Title insurance

The law, set to go into effect later this year, was introduced to prevent potential money laundering in all-cash purchases made by companies or trusts.

April was a mixed bag for title companies, executives said on earnings calls, but some are expecting a stronger market the rest of the year.

The increase in refinance originations in the fourth quarter trickled down to the title insurers, which reported year-over-year gains in new orders.

The state's insurance commissioner made the change following analysis of title industry profits and expenses in Texas provided by its stakeholders.

Premium volume increased by 5.3% year-over-year, while operating income was up, but industry expenses also rose in the third quarter, the American Land Title Association said.

Continued reductions by the Federal Reserve in short-term interest rates should benefit mortgage volume, and thus title insurance activity, Fitch Ratings said.

Three of the four largest title insurers were profitable in the third quarter; First American's loss should set it up for future gains, its execs said.

But the purchase business that brings in three times the fee size as refinancings will be the driver of the improvement for the publicly traded title underwriters.

The American Land Title Association, which represents the title insurance industry, argued that the program would not cut costs for those who really needed it.

This business, tied to the mortgage origination outlook, is becoming ly attractive for 2024, according to BTIG.