FOR IMMEDIATE RELEASE:

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

HISTORICALLY LOW INTEREST RATES HAVE CREATED A SURGE IN HOME REFINANCINGS, WHICH REQUIRE NEW TITLE INSURANCE.
NOW HOMEOWNERS CAN BUY THEIR TITLE INSURANCE
FOR LESS!
ENTITLE DIRECT Saves Consumers Hundreds or Thousands of Dollars on Their Title Insurance; First Company to Offer Direct-to-Consumer Service

UTAH (January 15, 2009) – Lower interest rates are leading to a surge in refinance applications. As home mortgage rates fall, many homeowners are refinancing in order to reduce their monthly mortgage payment. What many homeowners do not know is that refinancing comes at a price—the cost of both the closing and the premium for the new title insurance policy, which are required for every refinance.

A refinance is considered a new mortgage, and lenders require new title insurance with nearly every new mortgage, even if the homeowner hasn’t made any changes to their home and there are no outstanding liens on the property.

Title insurance is expensive, but now homeowners can refinance for less—by purchasing their title insurance directly from the insurer, with no middleman. ENTITLE DIRECT is the first and only title insurance company that offers direct-to-consumer policies and low premiums. ENTITLE DIRECT’s premium rates are typically 35 percent lower than those offered by other title insurance companies. The result is savings of hundreds or even thousands of dollars on closing costs for refinancings and home purchases.

While ENTITLE DIRECT offers a new way to purchase title insurance, the company is long established. ENTITLE DIRECT was started by EnTitle Insurance Company, which has been underwriting title insurance policies for 30 years and is rated A' by Demotech.

Timothy Dwyer, President and CEO of Entitle Direct Group, states, “Numerous federal and state regulatory authorities and consumer advocates have been very vocal in their criticism 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 refinancing, purchasing or selling a home, ENTITLE DIRECT can help them save on their title insurance and help manage the closing.”

Most consumers do not understand how the closing process works, and typically rely on their real estate agent, broker or lawyer to handle the process for them, including the purchase of title insurance. However, many experts have concluded that this is not always in the best interests of consumers, who often end up paying more.

As the April 2007 GAO report on title insurance states: “Title insurance can provide real benefits to consumers and lenders by protecting them from undiscovered claims against property that they are buying or selling. However, multiple characteristics of current title insurance markets…suggest that normal competitive forces may not be working properly, raising questions about the prices consumers are paying.”1

Typically, title insurance companies and their agents work directly with real estate agents, 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 nearly every lender before it will provide a loan for a refinance or a purchase, 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. However, consumers often do not see the HUD-1 until the time of closing, and feel too intimidated to ask questions about the costs they are being charged. As Jack Guttentag, Professor Emeritus at the University of Pennsylvania’s Wharton School of Business, has said, “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.”

Through ENTITLE DIRECT (www.entitledirect.com), consumers can monitor and manage all aspects of their closing process by using the Control Panel, a unique, easy-to-use online tool that takes the mystery out of the closing process. The Control Panel provides dynamic, interactive tools that enable the easy upload and storage of closing documents, and the downloading of the HUD-1. The HUD-1 is updated in real time throughout the closing process, eliminating surprise fees 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. The Control Panel is an industry-first, and has a patent pending with the U.S. Patent and Trademark Office.

Dwyer adds, “ENTITLE DIRECT will help home buyers, sellers and refinancers feel confident and knowledgeable about the closing process, freeing them from closing anxiety, and saving them hundreds or thousands of dollars on title insurance. 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 save the extra money!”

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

About ENTITLE DIRECT:
ENTITLE DIRECT is an operating division of the EnTitle Insurance Company. EnTitle Insurance was founded in 1978 in Cleveland, Ohio, where it remains headquartered today. EnTitle Insurance is regulated by the Ohio Department of Insurance and is approved to issue title insurance by the Departments of Insurance in every state where its policies are offered. EnTitle Insurance is a member of the American Land Title Association, and only issues policy forms approved by the American Land Title Association and other state associations, where applicable.

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Timothy Dwyer is available for interview.

1 Page 53, GAO Report: “Title Insurance: Actions Needed to Improve Oversight of the Title Industry and Better Protect Consumers,” April 2007.