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In The Know: Setting Out: The mortgage broker can help the title agency do its job by being proactive and communicative.

Article Excerpt
Title insurance is one of the least understood parts of the mortgage transaction by the consumer, yet in at least 49 states (Iowa has a state-run title guarantee system) the product is needed to close a loan.

There are two parts to title insurance: a policy that protects the borrower and one that protects the lender. In addition, in many states, the title agent is one who handles the closing. Mortgage brokers play a larger role in this process than even some in the industry believe, according to a pair of experts on the topic.

At the Southeast Mortgage Brokers Conference sponsored by the Georgia Association of Mortgage Brokers held in Savannah, Ga., Howell Haunson, an attorney with Morris, Hardwick, Schneider, said that issues with the title are the leading cause of a delayed closing.

These delays can be avoided by the mortgage broker being proactive at the point of origination. The broker, he said, in a refinance situation has direct contact with the property owner. In a sale situation, the broker can find out some of the information through comments by the borrower, provisions in the sales contract and/or by contacting the listing agent....

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