April 11, 2024
In This Issue:
- CFPB Considers Ban on Charging Buyers for Lender’s Title Policy
- Action Alert Deadline This Tuesday April 16: TLTA Needs You to Submit Comments to FinCEN
- Title Insurance at Work: Please Submit Your Personal Stories to This Important Industry Initiative
- TDI: Buying a house? Beware of Seller Impersonation Fraud.
CFPB Considers Ban on Charging Buyers for Lender’s Title Policy
National Mortgage Professional | April 10, 2024
The Consumer Financial Protection Bureau is considering whether to prohibit banks from charging homeowners for title insurance.
Charging home buyers for title insurance is a long-standing industry practice intended to protect lenders. A Bloomberg report initially broke that the CFPB will soon issue a broad request for information on closing costs – including title insurance. The article says that the CFPB’s plan is still in its initial stages.
The crackdown could include preventing lenders from charging borrowers for the cost of lender’s title insurance. Per the Bloomberg report, the plan would only impact lenders’ insurance – buyers could still purchase optional title insurance to cover their equity.
The CFPB declined to comment on a specific proposal and/or plan, but a spokesperson said, "The CFPB is looking carefully at closing costs and fees consumers may encounter throughout the mortgage process. We are working with agencies across the government to foster greater competition in the mortgage market and help Americans save money when purchasing or refinancing a home."
Read More »
TLTA Editor's Note: As we've been reporting, CFPB has been engaged in a "Junk Fee" initiative for many months. Last week in Dateline we shared this news, which details the ways in which this CFPB intiative relates to mortgage closing costs. If you want to take a deeper dive into this subject, TLTA built a special page where we are collecting information related to this issue: CFPB “Junk Fee” Initiative.
We should remain aware of the apparent connection between these federal level developments. In case you missed it, there's a page on TLTA's site dedicated to news, Congressional response and background info related to the FHFA: Fannnie/Freddie Title Insurance Waiver Pilot Project that was announced during the State of the Union address last month.
Action Alert Deadline This Tuesday April 16: TLTA Needs You to Submit Comments to FinCEN
TLTA | April 10, 2024
Background
On Feb. 7 FinCEN issued a
notice of proposed rulemaking on new reporting and compliance requirements that would have a significant impact on you and your business when handling cash transactions. Here is
TLTA’s summary of the proposed rule. TLTA will make comments and circulate talking points to members of Congress, but we also need you to submit personal comments directly to FinCEN by the April 16 deadline this Tuesday.
We've received reports that TLTA members have been submitting comments. And, some of you have sent us copies of your comments, thank you. We're grateful for your help and encourage all who have not yet submitted comments to do so by the April 16 deadline. It is vital that FinCEN understands the real-world implications of these regulations on our industry directly from those who will be most affected — you, our members. Your personal accounts and observations are crucial.
How to submit your personal comments by April 16 deadline
In the following new one-pager produced by TLTA's advocacy team, you will find instructions on how to submit your comments and share your perspective on this troubling and onerous proposal that will negatively affect your customers and your business:
Questions?
If you have questions, please send them to
Aaron Day or call Aaron at 512.810.8800, thank you.
ICYMI,
TLTA has set up a page on our site dedicated to this issue.
Title Insurance at Work: Please Submit Your Personal Stories to This Important Industry Initiative
Title Report (October Research)| April 10, 2024
The Title Report invites you to participate in the
Title Insurance at Work initiative, which aims to educate both the public and decision makers about the role title insurance plays in the real estate transaction.
Share your stories about how title protection directly affects the lives of consumers. All submissions are housed in the Title Insurance at Work Resource Center, accessible to all and available to share on social media platforms to help get the word out about the industry.
Learn More and Share Your Stories »
TDI: Buying a house? Beware of Seller Impersonation Fraud
Texas Department of Insurance | March 27, 2024
One of the fastest-growing real estate scams targets vacant or unoccupied houses for sale.
It starts with someone forging documents to sell a house they don’t own. They list a house below market value and accept a quick offer – with a preference towards cash buyers – to steal the money from the sale.
Read More »
TLTA Editor's Note: We are excited to note that this TDI article includes the Seller Impersonation Fraud one-pager produced by our Seller Impersonation Fraud Task Force, which is chaired by David Tandy. David and the task force worked in concert with the Texas Realtors to produce this helpful resource. Learn more in the special page on TLTA's site dedicated to Seller Impersonation Fraud.