Housing Bubble
ALTA - RESPA changes will hurt small business
March 11, 2003
WASHINGTON, March 11 /PRNewswire/ -- On March 11, the American
Land Title Association (ALTA) will testify again on HUD's proposed
changes to RESPA, this time before the House Committee on Small Business.
Greg Kosin, Chair of ALTA's Government Affairs Committee, ALTA Board
Member, and President of The Greater Illinois Title Company, will testify
that from a small business perspective, the proposed changes would
be detrimental to the title industry.
Kosin will highlight
why ALTA believes HUD's proposed changes will have potentially adverse
effects on consumers, the mortgage settlement process, and small businesses.
"Approximately 51% percent of title companies in the country had less
than $500,000 in gross revenue in 2001. And 68% had 10 or fewer employees,"
said Kosin. "HUD's current proposal would have a very serious adverse
effect on small businesses in our industry and on our ability to compete
for consumer business. Equally important, we believe that the proposals,
if implemented in their present form, would effectively close the door
to future entry into our industry by small businesses," commented Kosin.
ALTA sent comments to HUD last October outlining the title industry's
concerns with its proposed changes to RESPA.
The American
Land Title Association represents title insurance companies and their
agencies nationwide on a variety of industry and legislative issues.
Members of the Association search and insure land titles to protect
real estate investors including homebuyers and mortgage lenders.
Source: American Land Title Association
