ALTA® Tells Senate Committee: RESPA Changes Will Hurt Small Business
April 7, 2003
Washington, DC– On April 8, the American Land Title Association (ALTA) will testify again on HUD’s proposed changes to RESPA, this time before the Senate Committee on Banking, Housing, and Urban Affairs. Charles Kovaleski, ALTA president-elect, and president of Attorney’s Title Insurance Fund, Inc., Orlando, will testify that from a small business perspective, the proposed changes would be detrimental to the title industry.
Kovaleski will highlight why ALTA believes HUD’s proposed changes will have potentially adverse effects on consumers, the mortgage settlement process, and small businesses. ALTA has also testified on the negative impact of the proposed changes before the House Committee on Small Business, and the Subcommittee on Housing and Community Opportunity of the House Committee on Financial Services. In addition, ALTA participated in a roundtable discussion with the Small Business Administration on this topic.
“Approximately 51% percent of title companies in the country had less than $500,000 in gross revenue in 2001. And 68% had 10 or fewer employees,” said Kovaleski. “HUD’s current proposal would have a very serious adverse effect on small businesses in our industry and on our ability to compete for consumer business.”
ALTA sent comments to HUD last October outlining the title industry’s concerns with its proposed changes to RESPA. To read a copy of Kovaleski’s testimony, go to www.alta.org and then see the RESPA Update section on the homepage.