US Weighs Ban on Charging Buyers for Lender Title Insurance
- Draft plan by CFPB is aimed at cutting home closing costs
- Required policies protect lenders, but are paid by borrowers
A top US consumer watchdog is considering whether to bar mortgage bankers from charging homebuyers for title insurance that protects the lenders, ending a long-standing industry practice.
The Consumer Financial Protection Bureau’s plan is still in the early stages, according to people familiar with the matter. The agency will begin to lay the groundwork for the measure in a broad request for information on closing costs, including title insurance and other fees, that will be released as soon as this month, they said. Any final proposal on closing costs, including title insurance, would not come until 2025, one of the people said.