This website uses cookies to ensure you have the best experience. Learn more

Title Insurance Essay

2586 words - 11 pages

Title Insurance, an Industry UnshakenThe typical American dream is to own a home but who guarantees that my home is "my home". This is where the business model of a $30 billion industry known as Title Insurance begins. Insuring a title to a mortgage is performed with a litany of people: underwriters, title agents, abstractors, attorneys, real estate professional and appraisers. Currently, 92% of this industry is dominated by 4 Title Insurance companies: Chicago Title Insurance, Old Republic Title Insurance, Stewart Title Insurance and First American Title Insurance (see figure 1). In other words, the Title Insurance industry is an oligarchy of 4 companies protected against competition by the ...view middle of the document...

This marks an emphasis to maximize profit by increasing the volume of issued title policies.Title Insurance fundamentalsTitle insurance is a form of indemnity insurance predominantly found in the United States which insures against financial loss from defects in title to real property and from the invalidity or unenforceability of mortgage liens. Title insurance is principally a product developed and sold in the United States as a result of an alleged comparative deficiency of the U.S. land records laws. It is meant to protect an owner's or a lender's financial interest in real property against loss due to title defects, liens or other matters. It will defend against a lawsuit attacking the title as it is insured, or reimburse the insured for the actual monetary loss incurred, up to the dollar amount of insurance provided by the policy.-wikipediaFor most real estate purchase or refinance transactions, Title insurance costs represent approximately 1% of the total price of the mortgage and are usually the most expensive item on the settlement sheet. The rates for title insurance vary as a percentage of the mortgage and the ceiling rates are state regulated. In a traditional transaction a title agent will originate the transaction from a network of referral sources with lenders, home builders and real estate agents. The title agent will then work with an underwriter, at a title insurance company, to complete the process of guaranteeing that the property is clear of liens and encumbrances. If the property is clear then the title agent will continue to work with the title insurance company for the closing process. In the closing a process, an attorney's role is to issue the title policy. Once the closing process is complete the title agent and title insurance split the proceeds for the title insurance portion with a ratio of 70-80% for the Title Agent and 20-30% for the title insurance company. Title polices may cost as much as $3,000 on large mortgages. From the Title insurance company prospective, an individual title policy returns a very low margin of profit after various fees have been deducted. It is with a high volume of transactions along with a low loss ratio that their profit is realized.Rocking the Title Insurance boatIn the last few years the Title Insurance industry has had radical change in mindset due to a Stamford based company named Entitle Direct led by CEO Tim Dwyer. Entitle Direct purchased an Ohio based Guardian Title Insurance and challenged the incumbent Title Insurance companies with a "Direct to Consumer Model". The Direct to consumer model implements the following changes to the traditional Title Insurance business model:Avoids Title agent costs by marketing and driving consumers to its website (www.EntitleDirect.com) . In effect cutting out the Title Agent from the transaction.Facilitates with the closing process by providing their own experts, underwriters, attorneys etcUses the internet marketing and social media to combat...

Other Essays Like Title Insurance

Market Positioning Strategies on Competition in Insurance Industry:

1431 words - 6 pages KWAME NKRUMAH UNIVERSITY OF SCIENCE AND TECHNOLOGY, KUMASI COLLEGE OF ARTS AND SOCIAL SCIENCES SCHOOL OF BUSINESS DEPARTMENT OF MARKETING AND CORPORATE STRATEGY MBA DISSERTATION TITLE MARKET POSITIONING STRATEGY AND COMPETITION IN THE INSURANCE INDUSTRY IN GHANA: A CASE STUDY OF STATE INSURANCE COMPANY LIMITED’S SUSTAINED COMPETITIVE ADVANTAGE – KUMASI BY EMMANUEL KWATIAH GYAMPOH SUPERVISOR: DR

Framning Memo Essay

804 words - 4 pages … had to surrender her health insurance, and was forced to hang her fortunes on chance”8 White Flag of Surrender Control Martyr Obama worked to pass this law because it was the right thing to do Christ on the Cross “It should be pretty clear by now that I didn’t do this because it’s good politics. I did it because it was good for the country”4 Divisive debate in Congress Responsibility Opponents of Individual Mandate Title Core

Assignment

681 words - 3 pages Name of the faculty member: Aashish Sharma Course No: MGT631 Course Title: Customer Relationship Management Class: MBA/BBA Semester: IV/VI Section: Specialization Batch: 2010-12 Max. Marks: 20 Date of Allotment: 27th Feb 2012 Date of Submission: 22nd March 2012 Important: To be read before filling up the Plan format. |S.No |Reg No |Objectives of Academic |Topic

Different Hopes an Dreams

734 words - 3 pages consistent throughout the whole play, despite the number of set-backs the family encounter on their journey to realising these dreams. This is represented by Mama’s plant, which she continues to care for and nurture throughout the play, which is symbolic of the way Mama never gives up on her dreams. This concept relates to the title of the play in the way that, at the start of the play, the insurance check received by the family meant that there was

Health Care

950 words - 4 pages Title: Why the Current Health Care System Is In Turmoil Name: Course: Institution: Date: The US health system is in turmoil mostly because of two major issues first being that the cost of treatment is very high and the second factor that is affecting the health system being that most US citizens lack medical coverage and thus are unable to get access to good health care services. These two factors have put the current health care system in

Retirement Planning Example

4941 words - 20 pages determine appropriate ownership of each asset and the necessary title transfers and cash flow impacts. Upon completion, we may then determine the death expenses and potential estate taxes. Insurance Insurance is a form of risk management, primarily used to protect against potential losses. In exchange for an insurance premium, some of the risk of loss is transferred to the insurance company

Acc/225 Week 2 Assignment

840 words - 4 pages Week 2 “Preparing Journal Entries & Trial Balances” ACC225 Exercise 2-4 Date Account Title PR Debit Credit Aug 1 Cash 101 $7,500 Photography Equipment 165 $35,500 H. Paris, Capital 301 $43,000 Insurance 114 $3,000 Aug 5 Office Supplies 240 $1,400 Aug 20 Photography Fees Earned 623 $2,650 Aug 31 Utilities 275 $875 Exercise 2-5 Debit Credit Cash $7,500

Health Care Cost

3244 words - 13 pages a portion of wages lost due to disability and (2) payment for all or part of the medical care necessary. Workers compensation can be underwritten by a private insurance company, a state government insurance fund, or a corporate contingency fund. Welfare Medicine is a public assistance or welfare medicine that is sponsored by a plethora of federal, state, and local government programs, but the most far-reaching program is Medicaid (Title XIX of

To Anonymous Below

586 words - 3 pages School Risk Retention Trust, Inc. (Trust). A.2 The Trust wishes to make the services of an Authorized Insurance Representative available to members of the Trust. A.3 The District recognizes that the services of an Authorized Insurance Representative will be helpful in the management of its risk, and wishes to contract with the Trust for these services in the form of additional administrative duties. B. SCOPE OF WORK: In

Eeo and Ada

578 words - 3 pages entities. This section covers areas like motels, hotels, restaurants and any other place that the general public can go to or travel to. Title four covers Telecommunications; this section is covered by the states programs and makes devices available to the hearing-impaired and speech-impaired individuals this is mandated by the FCC. Now title five is insurance for titles one through four to make sure that this Act shall not be construed to

Location Location Location

1469 words - 6 pages property, environmental regulations and issues and insurance. Legal aspects of acquiring, holding and disposing of Real property in North Carolina Sole proprietors, partnerships, limited liability companies and even corporations can be able to acquire, hold or even transfer title to real property in the same manner as individuals. Real property that is surplus to the needs of the State and Federal government may be conveyed to eligible

Related Papers

Life Insurance Essay

4269 words - 18 pages , 1998, (for short "the Rules") claiming an amount of Rs. 9,44,551/- with interest from the United India Insurance Company Limited and also Rs. 10,94,404/- with interest from the National Insurance Company Limited. Insurance Ombudsman, Kochi dismissed both the complaints stating as follows: "On an examination of the allegations in the complaint and the cause title of the complaint, I find that the insured is a company registered under the

Social And Economic Benefits Of Insurance

3150 words - 13 pages Name – Olagunju Tahir Matric No. – 139022111 Course Title – Theory of Risk and Insurance Topic - Social and Economic benefits of Insurance. Insurance occupies a critical position in any developing economy yet insurance penetration remains abysmally low in Nigeria. Insurance penetration is measured by Total Premium to Gross Domestic Product. Nigeria is ranked 85th in terms of global Insurance Density Premium Per Capita (IDPPC) while South

The History And Evolution Of Health Care Economics

1042 words - 5 pages as Title XVII and Title XIX of the Social Securities Act (“Medicare“, 2009). The Social Securities Act was created to protect the less fortunate and the elderly with amendments added in future years to protect the handicapped and those with End Stage Renal Disease (ESRD), however as Americans live longer lives, the costs for all health insurance including Medicare continues to rise. Due to the continuous demand for health, 16.8 % accounts

Obama Care Impact On Small Business Employers

5641 words - 23 pages exempted from the mandate penalty in cases where the cheapest health insurance that is available is more than 8% of their income. [pic] Sections of the Affordable Care Act The Affordable Care Act consists of 10 sections: title I through title X. Title I addresses the issues of the affordability and quality of healthcare. Title II concerns the role of public programs such as Medicaid and Medicare and provides states with