Posted by NVLSlady/VA on 10/24/12 9:05am
Msg #440086

Question for "TPIC" states

Since the transactions we witness can't proceed to closing without a title insurance policy being issued, are TPIC signing agents paid title insur commission? Also, do you market your services as "Title Sales Agents?"

Thanks!! Michelle

Reply by MW/VA on 10/24/12 10:39am
Msg #440099

Interesting question. Are you licensed to sell title

insurance? IMO everyone knows that's where the money is. I wonder if we were the ti provider, if we could still do the signing. Wouldn't it be conflict of interest them?

Reply by NVLSlady/VA on 10/24/12 10:59am
Msg #440106

Are you licensed to sell title insurance?

Restatement of my question, right? That's what I'd like to find out from TPIC signers (why waste their time as merely "notaries" if they have TI license???)

Reply by MW/VA on 10/24/12 11:03am
Msg #440109

I'm curious, too. I know MD requires a TPL, but I don't

know that they actually underwrite title insurance. Maybe someone can enlighten us.

Reply by Roadie_MD on 10/24/12 12:14pm
Msg #440126

some do, but not all....

title companies that close loans in house have licenced title producers on staff. TIPIC is title insurance producer independent contractor, so I think that most independent contractors would be people like myself that have the TPL just so they can do real estate closings and aren't actually 'producing' title insurance policies. The TIPIC designation also allows MD producers to forego having to purchase a $150k bond.

I personally have no desire to get into the title insurance business. The amount of liability alone seems daunting. I only got the license when MD insurance administration mandated it. JMO

Reply by Roadie_MD on 10/24/12 12:31pm
Msg #440135

more info--

http://www.mdinsurance.state.md.us/sa/docs/documents/producer/licensing-docs/titleinsuranceproducers-faqsfinal10-28-10.pdf

Reply by NVLSlady/VA on 10/24/12 1:16pm
Msg #440140

Re: more info--

<<The TIPIC designation also allows MD producers to forego having to purchase a $150k bond>>

Thanks for this information, Dawn. I see the subtleties with TIP/TIPIC (TIPICs are NOT sales agents!) I imagine that outrageous bond discourages many - just like in VA.

Reply by Ilene C. Seidel on 10/24/12 3:09pm
Msg #440162

Title insurance is issued by a "Title Company" that has an underwriter such as Fidelity. Title Insurance is a bulk of the Title Companies income on a closing, doubt they would want us stepping in.
We as TIPICS "also called "Settlement Officers" not Signing/Closing agents do not have approval from an underwriter to write title insurance. If we were permitted to issue title insurance we would need more bonds and I don't even want to think about the hoops we would have to jump thru to do this. And if you think about it no Title Company would want us taking their income, it would be an uphill battle.
We are strictly licensed to operate as an "Indepentent Settlement Officer" to close mortgage loans, nothing else.

Reply by NVLSlady/VA on 10/24/12 6:07pm
Msg #440183

<<no Title Company would want us taking their income>>

My response to that would have been: they seem to be taking YOUR income if you have the same credentials (like a licensed real estate agent working in a R.E. sales office as a "mktg exec")

I think it was explained that, in fact, the credentials (criteria) are actually different for TIPICS vs. sales agents (TIP). Believe me, these companies are getting a "piece of the action from all sides." All they do is form another "company" to work the other side. That's why corporations have all these "one stop shop" mechanisms in place. One highly respected co. I worked for hired several of its own employees to work in the real estate settlement side (of course, the employees were experienced loan officers, underwriters, etc.) of the bank. After a few years (and after several millions were made), that side of the business was lopped off. What about the employees? Fortunately, no one was ever laid off, so they could go back to working for the "Main" Mother company.

I remember not lasting very long as a Real estate agent in the '90s; when I saw how much of my commission the broker took after I had run myself ragged, it made me SICK. But, that's the thing of it, they take the risks, have the liability and so earn the Dough.

I bet each time a client orders a TI policy from the title sales rep/the company, someone gets a lovely dinner - and it ain't the "settlement officers" with the "other" license

Reply by MW/VA on 10/24/12 10:14pm
Msg #440218

Thanks, Ilene. I thought that was the situation in MD.

I think you have to form a title company in order to underwrite title insurance. While it may be lucrative, I can't imagine the licensing, insurance, bonds, etc. required to do that.
Frankly, I wouldn't want to do their job.

Reply by NVLSlady/VA on 10/25/12 8:17am
Msg #440254

Re: Thanks, Ilene. I thought that was the situation in MD.

Title sales reps don't underwrite TI, do they? And Marilynn's right. Sales is HARD, period. Starting a Title co. . . . now, that's OVER THE TOP.

p.s. Did anyone read Roadie's link? That explained the categories of licensed title agents in MD. THAT was new to me. I just thought TIPICs had same licensing requirements as Sales Agents - but without any of the benefits (:

Reply by DaveH on 10/28/12 8:55am
Msg #440889

Re: Thanks, Ilene. I thought that was the situation in MD.

You also have to understand that when you write title insurance you are also responsible for clearing title and making sure all liens have been satisfied and matters of title corrected.

E&O insurance runs between 6 and 8,000 a year and if you have a claim because you issued a title policy and there is claim, if you can keep your e&o insurance, you may not keep your title underwriter. I have seen respectible title companies that have had a claim see their e&o insurance rise to 20,000 a year.

So while you think this is a lot of money to be made in title insurance, you also have to take on all the legal responsibilities that go with it. Not to mention that title underwriters will expect a level of premiums rom you as an agent.