The referral source lobby is making a last minute attempt to try to amend Dodd-Frank to exempt “affiliates” or controlled business arrangements from the 3% cap rule under Dodd-Frank. Legislation which exempts affiliated business from certain provisions in the Dodd-Frank Act regarding Qualified Residential Mortgages may be considered in Congress before the end of the year, according to the Source of Title which ran a story on this today.
Click here for that story.
According to a source close to the matter, legislation providing relief to affiliated businesses from regulation that counts fees paid to affiliated businesses toward a 3% cap on closing fees on Qualified Residential Mortgages could be considered by the House Financial Services Committee as soon as the week of December 19th. If not taken up then, the legislation would likely be considered in January or February, when Congress reconvenes. Either way, if successful, the rule could further destabilize competition in the title insurance and settlement services industry by allowing bank-owned and real estate firm-owned title companies to be exempt from rules that would otherwise prohibit you from actively competing for that business.
To stop this amendment from moving forward, we need your help! We need each of you to contact the members of the House Financial Services Committee, by phone and email, as soon as possible. A complete list of the members of the House Financial Services Committee is found here.
Tell the HFSC that you are a member of OAITA, a small business owner and that you support healthy competition in the title insurance industry. Exempting affiliated business arrangements from the 3% cap under Dodd-Frank will give affiliates an unfair competitive advantage over non-affiliates and, most importantly, independent title insurance agents like you who depend upon fair market conduct to remain in business.
Use your voice and help us stop this amendment from proceeding. I urge you to contact the HFSC members at your earliest convenience.
For those who wish to use Twitter, the HFSC Twitter domain is @FinancialCmte. Tweet them as many times as possible to tell that small business owners in the title insurance industry do not support exempting affiliates under Dodd-Frank. This call to action is urgent!