS REGULATION 208 WILL BE IN FORCE
As a Result, Tipping of Title Closers Will No Longer Be Permitted!
The impact from Regulation 208 for title and abstract companies will be significant in terms of allowable and non-allowable corporate activities, but title closers will potentially see their income slashed considerably!
This will result from the fact that tipping of title closers by ANYONE will no longer be permitted…
Re: Title Closer Tipping
Beginning on December 18, 2017, tipping of title closers in a purchase transaction by the buyer and/or the attorney representing the buyer is no longer permitted.
The same restriction similarly holds for participants of a mortgage refinance.
This is not a decision made by Hallmark Abstract Service and is not merely a suggestion, but is a new regulation that has been implemented by the New York State Department of Financial Services through its Regulation 208.
Tipping a title closer or giving them any monies other than those allowed by Regulation 208 that includes the allowable $250 per mortgage pick-up, would result in the closer no longer working for Hallmark Abstract Service in the future.
Further, violations could potentially result in Hallmark Abstract Service being fined and/or losing its license.
Thank you for your understanding and adherence to this new NYSDFS Regulation!
Hallmark Abstract Service Closer Compensation Resolution
Every firm will need to determine how they will address the financial stress that our title closing professionals will feel once Regulation 208 is in force.
At Hallmark Abstract Service we view those who attend closings on our behalf as major and critically important cogs in the process who serve as our eyes and ears in the trenches and the last line of defense protecting our clients best interests!
With that in mind, this is the Hallmark Abstract Service plan as things stand now…
- If there is no pick-up at a closing the Hallmark Abstract attendance fee* will rise from the current $50 to $250.
- If there is one pick-up at a closing the Hallmark Abstract attendance fee* will rise from $50 to $150.
- If there are two or more pick-ups at a closing the Hallmark Abstract attendance fee* will remain at $50.
It is our sincere hope that through the increase of our attendance fee in scenarios 1 and 2 above, that Hallmark Abstract Service will to some degree make-up for the loss of title closer tipping.
Hallmark Abstract will be closely monitoring the situation and will keep all participants involved apprised moving forward.
* For clarity, the attendance fee is not a line item on the title bill. It is paid by Hallmark Abstract Service to our closers!
Michael Haltman, President
Hallmark Abstract Service
Email Michael: email@example.com
Call Michael at (516) 741-4723 or (646) 741-6101Google+