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The Consumer Federation of America Testifies About the Title Insurance Industry

By , About.com Guide

Homes and Title Insurance

Homes and Title Insurance

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In April of 2006, J. Robert Hunter, the Director of Insurance of the Consumer Federation of America (CFA), testified before Congress on the title insurance industry. This testimony was also delivered on behalf of other consumer organizations. Here are the organizations involved:

  • Consumer Federation of America - a non-profit association of 300 organizations that, since 1968, has sought to advance the consumer interest through research, advocacy and education.
  • Center for Economic Justice - a non-profit organization that works to increase the availability, affordability and accessibility of insurance, credit, utilities, and other economic goods and services for low income and minority consumers.
  • Consumers Union - the nonprofit publisher of Consumer Reports magazine, is an organization created to provide consumers with information, education and counsel about goods, services, health, and personal finance; and to initiate and cooperate with individual and group efforts to maintain and enhance the quality of life for consumers. Consumers Union's income is solely derived from the sale of Consumer Reports, its other publications and from noncommercial contributions, grants and fees. Consumers Union's publications carry no advertising and receive no commercial support.
  • National Association of Consumer Advocates (NACA) - a non-profit corporation whose members are private and public sector attorneys, legal services attorneys, law professors, and law students, whose primary focus involves the protection and representation of consumers. NACA’s mission is to promote justice for all consumers.
  • National Consumer Law Center (NCLC) - a non-profit organization specializing in consumer issues on behalf of low-income people. NCLC works with thousands of legal services, government and private attorneys, as well as organizations, who represent low income and elderly individuals on consumer issues.
  • U.S. Public Interest Resource Group (PIRG) - serves as the federal lobbying office for the state Public Interest Research Groups, which are nonprofit, non-partisan public interest advocacy organizations.

Mr. Hunter's testimony began in part with this statement: "In 2005, consumers paid almost $17 billion in premiums for title insurance countrywide. Title insurance remains one of the most costly items at the closing of a real estate transaction, yet consumers poorly understand it."

The $17 billion in title policy premiums was roughly twice the amount paid in 2000, and four times the amount paid in 1995. Go to the next page for more information about the huge sums of money and high profits in the title insurance industry.

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