Please be advised that on July 5th, Supreme Court Justice Eileen Rakower issued a ruling in favor of The New York State Land Title Association (NYSLTA) in its case against The New York State Department of Financial Services (DFS). The Court sided with the NYSLTA on every point effectively annulling Regulation 208. Justice Rakower stated in her decision that parts of the agency’s regulation were “irrational” and could instead be addressed by the legislature rather than a state agency.
On July 6th the DFS appealed the decision transferring the case to the Appellate Court, we expect a hearing to take place sometime in October.
As a result of the annulment of Regulation 208, title companies and their clients may revert back to the industry’s practices preceding the promulgation of the Regulation which took effect in December of 2017.
As always, Judicial Title will remain compliant with any and all Regulations imposed by the DFS and will continue to provide updates as they materialize.
Click here for a copy of Justice Rokower’s Ruling.