Oxley requests GAO title insurance investigation.

Rep. Michael Oxley (R-Ohio), House Financial Services Committee chairman, has requested that the Government Accountability Office (GAO) conduct a study of the title insurance industry.

The letter to GAO Comptroller General David M. Walker, dated Jan. 24 and released to the public Feb. 22, requested an overall review of the title insurance marketplace and an analysis of how title insurers conduct business with lenders, real estate agents, home builders and consumers.

"The Financial Services Committee is concerned about recent investigations by state regulators revealing that title companies have made payments for referrals to developers, mortgage lenders and real estate agents in violation of the Real Estate Settlement Procedures Act (RESPA)," wrote Oxley. "Questions about the need and price of title insurance are of particular concern to those consumers who are required to buy a new policy every time they refinance their mortgage loans, a common practice in this time of historically low interest rates."

Oxley requested GAO examine and address three main questions:

* Analyze the title insurance market to determine what factors impact the price and product, including associated claims, title search, overhead and marketing costs.

* Determine the number of title insurers, their market share, how the product is marketed and sold, the extent to which title insurance is a nationwide business and to what extent consumers benefit from a competitive title insurance marketplace.

* Examine the relationship among title insurers, real estate agents, lenders and home builders for anticompetitive practices and investigate potential barriers to entry in the market.