April
6, 2018
New Guidance from IDFPR!
Disclosure Rule Updated, Effective May 15, 2018
In
a surprise move, the Illinois Department of Professional and Financial
Regulation on April 4 implemented a new rule on the Disclosure of Financial
Interest form effective May 15, 2018.
The crux of IDFPR’s new guidance is:
“The Department of Financial and Professional
Regulation, Division of Financial Institutions announces that the Disclosure of
Financial Interest form, also known as the DS-1 form, has been revised. This
revised disclosure form is effective at 12:01 a.m., April 4, 2018 [now May 15, 2018], and the current
form will no longer be used.
“The Title Insurance Act (Act) authorizes the
Department to prepare the disclosure form so that a producer of title business
(usually the attorneys, real estate brokers or lenders in transactions)
discloses their financial interest to any home seller and buyer involved in the
closing process. This includes the title insurer, independent escrowee or title
agent/agency involved in the closing.”
Note:
As of this writing, the Illinois Land Title Association has requested that IDFPR
delay implementation of mandatory use of the new form for 90 days. IDFPR has announced a new effective date of May 15, 2018.
What you need to know:
·
Compliance
with this guidance is mandatory and effective immediately.
·
You
must present the revised disclosure form to your client at the beginning of
each transaction process, i.e. before the title commitment is issued.
·
For
each transaction, the title insurer (underwriter), “Must review and approve the
disclosure, including accurately verifying the percentage the agent will
receive for statutorily authorized services that the agent will perform,
including an estimate of the fee.”
How can Prairie Title
help?
We
are here to help you through the new process. Do not hesitate to reach out to
your representative with any questions you have and for the assistance you
need.
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