We all know the title business has changed. Not long ago title insurance was a thorough, labor intensive search of title that uncovered and then repaired title for the homeowner. Now it is an outsourced take-a-quick-peek-at-the-last-deed-of-record and put out a title commitment. Then when all those unresolved problems show up, let’s-just-insure-over-all-those-title- problems-until-they-go-away! I personally feel that the title underwriters have taken a shortcut by no longer researching the title. Yes, it does save the shareholders money up front, but in the long run, will it cost more in claims than the savings.
Forbes Magazine has a great article, Why Amazon Can’t make a Kindle” on what can happen with outsourcing. I see a lot of parallels with the title industry as we outsource posting of title plants and preparation of title commitments. We are losing the skilled trade abstractors, closers, and examiners to save a buck. No one is teaching basic skills any more. I’ll be interested in what you think.