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A federal agency is suggesting that lenders foot the bill for title insurance instead of home buyers. The Consumer Financial Protection Bureau says that home buyers are paying way too much for something that protects lenders. But skeptics are pushing back, saying if lenders are forced to pay, a change in the rules won\u2019t have the desired result and won\u2019t do much for housing affordability. \xa0 Hi! I\u2019m Kathy Fettke and this is the Real Estate News for Investors. Before we continue, please take a moment to sign up for a free RealWealth membership. You\u2019ll have access to a valuable educational resource and there\u2019s no cost or obligation to join. You can sign up at newsforinvestors.com. And if you haven't yet, subscribe to this podcast on your favorite platform so you won't miss an episode.\xa0 \xa0 Now, back to our story about title insurance, which is required by lenders to verify ownership and whether there are any liens on the property. It typically costs about $2,000 for a median-priced home. But according to Rocket Mortgage, it can vary from state to state and can range from half-a-percent to 1%. So let\u2019s say you\u2019re buying a $500,000 home and you need title insurance. If it costs half-a-percent of the home price, that\u2019s $2,500, and at 1%, $5,000.\xa0 \xa0 As reported by The Real Deal, buyers often overlook the cost of title insurance so it comes as a surprise. And here\u2019s the rub, if there\u2019s no loan, owner\u2019s title insurance only costs about $200, which is what the CFPB is concerned about \u2013 that homebuyers are being overcharged for title insurance... \xa0 Links: \xa0 1 - https://therealdeal.com/national/2024/04/19/consumer-bureau-pushes-for-title-insurance-reform/ \xa0 2 -\xa0 https://www.nationalmortgagenews.com/news/what-happens-if-the-cfpb-makes-lenders-pay-title-insurance