Ticor Title Insurance Company has turned title insurance on its head. Instead of viewing its product as helping a lender vet and insure deals, it is defending a claim made by a lender by turning the table and saying the lender shouldn't have made the loan in the first place. Unbelievable? You betcha. Now other title industry pundits are defending the actions (New York Law Journal 10/8/08 by Bagwell). Ticor's defense? While the deed in the chain of title was fraudulent (the prior owner was murdered) and Ticor did insure title, Countrywide should have known that fraud was possible since they bought the loan from an originator owned by a relative of the seller. So instead of being one the experts the lender may rely on to check out the property and insure the loan, Ticor takes the premium at closing and later says, Hey. It's your own fault. Wow. A few years ago the millions paid to top title salespeople in New York were revealed in unseemly litigation. Watch out title industry. Regulators across the country may start pointing the finger at you for contributing to the capital meltdown.
PartnerTom represents owners, operators and developers in the acquisition, financing, development, ground leasing, and sale of significant properties. His experience includes office towers, commercial condominiums, industrial ...