Constructive Changes Taken By Title Industry

November 5, 2007

The title insurance industry is finally taking positive steps to correct problems and overpricing that has been pervasive in the industry for many years. Working on recommendations by the Government Accountability Office (GAO), the title industry’s major association launched "The Title Industry Consumer Initiative." It details a five-pronged strategy designed to solve or mitigate current problems.

The initiative includes a consumer education program, the adoption of a "Principles of Fair Conduct," and a member education series on regulatory compliance and ethical standards. It also includes a plan for working more closely with state and federal regulators to ensure the title industry is meeting the needs of consumers.

"This sweeping initiative marks a significant milestone in our 100-year history," said Gregory Kosin, president of the American Land Title Association, creator of the initiative. "The title industry has been widely criticized over past years - some of it deserved. Unfortunately, these criticisms have caused some to question the value of title insurance. Our new initiative addresses the GAO’s recommendations on how the industry can improve. Historically, most consumers have relied on their real estate agent, attorney or lender to select their title company and are not always aware that they have a choice. Our new Web site helps consumers understand the process as well as their rights and choices concerning title insurance," Kosin said. The address of ALTA’s recently developed Web site is: www.homeclosing101.org/.

"When members of our industry engage in unlawful practices in order to gain business, they create an uneven playing field for everyone else," Kosin added. "Many of the regulatory bodies lack adequate enforcement resources and we believe that members of our industry are in the best position to recognize violations among their competitors."

source: Jim Woodard

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