Between Best Practices coordination and the TRID implementation deadline, there has not been much room for positive news for independent land title agents. Fortunately, that is not because there has not been good news!
Lost in the daily news cycle for title insurance was an important piece of federal legislation known as HR 1799 that was introduced by Congressman Keith Ellison (D-MN) on April 15, 2015 and entitled the Ensure Fair Prices in Title Insurance Act. Congressman Ellison is a fervent supporter of independent land title agents throughout the United States. NAILTA members have been working with members of Congress like Representative Ellison to help them understand the difference between independent service providers and those who are affiliated with their referral sources. This effort has led to the introduction of this landmark bill. HR 1799 is an important first step in the process of improving competition within the title industry and lowering consumer costs for title insurance.
HR 1799 is designed to modify the Real Estate Settlement Procedures Act (RESPA) in three areas:
- By extending the current statute of limitations for a real estate consumer to sue under RESPA for any violation thereunder from one year to three years from the date of the transaction.
- By permitting a competitor in the title insurance industry to sue for damages under RESPA for violations of Section 8’s prohibitions on illegal kickbacks.
- By limiting the compensation received by participants in affiliated business arrangements to non-referral compensation only.
We are proud to support the bill. We ask that our members review the enclosed bill.
If you want to help us, please contact your Member of Congress and tell them to support you by supporting HR 1799. To find out how to reach your Representative, please click here.