We have some changes to report on title insurance regulations, including ones for the TILA- TRID rule, which passed by a vote of 271-145 in February 2018

We are seeing changes in title insurance regulations that have been favored by many title insurers and mortgage loan originators.

As Housing Wire points out, “The bill would also bring changes to the Consumer Financial Protection Bureau’s Know Before You Owe mortgage disclosure rule, also called the TILA-RESPA Integrated Disclosures rule, or TRID.”

A major reason for the bill’s introduction by Rep. French Hill, R-Arkansas, and Rep. Ruben Kihuen, D-Nevada in October was reportedly because homebuyers in some states were not getting “accurate disclosure” on their title premiums. This is the case due to ‘simultaneous issue’, which is a rate that consumers are given by title insurance companies when purchasing both a lenders title insurance policy and an owners title insurance policy at the same time.

The title insurance regulations found in the TILA- TRID rule

Another resource from Housing Wire discusses the components found within the bill that is comprised of five separate bills combined to create the TILA- TRID. This includes H.R. 3978. “H.R. 3978 is the TRID Improvement Act, which deals with a title insurance issue and how its fees are presented on both the Loan Estimate and the Closing Disclosure forms that are part of TRID.”

The article continues to discuss other parts of the bill. “The bill also includes a change to the Secure and Fair Enforcement for Mortgage Licensing (SAFE) Act of 2008 that would allow loan originators to move from a bank to a nonbank and keep originating new mortgages without having to wait for a new license.”

Overall, the TRID Improvement Act was supported by a group of some of the largest mortgage organizations, including American Bankers Association, American Land Title Association, Mortgage Bankers Association, and National Association of Home Builders.

The bill was also signed by the following organizations:

  • American Escrow Association
  • Association of Mortgage Investors
  • Community Home Lenders Association
  • Community Mortgage Lenders of America
  • Consumer Mortgage Coalition
  • Credit Union National Association
  • Escrow Institute of California
  • Housing Policy Council of the Financial Services Roundtable
  • Independent Community Bankers of America
  • Minnesota Land Title Association
  • National Association of Federally Insured Credit Unions
  • Nevada Land Title Association
  • Ohio Land Title Association
  • Palmetto Land Title Association
  • Real Estate Services Providers Council
  • Securities Industry and Financial Markets Association
  • Texas Land Title Association
  • U.S. Chamber of Commerce

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Resources for this article on title insurance regulations:

House approves changes to TRID rule, loan originator licensing rules

Housing’s biggest trade groups declare support for Congressional push to change TRID