Opponents of active legislation in New York to create a state-run "public option" to compete with private title insurance have formed a group, the New York Taxpayers for Economic Justice.  The new group is planning to launch a state wide grass roots program to inform the public regarding the its views on the proposal's negative impact on taxpayers, jobs, and real estate transactions.

In a release, group members voiced their strong opposition to the proposal:

Steven Day, Senior Vice President, Fidelity National Title Group:  "Simply put, this proposal now being considered would endanger an entire industry, throw thousands of people out of work and place under a new and costly state bureaucracy the ability of men and women, corporations and investors to go to a real estate closing in a timely and efficient manner. This scheme is based on a fundamentally flawed understanding of the economics that drive Title Insurance and ignores the agents, underwriters, searchers, closers and attorneys who spend hours to determine title is valid before anyone invests a dime. Also ignored in this proposal is the role the industry plays in defending against fraud and the indemnification against loss or damage. This plan is repugnant to every taxpayer who believes in the strength of the private sector and wants less government and lower taxes... As anyone can tell you, real estate works in cycles and they are looking at the "boom years" of real estate closings and concluding they have stumbled onto the pot of gold. They aren't looking at when real estate falls off the table, and once you create a government bureaucracy, it will be indifferent to swings in the market. The taxpayer will be on the hook for the cost of supporting this enterprise when its source of revenue evaporates."

Adam Leitman Bailey, real estate attorney and Chair of the New York City Bar's Taskforce on Public Option Title Insurance:  "In an attempt to ensure that one of the pillars of American financial stability, the transfer of real estate, continues to be stable and unfettered, the City Bar's task force is working to defeat these dangerous bills."

Cliff Sondock, President, Land Use Institute:  "This proposal is the poster child of big government running amok. The idea of eliminating thousands of jobs in private business and creating another state agency is absolutely chilling. It cries out for economic justice. In addition, a state run title insurance industry would leave the New York real estate market substantially less competitive than other states, reducing residential and commercial property values across New York.  This proposal is so profoundly wrong that when the taxpayer understands the full implications they will hold those responsible, accountable."

Desmond Ryan, Executive Director, Association for a Better Long Island (ABLI):  "This proposal is being put forward based on false assumptions and fundamental fictions.  In an effort to find new dollars to counter the deficit, the strategy is for government to compete with and effectively displace an efficient, ethical, consumer driven insurance industry and replace it with a state bureaucracy. It is beyond belief and suggests that, if allowed to proceed, a variety of other industries regulated by the State of New York may also be at risk of tax supported government enterprise becoming a competitor."