This bill amends the Real Estate Settlement Procedures of 1974 to modify disclosure requirements applicable to mortgage loan transactions. Specifically, the disclosed charges for any title insurance premium shall be equal to the amount charged for each individual title insurance policy, subject to any discounts as required by either state regulation or the title company rate filings.
Why Jason Lewis’ vote is against our values
“H.R. 3978 would change the way that title insurance fees are presented on both the loan estimate and the closing disclosure forms that are part of the Truth in Lending Act/Real Estate Settlement Procedures Act Integrated Disclosure (‘TRID’) forms, also known as the TILA/RESPA Rule or the ‘Know Before You Owe’ mortgage disclosure rule. Since the rule’s inception, TRID disclosures have provided homebuyers with consistent and understandable information on what they will have to pay at closing on a mortgage loan. The Consumer Financial Protection Bureau (‘Consumer Bureau’) is currently tasked with conducting rulemaking for TRID disclosures. … [T]he Consumer Bureau’s current TRID rule ensures that for consumers in all states, there will not be an unanticipated, dramatically higher cost for the lender’s title insurance at closing if a homebuyer decides to decline an owner’s title insurance policy.” (Source: Minority Views, House Report 115-524, Committee on Financial Services)
“This bill, which amends Section 2603 of RESPA, would create confusion and undermine consistency in mortgage disclosures. The Consumer Financial Protection Bureau’s (CFPB) required method of disclosure of title insurance premiums, which can include both lender and owner policies, reduces consumer confusion and enhances consistency between the estimated and final loan cost disclosures. The bill would only change how the final loan disclosure addresses title insurance, not the early good faith estimate. As a result, it would increase consumer confusion, especially where the consumer opts not to purchase both types of policies after getting the early disclosure (only the lender policy is required). The CFPB regulations now take into account that comparison shopping in about half of all states is not possible because title insurance companies in those states are not required to provide standardized disclosures.” (Source: Center for Responsible Lending)
“H.R. 3978 has been dramatically expanded without input from Democrats to include several highly problematic and damaging bills. If enacted, this amended package of bills would ease the ability of high frequency traders to manipulate the stock markets undetected, encourage a regulatory race-to-the-bottom at our nation’s stock exchanges, and harm investors and small businesses by weakening efforts to prevent accounting fraud at smaller public companies. Taken together, this deregulatory package, could significantly undermine market stability and gut investor and consumer protections at a time when our financial markets are already rattled.” (Source: Maxine Waters’ House Floor Statement, Feb. 14, 2018)