California Escrow Association Advocate Refutes Proposed Property Title Insurance Regulations
|July 21, 2006|
SACRAMENTO, Calif. July 20, 2006 - A representative of the statewide California Escrow Association (CEA) responded to planned regulations unveiled today by Insurance Commissioner John Garamendi on title and escrow competition. "His whole proposal is based on a faulty premise that there is no competition in title and escrow. And in fact, those are fiercely competitive businesses," said Mike Belote, legislative advocate for the California Escrow Association (CEA). "With respect to escrow, the competition is about service and who closes transactions successfully."
Garamendi is proposing an interim 23 percent insurance rate rollback effective next spring. Belote noted: "The net effect of this proposed regulation is a massive fee reduction for services. We believe escrow services are hugely cost effective. They are one of the lowest costs elements of a real estate transaction and one of the most valuable."
Source: California Escrow Association (CEA)