NAILTA Continues Fight on Vetting

The National Association of Independent Land Title Agents (NAILTA) has joined with the Escrow Institute of California (EIC) and American Escrow Association (AEA) to participate in the Consumer Mortgage Coalition (CMC) in an effort to address third party vetting issues. The CMC is a coalition of trade organizations from the banking and finance sectors which when combined with title and escrow organizations comprises one of the largest real estate settlement coalitions in the United States. The goal of this coalition is to continue to highlight the harms of third party vetting companies and to help reduce any remaining incentives for their use. The Consumer Financial Protection Bureau (CFPB) is readying important changes to the HUD-1 Settlement Statement and Good Faith Estimate and has authored several important policy bulletins leaving open the possibility that third party vetting companies might again impose unnecessary and duplicative certification burdens on title and escrow agents across the United States.  NAILTA and the EIC will continue to monitor these developments and advocate against any third party vetting requirement....

NAILTA Provides CFPB with Supplemental Guidance for Vetting Companies

The National Association of Independent Land Title Agents (NAILTA) met with officials from the Consumer Financial Protection Bureau (CFPB) on October 1, 2012 to discuss CFPB Bulletin 2012-03, the Service Provider Bulletin and third party vetting companies.  As a result of that meeting, NAILTA’s Policy and Legal Affairs Committee decided to prepare a comprehensive supplemental guidance letter that it has sent to CFPB Director Richard Cordray in order to help the CFPB identify the key issues of NAILTA’s position on vetting companies and to propose a mechanism for CFPB to act to prevent these entities from unnecessarily complicating the agency-underwriter relationship concerning Federal consumer law compliance.  Read more below for more information: Vetting Cordray...

Attorneys need vetting too?

As reported earlier, other vetting companies are already beginning to pop up.  Here is a couple examples below: Vetting Attorney Letter Funding...

NAILTA responds to Secure Settlements, Inc – White Paper Response

Secure Settlements, Inc. provided a response to NAILTA’s white paper entitled, “Third Party Vetting Companies: Are they Legal or Necessary?”. In the letter, SSI argues that its vetting process, although not regulated by any administrative authority and not a test of agency competence, complies with the standards established by CFPB in its Bulletin 2012-03. SSI responds to NAILTA White Paper NAILTA response letter to SSI NAILTA responded to SSI’s letter pointing out that the position of its white paper entitled, “Third Party Vetting Companies: Are they Legal or Necessary?”, was unmoved by the SSI response letter.  Pointing to the various federal and state laws that may have been violated in the construction of SSI’s vetting system, NAILTA points out that SSI does not demonstrate a step forward for the title insurance industry.  NAILTA also disclosed that SSI may have violated two NAILTA Canons of Ethics in the process of constructing its business...

Escrow Institute of California releases agent vetting white paper

The Escrow Institute of California issues their white paper on the topic of title agent vetting. The paper outlines the group’s position against third-party vetting companies like Secure Settlements, Inc., arguing that escrow agents in California are subject to more than sufficient regulatory oversight already. Escrow Institute of California Secure Settlements is a third party vetting company that has “popped up” due to what  they feel is an unintended consequence from a recent Consumer Finance Protection Bureau (CFPB) bulletin.  Click here to view this Bulletin 2012-03 in it’s entirety. The Consumer Financial Protection Bureau (CFPB) expects supervised banks and nonbanks to oversee their business relationships with service providers in a manner that ensures compliance with Federal consumer Financial law, which is designed to protect the interests of consumers and avoid consumer harm. Click here for NAILTA’s white paper.  ...