November 2011 Executive Committee Meeting minutes

A meeting of the Executive Committee was held on Thursday, NOVEMBER 17, 2011 at The Holiday Inn, 215
Sunnyside Boulevard, Plainview, New York 11803
Present:
Marvin
Michael
Paul
Rafael
Richard
Nancy
Richard
Amy
Larry
Anthony
Marianne
Janice
Jacquie
Jean
Tommy
Robert
Sal
EXECUTIVE COMMITTEE MEMBERS
Bagwell
Old Republic
Berey
First American Title
Bugoni
Stewart Title
Castellanos Expert Title
Estrella
Fidelity National Title
Farrell
Venture Title Agency
Giliotti
Judicial Title
Kelly
Seaport Title
Litwack
Big Apple
Maiocchi
Perfect Abstract
Mathieu
Chicago Title
Morelli
Commonwealth Title
Murphy
Westcor
Partridge
Benchmark Title
Tafuri
Regal Title
Treuber
NYSLTA
Turano
Abstracts Inc.
Joan
Rina
Peter
Joe
Nick
Bill
Pat
John
Sherri
Suzanne
Bryant
Terence
Michael
Rich
Julia
Larry
Rich
John
Chuck
Jim
Phil
Victor
John
Bob
Frank
James
William
Ken
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Alverson
Barbaccia
Brogan
Cavallo
Coffaro
Collins
Cotter
Frates
Fried
Garcia
Goulding
Guerriere
Haltman
King
Kirby
Lipschitz
Lippman
Martinico
Mauro
McGee
O’Hara
Pajonas
Piccirillo
Picone
Russo
Scaturro
Treuber
Warner
GUESTS
AIS
Westcor
Judicial Title
Zook Research
Empire State Research
Frontier Abstract (via phone)
Hudson Search
Stewart Title (via phone)
Red Stone Title (via phone)
Westcor Land Title
Vista Land Services
Madison Title
Hallmark Abstract
Stewart Title (via phone)
Statewide Abstract
Westcor
Accord Abstract
Security Title
Redvision
Redvision
Redvision
Superior Data
Westcor
Keppler Title
S.J. Carroll
Superior Data
First NY Title
Landstar
A quorum being present the meeting was called to order by President Bugoni at 10:46 a.m.
MINUTES
The minutes of the October 2011 meeting of the Executive Committee were approved.
EXECUTIVE DIRECTOR’S REPORT
Membership Campaign: 482 pieces of mail sent to current 2010-2011 members and former members 2008-2010.
To date: 39 renewals and 2 new members – Soline McCLain, IAG Title Insurance and Jennifer Amato, Coastal Land
Services. Abstracters and Agents section dues revenue $25,470.
Email broadcast: In October 2011, we sent 2,588 email messages, 931 were opened, an “open rate” of 36%.
Web site: Peak traffic corresponds to email broadcasts for October Executive Committee Agenda and October
Members Newsletter. 641 unique visitors to the site in October; 77.3% of visits came from bookmarks or direct
links, such as embedded in Broadcast email. This validates the assumption that members do visit the site and use
the email channel. 97.8% of visitors bookmarked the site as a “favorite”.
Publicity: R. Treuber was quoted in the Business Review in Albany in a side bar about agent licensing, one small
step to raise the NYSLTA profile and awareness of our licensing agenda.
Finances: R. Treuber attended a seminar for non-profit organizations sponsored by our CPA firm, ODMD. The
proxy tax was not paid in September as intended due to a clerical error at the bank. ODMD is writing a letter to the
IRS with an argument for penalty relief.
Lobbying: Scott Wexler has outlined an advocacy plan, which will be reviewed by the Executive Director in
consultation with the Legislative Committee and the Executive Committee.
eRecording: We gave a formal reply to a request for participation from NYS Office for Technology. Our eRecording
committee is meeting on Dec 14 with officers of the County Clerks’ Association at 2 Rector Street to discuss
common interestes and concerns.
2012 Convention and Annual Meeting: R.Treuber visited the site at Gurney’s Inn, Montauk with Nancy Farrell and
Paul Bugoni. Facility will be adequate for all our needs. However, the resort wants room count locked in by April
2012 . This will require an unprecedented advance commitment from members. Plans are being developed.
Zone 1: R. Treuber visited Buffalo on Nov 10 and met with about half-dozen agents at the office of Holland Title;
was able to explain a bit about the changes at the NYSLTA and to hear about the Zone 1 agent concerns;
introduced the idea of an Edu Committee for zone 1, Legislative Committee involvement and ways to improve
communications. Also met with an Examining Counsel to learn about that business model and some of the
challenges for the Association to provide relevance in Zone 1.
ALTA: There is a meeting in December in Tampa of the six large state executives (TX, CA, PA, OH, FL, NY) with Chris
Abbinante and Michelle Korsmo. The Executive Director requested an Exec Comm member to attend. A major
issue to be covered is the proposed Title Action Network – a grassroots letter-writing/lobbying software
application. TAN has the potential to help us grow the membership, raise our profile and have a very powerful
tool to influence legislators in Albany. There are some concerns and potential issues which will be addressed at
that meeting.
A note of appreciation to: Bob Picone, Keppler Title for donating a FAX machine to the Association; and to Bill
Collins for making the trip to Buffalo from Rochester (about 75 miles one-way).
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TREASURER’S REPORT
Ms. Mathieu reported, as of October 31, 2011, expenses for the month of October 2011 totaled $83,761; the
10/31/2011 CASH balance was $13,962.75. (The Treasurer’s detail report may be requested from the Association’s
Office.)
TITLE SECTION
Chair Estrella reported Title Section dues collected to date from members Old Republic, Security Title, National
Investors Title and Westcor total $61,431.67. There has been no response from WFG to the invitation to join the
Association.
ABSTRACTERS AND AGENTS SECTION
Chair Giliotti noted this meeting is the first time the Alternate Member system is being used. He expressed
appreciation to the members of the Title section for sending an email to their agents supporting NYSLTA
membership. He reported on a meeting in October at the accounting firm of O’Connor Davies Munn and Dobbins
during which the Agent’s Special Fund was discussed. ODMD advised the Finance Committee that the fund is
restricted and any use other than paying for an Agent lobbyist, would require approval of the members who
contributed to the fund.
Chair Giliotti asked member Bob Picone to report on progress with the issue of municipal fees – see the Municipal
Liaison Committee Report for those comments.
Chair Giliotti reported that Mr. Turano is pursuing a process to have the sales tax exemption opinion reconsidered.
MUNICIPAL LIAISON COMMITTEE
Bob Picone reported: 1) for the Village of Port Chester municipal problems with Building Dept. we are going to
contact either the mayor or village board to press the issue of how disorganized the Building Dept. is, etc. See if
we can push them to get their act together. 2) Nick Coffaro and James Scaturro will send to the Executive Director
lists concerning municipal turnaround time of searches and fees for searches which will be compiled into one
master list for all use by members only.
LAND RECORDS
Suffolk County Sub-Committee Chair Nancy Farrell reported: After discussion with the Deputy Suffolk County Clerk
and the head of the recording department regarding the recording of the extension and modification agreements
using the standard form by Fanny Mae and Freddie Mac which states “consolidation, extension and modification”,
it has been decided that the Fanny/Freddie form can be used provided that the following is within the doc.:
1. The exhibit ‘A’ of the schedule of mortgages affected by the agreement must state that the transaction is
an extension and modification and no new money is being disbursed;
2. The 255 tax affidavit must also state that the transaction is an extension and modification and no new money is
being disbursed.
Chair Tafuri requested the Executive Director to get examples from Nancy Farrell and to distribute to members.
Chair Tafuri reiterated problems with rejections and fines for transfer tax based on date of filing. He will seek a
meeting with the City Register to address this issue and come away with documented rules.
LAW COMMITTEE
Chair Berey reported: On April 29, 2010, the then Executive Director of the Association forwarded to Mr. William
Ryan, Director, Taxpayer Guidance Division, New York State Department of Taxation and Finance, a series of
questions on various transfer and mortgage tax related issues of general application which had been prepared by
the Chair of the Association’s Law Committee and approved by the Committee. These questions were sent to the
Department pursuant to an understanding reached at a meeting held in Albany on March 11, 2010, which Sharon
Sabol and Michael Berey attended on behalf of the Association. By email on March 17, 2011, Michael Berey, as
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Chair of the Law Committee, forwarded mark-ups of draft responses the Department had prepared for some of the
questions that had been posed by the Association.
On October 18, 2011, Robert Treuber, at the request of the Chairperson of the Law Committee, wrote Mr. Ryan
requesting “a reply as to the status of this project and the Department’s plans to proceed as stated 18 months
ago.” Mr. Ryan responded by email on November 3. He apologized for the delay, and reported that five bulletins
addressing seven of the 18 questions presented by the Association have been completed and are in the final stages
of approval for issuance this month.
As to the other 11 questions presented by the Association, Mr. Ryan further reported that “barring unforeseen
developments in the other taxes administered by Taxpayer Guidance Division’s Miscellaneous Tax Unit, you can
expect to see those bulletins completed in 2012.”
Mr. Treuber, at the request of the Chairperson of the Law Committee, than asked, by email, if the Association
would have the opportunity to review the bulletin before they became final “to ensure there is no ambiguity in the
text,” the procedure agreed on at the meeting in 2010. Mr. Ryan responded by email as follows:
“We plan to publish the five bulletins as ‘final’ since earlier drafts were sent to the industry and
comments were received and carefully considered (though ultimately most were not included in
the final drafts). In the future, however, where your comments are considered and we decide not
to make changes in response, we can let you know this in advance of publication.”
AMICUS BRIEF
Rich King and John Frates of Stewart Title, via conference call, described the matter of RESMAC 2 v Madison Realty
Capital and Stewart Title. The matter was brought to Mr. Berey for consideration. Mr. Berey not having time to
review this with the entire Law Committee, offered an informed but personal opinion that the matter should be
brought to the Executive Committee. The gist of the matter is a court opinion that would require an underwriter
to pay the cost of defense without notice, placing additional obligations on insurers and providing benefits to the
insured outside the express terms of the ALTA policy.
The following motion was made and carried: The Executive Committee directs the Executive Director to get the
cost of preparing an amicus curiae and submitting that information to the Association’s Officers who are
authorized to evaluate the request and to move forward within a spending limit of $10,000.
In discussion it was requested that the Executive Director explore the option of shared costs with ALTA.
RESPRO COMMUNIQUE
Mr. Giliotti recapped a series of communications that culminated in a request by NYSLTA members who are also
members of RESPRO, for a meeting with the Association. As their agenda was submitted only a few days prior to
the scheduled meeting and their agenda included a request for the NYSLTA to issue a “formal position on affiliated
business arrangements”, it was decided to postpone the meeting until after this could be brought before the
Executive Committee. In discussion, it was generally agreed that the Association is not opposed to AfBA per se.
The following motion was made, seconded and carried: “NYSLTA supports any title agent fully compliant with state
and Federal law, rules and regulations”.
The request for more representation of affiliated title agencies in the NYSLTA leadership was precluded on the
grounds that representation is available to all agents equally on the basis of involvement, engagement and
attendance at Association meetings.
DEPARTMENT OF FINANCIAL SERVICES LIAISON COMMITTEE
President Bugoni reported on a meeting held on November 1, 2011 with George Haggerty, Deputy Superintendent
of the Real Estate Finance Division of the Department of Financial Services. At such an early stage in the
department’s formation, very little concrete information was provided. The Committee did leave with the clear
understanding that the DFS will be presenting a bill to license title agents for the next legislative session. In Mr.
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Haggerty’s words, the department and the Association are 95% in agreement on licensing. He told the Committee
he would view the issue of controlled business and AfBA on a selective basis, not a one-size-fits all ruling. Mr.
Haggerty gave the Committee the understanding he had clear direction to clean up the title industry. He did
confirm that opinions that have been issued would continue to be supported.
DEPT. OF HEALTH – MEDICAID LIENS
On November 14, 2011, the Association held a conference call with several staff attorneys in the NYS DOH's Office
of Health Insurance Programs, the office that oversees the Medicaid program for the state and is in charge of the
"re-design" effort. The Association was represented by Mr. Collins, Mr. Berey. Mr. Brogan, Ms Morelli, as well as
Executive Director Treuber and Legislative Consultant Scott Wexler.
Peter Brogran gave a cogent and concise description of title insurance and the title insurance business model,
especially the role the industry plays in relation to the liens they intend to impose.
Mike Berey explained our proposal and the rationale for inclusion in a final regulation. He focused on the state's
principal purpose in enacting the new law - recoveries for Mediciad expenses - and how the proposal to require
the liens to be filed with the county clerk will enhance their recovery efforts.
There was a good deal of discussion about how this process does or could work during which the Association's
representatives were able to educate the DOH staff and improve their understanding of the lien process. Good
example of the Association’s value as a technical/subject matter expert to government.
The DOH was generally open and favorable to our approach. They did have some unspecified concern how the
Elder Law Bar would react and frustrate the state's intent. They reserved final comment/response pending their
further internal discussion.
The timeline, as we confirmed with the DOH during the call, is that the emergency regulation expires on 12/6 but it
can be extended another 60 days. The DOH staff indicated that the final regulation was not ready for adoption to
the best of their knowledge, so we had adequate time for consideration of our proposal.
The DOH will follow up with the Association once they've had further internal conversations.
EDUCATION COMMITTEE
Chair Kelly noted the launch of the Core Services Workshops and its function as a precursor to a professional
education curriculum that may be developed for a future Continuing Education requirement of an agent licensing
bill.
Chair Kelly announced initial work on CLE sessions for 2012: Power of Appointment and Building Loans, a possible
third session on Sales Tax compliance and Surviving an Audit. All CLE would be offered in the three Zone 2 sites,
lower Hudson Valley, New York City and Long Island.
NEXT EXECUTIVE COMMITTEE MEETING
The December Executive committee meeting will be held at 10:30 am on December 15, 2011 at First American
Title Insurance, 633 Third Avenue New York, NY 10017
The meeting adjourned at 12:54 pm.
Submitted:
Robert Treuber
Executive Vice-president
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