Refunds loom for some homeowners

SANTA FE (KRQE) - New Mexicans who refinanced their homes in recent years may be owed refunds from the companies they paid to insure titles to their properties.

In 2009 the Legislature approved a bill that discounted title insurance for people who were refinancing their houses.

On Wednesday that was the subject of a hearing by the State Insurance Division in response to complaints that title companies have not been following the law.

Homeowners like Ron Gedrim say they've been overcharged.

"Why should I be giving $162 to a title company when they full well know it's not theirs in the first place?" Gedrim says. "That's essentially theft."

Gedrim says has owned his Albuquerque home for 35 years. In 2009 he refinanced to make some home improvements.

A couple years later he was looking over the paperwork and realized the company didn't follow the new law. He took the paperwork to the company, and it refunded his money.

He also talked to Fred Nathan of Think New Mexico , a nonpartisan political think tank, which did a little research. The group found out this wasn't an isolated incident that it was likely many New Mexico title companies did the same thing to their customers.

The Insurance Division hearing was called to figure out what exactly was going on. The two sides reached an agreement that will likely save homeowners hundreds of dollars.

"What this means is New Mexico homeowners will now pay less for title insurance when they go to refinance their mortgage," Nathan said. "New Mexico homeowners can use all the help they can get,"

At the hearing Think New Mexico and New Mexico Land and Title came up with an agreement. They will make sure title companies adhere to the new law and help refund money owed to previous customers.

The insurance superintendent is expected to rule in favor of that agreement in the next 30 days. Refunds will likely be anywhere from $100 to $500.

The only New Mexico title company that doesn't fall under the agreement is Fidelity National Title, but it will have to adhere to the ruling once the state insurance superintendent approves it.