The Source of Title has once again uncovered an interesting story from the American Land Title Association’s past. This time, it has to do with ALTA’s support of a private right of action for competitors to sue an offending settlement service provider under RESPA Section 8.
Click here for the full story from SOT.
In 2007, while introducing the toothless “Principles of Fair Conduct,” ALTA members agreed to support a replacement to its abandoned Code of Ethics that said “Congress should amend section 8 of RESPA to provide a competitor’s right of action for injunctive relief.” According to SOT, 100 businesses, including all four major title insurance underwriters signed the statement.
ALTA said it would ask Congress for the amendment back in 2007. According to the SOT article, ALTA is still supportive of the idea of an amendment to RESPA providing injunctive relief for competitors of sham affiliated business arrangements. However, ALTA hasn’t pushed the amendment because “ALTA hasn’t heard support for the measure in some time.”
Hate to be the members interested in having ALTA follow through on that promise back in 2007 and have to hear that last quote as an excuse.
To be fair, this is the first sign of life from ALTA on the subject of competition in the industry and even though the subject matter is dated (2007) it is a good piece of follow-up journalism on the part of SOT to confirm that ALTA does, indeed, still support the measure today. Whether that translates into anything, however, is the now five year old question.