OLDWICK, N.J.–(BUSINESS WIRE)–After the real estate market freefall in 2008—when title insurance revenues fell sharply and most major title insurance underwriters posted net losses—operating results rebounded in 2009, although total industry written premiums declined from 2008 levels. During the first quarter of 2010, however, title insurance revenues—helped partly by federal policy and tax incentives—improved compared with the similar period in 2009.

While revenues were down in the second quarter of 2010, most major underwriters posted positive operating margins through the first six months of the year. Despite economic uncertainties and housing market challenges—particularly given recent foreclosure processing issues—A.M. Best Co. has revised its rating outlook for the title sector to stable from negative, given strengthened capitalization and improved operating performance trends.

In 2009, the industry reported:

An approximate 22% increase in surplus, due to improved operating performance as well as capital contributions.

Title insurance direct premiums written were down about 9%, year over year; a smaller decline compared with that of 2008.

A yearly net income of $429 million, compared with a net loss of $416 million in 2008, driven by a pretax operating gain of $418 million.

The net underwriting loss of $96 million was far smaller compared with 2008’s relatively large underwriting loss of $688 million. As a result, the industry’s combined ratio (known as composite ratio) improved to 102.9% from 109.1% in 2008.

Investment income improved to $552 million from $380 million in 2008, which more than offset the modest underwriting loss resulting in an operating gain.

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Founded in 1899, A.M. Best Company is a global full-service credit rating organization dedicated to serving the financial and health care service industries, including insurance companies, banks, hospitals and health care system providers. For more information, visit www.ambest.com.

WASHINGTON–(BUSINESS WIRE)–The American Land Title Association (ALTA) announced that veteran land title insurance industry professional Anne L. Anastasi has been named president for the 2010-2011 year.

“Anne is as passionate and articulate a spokesperson for the title industry as you could ever hope to find, but she also has other qualities such as the ability to listen and great judgment, that will distinguish her leadership”

Anastasi is president of Hatboro, Pa.-based Genesis Abstract, LLC. Prior to opening her own company in 1994, she served as vice president of a regional land title insurance underwriter. In 1999, Anastasi served as the first female president in the 80-year history of the Pennsylvania Land Title Association.

“I am honored to serve ALTA as its president, especially at this time,” Anastasi said. “The importance of title insurance in assuring property rights has been amplified with the recent foreclosure issues stemming from lending processing errors. This has afforded us a great teaching opportunity to explain the repairing and closing process so that people purchasing a home or those refinancing their mortgages will understand that title insurance is not just a product but a valuable process that protects their investment.”

Anastasi is a renowned national speaker, covering topics such as title insurance, customer service, sales and motivation. She has been the keynote speaker at 46 title industry state conventions and has addressed audiences for ALTA, Real Estate Services Providers Council (RESPRO), bar associations and mortgage bankers.

“Anne is as passionate and articulate a spokesperson for the title industry as you could ever hope to find, but she also has other qualities such as the ability to listen and great judgment, that will distinguish her leadership,” said Kurt Pfotenhauer, chief executive officer of ALTA. “Given the challenges facing the title industry, we are blessed to have a leader of such quality.”

Posted via email from Title Insurance
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Title Insurance No Longer an Issue in Foreclosure-Gate – Daniel Indiviglio – Business – The Atlantic####

October 30, 2010 admin

Although the mortgage market mess persists, one aspect of the fiasco appears to have worked itself out. Several major title insurance companies were demanding that mortgage servicers take on liability for title problems, but dropped that request on Thursday. This matters a lot, because it could mean that purchasers of foreclosed homes won’t shy away from buying due to the fear of not getting title insurance.

Elizabeth Razzi of the Washington Post reports that three big title insurers, First American Financial, Old Republic International and Stewart Information Services, are no longer demanding indemnifications from banks and servicers on foreclosed properties. Those three firms make up more than half of the title insurance market.

Calculated Risk explains why this is so important:

This is means that the buyers of REO (lender Real Estate Owned) will be able to obtain title insurance, and that the new owner can sell the property. There was some concern that buyers would shy away from REOs.

So the demand problem is partially solved. Although some buyers might still worry about purchasing a foreclosed home, it won’t be due to a lack of title insurance. Instead, they may fear title insurers’ ability to back up a flood of claims if many titles are bad. Since that’s likely less of a concern, however, this new development should prevent a plummet in foreclosed property sales.

But it doesn’t fix the supply problem. Some banks and servicers are still investigating their documentation and procedures and halting some foreclosures temporarily. This will reduce the number of defaulted properties that hit the market, which will further delay the sector’s recovery. Housing cannot move confidently forward until all properties from bad mortgages have been absorbed by the market.

via theatlantic.com

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Continuing Ed for Title Agents