Insurance Underwriter Demands "Crappy Title" Warranties From Banks When Issuing Title Policies On Sales Of REOs Acquired Thru Faulty Foreclosures

The Washington Post reports:

• The title insurance industry is maneuvering to protect itself from losses if courts rule that banks have played fast and loose with the foreclosure process. But people who buy foreclosed properties from banks may face some degree of loss despite having a title policy.

• Fidelity National Financial, the largest title insurance company, is leading the industry in demanding that lenders warrant that they have followed all legal procedures in the handling of foreclosures and indemnify the title insurers if a court decides otherwise.(1)

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• The plans and concerns of the other major providers of title insurance - First American Financial Corp., Stewart Title and Old Republic International - will be disclosed this week. [...] Along with Fidelity, they account for 90 percent of the title insurance market.

For more, see Title insurers seek insulation from foreclosures.

(1) Doesn't Fidelity National, through its connection with LPS and DOCX, have some link to the cause of much of this "crappy title" problem in the first place? (Or did Fidelity National already spin off its LPS/DOCX connection before the alleged robosigning took place? If one didn't know any better, one might think that this outfit is scrambling to cover its ass [buttocks] [seeking protection] from problems it may have played some role in creating in the first place.) See:

• Florida AG Tags LPS, Docx With Subpoenas Ordering Firms To Fork Over Foreclosure Documents, Vendor Contracts As State Robosigner Probe Expands,
• Florida AG's subpoena (in the investigation of Fidelity National Financial, Lender Processing Services (LPS), and DOCX),
• DOCX document "fabrication" rate sheet for a variety of foreclosure documents.