The American Land Title Association
(ALTA), the national trade association of the land title insurance
industry, thanks the U.S. House of Representatives for passing The TRID
Improvement Act, H.R. 3978, a bipartisan bill that corrects the inaccurate
disclosure of title insurance premiums on the TILA-RESPA Integrated Disclosures
(TRID) and helps consumers understand the true cost of their real estate
transaction.
The bill, introduced by U.S. Rep. French Hill, amends the
Real Estate Settlement Procedures Act (RESPA) to require the Consumer Financial
Protection Bureau (CFPB) to allow the accurate disclosure of title insurance
premiums and discounts to homebuyers. Under the current regulation, the CFPB
does not allow title insurance companies to disclose available discounts for
lenders title insurance on the government mandated disclosures.
“Although the bill has been made part of a
larger legislative package, the genesis of the bill is about improving
transparency and making sure consumers receive disclosures that accurately show
the cost of the one-time fee that protects their property rights,” said
Michelle L. Korsmo, ALTA’s chief executive officer. “Our research shows that 40
percent of consumers feel confused by the CFPB’s requirement to provide
inaccurate pricing on title insurance. We’re thankful for Representative French
Hill championing a straightforward fix that benefits consumers across the
country. This isn’t about limiting Dodd-Frank. We’re eager to get this bill
introduced and passed in the Senate and eliminate the inconsistencies in
mortgage documents that cause confusion for consumers.”