N.Y. Title Insurers to Reduce Rates
NEW YORK — The New York State Insurance Department on Thursday approved 15% rate reductions for title insurance companies operating in that state after an investigation into rebates and referral fees by state Atty. Gen. Eliot Spitzer and the department.
The reductions reflect similar moves in California, where title insurers agreed to pay more than $25 million in fines and consumer rebates last year. The state Insurance Department is continuing negotiations with the industry about possible rate reductions.
Title insurance is required by banks and mortgage companies to make sure that a home buyer has clear title to a property before they finance it.
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 Department Supt. Howard Mills. “New Yorkers have been paying too much for title insurance for too long.â€
Spitzer said he would continue to scrutinize title insurers and try to eliminate illegal practices that were inflating rates.
The rate reductions take effect immediately.
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