Mel Watt Urges CFPB to Review Affiliated Title Fees

Rep. Mel Watt, D.-N.C., wants the Consumer Financial Protection Bureau to conduct a study on the fees charged by title insurance companies that are owned or affiliated with mortgage companies.

The president’s nominee to be the next GSE regulator noted that the bureau has included affiliated title insurance fees in the 3% cap on points and fees on qualified mortgages.

Watt indicated there are concerns about the inclusion of the affiliated title fees in the 3% cap and the impact it would have on access to credit.

He also urged a bureau official to provide the House Financial Services Committee with alternatives that could be used to protect homebuyers from paying excessive fees.

CFPB assistant director Peter Carroll said there is “generally state oversight of premiums” charged by affiliates and there are “safeguards” that could be considered.

The assistant director for mortgage markets also noted the bureau could conduct a study if it obtained a “representative sample of affiliate fees” from across the country.

President Obama recently nominated Watt to be the new Federal Housing Finance Agency director.

For reprint and licensing requests for this article, click here.
Originations Law and regulation
MORE FROM NATIONAL MORTGAGE NEWS