|
|
 |
To: Jeremy Yohe
From: Diane Tomb, Chief Executive Officer
Subject: ALTA Advocacy Update - October 26, 2021
|
|
|
If media reports are to be believed, we could see a deal announced on President Biden’s Build Back Better agenda this week. On Sunday, House Speaker Nancy Pelosi (D-CA) hinted they’ve made significant progress, saying, “I think we’re pretty much there now.” While there is a lot of chatter about it being finished before the president goes to Europe for a climate summit, we all know nothing is final in Washington until it’s final.
While details are sparse, we know that the package has shrunk from its original $3.5 trillion price tag. The big debate now is how to achieve those cuts. Will they cut the number of programs in the final deal or have some of the programs expire after a few years? The smart money is on the temporary approach because history has proven these programs might be less temporary than they initially seemed.
Much of the jockeying around town right now is about what will make it into the deal that gets announced. It will be harder for new programs to make it in after they announce a framework. This could be problematic for a robust affordable housing package. Reports are circulating that housing will get roughly $150 billion in funding under the scaled-back plan.
On the revenue front, it is likely that a full tax package will not be announced until the last second before a vote. The hope is to blunt the impact of a last-minute lobbying blitz from upending the deal.
Last week, Mortgage Bankers Association CEO Bob Broeksmit and I wrote a joint op-ed published in The Hill (a Washington, D.C.-based political media outlet), arguing that Congress should encourage real estate investment, not restrict options as part of the reconciliation bill. While we have had good luck protecting the tax treatment of 1031 like-kind exchanges, we need to remain vigilant given all the moving pieces.
The important thing about this progress on the reconciliation bill is that it will begin to open windows for leadership to take up other important bills (including ones that have been vehicles for ALTA priorities), like adding the SECURE Notarization Act to the National Defense Authorization Act and the yearly appropriations bills. For the third year in a row, ALTA successfully worked with the Senate Committee on Appropriations to push several federal agencies to focus more on real estate wire fraud and business email compromise (BEC) scams.
“Utilizing the acumen, skill, hard work and connections of our advocacy team, together with sophisticated messaging … can and will increase our ability to positively influence policy outcomes,” said ALTA President Dan Wold. His prescient words are proving out this fall as we push on a number of fronts to help your business succeed.
CFPB Director Gets off to Fast Start
This week, newly installed Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra will deliver his first testimony on his agency’s semi-annual report to Congress. He will be before the House on Wednesday and the Senate on Thursday.
On Wednesday, ALTA sent an introductory letter to Chopra. The letter provides a quick overview of who we are as an industry and what we have been working on the past year. As he settles into the new role, we will be setting up an introductory meeting with Chopra and ALTA leadership. However, as we look at his first few moves, it doesn’t appear that title issues will be at the top of his agenda.
In one of Chopra’s first major moves, the CFPB issued a series of data requests to tech giants like Apple, Facebook, Amazon, Google, Square and PayPal about their procedures for collecting, storing and using consumers’ financial information. The data requests are part of a larger focus from the White House and Congress on competition issues related to big tech.
“Big tech companies are eagerly expanding their empires to gain greater control and insight into our spending habits,” Chopra said. “We have ordered them to produce information about their business plans and practices.”
In a second major move, the CFPB along with other federal banking regulators and the Department of Justice announced a settlement in a discrimination (or redlining) case against Trustmark. The move will see Trustmark pay a $5 million penalty and commit an additional $3.85 million to increase credit access in Memphis, Tenn.
The two moves are good indicia of the priorities for Chopra and the White House. We expect the CFPB to focus on issues related to discrimination and fair housing along with ongoing financial harm caused by the pandemic.
Senate Banking Committee Focusing on Private Equity’s Impact on Housing Market
On Thursday, the Senate Committee on Banking, Housing, and Urban Affairs held a hearing to analyze the impact of private equity in the housing market. During the hearing, Democrat Senators focused on a narrative that private equity landlords are raising rents and reducing affordable housing by purchasing homes for cash.
FSOC Releases Climate Proposal
On Thursday, Treasury Secretary Janet Yellen released a proposal from the Financial Stability Oversight Council on climate change risks and financial services. President Biden asked for the report in an Executive Order earlier this spring. The report calls climate change an emerging risk to the financial system and laid out more than 30 specific recommendations for regulators.
The report calls for examining disclosures required by the Securities and Exchange Commission and other regulators and improving data regarding the impact of climate-related disasters on financial services. The goal is for the report to aid in negotiations when the president attends the UN Climate Change Conference in Glasgow.
ALTA Insights: Changes to ALTA Policy Forms You and Your Customers Need to Know
ALTA’s Policy Forms are periodically revised to reflect changes in the marketplace brought about by evolving business practices, expectations of insureds, laws, regulations and legal decisions. Advancements in electronic notarizations, changes in certain consumer and creditors’ rights law and case law developments were primary drivers leading to the latest revision of the ALTA Loan and Owner’s policies and numerous other ALTA forms and endorsements. The revised collection was published in July and is being rolled out, so it’s important you understand the updates so you can educate your staff and customers about coverage changes.
The webinar will cover:
- Reasons for revisions
- Key changes
- How to explain changes to customers
- How to prepare and when new forms will be used
Speakers
- Dan Buchanan | Senior Title Counsel | First American Title Insurance Co.
- Wendy Gibbons | Deputy Chief Underwriting Counsel | Old Republic National Title Insurance Co.
- Jim Russick | SE Regional Regulatory and Underwriting Counsel | Old Republic National Title Insurance Co.
When
- 1:00-2:00 p.m. ET, Dec. 8
CE/CLE is available.
I hope this ALTA Advocacy Update is useful to your work this week. Your comments and questions are always welcome. I can be reached at dtomb@alta.org.
Best regards,
Diane Tomb
|
|
|
You are receiving this email because you are subscribed to one of ALTA's email listserves
Stay connected with ALTA
Copyright © 2004-2021 American Land Title Association.
All rights reserved.
|
|
|
|
|
|
|
