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As more and more data comes in, the real estate pullback is now becoming evident in real estate-related markets which are now posting lower numbers, as is the case with title insurance, as American Land Title Association (ALTA) are reporting numbers are down 20.6% in the third quarter of 2022 compared to number posted a year earlier.
All in all, the title insurance industry generated $5.4 billion in title insurance premiums.
"Results of the latest quarter reflect headwinds from higher interest rates that have resulted in a significant drop in home sales and mortgage refinances the past several quarters," said Diane Tomb, ALTA's chief executive officer. "While the housing market remains in a cyclical downturn, ALTA members will continue to deliver a valuable service and insurance product. Title insurance is the best option to reduce risk and protect property rights for consumers and lenders."
Last year, during the third quarter of 2021, total operating income for the industry was down 19.6% and expenses were down 18.8%, but loss and loss adjustments were up 30%. Net income was $342.9 million during the latest quarter compared to $616.3 million during Q3 2021. Results, however, are the fourth highest third quarter in the last 13 years.
Through the first three quarters of 2022, title insurance premium volume has been down 7.7% ($17.6 billion) compared to the first nine months of 2021 ($19.0 billion). The title industry has paid $438.7 million in claims during the first nine months of 2022. This is up from $352.5 million in claims paid during the same period a year ago.
The top five states include:
- Top 5 States
- Texas, $863.7 million (-8.5%)
- Florida, $689.9 million (-5.5%)
- California, $423.6 million (-46.3%)
- New York, $339.6 million (-8.0%)
- Pennsylvania, $220.1 million (-25.5%)
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