NEW YORK STATE DEPARTMENT OF FINANCIAL SERVICES PROPOSED 11 NYCRR 227 (INSURANCE REGULATION 208) TITLE INSURANCE RATES, EXPENSES AND CHARGES

Summary of proposed new 11 NYCRR 227 (Insurance Regulation 208).

This rule interprets and implements Insurance Law section 6409(d) by delineating certain expenditures

that, when provided by title insurance corporations or title insurance agents to “current or prospective customers” as an inducement for title insurance business, are prohibited by the Insurance Law. The rule mandates new reporting requirements to exclude all prohibited expenditures from the rates, thereby ensuring that these expenditures do not contribute to excessive rates. The rule further sets parameters with respect to ancillary charges, ensuring that title insurance corporations and title insurance agents do not charge consumers in New York improper and excessive closing costs .

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The proposed regulation prohibits “pick up fees” for closers.  This should add to the cost of closings and delay transactions.

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Date Published in State Register: May 06, 2015

Contact: Ellen Buxbaum

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