Insurance, Title and Escrow Commission

Rule R592-4

Standards for Minimum Charges for Escrow Services

Notice of Proposed Rule

(Repeal)

DAR File No.: 34449
Filed: 02/15/2011 05:37:10 PM

RULE ANALYSIS

Purpose of the rule or reason for the change:

This rule, along with Rule R592-3, Filing a Schedule of Minimum Charges for Escrow Services, is being repealed and the two are combined as one new rule in Rule R592-15, Submission of a Schedule of Minimum Charges for Escrow Services. (DAR NOTE: The proposed repeal of Rule R592-3 is under DAR No. 34448 and the proposed new Rule R592-15 is under DAR No. 34447 in this issue, March 1, 2011, of the Bulletin.)

Summary of the rule or change:

This rule is being repealed in its entirety. It will be combined with Rule R592-3 to create the new Rule R592-15.

State statutory or constitutional authorization for this rule:

• Section 31A-2-404

Anticipated cost or savings to:

the state budget:

This rule will have no fiscal impact on the department or the state budget since the provisions of this rule are being included in Rule R592-15.

local governments:

This rule will have no fiscal impact on local governments. Its requirements deal solely with the relationship between the department and its licensees.

small businesses:

The repeal of this rule will have no fiscal impact on small businesses since the rule is being made a part of the new Rule R592-15. New provisions are already being followed by the department and members of the title industry.

persons other than small businesses, businesses, or local governmental entities:

The repeal of this rule will have no fiscal impact on businesses, the public, or local governments since the rule is being made a part of the new Rule R592-15. New provisions of the rule are already being followed by the department and members of the title industry.

Compliance costs for affected persons:

The repeal of this rule will have no fiscal impact on businesses, the public, or local governments since the rule is being made a part of the new Rule R592-15. New provisions of the rule are already being followed by the department and members of the title industry.

Comments by the department head on the fiscal impact the rule may have on businesses:

The repeal of this rule will have no fiscal impact on businesses since it is being made a part of Rule R592-15. The change from the repeal of this rule and the implementation of Rule R592-15 will be seamless.

Neal T. Gooch, Commissioner

The full text of this rule may be inspected, during regular business hours, at the Division of Administrative Rules, or at:

Insurance
Title and Escrow Commission
450 N MAIN ST
SALT LAKE CITY, UT 84114-1201

Direct questions regarding this rule to:

• Jilene Whitby at the above address, by phone at 801-538-3803, by FAX at 801-538-3829, or by Internet E-mail at jwhitby@utah.gov

Interested persons may present their views on this rule by submitting written comments to the address above no later than 5:00 p.m. on:

03/31/2011

This rule may become effective on:

04/07/2011

Authorized by:

Jilene Whitby, Information Specialist

R592. Insurance, Title and Escrow Commission.

[ R592-4. Standards for Minimum Charges for Escrow Services.

R592-4-1. Authority.

This rule is promulgated by the Title and Escrow Commission pursuant to Section 31A-2-404.

 

R592-4-2. Purpose and Scope.

(1) The purpose of this rule is to set forth standards for minimum charges for escrow services on the Schedule of Minimum Charges for Escrow Services.

(2) This rule applies to all title insurers, agencies and producers providing escrow services in Utah.

 

R592-4-3. Definitions.

In addition to the definitions of Sections 31A-1-301, 31A-2-402 and 31A-19a-102, the following definitions shall apply for the purposes of this rule:

(1) "Additional escrow work" means escrow settlement services that are rendered in excess of the escrow settlement services not specifically shown in the minimum escrow charges listed in the Schedule of Minimum Charges for Escrow Services.

(2) "Charge" means a dollar amount charged for a service rendered by a title insurer, title agency, or title producer.

(3) "Document Preparation" means the preparation or compilation of documents in connection with escrow services.

(4) "Escrow charge" means a dollar amount charged for an escrow service shown in the Schedule of Minimum Charges for Escrow Services.

(5) "Schedule of Minimum Charges for Escrow Services " means the standardized form submitted with a title escrow charge filing.

(6) "Escrow Services" means those services to settle real estate transactions.

(7) "Long-term Escrow" means For Benefit Of (FBO) accounts that are for the purpose of payment collection and administration of seller-financed transactions.

(8) "Mini Escrow" means an escrow settlement service done by a title agency to clear a title, obtain payoffs and record necessary closing documents for a lender that performs his or her own closing service.

(9) "Other Settlement Services" means additional services not specifically listed in the Schedule of Minimum Charges for Escrow Services.

 

R592-4-4. Schedule of Minimum Charges for Escrow Services.

(1) The Schedule of Minimum Charges for Escrow Services must be used when submitting:

(a) an initial Schedule of Minimum Charges for Escrow Services filing; or

(b) changes to a previously submitted Schedule of Minimum Charges for Escrow Services filing.

(2) All blank fields of the Schedule of Minimum Charges for Escrow Services must be completed.

(3) If a filer does not perform a service, the blank field must show "N/A" or "Not Applicable."

 

R592-4-5. Charges.

(1) Escrow service charges.

(a) Escrow charge.

(i) In accordance with 31A-19a-209(3), no escrow charge may be filed or used that would cause the agency or producer to operate at less than the cost of doing the business of escrow.

(ii) Only minimum escrow charges shown in the Schedule of Minimum Charges for Escrow Services must be filed.

(b) Other settlement services charge.

(i) An Other Settlement Service charge will be used for services not specifically shown in the Schedule of Minimum Charges for Escrow Services.

(ii) An Other Settlement Service charge must be filed as a per hour charge.

(c) Document preparation charge. Only document charges shown in the Schedule of Minimum Charges for Escrow Services must be filed.

(2) Other services which are not specifically listed on the Schedule of Minimum Charges for Escrow Services may be rendered provided a justifiable charge is made.

 

R592-4-6. Penalties.

A person found, after a hearing or other regulatory process, to be in violation of this rule shall be subject to penalties as provided under Section 31A-2-308.

 

R592-4-7. Enforcement Date.

The commissioner will begin enforcing this rule 90 days from the rule's effective date.

 

R592-4-8. Severability.

If any provision of this rule or the application of it to any person or circumstance is for any reason held to be invalid, the remaining provisions to other persons or circumstances shall not be affected.

 

KEY: title escrow charges

Date of Enactment or Last Substantive Amendment: July 19, 2006

Authorizing, and Implemented or Interpreted Law: 31A-2-204 ]