The U.S. Department of Housing and Urban Development has some potentially far-reaching new regulations in mind for title insurers, and the industry wants more time to voice its opinions on the changes.

HUD’s changes to the Real Estate Settlement Procedures Act have drawn objections from a number of industries involved in homebuying transactions, and title insurers are concerned about potentially costly requirements in the proposal. RESPA is intended to increase transparency in the homebuying process – namely, to give borrowers more information on their loans, as well as eliminate fees that drive up costs of certain settlement services.

RESPA reform has been a contentious issue in the past, with broad industry outcry helping kill reforms proposed in 2002.

Now the American Land Title Association is helping to circulate a letter sponsored by two U.S. congressmen that requests more time to air grievances over the changes, as well as suggest possible alternatives. The RESPA changes, which HUD says are intended to give consumers more information about their mortgages, were unveiled in March. The public now has until mid-May to voice opinions, but the letter requests a two-month extension on the public comment period.

“The proposed changes are so dramatic and wide-ranging,” said Rich Hogan, legislative and regulatory counsel with Rocky Hill, Conn.-based title insurance company CATIC, who is drafting comments to regulators on behalf of the company. HUD’s proposals alter a number of longstanding practices in title insurance transactions, he said, adding that two months is simply not enough time to weigh all the ramifications.

Many title insurers are particularly worried about a part of the proposal that requires title agents to discuss the terms of the mortgage loan with consumers during the home sale closing process.

Edward Miller, ALTA’s vice president of public policy, said title agents have nothing to do with the terms of the mortgage, and putting agents in that position “almost makes us a subcontractor to the lender.” HUD estimates that such a requirement tacks on about 45 extra minutes to every closing meeting with consumers – that time, combined with other costs associated with putting the description together, may cost the title industry an estimated $2.5 billion.

That requirement also doesn’t take differing state regulations into account, Miller said, which opens title agents up to a broad range of possible legal objections.

A HUD spokesman said the department was reserving comment on the industry’s reactions, preferring to wait until the end of the public comment period to weigh in on any developments.