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The U.S. Government Accountability Office (GAO) has issued their 2007 Title Insurance Report.
This year’s report further examines title insurance issues discussed in
GAO’s 2006 Preliminary Views and Issues for
Further Study. Last year’s study focused on the cost structures and common practices among agents in
the title industry and how these practices can be properly regulated. Additionally, most consumers have little
knowledge of the title market and consequently rely largely on agents, who are sometimes sole or co-owners of
title companies, to provide title insurance information. This procedure is usually problematic as the consumer benefits very little or not at all.
The 2007 report elaborated and provided suggestions and some regulatory issues surrounding efforts to solve some
of these problems. To read the report visit the GAO site. You can
also read an abstract of the report
here and the highlights of
the report here.
Below are some major points discussed in the report.
- The extent of competition and the reasonableness of prices that consumers pay for title insurance.
- The need for more transparency in the title insurance process.
- Consumers find it difficult to comparison shop for title insurance because it is an unfamiliar and small part of a larger transaction that most consumers do not want to disrupt or delay.
- Because consumers generally do not pick their title agent or insurer, title agents do not market to them but to the real estate and mortgage professionals who generally make the decision. This can create conflicts of interest if those making the referrals have a financial interest in the agent.
- Recent investigations by the Department of Housing and Urban Development (HUD) and state insurance regulators have identified instances of alleged illegal activities within the title industry that appeared to take advantage of consumers' vulnerability by compensating realtors, builders, and others for consumer referrals.
- Because of the involvement of both federal and state regulators, including multiple regulators at the state level, effective regulatory improvements will be a challenge and will require a coordinated effort among all involved.
myClosingSPACE.com proposed solution to GAO’s Investigation
myClosingSPACE.com has developed a business model that parallels what the GAO report recommends. We encourage consumers to shop around for the company offering the lowest rate which essentially saves them money. Our number one goal is to educate consumers about title insurance so they can make informed decisions when shopping for title insurance. We are the best in the industry because of our world class customer service, leading technology and our low rates.
myClosingSPACE.com’s business model is the exception in GAO’s findings. It is important for consumers to read these reports to gain a better understanding of the title market and how to avoid paying too much for title insurance by choosing a company that will save them money.
myClosingSPACE.com offers title insurance and closing services in New York, New Jersey, Pennsylvania, and Florida. We are also in the process of expanding our coverage areas.
If you need a quote or simply want to compare our prices please visit our website and get free title insurance quote. It’s fast and it’s easy.
Dream big. Shop Smart. myClosingSPACE.com, the smartest way to shop for title insurance.
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