FLTA TALLAHASSEE REPORT

February 2002ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ

Presidentâs Report

Sam B.Waddill

February - although many of you may think of it as a boring month, in Tallahassee, it is nothing of the sort.Ê It means cold winter weather, the legislators are in town buzzing like bees, and itâs the month of our FLTA Winter Meeting, which by no means was cold or dull.

Our winter meeting had good participation from all around the state, consisting of a few special guests, agents and underwriters, many of whom serve on the various committees and the board.Ê The winter meeting, for those of you who have never attended, is a great occasion to interact with other members, to learn about current and/or forthcoming issues, and to make your voice heard.

At this yearâs meeting we worked on and resolved many topics, discussed areas of concern and interest and continued to work for the future of our industry.Ê The various committees were all hard at work on their respective issues.Ê As an example, the Governmental Affairs Committee focused on legislative matters such as our Title Insurance Bill (HB1245,SB 2382), the Producer Model Licensing Act (SB 318), the Sales Tax Legislation, the formation of a Legislative Study Commission regarding privacy issues of the Public Records (SB 688/HB 1679), etc. etc. All of which will or could have impact on our industry.ÊÊ A highlight of the winter meeting was the attendance of two new faces, those being Richard Allen Miller and George Moraitis, who serve as committee members of the Real Property and Probate Section of the Florida Bar.Ê They were asked to join our Governmental Affairs Committee as non-voting members, as we will in turn have two of our own FLTA members, John Haviland and Skipper Henderson joining the Real Property & Probate Section committee as non-voting representative members.Ê This exchange will be beneficial to our industry, as it allows for better cooperation, communication, and understanding of key issues.

Another important guest attending the winter meeting was Mr. Wally Senter of the Department of Insurance.Ê Mr. Senter continues to work with our industry and keep us apprised of forthcoming Department of Insurance matters.Ê Mr. Center updated us on the Mortgage Impairment issue which thankfully is quiet for now.Ê He also indicated that not too far in the distant future we may be faced with more Department of Insurance rule making.Ê The rule making would be setting up the renewal of the data call and other matters.Ê This alone should wake a few of you up, and when you do, my word to you is ãPARTICIPATE!ä

In a final note, our association will be making several improvements towards better communication.Ê Improved communication will allow for timely and expedient relay of important information and breaking news as well as some cost savings.Ê To better serve you, it is crucial that we have your current e-mail address as soon as possible.Ê Please make sure to check your listing and contact the association office with any changes.Ê To mention just one item, we will be ãmodernizing our website,ä which, among other things, will have a listing of each committee with their respective committee chair and members.Ê This will allow all our members to be ãin the knowä of those working on specific areas.

Winter Meeting Notes

by: Lee Huszagh

Our winter meeting was the scene of much activity. The Governmental Affairs and Judiciary Committee considered the final wording of the proposed title insurance anti rebate legislation and a few changes were instituted to make the billâs intention crystal clear. The bill has not yet been heard in committee so, at this time it is hard to tell what its eventual fate will be. Other items to be considered were the careful monitoring of any attempt to make mortgage impairment insurance permissible with a legislative change. Having failed to gain approval from the Department of Insurance in the administrative arena it is conceivable that an attempt to change the law governing title insurance could be attempted. The Committee also considered different ways to make our legislators aware of the negative impact on real property ownership new taxes would have. It was pointed out that real estate ownership and transfer of ownership already bears a high level of taxation in ad valorem and documentary stamps and class C intangible taxes. To further tax the settlement process would unduly burden property owners. With the opposition to the tax proposal already being made by the House and the Governor this issue may resolve itself before the FLTA need weigh in.

Wally Senter, title Insurance Coordinator for the Department of Insurance was present and participated in the meeting.

This committee welcomed two non-voting delegates from the Florida Bar Real Property , Probate and Trust Law Sectionâs Title Insurance Committee. The delegates are George R. Moraitis of Fort Lauderdale and Richard A. Miller from Lakeland. Both of these gentlemen are attorney agents and active in the Real Property Section. They both remarked on how similar the attitudes and concerns of the attorney agent and the independent corporate agent are.

ÊÊÊÊÊÊÊÊÊÊÊ The issue of eliminating the necessity of two witnesses on deeds as a proposal for next year was discussed. Whether or not this elimination was to be tied to an increase in a notary bond was discussed at some length.

The Forms Committee met with Wally Senter to discuss a proposal for expediting forms submission and approval by the Department.Ê Please see Chairman Alan McCallâs report below.Ê

Minutes from 2002 Forms Committee Meeting by Alan McCall

First American Title

The Forms Committee met in Tallahassee during the February mid-winter meeting with Wally Senter from the Department of Insurance in attendance.Ê We addresses the eight new endorsements that have been developed for consideration by the FLTA governing board.Ê All were recommended by the committee with the exception of the Street Address Endorsement.Ê Ken Jannen suggested that it be re-drafted along the lines of the CLTA 116 endorsement to avoid claims created by language similar to the committee version that had cropped up in California and which led to development of the CLTA 116.Ê The changes will be made and voted on and the endorsement will be recommended to the FLTA board along with the Access, Additional Insured (ãTrusteeä), Location, Change of Partners-Shareholders-Beneficiaries (an expanded version of the Fairways or Change of Partners Endorsement), and Last Dollar endorsements developed by the committee as well as two new Leasehold Endorsements approved by the ALTA for use with regular owners policies after the former ALTA Leasehold policies were de-certified by that national body.

Mr. Senter said he would review the leasehold endorsements to see whether they changed or added coverages not previously approved by the Department in the Leasehold policy jackets.Ê If not, they could be approved without further rule making by the Department.Ê The other endorsements would require formal rule making in any event which Mr. Senter said would not take place before the second half of this year at the earliest.

We also discussed and approved a proposed modification to the existing rules to permit endorsements forms to be approved much more easily without the requirement of a hearing or workshop.Ê However, Mr. Senter felt the rule change would not be approved by the Department since he felt a workshop was a requirement of statute in all cases.Ê The task of researching the statutes alluded to by Mr. Senter was given to Floyd Krause and his report is forthcoming.Ê We hope to challenge the Department to investigate further the possibility of giving the title insurance industry greater flexibility and speed when it comes to keeping pace with other states in adopting new forms of coverage demanded by our customers.

After the meeting, Mr. Senter suggested that the Administrative Rule requiring premium charges for ãadditional landsä added to revolving credit construction loans needs to be re-written in order to satisfy his desire that it clearly requires that the value of future improvements be included in the premium calculations.Ê While many in attendance pointed out the difficulty and impracticality of adding this new wrinkle in the rule, a subcommittee has been formed to look into re-drafting the statute to make it less ambiguous and acceptable to the Department, if possible, without creating undue accounting and documentation problems.Ê The subcommittee consists of Pat Hancock from Fidelity National Title; Pat Jones from the Fund; Larry Plank from LandAmerica Title; Mike Davis from Old Republic Title; and the chairman, Alan McCall from First American Title.

Allied Industry/ Public Relations Committee by Linda Gregory

Metropolitan Title

Allied Industry had a joint meeting with Lenders Liaison Committee.Ê The goal of our meeting was by April 1^st to have ready for print the Title Insurance flyer.Ê We also discussed, decided on topics and have made plans for the articles for our annual Florida Land Title News.Ê One of our ideas which I believe has been implemented is to have an update from each zone vice president as to ãWhatâs happening in your Area?ä Another idea was to have a Humor Section, so if you have any stories, please provide them to Nancy Barnette at Nbarnette@thefund.com.

Lender Liaison Committee

By: Nancy A. Barnette

Attorneysâ Title Insurance Fund

The Lender Liaison committee made an appeal to the Department of Veteranâs Affairsâ St. Petersburg Loan Guaranty Office for a clarification regarding VAâs ãAllowable Closing Costä list.Ê This appeal was made due to the VA Pamphlet 26-7 Revised (a/k/a VA Lenderâs Handbook) prohibition of a ãclosingä or ãsettlementä fee to a veteran borrower.Ê We bought to VAâs attention the provisions of Rule-4-186.003, F.A.C. requiring all Florida title agents to charge such a fee and to isolate it on the closing statement.Ê The folks at VA were eager to assist us.Ê Unfortunately, the only possible resolution would be to advise lenders making VA-guaranteed loans in Florida, that they are to reduce their ãorigination feeä (limited by law to 1% of the loan amount) by the amount of any closing fee charged to the borrower.Ê The committee didnât think this would be palatable to the lending industry and the ãthe medicine would be worse than the disease.ä So, in purchase transactions, sellers will no doubt continue to be assessed closing fees.Ê On refinances, title agents remain at peril that the lender will not fund the loan with such a charge reflected.

The Lender Liaison Committee is Nancy A. Barnette, Attorneysâ Title Insurance Fund; Marilyn Steel, M&M Title Service; Dick McKinlay, Guardian Title; John Berkley, First American Title; Shelley Benge, Southern Title; and Barbara Burke, Burke and Koogler.

Remembering John Thornton

Our good friend John S. Thornton, Jr., passed away on January 22, 2002. A well respected title insurance attorney and friend to many in our Association he will be missed.

A native of Birmingham, Alabama, John was a graduate of Birmingham Southern College and the University of Alabama Law School. He served in the US Air Force and retired from the Air Force Reserve as a Lieutenant Colonel. One of the top attorneys for Chicago Title Insurance Company and TICOR Title Insurance Company John was a long term active member of the Florida Land Title Association. John was a recipient of the Raymond O. Denham Memorial Award for leadership in the title insurance industry and a long term member of the Government Affairs and Judiciary Committee. John was an active member of the American Bar Association and the Florida Bar Associationâs Real Property, Probate and Trust Law Section. He wasÊ awarded the 2001-2002 Robert C. Scott Memorial Award for his years of ãUntiring, Devoted and Invaluable Service to the Section and Its membersä. John is survived by his loving wife Dorothy, ãDottieä and two sons, John S. Thornton, III, and Robert E. Thornton, and three daughters Debbi Smith, Christina McCabe, and Dr. Rachel Augustines. A member of the United Methodist Church of Seminole, John was a devoted Sunday School teacher. The Service held at the United Methodist Church was overflowing with Johnâs many friends in his business and private life. A true gentleman in every respect John will be greatly missed by his many admirers.

ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ

FLTA Kicks off New Training Program

Your Association is embarking on a new and exciting venture that will serve a purpose that is not currently met in the title insurance field. Our program is a two day educational seminar that is specifically aimed at title insurance people who are relatively new to the industry or who are interested learning about other segments of the industry. It will be called ãBasic Trainingä and be held for the first time ever in Tampa at the Crowne Plaza Sabal Park on Thursday September 12 and Friday September 13. We have arranged for a discount room rate of $75.00 and the seminar itself will be offered to employees of FLTA members at only $35.00. Non FLTA members may attend for $125.00. The program will make use of instructive video training tapes followed by comments from the seminar leaders and Q &A. The plan is to make a video tape of the entire program available to FLTA members for use in their ãin-houseä training programs also. The faculty and course outline will be made available in upcoming Tallahassee reports. Mark your calenders for this important event.

A Tribute to Brenda Biddle DeWitt

Brenda Biddle DeWitt passed away on February 1^st, 2002 in Fort Pierce. Brenda was a native of Orlando but had resided in Fort Pierce for the past 33 years. Brenda served as Vice President and Manager of Treasure Coast Abstract & Title Co., of Fort Pierce where she had been employed for over 25 years. Brenda was a very well respected title professional in her community and her services were attended by some 300 friends and family. Brenda was survived by her husband Danny ãDexterä DeWitt, son Robert DeWitt and daughter Dee Dee DeWitt all of Fort Pierce. Brenda was a member of the Florida Land Title Association, The St. Lucie County Chamber of Commerce, the St. Lucie Board of Realtors, and the Exchange Club. Bob Booth reported that It was remarked at her servicesÊ ãThat God must have had a really important closing and that he needed Brendaâs help...ä. ÊÊÊÊÊÊ

New Trial Membership Offered

At the Winter Board of Directors meeting a new ãtrial basisä membership has been authorized.Ê This membership will allow first time members to try out membership in our association for a period of one year for the reduced rate of $150.00.Ê During this trial period the firm will receive mailings and information and may attend seminars and the convention just as if they were a regular member.Ê They will not have voting rights during the trial membership.Ê This will allow someone who is new to the industry or has never taken an interest in the FLTA to sample our association for a limited time.ÊÊ

Incentives to Membership

The FLTA will continue to offer one voucher for convention attendance and two seminar vouchers for all new members to our association (excluding the trial membership described above).Ê It is hoped that new members will attend our meetings and avail themselves of the opportunities for professional growth afforded by FLTA membership.

2002 CLC/CLS Applications

Included in this newsletter is the 2002 CLC/CLS Information and Application Packet.Ê Read over the information carefully and then share it with your fellow employees.Ê The test will be held on July 13^th and now is not too early to begin studying!Ê You will find an order form included in this newsletter for the Basic Title Insurance Handbook for studying purposes.Ê Simply fill out and mail it to the Association office with payment.

Membership Renewals Due

Dues are payable and will be delinquent as of April 1, 2002.Ê Any member who is delinquent in payment of dues shall be suspended automatically and lose all voting privileges.Ê If you are in need of a dues schedule, please call Jenni at 800-552-1065.

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ÊÊÊÊÊÊÊÊÊÊÊÊÊÊ Florida Land Title Association

ÊÊÊÊÊÊÊÊÊÊÊÊ Basic Title Insurance Handbook

ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ORDER FORM

ÊÊÊÊÊÊÊÊÊÊÊÊÊÊ A desk reference covering all aspects

ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ of Title Insurance

ÊÊÊÊÊÊÊÊ Includes revisions of Rule 4-186 and 4-228

FLTA MembersÊÊÊ ÊÊÊ $50.00

TaxÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ÊÊÊÊÊÊ 3.50

ShippingÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ÊÊÊ ÊÊÊ4.00

TOTALÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ÊÊÊ $57.50

Non-membersÊÊÊÊÊÊ ÊÊÊ $75.00

TaxÊÊÊÊÊÊÊÊÊ ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ 5.25

ShippingÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ÊÊÊ ÊÊÊ4.00

TOTALÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ ÊÊÊ $84.25

ÊÊÊÊÊÊÊÊÊÊ __________Copies @___________each

Total Enclosed____________________________

Name___________________________________

Company________________________________

Address_________________________________

City/State/Zip_____________________________

Mystery Award

Whoever won the ãClosest to the pinä at the annual golf tournament please identify yourself, we would like to recognize you along with the other winners.

2002 FLTA CE Seminar Schedule

April 18, 2002

Orlando, Crowne Plaza Orlando Airport

May 15, 2002

Pensacola,Ê Clarion Suites Resort

May 16, 2002

Panama City,Ê Holiday Inn Select

June 17, 2002

Naples, Hilton Naples & Towers

June 19, 2002

Tampa, Crowne Plaza Tampa at Sabal Park

August 27, 2002

Jacksonville, Ramada Inn Mandarin

September 12 &13, 2002

Education Day

Tampa, Crowne Plaza Tampa at Sabal Park

November 6-9, 2002

Annual Convention

Radisson Resort Coral Springs

Notice of 2002 C.L.S. and C.L.C. Designation Examination

To:ÊÊÊÊÊÊ All Members of Florida Land Title Association, Inc.

From:ÊÊÊ Certified Land Title Institute

Date:ÊÊÊÊ February 20, 2002

The examinations for the C.L.S. and C.L.C. designations will be held on Saturday, July 13, 2002.Ê Notice of locations will be given with the application approval letters.

We urge you to encourage all of your qualified staff members to take the exam.Ê Twentyeight (28) hours of Continuing Education Credits will be earned for licensed agents who are successful in passing the exam.

To qualify for the examination, one must:

1.Ê Have credible full-time experience for at least a period of five (5) years with an Abstract Company, Title Insurance Company, or Agent thereof which holds membership in good standing in the FLORIDA LAND TITLE ASSOCIATION, INC., or with a joint venture plant, that each participant is said venture is a member in good standing of the FLORIDA LAND TITLE ASSOCIATION, INC.ÊÊÊÊÊÊ ÊÊÊÊÊÊÊÊÊÊÊ

Two (2) years of verifiable experience with a non-member of the FLORIDA LAND TITLE ASSOCIATION, INC. may be substituted for one (1) year FLTA-member experience, up to a maximum of six (6) years non-member experience.

2.Ê Submit to the C.L.T. Institute the following forms:

a.Ê Completed questionaireÊ (C.L.C. or C.L.S.) From the applicant.

b.Ê Completed Certification from the Manager, or in the event the Manager is the applicant, from their immediate supervisor, verifying the applicantâs experience, position and qualifications for taking the examination.

c.Ê Detailed resume of title insurance experience that includes: name, address, phone number, contact person, dates of employment of current and previous title insurance related positions.Ê Must also give details of title insurance related duties and length of experience in each position held.

The Governing Council has set a charge of $50.00 as the application fee and $35.00 for the examination fee.

Both must be sent with the forms referenced in item 2 above.Ê NOTE: Make checks payable to FLORIDA LAND TITLE ASSOCIATION, INC.Ê These fees are non-refundable.

So that applications may be processed in time, all applications, employer certifications, resume and fees due must be received by:

May 1, 2002

No applications will be accepted beyond this deadline!

Notice of approval of the applications, will be sent no later than June 7, 2002.Ê All documents as well as payment should be forwarded to:

Linda M. Vivona, CLC/CLS

(Secretary of CLT Institute- FLTA)

First American Title Insurance Company

25400 US Highway 19 N., Suite 135

Clearwater, Florida 33763

Copies of the 1.)Ê application 2.) employer certification 3.) resume forms and 4.) study outlines and guides are enclosed, or can be obtained from the Association office.Ê You may make additional copies of the forms needed.Ê These forms must be used.Ê Previous versions will be rejected.Ê If your office does not already have the The Basic Title Insurance Handbook ($57.50- includes tax and shipping) and the supplement to Florida Land Titles by H.D. Booth ($12.00 - includes tax and shipping), copies are available from the FLTA office and are also helpful study aids.

If you have any questions, please feel free to contact the undersigned at (727) 797-4166; FAX (727) 748-1185.Ê Thank you for your attention to this matter.

Please post this notice on your bulletin board.

Sincerely,

Linda M. Vivona, CLC/CLS

Secretary of the CLT Institute

Florida Land Title Association, Inc.

LMV/jg

Enclosures

CERTIFIED LAND TITLE INSTITUTE SECTION

OF THE

FLORIDA LAND TITLE ASSOCIATION, INC.

Application for examination for CLC/CLS designation

(EVERY BLANK MUST BE FILLED IN - PLEASE PRINT CLEARLY OR TYPE)

Date: __________________________ÊÊ FLTA Membership Date: ________________________

Designation Application is for:Ê q C.L.CÊÊÊÊ ÊÊÊÊÊÊÊÊÊÊÊÊ q C.L.S.ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ q PARTIAL *

* Attach a copy of your notification letter.

Applicant (For Plaque): _______________________ S.S.# _______________________________

Florida Licensed Title Agent: ______ Yes _______ No

License Issue Date: ________________________ License # _____________________________

Residence Address: ________________________________________________________________

City, Zip Code ___________________________ County _________________________________

Name of Employer: _______________________________________________________________

Business Address: ________________________________________________________________

City, Zip Code: __________________________ County _________________________________

Applicantâs Position: ______________________________________________________________

Home Phone: ___________________________ Work Phone: ____________________________

I hereby certify that all information enclosed is true and correct.

Signature of Applicant: ____________________________________________________________

Resume Form, Employerâs Certification, and fees must be included for application to be processed.

Deadline to Apply: May 1, 2002

RESUME FORM

Complete One Form for Present and All Previous Employers

Name of Applicant: _________________________________________________________

Name of Current Employer:________________________________________________

Name of Previous Employer:_______________________________________________

Business Address: __________________________________________________________

Phone Number/Contact Person:____________________________________________

Full Dates of Employment: From: __________________ To: _______________________

FLTA Member:Ê q YesÊÊ q No

Position Held: ____________________________________________________________

Detail of Title Insurance Duties and Length of Experience: _________________________

________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ _____________________________________________________

Complete this form for EACH Title Insurance Employer.Ê Duplicate as needed.

Previous Employment must be verifiable to take test.

Be sure Information is Complete!

EMPLOYERâS CERTIFICATION

Designation Applied for:Ê q C.L.C.ÊÊÊÊÊÊÊÊÊÊÊÊ q C.L.S.

Applicantâs Name: ________________________________________________________________

The Applicantâs CURRENT position and duties are: ____________________________________

The Applicant has been employed by this company since: _______________________________

I have been the applicantâs supervisor since: ____________________________________________

I, ________________________________, being the immediate supervisor of the above named applicant, hereby certify that this applicant has a minimum of five years related experience as a searcher, closer (choose one) and is qualified to take the designated examination.

Company Name: ________________________________________________________________

Address: _______________________________________________________________________

Telephone Number(s): ____________________________________________________________

Dated: _________________________ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ _______________________________________

ÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊÊ Signature of Immediate Supervisor

State of: _______________________________

County of: _____________________________

Sworn to before me this _________ day of ___________________, 2002, by __________________,

who is personally known to me or produced ___________________________________________

as identification, and who (did) take an oath.

_____________________________________

Notary Public

My Commission Expires: _________________