Pa Attorney General Wants To Investigate Title Insurance Industry

03.23.09 | Terry Diener

Pennsylvania's Attorney General Tom Corbett is calling for sweeping changes in the way title insurance is handled in Pennsylvania. He is also asking the state Insurance to reject a recent rate increase and wants a substantial reduction in future rates.

Corbett said title insurance is a half-a-billion dollar per year industry in Pennsylvania, funded by every resident who buys a home or refinances a mortgage, with only a small portion of that amount being used to pay claims and the vast majority being used to pay commissions.

Corbett said many Pennsylvanians are hoping to refinance their loans in the coming months in order to take advantage of lower mortgage interest rates. He contends the title insurance industry is hoping to take advantage of this coming wave of refinancing by charging consumers higher prices.