Our Response to Title Insurance Reform

GAO | HUD

Current Problem cited by the U.S. Government Accountability Office (GAO)	GAO Recommendation	ENTITLE DIRECT Solution
Normal competitive forces are not working properly, raising questions about the prices consumers are paying for title insurance. "Consumers find it difficult to comparison shop for title insurance..."	"GAO recommends that HUD and state insurance regulators take actions to improve consumers' ability to comparison shop for title insurance..."	ENTITLE DIRECT offers an immediate quote as well as a competitor quote so consumers can easily compare prices.
"...the current model of selling and marketing title insurance is irretrievably broken..."	"GAO recommends that HUD and state insurance regulators take actions to improve consumers' ability to comparison shop for title insurance..."	ENTITLE DIRECT markets and sells directly to consumers, not through title agents.
"Although home buyers pay for title insurance premiums, they often know little about the insurers themselves or the title insurance industry."	"GAO recommends that HUD and state insurance regulators take actions to improve consumers' ability to comparison shop for title insurance..."	ENTITLE DIRECT markets and sells directly to consumers, not through title agents.
"...consumers generally do not select their title agents...who...compete among themselves for referrals from...real estate and mortgage professionals."	"GAO recommends that HUD and state insurance regulators take actions to improve consumers' ability to comparison shop for title insurance..."	ENTITLE DIRECT markets and sells directly to consumers, not through title agents.
At the top sit the five national title insurance companies who "captured about 92 percent of the market...and....sell and market title insurance in local markets through networks...of local title agents."	"GAO recommends that HUD and state insurance regulators take actions to improve consumers' ability to comparison shop for title insurance..."	ENTITLE DIRECT markets and sells directly to consumers, not through title agents.
Due to consumers' limited role in the selection of their title insurer, there are potentially illegal practices in the marketing and sale of title insurance, which promotes "undue profits at consumers' expense."	Increased regulatory scrutiny and increased coordination among regulators at the state and national levels.	ENTITLE DIRECT allows consumers to choose their own title insurer. Title insurance is sold directly to consumers at significant savings with no middleman involved.
Lack of transparency regarding title agent ABAs "in which real estate agents, brokers, and others have a stake in a title agency."	Expand the home-buyer information booklet on title agent ABAs and evaluate the costs and benefits to consumers of title agents that operate as ABAs.	ENTITLE DIRECT does not use ABAs, which removes the inherent conflict of interest in such arrangements.
Lack of title agent oversight.	More detailed agent audits, stronger agent regulation and requirements, and addtional data collection from agents.	ENTITLE DIRECT does not use title agents.
Several state insurance regulators expressed concern that consumers might not be getting all available discounts because they do not know how they are available such as "discounts on mortgage refinance transactions."	Increased regulatory scrutiny	ENTITLE DIRECT retains all prior title search records and policies digitally in order to ensure that consumers receive the discounts to which they are Entitled.

Current Problem cited by the U.S. Department of Housing and Urban Development (HUD)	HUD Recommendation	ENTITLE DIRECT Solution
Consumers have little opportunity to shop or compare settlement service prices.	More detailed and timely disclosure of closing services fees and commissions that will allow consumers to shop for closing_services and title insurance.	ENTITLE DIRECT offers an immediate quote as well as a competitor quote so consumers can easily compare prices.
Consumers have difficulty understanding the large volume of real estate closing documents presented to them at the closing table.	HUD to provide simple and concise closing scripts to be read and distributed at closing by real estate closers.	ENTITLE DIRECT provides sample closing documents to consumers so that they know the types of documents they will need to sign at closing. ENTITLE DIRECT also provides copies of the closing scripts recommended by HUD.
Banks are not required to provide closing documents until 24 hours before closing.	Require Lender to provide documents 72 hours before closing.	ENTITLE DIRECT helps to facilitate the receipt of all closing documents and uploads the documents to the consumer's Control Panel for review.
Only upon consumer request are lenders required to provide HUD-1 Settlement Statements at least 24 hours in advance of closing.	All lenders will be required to provide HUD-1 Settlement Statement 72 hours prior to closing.	ENTITLE DIRECT provides consumers with a draft HUD-1 Settlement Statement that is updated throughout the closing process.
There is a lack of transparency regarding title insurance premiums and costs	Improved Good Faith Estimate that is provided earlier in the closing process to better allow consumers to comparison shop for their title insurance	Upon confirmation of your property information by our Closing Specialist, ENTITLE DIRECT provides guaranteed and detailed quotes for title insurance premiums and closing fees.