Chris Crowell, Editor  of The Title Report responded to my Linked In discussion with the following:

We reached out to First American for further comment - to ask how this concept is different from seemingly similar ideas that ended in lawsuits and other general details about the service, but they have decline to comment any further. Also, we have a poll on our site asking if you think this announcement is a good idea. http://www.thetitlereport.com

Take a quick moment to take the poll.