tl;dr
The Consumer Financial Protection Bureau (CFPB) is considering the prohibition of mortgage bankers from charging homebuyers for title insurance that protects lenders, potentially ending a long-standing industry practice, as per a media report. The plan, still in its early stages, involves seeking in...
The Consumer Financial Protection Bureau (CFPB) is considering the prohibition of mortgage bankers from charging homebuyers for title insurance that protects lenders, potentially ending a long-standing industry practice, as per a media report. The plan, still in its early stages, involves seeking information on closing costs, including title insurance and other fees, with any final proposal not expected before 2025. This initiative aligns with President Joe Biden's efforts to curb "junk fees," such as certain overdraft and credit card late fees. A pilot program was recently announced to waive the required lender's title insurance on certain refinances. The expected draft measure may initially cover home purchases and refinancings, though it could be scaled back to only include refinancings. Importantly, it would only apply to lenders' insurance, not buyers' title insurance, which remains optional. The proposed framework has raised concerns from industry figures. Diane Tomb, CEO of the American Land Title Association, expressed worries about how the new rule may impact the protection provided by title insurance and emphasized potential backlash by lenders and title insurers. Furthermore, there are apprehensions that even if the CFPB eliminates buyers' responsibility to pay for lenders' title insurance, lenders may devise alternative ways to pass the cost onto consumers. Following this news, stocks of companies offering title insurance, including First American Financial, Fidelity National Financial, Stewart Information Services, and Old Republic International, witnessed declines in Wednesday morning trading. This trend aligns with the broader slump in real estate-related stocks amid concerns about prolonged inflation impacting potential rate cuts by the Federal Reserve.
More about First American Corporation
First American Corporation Stock Analysis First American Corporation Stock Analysis Summary
First American Financial Corporation provides financial services and is headquartered in Santa Ana, California. The company operates in the finance and title insurance sectors.
Key Financial Data:
- Stock Price: $29.02
- Price Change: 2.1 ( 7.8%)
- Dividend Yield: 2.07%
- Market Cap: $5.756 billion
- EPS: 0.0361
- Shares Outstanding: 600.35 million
- PE Ratio: 71.2
- Beta: -0.383
- Volatility: -0.152
More about Fidelity National Financial Inc
Company: Fidelity National Financial Inc
Description: Fidelity National Financial, Inc. offers various insurance products in the United States. The company is headquartered in Jacksonville, Florida.
Industry: FINANCE
Sector: TITLE INSURANCE
Market Cap: 14.47B
Current Price: $27.72
Change: 1.83 ( 1.91%)
52-Week Range: $43.66
Dividend Yield: 4.39%
Revenue: 11.79B
EPS: $58.17
P/E Ratio: 0.189
Debt-to-Equity Ratio: 0.334
More about Stewart Information Services Corp
Stewart Information Services Corp Summary Stewart Information Services Corp
Stewart Information Services Corporation offers title insurance and real estate transaction services. The company is headquartered in Houston, Texas.
Finance Data
Sector: Title Insurance
Market Cap: $1,774,023,000
Current Price: $57.85
Price Change: $1.85
Percentage Change: 1.11%
52-Week Range: $82.79
Dividend Yield: 0.0135
Volume: 2,259,641,000
EPS: $68.33
P/E Ratio: -0.349
ROE: -0.114
More about Old Republic International Corp
Old Republic International Corp Summary Old Republic International Corp
Old Republic International Corporation is engaged in the insurance underwriting and related services business primarily in the United States and Canada. The company is headquartered in Chicago, Illinois.
Finance Details
Surety Insurance
Market Cap: $8,295,396,000
Current Price: $14.34
Change: $0.98
Change %: 2.1%
PE Ratio: 25.67
Dividend Yield: 0.0825
Volume: 7,258,200,000
52 Week High: $34
52 Week Low: -$0.601
RSI: -0.172
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