The American Land Title Association released a statement Wednesday pushing back against a new Consumer Financial Protection Bureau initiative.
The statement was released in response to a speech made by CFPB Richard Cordray to the Brookings Institution in Washington.
"ALTA and its members support Director Cordray's efforts to help consumers gain greater control and understanding of their real estate transaction," Michelle Korsmo, ALTA's chief executive officer, said in a statement. "However, we remain concerned with the bureau's new Closing Disclosure, which goes into effect Aug. 1, 2015, and replaces the current HUD-1 Settlement Statement."
"The closing disclosure misleads consumers about the actual price of their title insurance policies," Korsmo continued in her statement, adding that ALTA has concerns with the bureau's 'Know Before You Owe' forms.
"Unfortunately, the current Know Before You Owe forms will create confusion at the closing table for many consumers. In nearly half of the country, title companies are required by state law to charge title insurance premiums and discounts in a manner different than the bureau would have them disclose those fees to the consumer," Korsmo said.
