Texas regulators have ordered title insurers to reduce their rates by 3.2 percent effective Feb. 1.

The order, signed by Texas Insurance Commissioner Mike Geeslin, will cut the cost of title insurance for a typical $100,000 home to $843, compared with $1,023 in 1998.

Title rates are set by the Texas Department of Insurance through actuarial analysis, which takes into account expenses, profit targets and loss history. In the last eight years, Texas has cut title insurance rates by 17 percent, including a 6.5 percent reduction in 2004, the department said in a press release.

California regulators are considering taking similar steps, after a study alleged a lack of competition among title insurers in the state. The study — conducted by the former chief economist for the Texas Department of Insurance, Birny Birnbaum — is disputed by title insurers.

In one of his final acts before being sworn in as lieutenant governor, on Jan. 5 former California Insurance Commissioner John Garamendi submitted a proposal to roll back title insurance rates to 2000 levels. The California Office of Administrative Law has 30 days to review the proposal.

Title insurers maintain California’s insurance commissioner does not have the legal authority to roll back and cap rates. When Garamendi’s successor, Silicon Valley entrepreneur Steve Poizner, was sworn into office Jan. 8, he told Inman News he needed to review the proposed title insurance cuts before taking a position on them.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Success!
Thank you for subscribing to Morning Headlines.
Back to top
×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription