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house Bill H.R. 3978

Should Mortgage Lenders Disclose Charges for Title Insurance Premiums at Closing?

Argument in favor

This commonsense, bipartisan bill would ensure that mortgage borrowers have a clear view of the costs of their title insurance premiums when they buy a home.

Rick's Opinion
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02/14/2018
My God yes, why is there any reason for hiding it unless there planning to take one across. If this has to become a bill to make it a law, then I feel any company who would do this should be suited and prosecuted. Is this not a sign of deserving a party in a business transaction?
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Ed's Opinion
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02/15/2018
Why should a buyer not be aware of total cost to purchase. ?????
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DaveSnyder's Opinion
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02/15/2018
Pretty weak “why vote no” reason. Because it would take some power away from unelected bureaucrats and return it rightfully to congress where it belongs? That is all the reason needed to vote “yes”!
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Argument opposed

Congress shouldn’t change this Consumer Financial Protection Bureau rule through legislation, as it’d take away the CFPB’s ability to make this and other changes.

Jcalk's Opinion
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02/15/2018
Anything that takes authority away from the CFPB is bad news for consumers. Republicans have wanted to defang this agency since its inception and they are doing a bang up job of it. After all why should an an agency whose total purpose is to help average consumers instead of wealthy donors be allowed to exist. Mulvaney is makinf the agency totally pointless.
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Michael's Opinion
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02/14/2018
This is nothing more than a smoke screen to weekend another well run government agency.
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Austin's Opinion
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02/13/2018
While this seems like a good bill on the surface, it actually defangs the Consumer Finance Protection Board in the long run, putting consumers at risk for predatory mortage practices.
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bill Progress


  • Not enacted
    The President has not signed this bill
  • The senate has not voted
      senate Committees
      Committee on Banking, Housing, and Urban Affairs
  • The house Passed February 14th, 2018
    Roll Call Vote 271 Yea / 145 Nay
      house Committees
      Committee on Financial Services
      Consumer Protection and Financial Institutions
    IntroducedOctober 5th, 2017

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What is House Bill H.R. 3978?

This bill would direct the Consumer Financial Protection Bureau (CFPB) to require mortgage lenders to disclose discounted rates that are available to consumers for title insurance premiums and to itemize all actual charges imposed on borrowers in the closing documents for mortgages. The CFPB’s TRID rule currently requires disclosures of loan terms and costs to consumers at the beginning and closing of mortgage transactions, and doesn’t allow the calculation of discounts provided when consumers buy a lenders and owners title insurance policy simultaneously. (The TRID rule is also known as the Know Before You Owe rule.)

Impact

Mortgage borrowers; lenders; and the CFPB.

Cost of House Bill H.R. 3978

$500.00 Thousand
The CBO estimates that enacting this bill would cost less than $500,000 for the CFPB to issue the rule implementing the change.

More Information

In-Depth: Sponsoring Rep. French Hill (R-AR) introduced this bill to modify mortgage disclosures to clarify mortgage closing costs for consumers and provide regulatory relief to lenders:

“Consumers deserve to know the costs of their title insurance premiums when they purchase a home. As TRID has become a massive, complex rule, it is hindering financial institutions’ ability to share accurate information to consumers  during the mortgage closing process. This legislation seeks to correct this error by ensuring that consumers know the exact cost of their title insurance — not the number reported as one price on a lending estimate and another price on a closing document.”

Some House Democrats expressed opposition to this bill in its committee report:

“[This bill’s] prescriptive changes to the TRID forms would also remove the Consumer Bureau’s ability to amend the regulation. This could cause unintended consequences greater than the issues that the legislation seeks to address, since the Consumer Bureau would no longer have the authority to quickly adjust TRID regulations if a problem with H.R. 3978 arises.”

This legislation passed the House Financial Services Committee on a 53-5 vote and has the support of 18 bipartisan cosponsors, including 13 Republicans and five Democrats.


Media:

Summary by Eric Revell

(Photo  Credit: BrianAJackson / iStock)

AKA

TRID Improvement Act of 2017

Official Title

To amend the Real Estate Settlement Procedures Act of 1974 to modify requirements related to mortgage disclosures, and for other purposes.

    My God yes, why is there any reason for hiding it unless there planning to take one across. If this has to become a bill to make it a law, then I feel any company who would do this should be suited and prosecuted. Is this not a sign of deserving a party in a business transaction?
    Like (27)
    Follow
    Share
    Anything that takes authority away from the CFPB is bad news for consumers. Republicans have wanted to defang this agency since its inception and they are doing a bang up job of it. After all why should an an agency whose total purpose is to help average consumers instead of wealthy donors be allowed to exist. Mulvaney is makinf the agency totally pointless.
    Like (17)
    Follow
    Share
    Why should a buyer not be aware of total cost to purchase. ?????
    Like (6)
    Follow
    Share
    This is nothing more than a smoke screen to weekend another well run government agency.
    Like (4)
    Follow
    Share
    Pretty weak “why vote no” reason. Because it would take some power away from unelected bureaucrats and return it rightfully to congress where it belongs? That is all the reason needed to vote “yes”!
    Like (3)
    Follow
    Share
    Any congressperson who votes in favor of this abhorrent bill should be booted out of office in 2018! Anyone who is against consumers' protections and rights should not be making our laws.
    Like (3)
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    While this seems like a good bill on the surface, it actually defangs the Consumer Finance Protection Board in the long run, putting consumers at risk for predatory mortage practices.
    Like (3)
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    The COST!
    Like (2)
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    Let the CFPB do its job. And, fire Mulveny.
    Like (2)
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    This commonsense, bipartisan bill would ensure that mortgage borrowers have a clear view of the costs of their title insurance premiums when they buy a home.
    Like (2)
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    By all means YES. ALL changes must be explained at time of close, insuring that the vender has fully explained all costs, to the borrower.
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    Transparency protects everyone but the guilty. It's time that banks were required by law to show their math.
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    I would support this bill if the CFPB retained the authority to make changes to it if any issues should arise down the line. As it is, it takes away too much of the board's autonomy and flexibility.
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    I would support this bill if the CFPB retained the authority to make changes to it if any issues should arise down the line. As it is, it takes away too much of the board's autonomy and flexibility.
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    All charges and closing costs should be transparent at closing. There should be no surprises!
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    The title company does the closing statement, at least in our region, so the borrower sees those charges anyway. But if there’s opportunity to hide those charges, that shouldn’t be allowed. Lender forces the borrower to pay for the lender’s policy. Borrower has every right to know how much that costs.
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    This information should be disclosed to those taking out a mortgage. I am concerned however on the potential of this bill being used to undermine the CFPB.
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    This is an attack on the CFPB. Give the CFPB back it’s power and it will do it’s job, which includes making agreements like these transparent. Stop attacking the CFPB. The CFPB looks out for hardworking Americans, and the more you attack it the more apparent it is that you are a corrupt politician who represents your donors instead of your voters.
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    Everything is written out on my receipts so, why not for something as important as this?
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    Consumers have the right to know what they are buying.
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