Actually, it is a very good article and it makes some wonderful points.  Of course, Birny Birnbaum is a moron - there is much more involved in a title search that "tapping a few keys and printing a report."  However, the traditional title industry is working toward that and if they have their way it will become a reality.  It is already a reality for a large portion of the equity market and growing.

What the article does do is explain that their are alternatives to the traditional title insurance system that provides the same coverage - and does it much cheaper.  The best part is, the abstractor is more highly regarded AND compensated.

We reported on the Iowa Title Guarantee Fund in an article on August 8, 2005, Iowa's Unique Position on Title Insurance.  Iowa sets much higher standards for their title searches, and it appears from the article on CNNMoney.com that the abstractors are better compensated - they indicate the abstractor's fee to be about $150 for the search.  This approach seems to be working very well; Iowa has a much lower claim rate than the rest of the industry and their premiums are much lower.

This is the problem we are all facing.  As the traditional title industry continues to lower their standards, the claims are rising and abstractors fees are getting lower.  We need more regulation, we need higher standards, and we need to be compensated to complete more thorough title searches. 

The traditional title industry should take a cue from Iowa and raise their standards for the title searches.  They need to place a higher regard on the title search and the qualified abstractors should be able to charge accordingly.

Just my take on it...

Best,
Robert A. Franco
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