The Texas Title Insurance Association (TLTA) opposed changes to title insurance premiums, while the Office of Public Insurance Counsel (OPIC) recommended a significant reduction. With title insurers in Texas reporting a profit ratio of 26.6%, which is above the historical average, the Texas Department of Insurance (TDI) argued that current profit levels are unreasonable in light of inflation. A proposed reduction in premiums could save consumers around $238 million annually, aiding housing affordability and reducing closing costs for homebuyers. Consumer advocacy for these reductions has been ongoing, driven by rising home sale prices.
Sustaining the current levels of profits in the current real estate market with the current levels of inflation would not be reasonable as to the public.
A reduction in title insurance basic premium rates would likely help bring the actual profit ratio closer to the target.
The new reduction will save Texas consumers an estimated $238 million per year, supporting housing affordability and keeping more money in homebuyers' pockets.
Texas consumer and business groups have been pushing for reductions to title insurance premiums for several years, citing the increase in premiums due to rising sale prices.
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