Who is RESPRO and Why Do They Support H.R. 3211?

        This is an important update on H.R. 3211. At the end of September, a bipartisan group of representatives from the House Financial Services Committee introduced a RESPRO-sponsored piece of legislation known as H.R. 3211, the Mortgage Choice Act. Instead of proceeding on H.R. 1077, known as the Consumer Mortgage Choice Act, the new bill strips out the provisions regarding lender-paid compensation to mortgage brokers and loan level price adjustments charged by Fannie Mae and Freddie Mac and focuses solely on the naked attempt by the affiliated business arrangement lobby to except affiliated service charges from the 3% qualified mortgage (QM) cap.  H.R. 1077 is effectively dead and in its place is a bill that its sponsors, such as RESPRO, originally intended — one that is designed to compensate banks and referral sources for their referral of settlement business. Who is RESPRO? RESPRO is the Real Estate Service Provider’s Council.  A non-profit trade organization that represents banks, real estate firms, mortgage companies, title insurers, title agents and homebuilders from across the United States for the sole purpose of expanding the use and prevalence of affiliated business arrangements.  If you are an independent title insurance agent doing business without buying your business, RESPRO is the organization that pushes the opposing view to yours.  They are pro-controlled business (CBA) and they lobby Congress and state legislatures to increase CBA business opportunities and, in turn, minimize truly independent title insurance agents.  Why?  Because they want to be paid for referring settlement business.  While it would appear that RESPRO would be against the mainstream title insurance industry in its efforts to protect independent land title agents, RESPRO has the membership support and sponsorship of ten title insurance...

H.R. 1077 is Dead; Replaced with H.R. 3211

Never underestimate a determined opponent. On September 28, 2013, shortly before Congress shut down, a bipartisan group of representatives from the House Financial Services Committee introduced a RESPRO-sponsored piece of legislation known as H.R. 3211, the Mortgage Choice Act. Instead of proceeding on H.R. 1077, known as the Consumer Mortgage Choice Act, the new bill strips out the provisions regarding lender-paid compensation to mortgage brokers and loan level price adjustments charged by Fannie Mae and Freddie Mac and focuses solely on the naked attempt by the affiliated business arrangement lobby to except affiliated service charges from the 3% qualified mortgage cap.  H.R. 1077 is effectively dead, but in its place is proof that the affiliate provider’s efforts were never about the American consumer — but rather only for the benefit of banks and affiliated service providers supported by RESPRO. RESPRO and the banking lobby are now “all-in” on trying to find a way to raise the cost of residential real estate closings because on the affiliate provider side of a residential real estate mortgage transaction they can hide referral payments and kickbacks from consumers without running afoul of the 3% QM cap.  It is a desperate effort to profiteer at the consumer’s unsuspecting expense. H.R. 3211 is no longer teasing lawmakers with the idea that it helps American consumers, either.  It is an “all-out” assault against lower-priced and more qualified independent service providers.  Fortunately, there is still time to act. Independent land title agents defeated H.R. 4323 and H.R. 1077.  We can do the same to H.R. 3211.  We need your help. Enclosed here is a list of all of the current members of the...