Thursday, December 27, 2007

CORRUPTION IN THE TITLE INSURANCE INDUSTRY

The business of title insurance moves in tandem with mortgage lending and what we are experiencing is a parallel version of the subprime mortgage collapse. It simply isn't being noticed because it's not on TV.

5 comments:

Doug Miller said...

Its too bad there isn't more attention on exactly that issue Diane. In fact, title companies used to be one of the most important checks and balances in the real estate transaction. Now that most of the title companies are owned by One Stop Robbing companies, that check is gone and those companies will close anything their parent company tells them to close. If the conflicts of interest had not been encouraged and the checks and balances secured, the current real estate crisis would never have happened. It is the ultimate source of the problem, but no one is looking hard enough. Or could it be that the hundreds of billions of dollars of power that depend upon those conflicts of interest are in the way?

Diane Cipa, The Closing Specialists® said...

Well, we're seeing what those hundreds of billions bought, now aren't we?

Anonymous said...

Interesting news from FNF land. Employees received a nationwide memo on 12/26/07 that announced FNF was ending all matching 401K contributions for employees. Is this happening to other title employees?

Posted by an escrow officer in Oregon

Diane Cipa, The Closing Specialists® said...

Anon: Wow, that's very interesting. I'm not surprised to hear a title company cutting backk to survive but I guess I am surprised to hear its FNF.

Professor Shays said...

FNF stock has lost 50% of its value in the past 7 months. At this rate of devaluation I'm thinking there is going to be real trouble in Foley Land come this summer. Expect consolidation of Fidelity, Chicago, and Ticor operations as market conditions worsen.

Daniel