Title and Mortgage Insurers Get CFPA Exception

In passing a Consumer Financial Protection Agency bill, the House Financial Services Committee decided to shield mortgage and title insurers from the reach of the proposed consumer regulatory agency. The committee adopted an amendment by Reps. Gwen Moore, D-Wisc., and Erik Paulsen, R-Minn., that excludes insurance products from the CFPA's authority. The Mortgage Insurance Companies of America and the American Land Title Association welcomed this change and thanked the amendment sponsors for recognizing that insurers are already well regulated at the state level. "We are hopeful the Senate will concur with the House action," said MICA spokesman Jeff Lubar. ALTA chief executive Kurt Pfotenhauer noted the authority to regulate title insurance under the Real Estate Settlement Procedures Act will be transferred from HUD to the CFPA. "Excluding title insurance from the CFPA definition of 'financial activities' means that the title industry will not be subject to the new regulatory regimes intended for banks and other financial institutions," Mr. Pfotenhauer said.