Overview
In the face of the worst fiscal crisis in its history, New York state sought creative ways to leverage its assets and increase its revenues — preferably, without raising taxes. In response, the Partnership for New York City solicited ideas from its members for how to maximize state assets. The Partnership received some “out of the box” suggestions that deserve exploration, including expanding the state’s role in the real estate title insurance industry.
The Partnership proposes that New York should take a close look at this publicly regulated industry as an example of where historic and customary practice may be at odds with the immediate interests of the state. This policy paper is intended to begin that discussion.
$1B
Expanding the state’s role in the real estate title insurance industry could generate up to $1 billion in revenue.
$1.2B
The national title insurance industry generated $1.2 billion in revenue from the policies it wrote on New York state transactions in 2007.
Report Highlights
Insurance Overview
The purpose of title insurance is to ensure that a buyer has clear ownership of a property so that a lender can make a mortgage loan to the buyer for the sale or refinance of a home or business.
Industry Weakness
Title insurance represents the weakest link in an industry that has been subject to several regulatory challenges to its basic business models over the past few years. Many of the investigations of other areas of the industry have resulted in agreements to improve business practices and transparency.
Key Takeaways
The Partnership proposes that New York should take a close look at this publicly regulated industry as an example of where historic and customary practice may be at odds with the immediate interests of the state.