FOR IMMEDIATE RELEASE:

Contact: Danielle Nacco
(P) 347.248.1677
(E) Danielle@erichopr.com

MISSOURI CONSUMERS CAN NOW PURCHASE TITLE INSURANCE DIRECTLY, WHILE ALSO TAKING CONTROL OF THEIR REAL ESTATE CLOSINGS!
ENTITLE DIRECT Saves Consumers 35 Percent on Their Title Insurance
AND Creates an “Open Closing,” Significantly Benefiting Missouri Homeowners

MISSOURI (December 2, 2008) – Many regulators, including the U.S. Government Accountability Office (GAO), have openly criticized the anti-consumer nature of the real estate closing process, the high cost of title insurance and the title insurance industry overall. One company has decided to take action in improving the consumer experience with a simple yet effective solution—an “Open Closing,”—providing consumers with the right to choose their title insurance company and save hundreds or thousands of dollars.

Far too often, the excitement of purchasing a home is overshadowed by anxiety, confusion and intimidation at the closing table. Surprise closing costs are the primary reason. Moreover, consumers are frustrated that they pay high title insurance premiums when they refinance, too. EnTitle Insurance Company (which has been underwriting title insurance for 30 years and is rated A' by Demotech) has developed a digital platform—ENTITLE DIRECT—to educate and empower consumers to monitor their home closings and save on their title insurance.

In Missouri, ENTITLE DIRECT’s premium rates are 35 percent lower than those offered by other title insurance companies in the state. This will result in hundreds or even thousands of dollars in savings on closing costs for home purchases and refinances. For example, in Missouri last year, title insurance premiums totaled $75 million.1 Through ENTITLE DIRECT consumers could have saved $26 million on those premiums.
 
Timothy Dwyer, President and CEO of Entitle Direct Group, states, “Numerous federal and state regulatory authorities and consumer advocates are vocally critical of the high cost consumers pay for title insurance and a real estate process that keeps consumers in the dark. ENTITLE DIRECT was created for consumers by consumers to address these concerns. Whether people are purchasing a home for the first time or refinancing a home, they can work with ENTITLE DIRECT to organize the entire closing process and know what to expect at closing.”

Unfortunately, most people do not understand how the closing process works; they just rely on their agent, broker or lawyer to handle it for them. The GAO said it best: “Price competition between title insurers and between agents, from which consumers would benefit, needs to be encouraged. Educating consumers about title insurance is critical to achieving this objective.”

Typically, title insurance companies and their agents work directly with realtors, attorneys or lenders, who order the title search and title insurance on a customer’s behalf early in the closing process (and often without the customer’s knowledge). This insurance is required by virtually every lender before it will lend money (for either purchases or refinances), and the consumer pays for the insurance at closing. But what consumers don’t know is that title agents may take, on average, a commission that is 70-90 percent of the premium!

Title insurance and other closing costs are listed on the HUD-1 settlement statement that is provided at closing. Consumers often feel intimidated to ask questions about the costs they are being charged. Jack Guttentag, Professor Emeritus at the University of Pennsylvania’s Wharton School of Business, was quoted saying, “Although borrowers have the right to review the HUD-1 settlement one day before closing, they must know enough to ask for it, and few do.”

At ENTITLE DIRECT (www.entitledirect.com), consumers are in control and can monitor their closing process on a daily basis using the Control Panel, an industry-first, which has a patent pending with the U.S. Patent and Trademark Office. Unlike any technology previously available, it provides dynamic, interactive tools such as the ability to upload and store closing documents, as well as download a HUD-1. The HUD-1 is updated in real time throughout the closing process, eliminating surprise charges at closing. Consumers can also use the Control Panel to communicate with other parties involved in the closing process and store important messages, in addition to utilizing a checklist, contact list, task list, notes and a calendar.

Dwyer adds, “ENTITLE DIRECT will help home buyers, sellers and refinancers feel confident and knowledgeable about the closing process, freeing them of closing anxiety, and saving them hundreds or thousands of dollars. ENTITLE DIRECT offers consumers a choice. They can either pay a high premium for title insurance—or they can take control of their own closing process, and put their savings to good use—like a well deserved vacation!”

For more information about ENTITLE DIRECT, please visit www.entitledirect.com.

About ENTITLE DIRECT:
For too long, the title insurance industry has solicited business directly from real estate professionals, lenders, attorneys and other service providers, ignoring the consumer and avoiding any meaningful price competition. ENTITLE DIRECT is committed to opening the black box of the closing process while lowering the cost of title insurance for consumers. Combining 30 years of experience with stability and a consumer-friendly approach, ENTITLE DIRECT provides consumers with 35 percent savings on title insurance, transparency throughout the closing process and the ability to control their own closing using the Control Panel, an industry-first digital platform.

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Timothy Dwyer is available for interview.



1 Demotech Performance of Title Insurance Companies 2008 Edition