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To:  Jeremy Yohe
From: Diane Tomb, Chief Executive Officer
Subject: ALTA Advocacy Update - February 15, 2022
I hope you had a great Super Bowl Sunday. Between the competitive game, delicious food, hilarious commercials and entertaining halftime show, it was a great day. Congrats to the Los Angeles Rams, and all our friends who cheered them on last night. It’s pretty amazing we get the Super Bowl and Olympics in the same weekend.

Last week, I listened in on a Washington Post Q&A with Consumer Financial Protection Bureau (CFPB) Director Rohit Chopra. He answered questions and discussed his larger plans for the agency, and most importantly discussed the agency’s recent request for public comment on so-called “junk fees.”

Chopra described these fees as line items added to bills that obscure the upfront price as a product – when consumers are being charged where a service is not provided. As a result, he argued, these create an unfair and noncompetitive market, which is why the CFPB has requested feedback.

He also had sharp words for financial institutions, describing them as “addicted” to these fees and noted the CFPB will bring “sharp supervisory scrutiny” to the industry. Chopra indicated the CFPB is attempting to “get out of the dark” regarding how financial institutions impact consumers.

After listening to this conversation, it remains perplexing why the title insurance industry was referenced in the CFPB’s request for public comment, given his own definition of “junk fees.”

ALTA is working diligently to ensure our industry’s voice is heard during this process and that we continue to educate regulators on how the title industry works. As we’ve consistently advocated, regulation by enforcement is the absolute wrong approach to agency oversight, and with any regulatory undertaking there needs to be appropriate and thoughtful guidance from the agency.

Switching gears (and agencies), ALTA recently submitted a comment to FinCEN on its Notice of Proposed Rulemaking (NPRM) on Beneficial Ownership Reporting Requirements. Later this week, we also will be submitting our thoughts on FinCEN’s Advanced Notice of Proposed Rulemaking (ANPRM) on Anti-Money Laundering Regulations for Real Estate Transactions.  We will be offering members the opportunity to reinforce our message to FinCEN on this rule through a TAN alert this week: Please make sure to participate.

FinCEN’s NPRM related to how a corporate ownership database would work already has stirred debate in the financial services world. The agency received over 230 comments (including ours), and there appears to be a difference of opinion among financial institutions, small businesses and anticorruption groups. FinCEN said the next step in its rulemaking process would be the publication later this year of its proposed rules on access to the corporate ownership database.

The regulatory front clearly has been busy these first few months of 2022 and will remain so throughout the year. ALTA is focused on ensuring the title insurance industry’s views are front and center as we respond to various agencies’ efforts.

AnchorFEMA Administrator Says Agency Moving Ahead With Flood Insurance Revamp
Last week, Federal Emergency Management Agency (FEMA) Administrator Deanne Criswell said in April the agency will move ahead with the final stages of its overhaul of the National Flood Insurance Program.

FEMA started its effort, known as the Risk Rating 2.0, in October. The agency began offering flood insurance rates using metrics tied to individual properties rather than their location in a flood zone. Initially this effort received backlash from some coastal lawmakers.

FEMA officials said the changes, which took effect on Oct. 1, will shield low-value homes from subsidizing high-value homes. Phase 2 will begin implementation on April 1 when the changes will kick in for the broader population of renewing policies.

Criswell describes this effort as “the first true programmatic change that is putting equity at the forefront of how we deliver our program.

AnchorTakeaways From House Hearing on Stablecoins
As I mentioned last week, the House Financial Services Committee held a hearing on President Biden’s Working Group on Financial Markets and its report on stablecoins. The Department of Treasury and federal regulators have urged Congress to pass legislation that would treat stablecoins like banks.

Lawmakers agreed they want to clarify how stablecoins are regulated, but it is clear there is no consensus around a policy framework.

Republicans and some Democrats cautioned against cracking down on privately backed digital tokens that have become a resource for underbanked communities. Additionally, lawmakers from both parties asked about the impact a central bank digital currency might have on existing stablecoin issuers.

Undersecretary for Domestic Finance Nellie Liang will testify before the Senate Banking Committee on the same report this week.

AnchorFHFA Releases Strategic Plan
Last week, the Federal Housing Finance Agency  (FHFA) released its draft strategic plan for fiscal years 2022-2026. Acting Director Sandra Thompson said the plan provides a “concise and transparent” roadmap for FHFA. Additionally, she noted and that it will promote “sustainable and equitable” access to mortgage credit nationwide and protect the safety and soundness of the U.S. housing finance system.

Public input on the plan will be accepted until March 11. To view the input form, click here.

AnchorJoin Us for the Good Deeds Happy Hour at ALTA SPRINGBOARD
Help fill our cup so we can pour it out for others! You are cordially invited to the Good Deeds Happy Hour, presented by Westcor and benefitting the ALTA Good Deeds Foundation. Cheers with your friends, kick off your ALTA SPRINGBOARD experience AND donate to a very worthy cause, all in one night! Held prior to the start of ALTA SPRINGBOARD, the Good Deeds Happy Hour will be held at the Garrison Tavern in Tampa, March 14 from 5-6:30 p.m. For ticketing information, click here.

Not attending ALTA SPRINGBOARD? We still need your help! ALTA members like you have given almost $875,000 for the ALTA Good Deeds Foundation since its inception in 2020, and we have given more than one-third of those funds to worthy non-profit organizations around the country. The only reason the Foundation has been able to support 48 charities in 28 states is because of your gifts and support. If you’re not able to be with us in person, please consider making a donation by clicking here.

I hope this ALTA Advocacy Update is useful to your work this week. Your comments and questions are always welcome. I can be reached at dtomb@alta.org.

Best regards, 
Diane Tomb
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