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Title Insurance Premium Volume Neared $6B in Q1

According to the American Land Title Association (ALTA), the title insurance industry generated $5.89 billion in premiums during Q1 of 2022, compared to $5.68 billion year-over-year, as found in ALTA's latest Market Share Analysis.

"A strong purchase market and continued home appreciation helped offset ongoing contraction in refinance volume to help drive the 3.6% premium volume increase compared to the first quarter of 2021," said ALTA CEO Diane Tomb. "While substantially higher mortgage rates will constrain the housing market, title professionals will continue to facilitate the safe and secure transfer of real estate, and they remain dedicated to helping all consumers achieve the American Dream and sustain homeownership."

Regionally, two of the top five states that experienced gains nationally experienced year-over-year declines in volume, as California and Pennsylvania both saw huge gains, but losses over 2021’s Q1 totals.

The top five states that recorded the highest amounts of title insurance volume included:

  • Texas at $896,225,264, a 30.6% year-over-year increase
  • Florida at $696,625,101, a 22.3% year-over-year increase
  • California at $531,026,826, a 17.4% year-over-year decline
  • New York at $362,720,612, a 15.9% year-over-year increase
  • Pennsylvania at $246,758,915, a 9.3% year-over-year decline

In terms of the industry overall, the top 10 individual underwriters by market share were from the following companies:

Overall in the industry, total operating income also was up 3.6%, while operating expenses were up 40.0%, and loss and loss adjustment expenses were up 13.8%, all year-over-year from Q1 of 2022 to Q1 of 2021. This resulted in net operating income of $508.1 million, compared to $489.9 million for Q1 of 2021. The industry paid $132.7 million in claims during Q1, up from $107.1 million during the same period a year ago.

"The title industry employs nearly 145,000 people and it's these skilled professionals who protect homeowners and lenders from problems that could arise if not for the work they do in advance of closings—problems that could be detrimental to a homeowner's credit and lender's investment," Tomb said. "The surge in interest rates will impact housing affordability as prospective monthly payments on a typical new mortgage will climb dramatically. While the overall expense to purchase a home has increased significantly the past few years, the cost of title insurance coverage has decreased 7% since 2004. The title industry will continue to innovate and develop products that best serve and protect its customers."

About Author: Eric C. Peck

Eric C. Peck has 20-plus years’ experience covering the mortgage industry, he most recently served as Editor-in-Chief for The Mortgage Press and National Mortgage Professional Magazine. Peck graduated from the New York Institute of Technology where he received his B.A. in Communication Arts/Media. After graduating, he began his professional career with Videography Magazine before landing in the mortgage space. Peck has edited three published books and has served as Copy Editor for Entrepreneur.com.
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