Tell Your Story to the CFPB

One of the main issues we are encountering with TILA-RESPA Integrated Disclosure (TRID) implementation revolves around the confusing rule the Consumer Financial Protection Bureau (CFPB) promulgated regarding disclosure of title charges in seller-pay states such as Illinois, Wisconsin, and Indiana. If you or especially your clients were confused by the disclosure of these charges and the required adjustments, please reach out to the CFPB with your comments.

We prepared sample language for your use to directly alert the CFPB of the problems this is causing in the marketplace. Feel free to copy and paste this language or create your own version and submit it via the CFPB's comment section, "Tell your story." The CFPB is required to review all information it receives from the public and assures us these messages will be read.

CONSUMER FEEDBACK

I am a consumer in a recent residential real estate transaction in [STATE: Illinois/Indiana/Wisconsin]. I was presented with a Closing Disclosure Form that contained title insurance charges that were incorrect pursuant to a formula the settlement agent said was required under a rule of your agency. In a different place on the form, there were credits back to me to correct the charges.

I found these inaccurate charges and adjustments to be very confusing. It slowed down the closing and made me unsure as to what I really paid. Why not just let the lender and settlement agent use the correct charges so we more clearly know what we are paying for title insurance?

ATTORNEY FEEDBACK

I am an attorney who recently represented a seller/buyer in a recent residential real estate transaction in Illinois/Indiana/Wisconsin. As you must know, the current formula that the CFPB requires for disclosure of the title insurance premiums on both the Loan Estimate and the Closing Disclosure Form produced incorrect information on what those charges really are for both my client and the other party to the transaction. This required the settlement agent to prepare adjustments to those charges that were extremely confusing to my client. It slowed down the closing and created uncertainty for my client as to whether the charges were truly accurate. The current title charge formula undermines the confidence of the consumer in the accuracy of the charges quoted to them for their mortgage loan. It certainly goes against the concept of "Know before You Owe."

I strongly encourage the CFPB to modify its rules to allow both the Loan Estimate and Closing Disclosure Form to reflect the accurate charges for title insurance premiums in states where the custom and contractual obligations require that the seller pay for the Owner's Policy coverage.

Again, feel free to copy and paste the above language or create your own version and submit it to the CFPB's comment section, "Tell your story" via this link: https://help.consumerfinance.gov/app/tellyourstory.

ATG will also provide this information on Comment Cards at closings for both attorneys and consumers. We hope these messages have an impact that will change the rule and improve the closing process for the consumer. Thank you.

[Last update: 11-16-15]