Senators Introduce ALTA-supported Bill to Fix TRID
March 6, 2018
On March 5, Sens. Tim Scott (R-S.C.) and Doug Jones (D-Ala.) introduced the TRID Improvement Act (S. 2490), 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 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.
“This 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. As we’ve said before, this bill is about ensuring legislation works for consumers and the industry. We’re thankful Senators Tim Scott and Doug Jones understand the need for a straightforward fix that benefits consumers across the country and eliminate the inconsistencies in mortgage documents that cause confusion for homebuyers.”
The senators have asked Senate Banking Committee Chairman Mike Crapo (R-ID) for inclusion of this bill in S. 2155, the Economic Growth, Regulatory Relief, and Consumer Protection Act, which is being debated in the Senate starting today.
“TRID was supposed to make things easier for homebuyers, but instead it’s made it near impossible to figure out how much their title insurance actually costs,” Sen. Scott said. “The bipartisan TRID Improvement Act will ensure that more South Carolinians are able to attain the dream of homeownership without burdensome regulations getting in the way."
Sen. Jones added: “I’m proud to co-sponsor this commonsense bill that will provide more clarity for Alabama consumers when purchasing a home.”
Last week, the U.S. House of Representatives passed for the second time the TRID Improvement of Act of 2017. The bill passed unanimously by a voice vote. This time, the TRID Improvement Act is packaged with a bill sponsored by Rep. Keith Ellison (D-Minn.), which will allow the use of utility and cell-phone payment histories as part of the credit-scoring process. The new bill, HR 5078, was sent to the House floor under a suspension of the rules. This procedure is used to pass non-controversial bills and requires approval of three-fourths of the House.
Contact ALTA at 202-296-3671 or [email protected].