Hearings Planned on Title Insurance Costs

California Insurance Commission John Garamendi said Thursday that he would hold hearings in January as a first step toward forcing title insurers to cut rates.

Garamendi accused a handful of title companies with creating an uncompetitive market, especially in Southern California. A new study shows escrow fees are twice as high in Los Angeles as in San Francisco, he said.

The title insurance industry called Garamendi’s threat politically motivated. He is running for lieutenant governor in 2006.

Lawrence Green of the California Land Title Assn. said the study was self-serving. The state’s rates for title insurance, required by lenders when property is purchased, are below the national average, Green said.

-- Marc Lifsher