Arrrggghhh...Another Title Company in Trouble

It seems like we can't get through one week without reading about a another title company in trouble with the law. When is the title industry going to get it? I tend to consider consumers as our customers and believe that we should provide them with the best service possible. It seems that too many title companies look at consumers as a piggy bank and will attempt to gouge them for as much money as possible.

Just a straight rip off

The latest news comes out of Balitmore, MD. Day Title in Baltimore has been shut because $2 million is missing from their escrow account. This news comes out of the Baltimore Sun and it provides another example of anti-consumer title companies using their position to rip off consumers for their own benefit. With the problems of the real estate industry hurting everyone you would think that title companies would try to change and become more consumer friendly. Too many title companies are short sighted though. Instead of changing their business model they decide they need to venture even further outside of the law. And once again consumers pay the price.

When will it change

I hope that title companies begin to wake up and start focusing on consumers but I fear it will take even more litigation. Some title companies have awakened and are starting to cater to consumers but not enough yet. Hopefully more and more title companies wake up and change their business models and stop ripping off consumers. There are a few out there and more pop up every day but as more and more companies face prosecution the tide may finally turn. Consumer friendly title insurance will become a reality when everyone realizes that ripping off consumers will cost more than it is worth.

Good Advice for Saving on Closing Costs but...

Kiplinger.com has a pretty good article about the proposed HUD RESPA reforms and some additional advice on how to save on closing costs even without the proposed changes. All in all they provide good advice but I wish they would have conducted a bit more research. If they had they could have presented more options for consumers to save on closing costs.

I know I am a bit biased

Yeah, I am biased but I don't believe they provided enough options related to title insurance. They mention Title Wizard and ALTA but there are other options out there. Title Wizard is for California only and ALTA is a purely informational site. It would have been nice if they would have provided some information about companies like myClosingSPACE.com who have built their business on offering the best value and service to consumers. Besides that there are great sources like Radical Title Talk, Source of Title Blog, TitleSuccess, and Title-Opoly which provide great information about title insurance for consumers.

I am glad Closing Costs are being discussed

Look, it is great that Kiplinger.com broached this subject to make consumers more aware of their options. Hopefully many do take their advice and conduct some research on their own. I just wish they were a bit more comprehensive in their research and offered more detailed information to arm consumers with greater knowledge about the options they have.

It's Title Insurance Lawsuit Time Again

So, my Google Alerts once again informed me of another lawsuit against some big title insurance underwriters. This lawsuit has been filed on behalf of consumers in Seattle and San Francisco by the law firm Hagens Berman Sobol Shapiro against Fidelity, First American, Chicago Title, and Old Republic. It seems to me that the title industry is unable to move away from the anti-consumer practices they are accustomed to and actually work for consumers.

According the release at Insurancenewsnet.com

"In each lawsuit the companies are accused of charging consumers duplicate reconveyance fees while the actual reconveyance is done by the consumer's prior lender and charged to consumers in their loan pay-offs. In some cases, the title companies try to justify these charges as "tracking" fees to ensure the reconveyance is complete -- but these "tracking" fees are generally three times higher than the rates available for "reconveyance tracking" services."

In the current downward cycle in the real estate industry you would think that title companies would try to become more consumer friendly but it appears that many are clinging to the old way of milking consumers for as much as they can. This needs to change. As more consumers get more information online they are becoming more educated and savvy. They are finding this information more and more and those who do not change and work with these consumers are going to pay the price. These consumers will begin to shop for title insurance and start making their own choice and taking control of the title process. And it is about time.

HUD-1 RESPA Reform Comments Due Tomorrow - May 13, 2008

The Housing & Urban Development (HUD) proposed RESPA reforms proposed in March of 2008 will cease accepting comments from industry professionals tomorrow, May 13, 2008. The proposed reforms are designed to increase transparency in the closing process and help consumers shop for title insurance and save on closing costs.

A copy of the proposed HUD reforms is available at myClosingSPACE.com. If you have the time please take a minute to look at the proposed changes and file your comment with HUD. These reforms would make the closing process more consumer friendly and we encourage consumers and real estate professionals to take advantage of this opportunity to help craft the changes to make them more consumer friendly.

Title Insurance Underwriters Hit Hard

Well, the hits keep coming for the real estate and title insurance industry. A recent report at Housing Wire shows that all of the major title insurance underwriters are experiencing a drop in revenue and income. Obviously with the downturn in the economy in general and the housing market in particular this is not surprising.

Hopefully things start to pick up soon because everyone is feeling the pinch but it will be interesting to see if title insurers begin moving towards a consumer friendly business model. On top of the benefits for consumers this would also allow title insurance companies to be less dependent on those in the real estate and mortgage industries. Consumers still need title insurance and it may be a better business decision to focus on working with consumers instead of working with real estate professionals and fleecing consumers.