The American Land Title Association (ALTA) is lending support to a measure designed to correct inaccurate title insurance premium disclosures while helping consumers understand real estate transaction costs.
Officials said the TRID Improvement Act from Sens. Tim Scott (R-SC) and Doug Jones (D-AL) is about improving transparency and ensuring consumers receive disclosures accurately showing the cost of the one-time fee protecting their property rights.
“Our research shows that 40 percent of consumers feel confused by the CFPB’s requirement to provide inaccurate pricing on title insurance,” Michelle L. Korsmo, ALTA’s chief executive officer, said. “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.”
Lawmakers said the bill would amend 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.
“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,” Scott said. “The TRID Improvement Act will ensure more South Carolinians are able to attain the dream of homeownership without burdensome regulations getting in the way.”
ALTA officials said the trade association represents more than 6,200 title insurance companies, title and settlement agents, independent abstracters, title searchers and real estate attorneys.