State senate passes bill favoring the title insurance industry. Here’s what happens next

Bill claims Department Financial Services overstepped its authority by imposing new rules

New York /
Jun.June 20, 2018 04:30 PM

State Senator Marty Golden and the New York State Capitol in Albany (Credit: Wikipedia)

The New York State Senate  has passed another bill attacking strict new regulations on the title insurance industry.

The bill, sponsored by Sen. Marty Golden (R-Brooklyn), essentially says that the Department of Financial Services vastly overstepped its authority when it imposed new rules on the title insurance industry earlier this year. It states that the agency does not have the power to levy fees for “ancillary or discretionary non-insurance services” that title insurance companies provide.

DFS did not respond to a request for comment.

The Senate approved the bill on Wednesday. It will go to the Assembly next, although the chamber is not expected to act on it anytime soon. Assemblyman Kevin Cahill (D-Dutchess), chair of the insurance committee, previously told The Real Deal they were working on their own title insurance legislation that will likely not be ready until the next legislative session.

DFS levied new regulations on the title insurance industry earlier this year in the wake of an investigation finding that agents and companies spent millions of dollars on entertaining clients and ultimately charged this money back to consumers. The new rules ban companies from providing clients with meals and beverages, entertainment, vacations, outings and parties.

The title insurance industry has fought back hard against these regulations and is currently in the middle of a lawsuit over them against DFS. The suit argues that the rules are wreaking havoc on the industry and that DFS did not have the authority to implement them.

New York State Supreme Court Judge Eileen Rakower heard oral arguments for the lawsuit on Thursday and said she would issue a ruling on the case within 30 days.

Wednesday’s bill is not the first time the state Senate, which is effectively controlled by Republicans, has shown its support for the title insurance industry following the new regulations.

In January, the chamber unanimously passed a bill that would allow companies to resume taking clients out to lunch, buying them coffee or treating them to a round of golf. Members also included language in their proposed budget for fiscal year 2018-19 that would roll back some of the regulations.


Related Articles

arrow_forward_ios
From left: Assemblyperson Inez Dickens and Councilperson Kristin Richardson Jordan
Pol who killed Harlem project could face primary challenge
Pol who killed Harlem project could face primary challenge
U.S. Treasury Secretary Janet Yellen
NY gets more federal rent aid — but only 6% of need
NY gets more federal rent aid — but only 6% of need
Commissioner of the Division of Housing and Community Renewal's RuthAnne Visnauskas (Getty, NY Gov)
Rent stabilization complaints piling up at agency
Rent stabilization complaints piling up at agency
Suburbanites with pitchforks as two hands ripping building plans
Suburban Nimbys oppose more housing. Do they have a point?
Suburban Nimbys oppose more housing. Do they have a point?
Gale Brewer (Getty, Gale Brewer)
City takes aim at landlords’ empty retail space
City takes aim at landlords’ empty retail space
From left: Silverstein Properties' Larry Silverstein and New York City Councilmember Julie Won along with a rendering of Innovation QNS (Getty Images, Julie Won for City Council, Innovation QNS Official Site)
Silverstein’s Astoria megaproject ups affordable housing commitment
Silverstein’s Astoria megaproject ups affordable housing commitment
MR Property Builders' Rich Rauff and 45th Street between Pacific and Prospect Streets in Copiague (Getty Images, Google Maps, MR Property Builders)
Honey, they shrunk the housing: Long Island project withers
Honey, they shrunk the housing: Long Island project withers
Village of Lawrence mayor Alex Edelman (Facebook, Getty)
Shovels down! Hempstead Town halts development in two villages
Shovels down! Hempstead Town halts development in two villages
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...