Hey Matthew,

I completely agree with that.  When it comes to equity loans, they are largely glorified credit cards.  It really isn't necessary in all cases to have title insurance.  Any security is better than no security.

However, if these loans end up getting pooled together and sold on the secondary market (which I assume they are not) the investors need to rely on their policies for marketable title. I think the investors are often unaware that the policies are no longer an assurance of marketable title and the fact that are insured only makes it marginally more acceptable.

My main concern with this type of product is that it will eventually creep its way into the mainstream title insurance market.  I think title insurance needs to remain a "cut above" these alternative products and should be based on good title.

Thanks for the comment, it is a good point.

Best,
Robert A. Franco
SOURCE OF TITLE