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.

“Congress recognized that title insurance is best regulated by a
comprehensive, well-established state regulatory system”

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.