Happy October! We wanted to take some time to update you on the GUIDE Compliance Act, a federal bill supported by Placer Title Company and the American Land Title Association. We wrote about it a couple of months ago, but the legislation is now a few steps closer to being passed into law.
Officially known as the “Give Useful Information to Define Effective Compliance Act,” H.R. 5534 was introduced in April by U.S. Rep. Sean Duffy, a Republican from Wisconsin, and immediately gained bipartisan support. It was passed out of the House Committee on Financial Services with a 38-14 vote in September.
The GUIDE Act was one of two proposals that title insurance colleagues pushed for during ALTA’s annual Advocacy Summit in May. Representatives from our parent company, Mother Lode Holding Company, were there, and we’re glad to see the legislation progressing. Getting better direction from the CFPB would certainly benefit title companies and our customers, and we want to spread the news to you. If the GUIDE Act goes to the President’s desk and becomes law, we think it will help us provide an even better, more personalized experience to all of our residential customers.
Shortly after the House proposal passed out of committee, Senators Orrin Hatch (R-Utah) and James Lankford (R-Oklahoma) introduced a companion bill, S. 3443. Past ALTA President Steve Day, who testified in front of a subcommittee for the House proposal in June, also applauded the Senate bill.
“This legislation would create a more formal process at the Consumer Financial Protection Bureau for issuing useful guidance to complement the consumer financial laws it enforces,” Day said in a statement released by ALTA. “Having the CFPB provide more clarity to regulations, such as the Real Estate Settlement Procedures Act (RESPA), allows ALTA members to better serve consumers and deliver peace of mind to homebuyers every day. Regulations create the rules of the road for consumers and business, and when everyone understands the guidelines, markets operate more efficiently.”
Several other industry groups, in addition to ALTA, have given their support to the GUIDE Act including the Mortgage Bankers Association, the National Association of Mortgage Brokers and the National Association of Home Builders. We’ll be sure to keep you updated on future progress of the GUIDE Act. Please contact Placer Title Company with any specific questions you have about the legislation. If you are so inclined, communicate your support for the GUIDE Compliance Act to your local Congressional delegation by joining the Title Action Network at www.titleactionnetwork.com for free today.