ALTA Requests the Dodd-Frank QM Definition to Include Title Search and Examination

In a letter issued to the Federal Reserve Board, The American Land Title Association (ALTA) requested that the qualified mortgage (QM) definition, as part of the Dodd-Frank’s Ability to Repay Rule, include “a title search backed by a title insurance policy”. ALTA emphasized the benefits of title insurance as providing “information that the [borrower’s] credit report does not [which] can identify other debt obligations that could affect the borrower’s debt-to-income ratio,” has the “the ability to encourage creditors to follow mortgage underwriting best practices,” and “ensures the borrower will have the ability to repay the mortgage by verifying their ownership of collateral and identifying any liens superior to the creditor’s mortgage.”

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