Hi, Cheryl:  We started a new policy on refinance orders this year.  We won't process it unless we have our own back title, the consumer goes Choose & Save, or we have confirmed that the appraisal is done and it's okay.  This has pretty much solved that problem because I agree with you Cheryl - that's always how it goes down when a refi doesn't close.

I've been having an on-going discussion with the PA Dept. of Insurance on this and other subjects.  Any PA title agent interested in fixing the title cancellation issue should contact the department's investigative unit.  We already have a mandatory cancellation fee in TIRBOP but most agents are afraid to collect for fear of retribution by the lender or the realtor.  What I am hoping for is very clear instructions from HUD and/or the state that they consider providing free title commitments a kickback.

This is a real problem in every state.  Abstractors should be concerned, too.  Title agents and attorneys who do their own abstracts and give the work away for free are devaluing the product and lack of value mean lower prices.  It's a self induced degradation of the business of title abstract and examination.  It's time to put a stop to it.