NY Proposes New Title Insurance Regulations To Help Reduce Closing Costs

Title Insurance NYDFS

On April 29, New York Governor Andrew Cuomo unveiled new title insurance regulations aimed at reducing title insurance closing costs of up to 20 percent for new homebuyers by eliminating kickbacks and other improper expenditures within the title insurance industry. The new regulations follow an NYDFS investigation which revealed that title insurance companies and their agents routinely spent excessive amounts on meals and entertainment for attorneys, real estate professionals and others in exchange for referrals on new business, passing along the costs to consumers’ insurance premium. In addition, the regulations also impose a cap on fees charged for searches and other services associated with the issuance of a title insurance policy, and requires title companies to submit filings, once every three years, affirming that the title insurance rates are not excessive or discriminatory.