Lower rates are coming to a title company near you! That’s big news in the real estate title business. Title insurance, like the housing market, doesn’t follow the laws of gravity. What goes up doesn’t always come down.
“This is a historic time for Texas title insurance,” Paul McNutt Vice President and General Counsel of Title Resources told a group of escrow officers last week. “Rates are going down effective for all policies after September 1. Overall, the rates are decreasing 4.9 percent.”
As a state-regulated industry, all title companies in Texas must charge the same for real estate title insurance. Every few years, the Texas Department of Insurance (TDI) reviews statistical data from title insurance agents and underwriters to see if a rate increase or decrease is warranted.
This rate reduction is due to several factors including the rise in real estate values, profits made over the last 5 to 10 years and increased efficiency. “It is in the best interest for every consumer to be charged reasonable rates,” McNutt explained. “This is a regulated environment with periodic review. The profits were good and therefore the rates should be decreased. This is in keeping with the regulatory terms.”
That explanation may help reduce the sting of what amounts to a pay cut to title agents.