Massachusetts House Bill H1099

Massachusetts 2025-2026 Regular Session

• Introduced: 2/27/25
• Refer: 2/27/25

Caption

To reform title insurance

Impact

The impact of HB 1099 is significant as it modifies existing title insurance practices, potentially leading to lower costs for homeowners when refinancing. The bill aims to make refinancing financially accessible, which can encourage homeowners to take advantage of lower interest rates and improve their financial circumstances without the extra burden of a title insurance fee. Furthermore, it necessitates transparency in the insurance process by mandating written disclosures regarding costs. This could lead to more informed decisions by homeowners and promote competitive pricing within the title insurance market.

Summary

House Bill 1099 aims to reform the title insurance industry within Massachusetts by prohibiting lenders from charging borrowers title insurance fees when they refinance their mortgages. This legislation proposes the introduction of a new chapter in the General Laws, specifically titled the Title Insurance Law, which outlines the purpose, definitions, and requirements pertaining to title insurance and its processes. By preventing additional fees on refinancing, the bill seeks to provide financial relief to homeowners navigating the refinancing process, thereby promoting public welfare.

Contention

Despite its intended benefits, the bill could face contention from various stakeholders in the title insurance industry. Critics may argue that prohibiting lender's title insurance fees could undermine the financial stability of title insurance companies, potentially leading to higher costs in other areas or lower quality service. Additionally, there may be concerns about the implications for lenders who could be forced to absorb the costs of title insurance or pass them on to consumers in other forms. The discourse surrounding the bill likely will encompass discussions on balancing consumer protection with the economic realities of the title insurance market.