Gregory M. Kosin, president of Greater Illinois Title Company, Chicago, and chief executive of H. B. Wilkinson Title Company, Galena, IL testified before the House Committee on Small Business on HUD's proposed changes to the Real Estate Settlement Procedures Act, (RESPA). Kosin, who also serves on the Board of the American Land Title Association (ALTA), and as chair of ALTA's Government Affairs Committee, testified that from a small business perspective, the proposed changes would be detrimental to the real estate industry, particularly local real estate attorneys and title companies.

An appearance by HUD officials and private witnesses led to a heated discussion on HUD's proposed rule on RESPA. Chairman Donald A. Manzullo (R-IL) and members of the House Committee openly criticized HUD for their general lack of concern and thoroughness in compiling a report supporting HUD's claim that their proposed rule would not have an adverse effect on small business. The committee stated that the proposed rule would cost the small business community billions of dollars and millions of hours annually, would generally create an uneven playing field between small businesses and large lenders and would leave HUD open to potential lawsuits.

Mr. Kosin was part of the real estate industry panel that spoke out against HUD's proposed rule. Kosin testified that 68% of title agencies are small businesses, which deliver both cost effective and reliable services. He also testified that we could expect the real estate settlement services marketplace to change dramatically if the proposed RESPA rule were implemented as drafted. Specifically, the proposal would limit consumer access to and choice of settlement service providers. It would also promote the nationalization of the real estate services delivery system by eliminating many small businesses such as title companies and local real estate attorneys, and foreclose the formation of small settlement service businesses in the future. Furthermore, Mr. Kosin testified that HUD lacks the statutory authority to propose the changes without the backing of Congress.

In describing his department's progress on the proposed rule, HUD Secretary Mel Martinez stated they are reviewing and actively considering comments. Secretary Martinez did volunteer that HUD is evaluating ALTA's two-package approach.

To view Kosin's testimony, follow this link to the PDF of Kosin's testimony from the ALTA Web site (http://www.alta.org/govt/issues/03/alta_test0311.pdf).

Founded in 1985, Greater Illinois Title Company operates offices throughout the Chicago metropolitan area. H. B. Wilkinson Title Company provides title insurance and escrow services throughout northwest Illinois. Kosin is an editorial resource for the Chicago Tribune, Business Week and the Chicago Sun Times.

The American Land Title Association represents title insurance companies and their agencies nationwide on a variety of industry and legislative issues. Members of the Association search and insure land titles to protect real estate investors including homebuyers and mortgage lenders.

About Greater Illinois Title
Greater Illinois Title, celebrating its 22nd Anniversary in 2007, is Chicago Title's largest title agent in Illinois and one of its largest title agents in the country. The company provides title insurance, construction and commercial escrow services, sale and refinance closing services, 1031 tax deferred exchanges, land surveys and real estate information in the Chicago metro region. It currently operates through a network of nineteen offices located in Arlington Heights, Crystal Lake, Downers Grove, Geneva, Homewood, Joliet, Libertyville, Lindenhurst, Naperville, Oak Lawn, Oak Park, Shorewood, Tinley Park, Waukegan, Westchester, Wheaton, Yorkville, in Chicago on North Milwaukee Avenue and in the Loop at 120 N. La Salle Street. Greater Illinois Title is authorized to write Title Insurance and issue policies in the Counties of Cook, DeKalb, Du Page, Grundy, Lake, Kane, Kankakee, Kendall, Lake, LaSalle, McHenry and Will. The company coordinates title insurance and escrows in all Illinois Counties and across the United States.