DEAL ADVANCES TITLE-INSURANCE REFORM.Byline: DOUG MATTSON Long-sought title insurance reform gained momentum Tuesday after reform advocates and industry officials reached a key compromise. The House Business and Industry Committee passed HB488 unanimously, sending it to the House Judiciary Committee Judiciary Committee may refer to:
House Speaker Ben Lujan's amended bill seeks to keep small title-insurance companies in business while giving homebuyers a chance to shop for lower premium rates. The bill would also allow homeowners to refinance Refinance 1. When a business or person revises their payment schedule for repaying debt. 2. Replacing an older loan with a new loan offering better terms. Notes: When a business refinances they typically extend the maturity date. their mortgages at a lower rate -- 20 percent to 60 percent lower, depending on how long they have had the house. Reform advocates, such as Think New Mexico New Mexico, state in the SW United States. At its northwestern corner are the so-called Four Corners, where Colorado, New Mexico, Arizona, and Utah meet at right angles; New Mexico is also bordered by Oklahoma (NE), Texas (E, S), and Mexico (S). , gave up on efforts to allow homebuyers to sue for negligence; for instance, if a customer learned after buying a home that it was subject to a lien lien, claim or charge held by one party, on property owned by a second party, as security for payment of some debt, obligation, or duty owed by that second party. or undisclosed easement easement, in law, the right to use the land of another for a specified purpose, as distinguished from the right to possess that land. If the easement benefits the holder personally and is not associated with any land he owns, it is an easement in gross (e.g. . Lujan said the bill comes at a crucial time, because lending has tightened during the ongoing recession. Under the current system, the state insurance superintendent sets a title-insurance rate every year. The argument for this practice is that it prevents anti-competitive or "predatory predatory pertaining to predator. predatory behavior the hunting of birds, mice and small reptiles by cats and the hunting and herding behavior of dogs, often facilitated in a pack. " pricing by larger firms. Under the bill, the superintendent would still set a rate, but companies could compete beneath that rate. The superintendent would then review submitted rates to see if they are fair or predatory. The setup See BIOS setup and install program. would assure that local agents get at least 80 percent of the commission, while national underwriters get 20 percent. "I would call it refereed competition," said Fred Nathan, Think New Mexico executive director, who has lobbied for reform for several years. "This will help tens of thousands of New Mexicans New Mexico Abbr. NM or N.M. or N.Mex. A state of the southwest United States on the Mexican border. It was admitted as the 47th state in 1912. buy a home or refinance a mortgage," Nathan added. Superintendent Morris J. Chavez welcomed the compromise while acknowledging it poses more work for him. His office regulates about 70 small title-insurance businesses in the state. "I don't think the title industry won or Think New Mexico won," he said. "I think the citizens of New Mexico won with this legislation." Negotiations took place over the last two weeks between Think New Mexico, the New Mexico Land Title Association, members of the Public Regulation Commission, Chavez and others. Ed Roibal, executive director of the land title association, said both sides gave some ground. "The sign of a good compromise is when both sides are a little unhappy with the outcome," Roibal said. No one spoke against the bill at Tuesday's hearing. Contact Doug Mattson at 986-3087 or dmattson@sfnewmexican.com. |
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