In its challenge to the new rules, NYSLTA argued the move would hurt the industry and lead to small businesses closing and people losing their jobs.Īccording to the brief prepared by Gibson Dunn, the move “was not justified by any record of misconduct by the industry.” The regulation also would have imposed an across-the-board, industry-wide five percent rate reduction on title insurance premiums, forbid certain title insurance agents from receiving pick-up fees and gratuities.Īccording to the DFS, “Consumers are often encouraged at the closing to pay gratuities and required to pay pick-up fees to title insurance closers.” The NYSLTA went to court claiming the DFS regulations would have barred the entire title insurance industry in New York State from engaging in what it called “traditional industry marketing practices.” “These sweeping regulations exceeded the scope of DFS’s statutory authority and should never have been adopted.” “The Court’s thorough decision was very clear,” said Mylan Denerstein, a partner at Gibson Dunn, who represented the New York State Land Title Association (NYSLTA) in its challenge of the DFS regulation. Manhattan Supreme Court last week overturned the state Department of Financial Services regulation that had banned title companies from entertaining clients with lunches, vacations and parties later billed to customers as “marketing costs.” MYLAN DENERSTEIN New Yorkʼs title industry has been given the green light to party on.
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