Realtors and lenders confused about value of title insurance, says ALTA

Title industry group urges collaboration with real estate, lender partners before rule change

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Realtors and lenders are just as ignorant as the general public about what title insurance is and the value it provides to the homebuying process, according to the American Land Title Association. And with the sweeping changes that the Consumer Financial Protection Bureau’s TILA-RESPA Integrated Disclosures (TRID) rule will bring to the closing process later this year, more educational efforts and outreach are critically important, ALTA stressed at its 2015 Business Strategies conference last week. Title insurance protects buyers from problems that could arise with a title they have purchased that were not uncovered in the title search process. Those problems could include errors with the deed or mistakes in the record -- or even forgery or undisclosed heirs. When a homeowner purchases title insurance, then the title company will help pay any valid claims or defend the homeowners' claim in a lawsuit. The TRID rule, which takes effect Aug. 1, is widely considered to be the...