House Passes ALTA-supported Bill to Fix TRID

February 15, 2018

By a vote of 269-143, the U.S. House of Representatives on Wednesday passed a bill that corrects the inaccurate disclosure of title insurance premiums on the TILA-RESPA Integrated Disclosures (TRID) and help consumers understand the true cost of their real estate transaction.

Introduced by U.S. Rep. French Hill, The TRID Improvement Act (H.R. 3978) amends the Real Estate Settlement Procedures Act (RESPA) to require the Consumer Financial Protection Bureau (CFPB) to allow the accurate disclosure of title insurance premiums and discounts to homebuyers. Under the current regulation, the CFPB does not allow title insurance companies to disclose available discounts for lenders title insurance on the government mandated disclosures. This results in the inaccurate disclosure of title insurance premiums in about half of the states.

“Although the bill has been made part of a larger legislative package, the genesis of the bill is about improving transparency and making sure consumers receive disclosures that accurately show the cost of the one-time fee that protects their property rights,” said Michelle L. Korsmo, ALTA’s chief executive officer. “Our research shows that 40 percent of consumers feel confused by the CFPB’s requirement to provide inaccurate pricing on title insurance. We’re thankful for Representative French Hill championing a straightforward fix that benefits consumers across the country. This isn’t about limiting Dodd-Frank. We’re eager to get this bill introduced and passed in the Senate and eliminate the inconsistencies in mortgage documents that cause confusion for consumers.”

Five additional bills have been amended to the original TRID Improvement Act:

  • Require the Financial Stability Oversight Council to consider the appropriateness of imposing heightened prudential standards as opposed to other forms of regulation to mitigate identified risks to U.S. financial stability (drawn from H.R. 4061, the Financial Stability Oversight Council Improvement Act).
  • Require the Securities and Exchange Commission (SEC) to issue a subpoena to obtain source code from high-frequency traders (drawn from H.R. 3948, the Protection of Source Code Act).
  • Extend a temporary auditing exemption for small businesses (drawn from H.R. 1645, the Fostering Innovation Act of 2017).
  • Exempt securities that qualify for trading in the national market system from state “blue sky” laws (drawn from H.R. 4546, the National Securities Exchange Regulatory Parity Act).
  • Give mortgage loan originators a grace period to obtain a new license when they switch jobs so that they can continue to originate loans (drawn from H.R. 2948, Secure and Fair Enforcement for Mortgage Licensing Act).

If the bill passes the full House, it still must go through the Senate. A potential vehicle to get the bill passed in the Senate is to get it amended to the Economic Growth, Regulatory Relief, and Consumer Protection Act (S. 2155).

A survey conducted by ALTA in 2016, found that 40 percent of the consumers polled found the disclosure rule for title insurance confusing and deceptive. Nearly two dozen other trade groups have joined ALTA urging Congress to pass legislation that would correct the inaccurate disclosure of title insurance premiums.

Contact ALTA at 202-296-3671 or

North American Title Insurance Company (NATIC) is a seasoned title insurance underwriter, helping title agents to achieve their individual business goals for more than 50 years. Today, the company conducts real estate settlement services in 39 states and the District of Columbia through a network of experienced, independent agents.