No more MSAs: Colorado boldly goes where CFPB has yet to tread

State insurance division passes regulation prohibiting title insurance providers from entering into MSAs with real estate and other settlement service partners
  • Colorado passed the new rule due to lack of clear direction from the CFPB.
  • In 2014 the CFPB said that MSA contracts themselves are "a thing of value," which had a chilling effect on MSAs nationwide.
  • The new regulation defines what is and is not permissible for title insurance providers in Colorado.

A Colorado Division of Insurance (CDOI) proposed rule that passed on August 16 effectively bans MSAs between title insurance providers and their real estate and other settlement service partners in Colorado.