Last week, I had the opportunity to speak on a panel at a title industry conference alongside a lender and a transaction coordination company owner. The audience? Title company escrow officers, assistants, and business development pros — the people who keep our real estate deals together behind the scenes.
And what I heard from them was frustrating but honest.
Agents Are Still Treating Title Companies Like Their Personal Sponsors
Too many agents are leaning on title companies to “help” with their marketing — covering bar tabs, client appreciation events, or “co-hosting” parties.
The problem? Most of those requests violate the Texas Department of Insurance’s Procedural Rule P-53.
Under P-53, title companies are prohibited from giving anything of value — money, food, gifts, event sponsorships, or services — to anyone in exchange for title business. It’s designed to protect consumers and ensure fair competition among title agencies.
So when agents push for that kind of support, they’re putting people’s licenses and livelihoods on the line.
And here’s the kicker: the companies that follow the rules are losing business to the ones that don’t.
Now, TDI Wants to Cut Title Premium Rates by 6.2%
As if the industry weren’t under enough pressure, the Texas Department of Insurance (TDI) recently proposed a 6.2% reduction in title insurance premium rates, set to take effect March 1, 2026.
On the surface, that might sound like a win for consumers. But anyone who actually works in this business knows better.
Title companies are already stretched thin by lower transaction volumes, rising compliance costs, and inflation. A 6.2% rate cut could wipe out smaller, independent title offices that serve local markets — especially in rural areas where the margins are already razor thin.
The result?
Less competition, fewer local options, slower service, and an industry dominated by large, out-of-state firms.
And for consumers? The savings would amount to maybe a couple hundred dollars — hardly enough to make housing more affordable or drive additional home sales.
This Isn’t About Lower Prices — It’s About Fair Play
The Texas real estate ecosystem works best when it’s competitive, ethical, and local. That means:
Agents respecting P-53 and not asking title companies to break the law.
Title companies standing firm on compliance and professionalism.
And TDI ensuring that rate changes don’t crush the independent businesses that keep competition alive.
When regulators make sweeping decisions without considering real-world impact, they don’t make homebuying more affordable — they just make it harder for small businesses to survive.
Here’s How You Can Make Your Voice Heard
The Texas Department of Insurance is accepting written comments until December 17, 2025.
📧 Email: [email protected]
📝 Subject line: Docket No. 2858 – Title Insurance Rate Hearing Comments
If you care about keeping Texas real estate competitive, take five minutes and send your thoughts. Tell TDI that Texas needs more competition, not fewer title companies.
Final Thought
The people working in our title companies aren’t just paper-pushers — they’re deal-savers. They’re the ones clearing title defects, fixing problems, and making sure buyers and sellers actually get to closing day.
They deserve respect, partnership, and policies that keep their businesses viable.
Because bigger isn’t always better — and if we don’t protect small title companies now, we may not have them later.
