Walls Beginning To Close In On Title Insurance Industry After Recent Massachusetts High Court Foreclosure Rulings?

A recent article on Amvona shines light on the apparent reluctance of many in the title insurance industry to discuss the implications of the recent ruling by the Massachusetts Supreme Judicial Court in Bevilacqua v. Rodriguez, a ruling earlier this year by the same court in U.S. Bank National Association v. Ibanez, and a case currently before the court in Eaton v. Fannie Mae and Green Tree Servicing, LLC [go here for the lower court ruling currently on appeal).

One might conclude after reading this article that the title insurers and their agents are beginning to feel the walls closing in on them for writing all the title policies on the crappy foreclosure titles in the past,(1) and may be in a position that they're all forced to keep issuing them because, in this economy, they need the cash flow to stay above water.

For the article, see Houston, we've got a problem - Bevilacqua.

Thanks to Deontos for the heads-up on the article.

(1) For more on the crappy title problem in connection with improperly foreclosed homes, see:

• Daily Finance: Why the Foreclosure Mess Settlement Proposal Can't Fix the Damage,
• Naked Capitalism: On the Clouded Title Mess and the Difficulties of Cleaning It Up.