State OKs 15% rate cut for title insurance

[steven]

New York state insurance regulators said Friday that they approved 15 percent rate reductions for the five biggest title insurance companies, saving consumers about $180 million a year in the wake of a state investigation into industry practices.


The new rates, for companies that together control 93 percent of the market, will take effect immediately, saving many Western New York homebuyers at least $100 on their coverage. Last year, title insurers collected about $1.2 billion in written premiums in New York.

"These title insurance rate reductions will save consumers hundreds of dollars when they close on the purchase of a new home," said Insurance Superintendent Howard Mills in a press release.

Title insurance provides protection against a loss stemming from problems with the title to a piece of property, such as a forged signature in a past land transfer, unpaid real estate taxes or other liens. Such problems could affect a homeowner's or lender's ability to claim ownership of the property, and title insurance covers against claims and legal fees.

Mortgage lenders typically require title insurance equal to the loan amount, but the borrower pays the premium, which is a single fee upfront. That coverage doesn't protect the homeowner, though, so a separate policy can be purchased for the value of the home.

The cost is based on how much coverage is desired, so the more expensive the home, the more expensive the insurance. That also means owners of more expensive homes will save more in dollars from the latest cuts, even though the percentage decrease is the same.

According to the Insurance Department, New Yorkers who buy a $200,000 home upstate will now pay on average $952 for title insurance, down from $1,120. Downstate, where property values are higher, a consumer who buys a $500,000 house will pay $2,125 for title insurance instead of $2,500.
The title insurers who are included are: Fidelity National Financial Group, with one third of the market share; First American Title Group, with one-fourth of the market; LandAmerica Financial Group, with 20.4 percent; Stewart Title Companies, with 12.7 percent; and Washington Title Insurance Co., with 1.7 percent.

http://www.buffalonews.com/editorial...01/1009513.asp

[Curmudgeon]

That's great. Spitzer cleaned up an inequity that NYers got stuck paying for.

Now let's see if Spitzer really acts in the bests interests of the consumer. NYS is one of a handful of states that require the use of attornies to complete a real-estate transaction. As a result, NYS has some of the higest escrow/title fees in the USA.

Let's see if he acts in the best interets of the consumer by doing something about that. Even a mention of it from his Bully Pulpit would impress me, since as AG, he can't do much. Perhaps it would make a great reform idea once he made governor.

He'd have to piss off the NYS bar, who enjoys this gravy train at the expense of everyone else.

[colossus27]

That's great. Spitzer cleaned up an inequity that NYers got stuck paying for.

Now let's see if Spitzer really acts in the bests interests of the consumer. NYS is one of a handful of states that require the use of attornies to complete a real-estate transaction. As a result, NYS has some of the higest escrow/title fees in the USA.

If he wanted to impress me, he'd have made this retroactive. No chance on taking coin away from lawyers. I'll gladly eat my words if I'm wrong but I don't see this happening.