The high cost of title insurance is spurring some politicians and government agencies nationwide to take actions to control those costs. For example, Insurance Commissioner John Garamendi in California has proposed new regulations that could significantly lower the amount consumers pay title insurers. The proposed regulations would set interim maximum rates based on each company's rates in year 2000, before the sharp rise in home prices.

If implemented, this regulation would result in an immediate 23 percent reduction in title insurance rates for a home purchase, a 16 percent reduction in the cost of title policies for refinancing, and a 27 percent decrease in the cost of escrow services provided through escrow companies controlled by title insurers. A study by Garamendi's office found that little competition exists in the title insurance industry. ?It's so rife with illegal kickbacks and gratuities that homebuyers and those seeking refinance mortgages must pay excessively high premiums,? Garamendi said.

The new regulations could save individual home buyers thousands of dollars on title insurance and escrow costs, he noted. It would also help put an end to illegal kickbacks, he added. ?We have found company after company that were giving these illegal kickbacks to drum up business.?