New York Prohibits Lenders From Steering Borrowers To Title Insurers

August 14, 2001

New York A1872A - Prohibits lenders from requiring that mortgage applicants use the services of a particular title insurance company, title insurance agency or title insurance agent. Effective Date: 8/29/2001

TITLE OF BILL: An act to amend the banking law, in relation to prohibiting mortgage brokers, mortgage bankers and exempt organizations from requiring that mortgage applicants use a particular title insurance company, title insurance agency or title insurance agent

PURPOSE OR GENERAL IDEA OF BILL: This bill would provide the mortgage applicant the right to seek out whatever title insurance agency or abstract company/agent he/she desires. At the present time, there is too often pressure on the part of the bank and applicant to obtain title insurance from an affiliate company. This bill would allow an applicant a choice.