On Tuesday, during the House Financial Services Committee hearing on the CFPB’s fourth semi-annual report to Congress, Rep. Brad Sherman (D-CA) asked CFPB Director Cordray about the discriminatory treatment of affiliated title insurance companies by the qualified mortgage rule’s inclusion of affiliated company charges in the 3% cap on points and fees.
Cordray said that Congress appears to have cared about the distinction between affiliated and non-affiliated providers, which warrants the distinction in the final rule. He was sensitive to concerns about steering to affiliates, but on the other hand, acknowledged the benefits of one-stop-shopping that affiliates can provide.
Finally, Cordray said he wants to see data from industry on the impact of this rule, signaling the potential for change if the data shows appreciable harm to affiliated title companies (and consumers).
To the extent ABIA members can collect this data over the next six months, while the qualified mortgage rule’s effect unfolds, that will be helpful in making a case against this harmful treatment of affiliated insurers.
To learn more about this data request or to submit your data, please contact Deanne Marino.
If you would like to learn more about ABIA's effort to educate regulators and Congress about the Qualified Mortgage rule's discriminatory treatment of affiliated title insurance companies, or join our Qualified Mortgage Task Force, please contact us and visit our website.
If you would like to learn more about ABIA's work with CFPB to educate them about the bank-insurance industry or join our CFPB Task Force, please contact us and visit our website.