Right now, some of the biggest banks in the United States are making plans (or have executed plans) to send their refinance business exclusively to a small and select list of national title companies underwritten by the largest title insurance underwriters in the country. For many of you, that means the potential loss of banking business like J.P. Morgan Chase or Bank of America.
These are the unintended consequences of the Consumer Finance Protection Bureau (CFPB’s) new HUD-1 proposal currently under consideration and open for public comment until November 6, 2012. If banks writing you off without regard for the quality of your work concerns you — and it should — you need to pay attention to this important moment.
The CFPB needs to hear from you. We need to tell them that if banks are solely liable for the HUD-1 Settlement Statement, the bank will most likely cut all independent title agents out of the title insurance market, thereby hurting consumers who do not realize that these choices are being made not on the basis of service, but on the basis of greed.
NAILTA’s Response to the CFPB on New HUD/TIL Disclosures:
- The HUD-1 Settlement Statement is being combined with the Truth-in-Lending (TIL) disclosure into one document.
- The lender is required to give consumers the new combined HUD-1 at least three business days before the consumer closes on the loan. Any changes between that time and closing requires an additional three day period and new forms.
- Who must provide the new combined HUD-1 Settlement Statement is also at issue. CFPB is proposing two options: (1) the lender would be responsible for delivering the HUD-1 to the consumer; and, (2) the settlement agent is responsible, but the lender remains responsible for the accuracy of the form.
Public comments may be made on this proposed rulemaking by sending them directly to the CFPB prior to November 6, 2012. You can click here to forward your thoughts on the measure. NAILTA is currently drafting its public comments on the proposal and has already met with the CFPB concerning portions of this new rule. One of our main concerns deals with the fact that many large banks are already using the pretense of the rule to lock out independent title agents from their business. We want CFPB to know that there are unintended consequences with this rulemaking for small business.
You can also speak directly to the chief architect of the proposed rulemaking, Benjamin Olson, at NAILTA’s Fifth Annual Conference in Baltimore, Maryland on October 1, 2012. Ben will be speaking at our conference to discuss the proposed rulemaking and to listen to your concerns. Be heard! Make arrangements to attend the conference today by clicking on the banner to the right.
For more information on how you can become involved with NAILTA’s policy efforts, please contact firstname.lastname@example.org.
NAILTA Policy and Legislative Affairs (PLA) Committee