Governor Moves To Regulate Title Insurers

January 22, 2014 at 7:58 am Leave a comment

If Governor Cuomo has his way, New York State will soon be requiring title insurers to be licensed for the first time. The proposal, which was included in the Governor’s budget package released yesterday, could impact your credit union if, for example, you have an ongoing relationship with a title insurance company. It includes a new, more detailed disclosure that would have to be provided to your members. You can find the language related to this proposal in Part V of the Article VII language bill for the Transportation, Economic Development and Environmental Conservation budget (TED).

The proposal got a surprising amount of attention yesterday. It was highlighted in yesterday’s New York Post and by New York State’s Budget Director Bob Megna. The administration is highlighting the proposal as a way of clamping down on New York’s closing costs, which are among the most expensive in the nation. I’m not quite sure if the proposal will have the dramatic impact on closing expenses that the Governor is suggesting. However, it makes little sense on a policy level not to license title insurers.

Now, for a little inside baseball. Because the proposal was included as part of the Governor’s spending plan, the Legislature won’t get an opportunity to take an up or down vote on it. Instead, it will be amended, if at all, in the context of budget negotiations. A series of court cases dating back to the Pataki Administration have given the Executive Branch enormous power to force the legislature to adopt programmatic bills, which previously had been considered outside the budget process. The Governor noted yesterday that this year’s budget negotiations may be a bit more contentious than his previous submissions because of the number of legislative proposals integrated into the spending plan. Still, we are in an election year and I would strongly suspect that we see another budget pass by the April 1, 2014 deadline.

By the way, it’s cold out there. Stay warm.

Entry filed under: General, New York State, Political. Tags: , , , .

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Authored By:

Henry Meier, Esq., General Counsel, New York Credit Union Association.

The views Henry expresses are Henry’s alone and do not necessarily reflect the views of the Association.

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