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Title Insurers Drop Demands For Indemnifications From Lenders

By
Services for Real Estate Pros with TheHousingGuru.com

Title Insurers Drop Demands For Indemnifications From Lenders

A story in the Washington Post reports that three major title companies have agreed to drop their demands for written indemnifications from lenders re-selling their REO inventory. While the change is not yet universal—Fidelity National continues to demand an agreement from Bank of America—it appears that the insurers seem to believe the impact of the “foreclosure scandal” will be contained.

 

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Comments (4)

Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

That is interesting.  I believed that the title insurers would certainly be up in arms given the scope of their exposure.

Oct 29, 2010 01:44 AM
Lenn Harley
Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate - Leesburg, VA
Real Estate Broker - Virginia & Maryland

HA!                                  Lenn

Oct 29, 2010 01:46 AM
Jay Markanich
Jay Markanich Real Estate Inspections, LLC - Bristow, VA
Home Inspector - servicing all Northern Virginia

How can a bank that sells an REO it financed years ago be responsible to title companies?  Not sure I understand...  but I can probably inspect the house!

Oct 29, 2010 01:47 AM
John Mulkey
TheHousingGuru.com - Waleska, GA
Housing Guru

Ron - I suspect things are going on behind the scenes of which we may never be aware.

Lenn - My sentiments exactly.

Jay - The title companies were originally asking the banks to "cover their assets" on foreclosure sales by indemnifying them against potential losses.  The recent issues of fraud had them concerned that their costs to insure title would not cover the potential flood of claims.

Oct 29, 2010 01:52 AM