Industry News

Title insurance costs cut after Spitzer probe

New Yorkers get 15% cuts in title insurance rates

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The New York State Insurance Department approved a 15 percent rate reduction for title insurance in the state after New York Attorney General Eliot Spitzer launched an investigation into illegal rebates and referral fees among top insurers in the state. The state's insurance department approved rate reductions for title insurance companies that cumulatively have 93 percent of the state's market share. "These title insurance rate reductions will save consumers hundreds of dollars when they close on the purchase of a new home," Superintendent of Insurance Howard Mills said in a statement. "New Yorkers have been paying too much for title insurance for too long because internal industry practices, rather than market forces, were driving the product's price." Mortgage lenders and banks require consumers to purchase title insurance when borrowing money to buy a home or refinance an existing mortgage to ensure they have a clear title on the property. New Yorkers who purchase an up...