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ActiveRain Bloggers Blowing the Whistle on Big Title's Offshore Abstracts

Thanks to ActiveRain bloggers Ed Rybczynski and Lenn Harley, AR members and visitors have been alerted to Big Title's practice of sending title searches to overseas vendors. The offshoring of title searches is an issue that we abstractors have been dealing with for some time now, and the addition of Ed's and Lenn's voices to our cause is very much appreciated. I was surprised from reading some of the comments just how many real estate agents and brokers were unaware of this practice. Of course, if I were shipping the United States over to India one courthouse at a time the way Big Title is doing, I wouldn't be making a big public showing of it, either.

Lenn really nails it with this statement:

"The title search is one of the most important transactions involved in buying a home. It's isn't the place to begin an economy drive."

Well put, Lenn. Real estate agents and brokers need to start educating themselves about the internal practices of the title agents and lenders they work with. They need to start asking questions. Does your title agent use only "hands-on" abstractors with an intimate knowledge of the quirks of each local indexing system? Are they issuing policies on short searches or do they insist on having a full 40- or 60-year title search which has been reviewed by a qualified title examiner or attorney? Are they putting your consumer at undue risk just to save a couple hundred bucks?

I've said it before and I'll say it again: a title policy is only as good as the search that was relied upon to issue it, and by extension, the search is only as good as the abstractor who prepared it.

Posted by Scott Perry on 02/06/2008 08:06 AM

Comments (8)

ed rybczynski, lenn harley, active rain, outsourcing, offshoring, title searches, abstractors, big title, india

8 Comments on ActiveRain Bloggers Blowing the Whistle on Big Title's Offshore Abstracts

FEB

2008

I remember when an abstract cost was $35. Then it was $75. I just looked at one from last month in MD and it was $160.

I don't believe that abstract is the place to start cutting costs for consumers.

Most title attorneys in my area charge from $250-400 to "examine the title".

Thanks for your comment, Lenn. I don't know about MD, but PA title premiums are "all-inclusive" and the cost of the abstract is factored into that. Personally, I'd like to see my abstract fees listed as a separate line item on the HUD-1 along with the survey and appraisal fees. At least that way, the consumer would have a breakdown of exactly what he's paying for.

FEB

2008

As a representative that worked for a company that was outsourcing, I can speak first hand about the dangers of using this product. It would take me weeks to go into details. After the company I working with switched to this product supplied by First American I decided I could no longer sell the product so I left and went to a company that still does business the good old fashioned way. However, because of the outsourcing the pricing that these companies offer is impossible to match. Its to bad the consumer is not aware of the risk they are subjected to in order to save a few pennies.

Consumer confidence in this country is at an all time low when some of this stuff becomes more apparent down the road and they suffer the consquence of identity theft outside of the USA with no recourse or protection ....God help them!!!

Scott you said "I've said it before and I'll say it again: a title policy is only as good as the search that was relied upon to issue it, and by extension, the search is only as good as the abstractor who prepared it."

I agree and would add that the policy is only as good as work products of both the abstractor and the examiner. Both need to have expertise, the abstractor to know where to look and what to search based upon the uniqueness of the property in question, then the examiner needs to know what to do with that data and find the lienable items that are not reported in the courthouse.

It's a real crime that title policies are being sold to the consumer without disclaimers about the underlying work. The risks associated with product issued by experts who have performed a full search and throughly vetted title for likely claims versus chop shops who do short searches with no examination or use fully automated systems or use outsourced product are significant.

Check this out:

http://money.cnn.com:80/news/newsfeeds/articles/prnewswire/LATH09407022008-1.htm

DC - Thanks for the comments and the link. Did you catch that part in the last paragraph, "About First American" being "America's largest provider of business information"?

...and silly me, I thought they were just a title insurance company!

Dar - If you think that's bad, check out my latest post to see what Data Tree is up to in New York State. Talk about strong-arm tactics!

AUG

2008

I recently left a position at a title company where my function was the training and advising of Offshore personnel in title searching. You would not believe the searching requirements that are taught to Offshore searchers. The Offshore searchers are taught the bare minimum (indexing) and none of the detail work that is required to provide a complete and comprehensive product.

Offshore searchers are not adequately instructed on legal descriptions, probate, foreclosures, title chaining, etc.

If the lenders had any idea of the poor work quality provided by Offshore searchers, they would run screaming. This fact can be easily demonstrated by reviewing the number of claims being paid out by the underwriters and the number of information products that have been taken off the market.

The underlying business principal used by title companies today is that the claim amounts can be offset by quantity and pricing. Whatever happened to the business principal of providing the customer with the highest possible product quality?

This situation is a disgrace and I am glad to see that someone is taking action.

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