Title Premiums Up in Third Quarter

For the first time in over three years, title insurance underwriters wrote more in new premiums when compared to the same quarter in the previous year. According to the American Land Title Association, underwriters generated $2.51 billion in premiums during the third quarter of 2009, compared with $2.48 billion for the same period in 2008. This ends a run of 13 consecutive quarters where title premiums declined from the prior year's equivalent quarter. Kurt Pfotenhauer, chief executive of ALTA, said "Congress' temporary tax incentives and the Federal Reserve's efforts to keep mortgage interest rates low have brought more homebuyers to the table. We are hopeful that the extension and expansion of the homebuyer tax credit will keep this momentum going through 2010 and begin to drive activity beyond the first-time buyer market." The momentum of increased premiums is not a nationwide phenomenon. There were 32 states that had increased premium volume, including California, which had $396.3 million vs. $349.6 million for third quarter 2008. Alaska had a 77% increase, $11.6 million this year, compared with $6.6 million one year ago. New Jersey had a 36% increase, Rhode Island, 57%, Colorado, 40%, and North Dakota, 31%. But three of the largest states saw declines in premium volume: Texas, down 9.9%, Florida, down 16%; and New York, down 26.1%. Mr. Pfotenhauer warned that this local cyclicality needs to be remembered by legislators and regulators looking to change the structure of the industry.