AS
TITLE INSURANCE INDUSTRY COMES UNDER ATTACK, TITLESAVE SAYS IT WILL ELIMINATE MARKUPS ON PROVIDER
SERVICES AND DISCLOSE COSTS
Melville, NY (Mar. 5, 2008) – TitleSave Agency, Inc.,
responding to criticism of the title insurance industry for hidden
consumer
overcharges, said today it will eliminate all markups on the
transactions it
insures, passing the savings along to the consumers.
By eliminating the
markups and junk fees, Melville-based TitleSave, which conducts business
in New York,
said it would
save consumers from $200 to $1,500 on their actual closing costs,
compared to
other title firms.
Lawyers, real estate
agencies, mortgage brokers and others who refer business to title
insurers have
come under scrutiny, because the title companies they select are
overcharging
consumers. The excessive charges are found in miscellaneous and junk
fees and markups
for searches and services.
TitleSave said that
it would disclose the fees charged by their outside providers for
searches and
services included with title insurance orders.
The company feels that if the industry sees the actual costs, the
ordering
parties will be less tolerant of the price gauging practices that have
become
commonplace with New York title agencies.
In New York,
premium rates for mortgage
policies and owner's policies are set by the state, and are the same for
every
provider, whether offered by a large or boutique title agency. However,
municipal, departmental, bankruptcy and patriot searches, courier fees,
survey
inspections/readings, surveys and many other charges are not included in
the
title insurance premium. The fees for
these services are not regulated; therefore, title companies can charge
whatever they deem suitable.
“What is a fair
markup for a service that is solely provided by an outside supplier and
the
title company is only required to distribute the results?” asked
TitleSave
President Stephen H. Woods. “TitleSave decided to answer this question
simply
by eliminating all markups and pass the tremendous savings along to
consumers.”