SACRAMENTO, Calif., Jan. 22, 2015 /PRNewswire-USNewswire/ -- The Escrow Institute of California (EIC), the professional trade association for the California Licensed Escrow Settlement Service Providers, released the following statement today from President Nancy Silberberg in response to the Consumer Financial Protection Bureau (CFPB) Director Richard Cordray's speech at the Brookings Institution on January 13, 2015:
"EIC and its members join with ALTA in their support of the CFPB efforts to help guide consumers through the real estate transaction and especially the closing process, however we do remain concerned about the New Closing Disclosure. It is imperative that consumers receive the most accurate information about their closing costs, including title insurance premiums and the service fees for the escrow/settlement agents they select. Historically in much of California, the Seller pays for some form of Title Insurance Coverage for the Buyer, such as a Homeowners Policy of Title Insurance, and the Buyer pays for the coverage required by their lender, called an ALTA Lenders policy. Of course this is negotiable, but this is usually the case.
"We join with our title industry colleagues and urge the CFPB to consider the additional work, time, effort and confusion on behalf of consumers who will have to see the current 'Know Before You Owe' forms with possibly different disclosures than those of the particular state where they are transacting business.
"EIC continues to be concerned for the California consumer where the common term for the settlement agent is 'Escrow Agent' under California law. The CFPB continues to label impounds for taxes and insurance 'escrow' accounts, when in reality they are 'impound accounts.' We have also raised the issue that in California many escrow/settlement providers are licensed, independent companies with no affiliation with title companies. Why would our valuable membership be lumped into the other important category of Title Insurance, when it is a distinctly separate function? We continue to support consumer education in regards to the real estate and home loan closing process and urge the CFPB to take the necessary steps to disclose accurate costs with proper, clear descriptions of the valuable professionals who provide these necessary services."
About the Escrow Institute of California
The Escrow Institute of California (EIC) is the professional trade association that represents California Department of Business Oversight licensed escrow/settlement agent holders. The California Department of Business Oversight currently licenses 949 locations throughout the state where more than 6,100 people, mostly women, are employed. For more information, please visit www.escrowinstitute.org.
SOURCE Escrow Institute of California