Cleaning up Title Insurance

What will it take to clean up the image of the title insurance industry? Every time I see a new article about title insurance it seems to be negative. Whether these negative stories represent only a small percentage of the industry or not they are still bad for everyone. Since most consumers do not know anything about title insurance when they see these stories they assume that the whole industry is corrupt. What can be done to combat this?
One way is to speak out against bad business practices and discuss how honest title insurance professionals work. Diane Cipa and Ed Rybczynski are leading the way in this area. They are constantly offering industry insights and ways to improve the title industry for professionals and consumers.
What are some other ways to improve the image of the title industry as well as make it more consumer friendly overall? Like I said most title insurance professionals are not corrupt but those that are make everyone look bad and those that are good need to fight back to improve the way the public looks at them.

Why should consumers want to purchase their own title insurance?

This question has come up quite a bit when I talk to industry insiders. Most are accustomed to the traditional business to business model of title insurance and they don't understand how consumers would benefit by going direct. On the surface one would think consumers would be happy to let industry professionals take care of this but when you scratch the surface and go a little deeper you would see that it makes more sense to the consumer to purchase their own title insurance.
Think about it for a minute. Buying a home is probably the single largest investment any consumer will make. It only makes sense to learn as much about everything involved when making an investment this large. Most consumers already conduct a lot of research on mortgages and real estate but they neglect to look more deeply into title insurance and closing costs. They leave this up to their realtor or mortgage broker. Some may say that this is just one less thing they have to worry about BUT when you can save literally $100's or even $1000's on closing costs it only makes sense to look into it yourself. You want to make the most educated decision on an investment this large and title insurance is a huge part of that investment. By educating themselves on how title insurance works and different ways to save money consumers can make a much wiser investment of their money.
There is plenty of information available on title insurance and the educated consumer will look around and find the provider that they are comfortable with. By doing this they will save money and alleviate a lot of stress involved in the closing process. An educated consumer can make better decisions and be more involved in the closing process and this is a good thing for everyone involved.

Title Insurance Companies Don't Like Consumers

Do title insurance companies actually like consumers? It sure does not seem like they do. Let's face it most consumers are unaware of what title insurance is, how it works, and why it is necessary. Part of the reason for that is because that is how title companies want it. The prefer to work with real estate professionals and ignore consumers, except when it comes time to take their money. They like the fact that their business practices are not known to consumers. The reason for this is many of the practices they utilize are in fact illegal and anti-consumer. Now not all title companies are like this. Many truly care about providing good service to everyone involved in the process but there are many more who will happily overcharge consumers so they can make more money.

Right now the New Jersey Senate has a proposed bill (Senate Bill 2229) that would allow title insurance companies to offer lower rates to consumers. It is designed to increase competition in the industry and provide consumers more choice in who they use for title insurance. Many title insurance companies are opposed to this bill and they are working their hardest to keep it from passing. They are afraid that this will further expose their shady business practices and cut into their overinflated profit level (achieved by their anti-consumer practices). myClosingSPACE is in favor of the bill because they see the consumer as their direct customer. The prospect of real competition in the title industry is long overdue and this bill would bring some real choice to consumers. After all, consumers are the ones buying the title insurance and they have a right to find a competent provider who has their best interest at heart, not the traditional company who could not care less about their needs. Visit myClosingSPACE to find out more about Senate Bill 2229 in New Jersey and if you agree with it go to the support page and send your support to the leaders in New Jersey who will be deciding the outcome.