July 21, 2009
The Obama Administration has released a draft of the Consumer Financial Protection Agency Act of 2009. In the Act the term “financial activity” includes “providing real estate settlement services, including providing title insurance.” A financial product or service is defined to mean any product or service that directly or indirectly results from or is related to engaging in one or more financial activities (which includes title insurance). The Act also grants the new Agency powers under RESPA and several other enumerated consumer laws. The Act is part of the Administration’s efforts to restructure the financial regulatory system.