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A MEMORIAL

REQUESTING THE PUBLIC REGULATION COMMISSION TO INVESTIGATE THE

PRACTICES OF THE REAL ESTATE TITLE INSURANCE INDUSTRY AND MAKE

RECOMMENDATIONS TO IMPROVE CONSUMER PROTECTION, EDUCATION AND

AWARENESS.

WHEREAS, the intent of the legislature in enacting the

New Mexico Title Insurance Law was, in part, that the business

of title insurance be totally regulated by the state to

provide for the protection of consumers and purchasers of

title insurance policies; and

WHEREAS, the New Mexico Title Insurance Law was enacted

more than twenty years ago in 1985; and

WHEREAS, the Title Insurance Guaranty Act was enacted in

1999 by Laws 1999, Chapter 60; and

WHEREAS, Laws 1999, Chapter 60 also amended the New

Mexico Title Insurance Law by limiting the duties of title

insurers only to title insurers; and

WHEREAS, concern has arisen that a property owner's

remedies arising from defects in title have been unreasonably

limited by the 1999 amendment to Section 59A-30-11 NMSA 1978;

and

WHEREAS, concern has arisen that property owners may

have an inadequate understanding of the benefits to purchasers

of real property of title insurance policies; and

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WHEREAS, concern has arisen about requirements of some

lenders that a property owner purchase a new title insurance

policy when refinancing property already owned by that

property owner;

NOW, THEREFORE, BE IT RESOLVED BY THE HOUSE OF

REPRESENTATIVES OF THE STATE OF NEW MEXICO that the public

regulation commission be requested to undertake a review of

laws regarding title insurance in New Mexico and to make

recommendations regarding the possible need for better

protection than is currently afforded pursuant to state law to

property owners by title insurance and actions that may be

taken to increase the understanding and awareness of property

owners regarding title insurance; and

BE IT FURTHER RESOLVED that the public regulation

commission present its findings and recommendations to the

appropriate interim legislative committees by October 30,

2007; and

BE IT FURTHER RESOLVED that a copy of this memorial be

transmitted to the chair of the public regulation commission.