The House has passed legislation related to TRID for the second time in three years, this time approving a fix to the disclosure of simultaneous issue of title insurance.
The issue, which has been championed by the American Land Title Association (ALTA) and other mortgage industry trade groups since the earliest version of TRID model forms were made public, found bipartisan support at the Financial Services Committee level, but when packaged with five other financial services bills, was generally voted along party lines.
The bill passed 271-145 with 228 votes coming from Republicans.
Rep. French Hill (R-Ark.), the sponsor of the TRID Improvement Act, spoke before the vote, recalling the last TRID bill he sponsored, a hold-harmless enforcement provision which passed 303-121 in October 2015.
“When the CFPB (Consumer Financial Protection Bureau) finalized this rule it was called the Know Before You Owe rule. It should’ve been called Know Before You’re Confused,” Hill said. “If you buy a title insurance policy in the majority of states, the CFPB rule is not accurate.
“This bill offers clarity and takes a complex rule and makes this part of it simple, where the consumer will see what the cost of the title insurance is. And it will be transparent.”
Before the votes Wednesday, ALTA Vice President of Government and Regulatory Affairs Justin Ailes told RESPA News that Hill’s work on the issue should be commended.
“French Hill has been fantastic,” Ailes said. “He’s a great champion for reasonable measures and for good financial services legislation.”
The bill’s passage also was supported by the Mortgage Bankers Association, which wrote its backing in a letter to the House.
“Under current regulations, the CFPB does not permit title insurance companies to disclose available discounts for lender’s title insurance on the government-mandated disclosure forms. This creates inconsistencies in mortgage documents and causes confusion for consumers,” the letter stated. “This section would minimize that confusion by allowing title insurance companies to disclose available discounts and accurate title insurance premiums to consumers across the country.”