New Mexico Bill to Study Government-Run Title Insurance Fails
|March 25, 2009|
A proposal to study Iowa's state-run title guaranty system in New Mexico was defeated last Saturday as a House Joint Memorial Resolution calling for the study failed to pass out of a New Mexico House committee. No state other than Iowa has implemented a state-run title guaranty system. In Iowa, it can take as long as 45-85 days to receive coverage, requiring mortgage borrowers to pay for longer rate locks, significantly increasing their borrowing costs by hundreds or thousands of dollars. In addition, cost savings promoted by advocates of these government-run funds hide the true costs of coverage which include a title abstract and attorney's opinion.