A bill to change part of the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures rule has bipartisan support in the House of Representatives and a coalition of many of the biggest trade groups in housing now say they support the bill too.
The bill in question deals with a title insurance issue and how its fees are presented on both the Loan Estimate and the Closing Disclosure forms that are part of TRID, also called the Know Before You Owe mortgage disclosure rule.
The bill, the TRID Improvement Act of 2017, was introduced earlier this month by Rep. French Hill, R-Arkansas, and Rep. Ruben Kihuen, D-Nevada.
According to Hill’s office, homebuyers in some states are not receiving an “accurate disclosure” of their title insurance premiums, because, in those states, the CFPB “does not allow the calculation of a discounted rate known as ‘simultaneous issue,’ which is a rate title insurance companies provide to consumers when they purchase a lenders and owners title insurance policy simultaneously.”
Hill and Kihuen’s bill would address this issue, and the bill now has the backing of the Mortgage Bankers Association, the American Bankers Association, the American Land Title Association, the National Association of Home Builders, and others.
The groups sent a letter to the House, calling on its members to support the bill.
“Under current regulations, the CFPB does not permit title insurance companies to disclose available discounts for lender’s title insurance on the government mandated disclosure forms. This creates inconsistencies in mortgage documents and causes confusion for consumers,” the groups explain in the letter.
“H.R. 3978 would reduce this confusion by allowing title insurance companies to disclose available discounts and accurate title insurance premiums to consumers,” the groups add. “This straightforward fix would benefit consumers across the country.”
The bill is signed by: the American Bankers Association; American Escrow Association; American Land Title Association; Association of Mortgage Investors; the Community Home Lenders Association; Community Mortgage Lenders of America; Consumer Mortgage Coalition; Credit Union National Association; Escrow Institute of California; Housing Policy Council of the Financial Services Roundtable; Independent Community Bankers of America; Minnesota Land Title Association; Mortgage Bankers Association; National Association of Federally Insured Credit Unions; National Association of Home Builders; Nevada Land Title Association; Ohio Land Title Association; Palmetto Land Title Association; Real Estate Services Providers Council; Securities Industry and Financial Markets Association; Texas Land Title Association; and the U.S. Chamber of Commerce.
