January 10, 2019 NYS DFS REGULATION 208 NEWS

Last week the New York State Land Title Association (NYSLTA) was again notified of the Appellate Division decision on the appeal of the Supreme Court order annulling Regulation 208. On December 26, 2019, the Appellate Division has again unanimously reversed the Supreme Court’s decision annulling Regulation 208. On December 26, 2019, the Appellate Court ruled in favor of NYS DFS, reversing the Trial Court’s decision and reinstating the majority of Regulation 208.
The complete Regulation is back in effect with the EXCEPTION of the following two sections:
  • Section 228.5(a) (1)-(3), imposing 200% caps on patriot, bankruptcy and municipal/departmental searches (not conducted and billed by a municipality); and
  • Section 228.5(d) (1)-(2) – prohibiting direct payments by applicants to closers, and restrictions on closers charging for remitting payoffs.
Effective immediately: Section 228.2 prohibits any payment, expense, benefit or compensation to any applicant for title insurance or applicant’s representative, either current or future, associated with the following activities, among others:
  • Meals and beverages;
  • Entertainment, including tickets to sporting events, concerts, shows or artistic performances;
  • Gifts, including cash, gift cards, gift certificates, or other items with a specific monetary face value;
  • Outings, including vacations, holidays, golf, ski, fishing, and other sport outings, gambling trips, shopping trips, or trips to recreational areas, including country clubs
  • Parties, including cocktail parties and holiday parties, open houses;
  • Providing or offering to provide non-title services, without a charge that is commensurate with the actual cost thereof.
The NYSLTA is considering its options concerning these regulations, and we, Abstracts, Incorporated, will further advise you of any details as they become available.