Government Report Encourages Education, Penalties in Title Insurance Industry
Consumers Need Protection, Education Plays Key Role
Philadelphia, PA, January 02, 2008 --(PR.com)-- A recent report from the Government Accountability Office (GAO) cites a need for education and penalties for conflicts of interest in the title insurance industry to better protect consumers. The report, to Committee on Financial Services, House of Representatives, (GAO-07-401), was the result of an investigation into title industry practices thoughout the United States.
Consumers know very little about title insurance, as it relates to their real estate transactions. "Consumers find it difficult to comparison shop for title insurance because it is an unfamiliar and small part of a larger transaction that most consumers do not want to disrupt or delay for comparatively small potential savings.", states the report. A conflict of interest between a real estate agent and title agent can also be an issue. "In addition, because consumers generally do not pick their title agent or insurer, title agents do not market to them but to the real estate and mortgage professionals
who generally make the decision. This can create conflicts of interest if those making the referrals have a financial interest in the agent."
What can a consumer do? Pamela A. Rader, President of Mobile Settlement Services, Inc., a title agent in Philadelphia advises consumers, "Education is absolutely the key. When your real estate agent mentions title insurance, don't automatically take insurance with the company he recommends. Ask for several options, then look into those companies. Check their websites, and ask your realtor what his affiliation to the company may be. Then choose a
company you feel comfortable working with."
The GAO report also recommends that modifications to current laws be considered to allow monetary penalties for violators of conflict of interest laws. That will provide consumers some limited protection, but the real key is for
consumers to educate themselves.
Mobile Settlement Services, Inc., located in Drexel Hill, PA, is an independent authorized agent for United General Title Insurance Company. The president of Mobile Settlement Services, Inc. is Pamela A. Rader, a licensed title agent with
over 25 years of experience in the title industry.
Submit requests for additional information or interviews to Karen at 610-789-3636, or press@mobile-settlements.com.
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Consumers know very little about title insurance, as it relates to their real estate transactions. "Consumers find it difficult to comparison shop for title insurance because it is an unfamiliar and small part of a larger transaction that most consumers do not want to disrupt or delay for comparatively small potential savings.", states the report. A conflict of interest between a real estate agent and title agent can also be an issue. "In addition, because consumers generally do not pick their title agent or insurer, title agents do not market to them but to the real estate and mortgage professionals
who generally make the decision. This can create conflicts of interest if those making the referrals have a financial interest in the agent."
What can a consumer do? Pamela A. Rader, President of Mobile Settlement Services, Inc., a title agent in Philadelphia advises consumers, "Education is absolutely the key. When your real estate agent mentions title insurance, don't automatically take insurance with the company he recommends. Ask for several options, then look into those companies. Check their websites, and ask your realtor what his affiliation to the company may be. Then choose a
company you feel comfortable working with."
The GAO report also recommends that modifications to current laws be considered to allow monetary penalties for violators of conflict of interest laws. That will provide consumers some limited protection, but the real key is for
consumers to educate themselves.
Mobile Settlement Services, Inc., located in Drexel Hill, PA, is an independent authorized agent for United General Title Insurance Company. The president of Mobile Settlement Services, Inc. is Pamela A. Rader, a licensed title agent with
over 25 years of experience in the title industry.
Submit requests for additional information or interviews to Karen at 610-789-3636, or press@mobile-settlements.com.
###
Contact
Mobile Settlement Services, Inc.
Karen S. Neely
610-789-3636
www.mobile-settlements.com
Karen S. Neely
610-789-3636
www.mobile-settlements.com
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