It seems everyone wants better title insurance oversight [VIDEO]
Title insurance firms have taken a beating in recent years due to the volume of consumer complaints they’ve had to handle, but much of the blame can be placed on lax state regulation – something lawmakers are working to change.
Title insurance firms want regulations to fit their specific industry more properly, consumers want to be treated better during the home buying process and regulators want these businesses to remain compliant with legislation. The culmination of industry-wide desire for change? Several states have begun the process of implementing bills that enhance oversight of their respective title insurance sectors. The wave of proposed laws regarding title insurance all started in Colorado.
The seeds were planted due to a potential conflict of interest between the companies Marguerite Salazar oversees and her position as regulator of the state’s title insurance industry. Though Salazar was cited as a reason for the move to create the commission, how these businesses are regulated has long been an issue. This month, lawmakers in Colorado introduced a bill that would create a seven-member commission to assist the Division of Insurance commissioner with certain regulatory duties.
Now other states are following suit with similar proposals. Vermont is taking small steps toward putting together a proposal, while Utah and Arkansas are considering their own legislation. The uniqueness of the title insurance industry, as opposed to other insurance sectors, validates separate state commissions to regulate it, supporters of the recent proposals have explained. Expectations are that once a couple of states finalize legislation establishing regulatory commissions or similar oversight measures, others will take notice and follow suit.
By: Equity National April 2, 2015 Title