The Pennsylvania Department of Insurance has approved the Title Insurance Rating Bureau of Pennsylvania’s (“TIRBOP”) request for a new title insurance rate structure. The purpose of the new rate structure is to simplify calculation of title insurance rates in PA as well as provide an increase of title insurance rates. The current rate structure contains a basic rate with a variety of different discounts based on numerous criteria. The new rates are simplified and contain a Sale Rate and a Non-Sale Rate based on the type of transaction. For those involved with commercial transactions, take note to the fact that the rates are now set for every transaction, including those in excess of $30 Million Dollars.
Pennsylvania Title insurance rate changes will take effect July 1, 2012. All Good Faith Estimate (“GFE”) quotes generated by or for lenders for transactions intended to close on or after July 1, 2012 should reflect the new rates. If the old rate was quoted, but the closing does not occur before July 1, 2012, the new rate structure applies. If this situation occurs, this change should be considered a change in circumstances under RESPA, and the lender should have the ability to reissue the GFE with a change to the title insurance section.
In order to avoid confusion or delay of settlements, confirm with your lender how this circumstance will be addressed if settlement is delayed at the end of June and shifted into July. You may want to consider scheduling settlements several days prior to the end of June.
Pennsylvania’s title insurance rates have not been increased since 2002.
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