ALTA® Testifies Before the House Small Business Committee
May 22, 2008
In testimony before the House Small Business Committee today, American Land Title Association (ALTA) President, Gary Kermott urged Congress to examine some potential pitfalls in proposed changes to the Real Estate Settlement Procedures Act (RESPA) proposed by the Department of Housing and Urban Development (HUD). In addition to ALTA, witnesses representing HUD, the National Association of REALTORS, the Mortgage Bankers Association, the National Association of Mortgage Brokers, and the Center for Responsible Lending testified. Committee Chairwoman Nydia Velazquez (D-NY) in her opening statement said that, "HUD's recent proposal to update these forms as well as the settlement process is not the cure-all that homebuyers need. The rule creates additional paperwork and complexity, potentially adding to the confusion of an already stressful purchase. This could lead to information overload and ultimately result in more uncertainty for consumers." Ranking Member Steve Chabot (R-OH) said that "the effort…should not be borne solely by small businesses," and was "concerned that HUD did not perform a detailed assessment of the consequences of volume pricing on the future viability of small businesses."