Press Release |
ALTA Commends Congress in Passage of Amendment Clarifying Reach of CFPA
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WASHINGTON--(Business Wire)-- The American Land Title Association commends Congress on the passage of an amendment that clarifies the oversight of the Consumer Financial Protection Agency over the title insurance industry. Introduced during a markup session of H.R. 3126 by U.S. Reps. Gwen Moore (D-Wis.) and Erik Paulsen (R-Minn.), the amendment was passed during a voice vote by the House of Representatives Financial Services Committee on Oct. 21. "Congress recognized that title insurance is best regulated by a comprehensive, well-established state regulatory system," said Kurt Pfotenhauer, CEO of ALTA. "We are grateful for the leadership of Rep. Gwen Moore and Rep. Erik Paulsen in recognizing that title insurance is provided according to state and county laws and customs governing the sale, purchase and transfer of real estate in 3,600 separate local jurisdictions." Title insurance providers will continue to be subject to existing federal consumer laws - primarily RESPA - which are designed to protect consumers in the mortgage transaction. Authority to regulate title insurance under RESPA will be transferred from HUD to the CFPA. Excluding title insurance from the CFPA definition of "financial activities" means that the title industry will not be subject to the new regulatory regimes intended for banks and other financial institutions. "Giving the CFPA authority over state regulated industries that were not the cause of the problems in the mortgage and capital markets would have done nothing to advance the bill`s purposes," Pfotenhauer said. "Without this amendment, the CFPA would have created a whole new federal regulatory regime that would have conflicted with existing state regulation. Fortunately, we have been able to avoid that confusion." About ALTA The American Land Title Association, founded in 1907, is a national trade association representing more than 3,000 title insurance companies, title agents, independent abstracters, title searchers, and attorneys. With more than 8,000 offices throughout the United States, ALTA members conduct title searches, examinations, closings, and issue title insurance that protects real property owners and mortgage lenders against losses from defects in titles. ALTA member companies employ well over 100,000 individuals and operate in every county in the U.S., and several countries around the world. ALTA Jeremy Yohe Office: 202-261-2938 Cell: 202-590-8361 E-mail: firstname.lastname@example.org Copyright Business Wire 2009