Tuesday, March 19, 2013
The New York Times asks if title insurance premiums are too high and whether competition in the title insurance market is too constrained:
Borrowers don’t often pay much attention to the title insurance required by their mortgage lender — until they see the sizable charge for it on their list of closing costs. [...]
Yet for years, a debate has raged as to whether premiums are too high, competition too constrained, and the insurers too closely intertwined with the mortgage and real estate professionals who send business their way. [...]
Borrowers typically rely on their mortgage broker or real estate agent to select a title agent for them, but Mr. Castellanos says they are better off making the selection themselves. He advises borrowers to ask a real estate lawyer to recommend an independent title company, and to avoid title agencies that have a business affiliation with the real estate agency or lender recommending them.