Title Insurance Overcharges on Home Refinances

Many people have refinanced their homes in the past few years. With low interest rates, it has seemed to be an opportune time for customers to take advantage of the market. However, when a person refinances their home, many states require companies to lower their rates for fees associated with a home mortgage.

For example, title insurers in some states may only charge a specific, regulated rate for title insurance. When a consumer refinances their home, that rate may have to be discounted. However, many title insurance companies are not discounting their rate. Overcharging consumers on title fees for home refinances may be a violation of state laws.

A recent lawsuit filed in Pennsylvania against Chicago Title Insurance Company, a member of Pennsylvania's "Title Insurance Rating Bureau of Pennsylvania," alleges similar overcharges in violation of that state's laws. The complaint contends that Chicago Title is supposed to give a 10-30% discount to people refinancing their home, but is instead charging their full basic rate.

Chicago Title may not be alone in overcharging for title insurance. If you have recently refinanced your home and you paid for title insurance as part of your loan, we may be able to help recover any overcharges you paid which exceed the allowed rate. To find out more, please contact us for a free consultation.