The appellate court decision overturned a 2018 New York lower court ruling that annulled Insurance Regulation 208 in its entirety on the grounds that its provisions were arbitrary and capricious and that the regulation exceeded DFS’ regulatory authority in violation of separation of powers.

The appellate court affirmed two portions of the lower court’s annulment of Insurance Regulation 208. First, the appellate court agreed that there is no rational basis for DFS to impose an absolute ban on the collection of certain fees by in-house closing agents, while permitting independent closing agents to collect the same fees. Second, the appellate court also agreed that there is no rational basis for capping fees for certain ancillary searches at 200% of the out-of-pocket costs of the search.

Reliance Title Agency will remain compliant with any and all Regulations imposed by the DFS and will continue to provide updates as they materialize.

Click here for a copy of DFS Ruling by Justice Rokower’s..