 | | CALL TO ACTIONInformed Bifurcation Rule Form Letter |
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December ___ , 2009
Springfield, Illinois
Dear Representative/Senator:
I am writing to ask you to support the Informed Bifurcation Rule, which is scheduled for a JCAR vote on December 15, 2009. The Bifurcation Rule will amend the rules governing the Title Insurance Act.
As you may know, beginning January 1, 2010, the new Federal RESPA Rule will, for the first time, allow mortgage lenders to influence the selection of title insurance and settlement service providers during the mortgage application process.
In Illinois, the RESPA changes will have drastic negative consequences for consumers and small businesses.
Illinois is a "seller-pay" state, meaning that it is the seller who shops for and selects the title insurance provider. Illinois is a very competitive market that encourages shopping for these services. As a result, Illinois enjoys low settlement costs compared to buyer-pay states across the country. The new RESPA Rule will likely give the big banks monopolistic control of the process by coercing the buyer (who pays only for the loan policy) to "choose" the title provider at the time that the borrower applies for a loan.
The Rule you will consider is designed to preserve for consumers the ability to shop around by providing that a borrower has the ability to cancel these lender-induced title orders if the borrower finds a more competitive alternative after having applied for a loan. Buyers are often unaware of their options for title insurance services when they apply for a loan. By passing this Rule, you will protect consumers' right to shop and preserve competition in this market.
The Illinois Department of Financial and Professional Regulation, which regulates title insurers, supports this Rule, as does my title insurance underwriter, Attorneys' Title Guaranty Fund, Inc.
I thank you for your anticipated support.
Sincerely,
___________________
Last update: 12-8-09 |
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