To Whom It May Concern:   

I am a consumer and potential purchaser of Colorado title insurance and closing services when I sell, buy or refinance my home. The purpose of this letter is to voice my concerns about the lack of marketing, education, transparency of information and protections being afforded to consumers like myself, regarding the business of title insurance and closing services, based on the following facts:

• Title companies primarily market their services to real estate professionals (i.e., real estate brokers and mortgage loan originators), who have no duty to research title services and costs, when recommending a title company.
• The “Real Estate Settlement & Procedures Act” (RESPA) a federal law states that it’s the consumer’s responsibility to shop and select their title insurance and closing services.
• Title insurance and closing settlement costs can vary substantially among title companies, from a few hundred dollars to thousands of dollars, even though the industry is regulated by the Division of Insurance.
• Title companies are not required by law to have any form of business insurance (i.e., fidelity, crime, errors & omissions insurances) to protect the consumer’s money and safeguard their real estate transaction.
• Title companies may issue, upon request and at no charge, a “Closing Protection Letter” that provides added protections to a seller, buyer and borrower, which is typically not requested  by most real estate professionals.
• The U.S. Government Accountability Office issued a report in early 2007 titled “Actions Needed to Improve Oversight of the Title Industry and Better Protect Consumers” recommending the need for consumers to have the ability to comparison shop for title insurance services.

Understanding these facts and my desire to protect my money and my largest single investment being my home; how does the title industry and the affected governing entities assist me in taking on my responsibility of shopping and selecting a title company? 

Change is needed, as consumers of title insurance and closing services are being ignored by the industry’s current marketing practices and also financially unprotected and misguided by an outdated regulatory environment.

Respectfully,

cc:  Colorado Real Estate Commission & Colorado Division of Real Estate