New York appeals court reinstates title insurance regs (again)

This is the latest back and forth on the rules banning the industry from wining and dining clients

New York /
Jan.January 02, 2020 11:52 AM
The state appeals court has reinstated rules that ban the title insurance industry from wining and dining its clients. (Credit: iStock)

The state appeals court has reinstated rules that ban the title insurance industry from wining and dining its clients. (Credit: iStock)

The relentless back and forth on the legality of New York’s strict title insurance regulations continues.

The state appeals court has reinstated rules that ban the title insurance industry from wining and dining its clients. And the court’s decision once again comes in response to a ruling from New York Supreme Court Judge Eileen Rakower, who had overturned the regulations in their entirety.

If all this sounds familiar, that’s because it is.

The state Department of Financial Services rolled out its strict regulations on the industry at the beginning of 2018, banning firms from treating their clients to services like meals and entertainment; the New York State Land Title Association filed a petition challenging them soon after. Rakower annulled the regulations during the summer of 2018, describing them as “absurd,” but DFS appealed, and the appeals court reinstated the vast majority of the rules in January 2019.

However, the Appellate Division remanded some aspects of its case back to the Supreme Court, where Rakower once again annulled the entire law in a ruling this past summer. DFS appealed again, and the Appellate Division sided with them again in its Dec. 26 ruling.

Rakower described the regulations as “impermissibly vague” in her ruling over the summer, but the Appellate Division disagreed in its reversal, saying that they are clear enough for “‘a person of ordinary intelligence’” to understand.

Mylan Denerstein, attorney for the Land Title Association, did not respond to a request for comment. The group said in a statement that it is “currently reviewing the latest court decision and is determining next steps.”

DFS released a statement on Thursday hailing the latest decision as “a victory for New York consumers.”

“The regulation upheld by the court includes important prohibitions on the use of unnecessarily expensive and lavish gifts in exchange for business referrals, which for too many years resulted in consumers paying higher closing costs,” the agency said. “The ruling enables DFS to continue to exercise responsible supervision of New York’s title insurance industry.”


Related Articles

arrow_forward_ios
Gary Barnett has another problem at UES site: a stabilized tenant
Gary Barnett has another problem at UES site: a stabilized tenant
Gary Barnett has another problem at UES site: a stabilized tenant
A closer look at Compass’ trail of litigation over its business tactics
A closer look at Compass’ trail of litigation over its business tactics
A closer look at Compass’ trail of litigation over its business tactics
From left: Mathew Chapman, Michele Kowal, Maryanne Elsaesser and Rhonda Battifarano (NJ Home Navigators)
Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
Christie’s NJ affiliate claims “big win” in agent-poaching dispute with Compass
From left: Alvin Dworman, 155 East 55th Street, 65 West 55th Street, and 210 East 58th Street (Getty, Google Maps)
Alvin Dworman Sells 3 Manhattan Buildings for $65M
Alvin Dworman Sells 3 Manhattan Buildings for $65M
(Illustration by Kevin Rebong for The Real Deal)
Years ago he took a bribe. Now he can’t get a license
Years ago he took a bribe. Now he can’t get a license
Fair Housing Justice Center President Bernhard Blythe and Eastchester (Blythe Designs, Getty)
Discrimination suit prompts suburb to change Section 8 housing policy
Discrimination suit prompts suburb to change Section 8 housing policy
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
The Closing: Janice Mac Avoy
President Joe Biden (Getty/Illustration by Kevin Rebong for The Real Deal)
Dear Mr. President: Landlords urge Biden to let eviction ban expire
Dear Mr. President: Landlords urge Biden to let eviction ban expire
arrow_forward_ios

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

Loading...