Title Insurance Reform

New Mexico – New state regulations could help New Mexicans save money in closing costs when they buy or refinance a home.

The rules establish procedures for title insurance companies to offer rates lower than a price ceiling set by the state superintendent of insurance. The regulations took effect last week.

Title insurance is part of the closing costs people pay when buying or refinancing a home. The insurance offers protection against losses if there's a problem with the property's ownership records.

Fred Nathan, executive director of Think New Mexico, an independent think tank, said the regulations carry out a 2009 law providing for price competition in title insurance rates.

Copyright 2011 The Associated Press.