With Title Insurance being one of the highest in the nation and making a large part of buyers closing costs as well as those refinancing, this week the Pennsylvania Insurance Commission held a hearing to discuss possible reduction of title insurance rates in Pennsylvania.
Prompted by a February 2009 rate increase request filed by the Title Insurance Rating Bureau of Pennsylvania, which the Attorney General's Office opposed the Commission met to discuss the issue. Pennsylvania consumers paid nearly $585 million in title insurance premiums last year, but Corbett the Attorney General pointed out that the majority of those premiums - up to 85% - were paid as commissions to title insurance agents.
Attorney General Tom Corbett urged the Commission to reduce the rates, which are some of the highest in the country and to closely review other proposed changes to improve competition and benefit consumers who are purchasing or refinancing homes. He also reported that companies were competing to pay increasing commission rates to agents who guide the purchase of title insurance policies in Pennsylvania.
In the past, the Department has used the Title Insurance Rating Bureau to conduct reviews, which places this industry-controlled board in direct conflict with its agents across the state. Corbett encouraged the Insurance Department to use independent analysts for any review of the current title insurance system.
When did you last purchase Title Insurance? Were most of your closing costs for your purchase or refinance derived from the cost of Title insurance?
If you are buying or selling on or around the Main Line we can help you, contact us or connect
Feel free to subscribe to our blog to stay up to date with our latest posts and information on the Main Line Real Estate Market.
Nick & Trudy , I'm all for lower rates & hence lower closing costs in PA ! The re-issue rate should definitely be even lower & there should be a special refinance rate too ! Keepin' it Green !
Nick & Trudy: yes rates are unnecessarily - high! What can we do about it?
Nick and Trudy, Yes the rates are too high. One of the biggest reasons the rates are so high in PA is the fact that eastern Pa has such a rediculous number of Controlled Business and Affiliated Business arrangements. Does your agency own its own title company "In House"? The flaw is that if they cut the rates by 50%, as they should they will abolish the co-ownerrship of title insurance as their will not be enough money left over to pay the realtor their half of the profits.