The New York Department of Financial Services Tuesday announced new title insurance rates for consumers who refinance their mortgage.
The new rates are part of a joint reform push in New York between Gov. Andrew Cuomo and Financial Services Superintendent Benjamin Lawsky.
The new regulations lower the cost of title insurance when the consumer refis a loan with the same lender older than 10 years by 65%. Title insurance for mortgages that are over 10 years old but the new loan is going to a different lender will cost 57.5% less, while title insurance on refinancing loans less than 10 years old will be 30% and 15% cheaper, respectively, with the same lender and a new lender.
The changes were met with resistance from the New York State Land Title Association.
In an emailed statement, Rafael Castellanos, president of the association, said that though the reforms are "well-intended" they would, "unfortunately place small businesses in peril or drive business to predatory overseas companies."
"These lower title insurance rates will provide real, significant savings to homeowners in New York," Lawsky said in a release. "Moving forward, it is critical that we continue our efforts to clean up the title insurance industry and protect consumers."
Late last month New York State, under the guidance of the governor and superintendent, also released
