December 11, 2009

House Passes Consumer Financial Protection Agency Bill

Just after lunch, the U.S. House of Representatives passed H.R. 4173, also known as the Consumer Financial Protection Agency (CFPA) bill. The bill was approved, largely along party lines, with a 223-202 vote. Two Texas democrats, Chet Edwards and Henry Cuellar, voted no on final passage.

Although "title insurance" was removed from the bill during the committee mark-up process, the version adopted by the full House still includes "the provision of settlement services" as a financial activity to be regulated by the new CFPA. As we reported earlier this week in the December Dateline, Senator Chris Dodd has filed a version of the CFPA bill in the Senate which is subject to significant changes. At this time, it is unclear if the Senate Banking Committee will act before the Christmas holiday recess. However, we expect the Senate will act on the bill soon after their return on January 19, 2010.

TLTA will continue to monitor this issue and provide any updates as new details emerge. If you have any questions, please contact Aaron Day at 512.472.6593 or aaron@tlta.com.