Reinsurance?
The other day a few of us were carrying on an email conversation with a title company insider. (I am soooo ready to have these conversations in Google WAVE, but I digress.)
Anyway, the title company person mentioned that he thought that the Reinsurance schemes of a few years ago were the trigger that started the move towards an industry crackdown. Reinsurance? To my embarassment, I was not familiar with the term.
Google to the rescue: In short, title insurance companies allowed mega-brokers and builders to assume a portion of the title insurance policy risk, and in return the brokers and builders received a portion of the premium back.
Articles to read:
http://realtytimes.com/rtpages/20060808_reinsurance.htm
http://realtytimes.com/rtpages/20050301_titleco.htm
http://www.toprealtynews.com/realestatenews/id_37224/
http://www.azcentral.com/arizonarepublic/business/articles/0427reinsurance27.html
Well, that does put the current regulations in an interesting light.
On the other hand, I ~am~ a bit miffed that no one thought my company was big enough or powerful enough to offer me any of these deals. :-)
