ALTA Consumer Survey Shows 40% Confused by Title Fee Calculation on Closing Disclosure
By a
In July, ALTA partnered with Survata, a national market research company, to collect data on consumer experiences related to their purchase of title insurance and the new
ALTA's survey, which polled 2,000 current and prospective homeowners (planning to buy within the next year), revealed that homeowners find the
"We've heard countless stories from ALTA members about consumer confusion at the closing table and this survey confirms our concern from the consumer's point of view," said
10% is 10% Too Many
The survey found that over 30 percent of homebuyers find the new Closing Disclosure confusing. More troubling, another 10 percent of homebuyers feel taken advantage of when reviewing the current calculation of an owner's title insurance policy on the Closing Disclosure.
"It is unacceptable for any homebuyer to feel mistreated as they consider the true costs of homeownership," said Korsmo. "This is equivalent to everyone living in the entire metro area of
"A" for Effort -- But Misses the Mark on Fixing Disclosures
Along with measuring consumer reactions to the inaccurate disclosure of title insurance costs, ALTA now has a broader understanding about what consumers actually want from their mortgage disclosures.
According to ALTA's survey, the most important factor homeowners want on their Closing Disclosure is a detailed breakdown of all the costs for a service. Secondly, consumers want the ability to easily compare cost estimates to final fees on the disclosure. Third, homeowners want to compare the disclosures to the actual costs they will pay and confirm that the seller is paying the accurate amount.
"While the
Consumer Education Continues
Consumers make the decision to protect their property rights with title insurance prior to arriving at the closing table. Consumer education remains critical for the land title insurance industry as well as the
"ALTA and its members are committed to educating consumers about how title insurance provides peace of mind by protecting their property rights," Korsmo continued. "An equal commitment from the Bureau is needed to ensure that confusion over the price of title insurance does not undercut these efforts. Consumers will benefit from having the actual cost of title insurance disclosed on the mortgage disclosures. This is not only supported by ALTA's research, but also by our members' experiences everyday at closing tables across the country."
Keywords for this news article include: Mortgage, Homebuyer, Homeowners, Real Estate, Financial Services.
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