ALTA® Tells House Committee: RESPA Changes Will Hurt Small Business
|March 11, 2003|
ALTA®'s Prepared Testimony|
WASHINGTON, -- On March 11, the American Land Title Association (ALTA) will testify again on HUD's proposed changes to RESPA, this time before the House Committee on Small Business. Greg Kosin, Chair of ALTA's Government Affairs Committee, ALTA Board Member, and President of The Greater Illinois Title Company, will testify that from a small business perspective, the proposed changes would be detrimental to the title industry.
Kosin will highlight why ALTA believes HUD's proposed changes will have potentially adverse effects on consumers, the mortgage settlement process, and small businesses. "Approximately 51% percent of title companies in the country had less than $500,000 in gross revenue in 2001. And 68% had 10 or fewer employees," said Kosin. "HUD's current proposal would have a very serious adverse effect on small businesses in our industry and on our ability to compete for consumer business. Equally important, we believe that the proposals, if implemented in their present form, would effectively close the door to future entry into our industry by small businesses," commented Kosin.
ALTA sent comments to HUD last October outlining the title industry's concerns with its proposed changes to RESPA. To read a copy of Kosin's testimony, go to http://www.alta.org and then see the RESPA Update section on the homepage.
The American Land Title Association represents title insurance companies and their agencies nationwide on a variety of industry and legislative issues. Members of the Association search and insure land titles to protect real estate investors including homebuyers and mortgage lenders.