Posted by Beth Findsen:
I think that anybody familiar with the title issues facing this country following the foreclosure crisis could agree that we need to continue to foster the independent title business, if we ever want certainty in land sales again. Or should we just keep rewarding cronyism and monopolies by the banks/title companies? It’s all so very cozy, especially when you add the politicians to the mix. It’s just one big, happy family, kind of like La Familia or the cartels.
Dear Beth K.,
RESPRO and those who support the proliferation of anti-competitive affiliated businesses in the settlement services industry are at it again.
Legislation which would exempt controlled business arrangements from certain provisions in the Dodd-Frank Act regarding Qualified Residential Mortgages may be considered in Congress before the end of the year, according to an article in the Source of Title.
Legislation providing relief to affiliated businesses from regulation that counts fees paid to affiliated businesses toward a 3% cap on closing fees on Qualified Residential Mortgages could be considered by the House Financial Services Committee as soon as the week of December 19th. If not taken up then, the legislation would likely be considered in January or February, when Congress reconvenes.
If successful, a CBA exemption to Dodd-Frank would allow bank-owned and real estate firm-owned title companies to play under a different set of rules than all other settlement service providers, including independent land title agents like you who depend upon a fair market to do business. RESPRO and the Realty Alliance, along with the bank and realtor lobbies, are pushing hard to obtain this exemption and pushing harder to take away more of your market. Having this exemption allows referral sources to streamline a large percentage of their mortgage business to captive providers leaving independent title agents and their colleagues on the outside looking in.
In order to stop them, we need your help! We need each of you to contact the members of the House Financial Services Committee, by phone and email, and tell them you are from NAILTA and a small business owner and you do not support exempting affiliate settlement service providers from Dodd-Frank’s 3% cap on QRM.
For those who want to spread the word on Twitter, the HFSC Twitter site is located at @FinancialCmte. Tweet at them as many times as possible!
On behalf of the NAILTA Board, we appreciate your attention and support to these important issues and encourage you to stay involved!
Rob Holman & John Novarina
NAILTA Policy and Legal Affairs Committee