February 2013

What Exactly is The DODD-FRANK ACT?

The Dodd-Frank Act started out as a bill with the final revision introduced on December 2, 2009, in the House of Representatives by Financial Services Committee Chairman Barney Frank, and in the Senate Banking Committee by Chairman Chris Dodd. The Dodd-Frank Act was signed into federal law by President Barack Obama on July 21, 2010. Due to their involvement with the bill, the conference committee voted to name the bill after the two sponsoring members of Congress. Hence the name, "The Dodd-Frank Act."

O.K. But what is this Dodd Frank Act?

This law was passed as a response to the recession in the late 2000's and brought the most significant changes to financial regulation in the United States since the Great Depression. This law affects all federal financial regulatory agencies and almost every part of the nation's financial services industry. That means all banks, title companies that handle closings, realtors, real estate attorneys and others in the real estate industry are affected by this law.

The purpose of the legislation is:

  • To promote the financial stability of the United States by improving accountability and transparency in the financial system
  • To protect the American taxpayers by ending bailouts
  • To protect consumers from abusive financial services practices, and for other purposes.

One of the changes that took place was the HUD Settlement Statement, or the HUD Closing Statement, which was revised in 2010. The CFPB has had numerous comments about this form that it still is not transparent enough and that the form is confusing. And now you ask:

What is the CFPB?

CFPB stands for Consumer Financial Protection Bureau, which was formally established when Dodd-Frank was enacted, on July 21, 2010. After a one year "stand up" period, the Bureau, as it is commonly called, obtained enforcement authority and began most activities on July 21, 2011. This new Bureau regulates consumer financial products and services to ensure compliance with federal law.

The Consumer Financial Protection Bureau can be found on the web. Look for information regarding the 1,099 page proposed rule (released on 07/09/12), which is going to completely revamp the current 2010 HUD Settlement Statement, the Truth-In-Lending Statement (TIL) and Good Faith Estimate (GFE). These forms will be replaced and new disclosure practices will be required. The goal is to combine all three of these forms into one process which will be overseen by one governing body.

Why are we telling you all this?

Assurance Title wants you to know that we have our fingers on the pulse of this. We are ready and prepared for the major changes that are about to take place in our industry. Assurance Title is a member of both the Wisconsin Land Title Association (WLTA) and the American Land Title Association (ALTA), the two leading industry associations monitoring the progress of the CFPB. Additionally, Assurance Title is undergoing a major software conversion with RamQuest, who has staff on a panel working with the CFPB regarding the 1099 Page Ruling that is about to shake our industry.

Translated that means Assurance Title is ready and eager to assist our customers through these big changes. We are here to help educate and work with our customers for a smooth transition with the new regulations.


 

Our Pledge to You

When Assurance Title Services, Inc. opened for business August 30, 1984, I served as the General Manager and later went on to purchase the company on July 31, 1986. From the start, I wanted to provide the professionalism and quality seen in other title companies, but also provide additional services they didn't offer. And so it began, Assurance Title's pledge to all customers-"safety, certainty and confidence."

A few words from the owner: I realize the key to success in any business is repeat business. Therefore, I treat my customers the way I would want to be treated, efficiently, accurately, with competitive pricing and of course - a smile.

Sincerely,


Barb Schlieve
Owner, Assurance Title

 

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