The California Land and Title Association is urging the Department of Insurance (DOI) to withdraw a proposal for new government regulations that it says would devastate small title companies at a time when the cyclical nature of the real estate market is already softening.
Commissioner Garamendi is proposing new regulations that would arbitrarily reduce title fees by 23 percent, based on a questionable report conducted last year by an out-of-state consultant from Texas.
“Insurance Commissioner John Garamendi’s proposed regulations will have a significant anti-competitive impact as California’s small title and escrow companies are driven out of business by their inability to remain financially viable,” said Craig Page, Vice President and Legislative Counsel for the California Land Title Association.
At a DOI public hearing in San Francisco today, CLTA urged the Commissioner to withdraw his regulations and work with a wide sector of groups and individuals to consider alternatives that benefit consumers without crippling an industry that provides a vital service to buyers and sellers of real estate in California.
“The California Land Title Association and its member companies had been actively engaged in cooperative and productive meetings with the Department of Insurance to design a comprehensive program to help consumers price shop for title insurance. Commissioner Garamendi has publicly stated that the key issue is a lack of consumer knowledge about shopping for title insurance. The CLTA committed to benefit consumers by supporting a consumer education campaign, supporting Department-sponsored disclosure legislation and to help develop a web site that would provide transparency in title insurance pricing,” said Page.
A full transcript of the testimony provided at the public hearing by CLTA can be found on their website at www.clta.org.
The California Land Title Association (CLTA) is a non-profit corporation founded in 1907, representing member title companies throughout the state of California.
Source: CLTA
Topics California Legislation
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