Earlier this month the Consumer Financial Protection Bureau updated the real estate
settlement cost booklet “Shopping for yor home loan”. The booklet was which originally prepared by the U.S. Department of Housing and Urban Development (HUD).
According to the CFPB, certain changes were made to reflect new mortgage rules under the Dodd-Frank Wall Street Reform and Consumer Protection Act (Dodd-Frank Act).
The booklet includes information about title services and title insurance. The it tells consumers that a lender’s policy only protects the lender’s interest. But it also informs consumers that “If you want to protect yourself from claims by others against your new home, you will also need an owner’s title insurance policy.” This is no change to the description of what HUD previously said in the booklet about owner’s title insurance.
The CFPB plans a larger update of the booklet, which will reflect the integrated mortgage disclosures under the Truth in Lending Act and the Real Estate Settlement Procedures Act and other changes under the Dodd-Frank Act. The changes are consistent with other CFPB resources and tools for consumers as part of the CFPB’s broader mission to educate consumers. View and download the booklet here.