Industry News

Title insurers may sue federal government

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

The American Land Title Association may sue the U.S. Department of Housing and Urban Development to block implementation of a proposal that would enable lenders to offer guaranteed-price packages of mortgage and settlement services with an exemption from certain restrictions in the Real Estate Settlement Procedures Act. So said Stanley Friedlander, president of ALTA and Continental Title Agency Corp., in his testimony this morning at a House Small Business Committee hearing about the RESPA proposal HUD submitted to the White House Office of Management and Budget for its review late last month. "If the (submitted) rule is substantially similar to the proposed rule, ALTA has been directed by its board to institute litigation challenging the regulation. This would be particularly likely if, for example, a final rule contains an exemption to Sec. 8, the anti-kickback provision of RESPA," Friedlander told the committee. The hearing, "Real Estate Settlement Procedure Act Regulations: Wo...