Keep in mind folks, some of these loans are nothing more than signature loans disguised as mortgages.  The lender knows they have an A credit borrower without sufficient equity in the real estate to justify a mortgage.  On the other hand, by making the loan as a mortgage, they can charge upfront costs, such as points, that increase their return and help mitigate any loses they may have.  
The underwriters are the ones offering these policies.  Fidelity National is probably the leader in California on offering a semblance of title insurance on equity loans without a title search.  This is pool insurance, rather than the individual insurance we are used to.  I don't know how broad the insurance is, it may be nothing more than insuring that the property owner is the record owner and the legal is correct.  For the so called equity lender, this is probably enough to justify the risk management of the loan, as they are in a secured position in the event of bankruptcy.  They would still be left out in the event of foreclosure, but most of the time equity lenders don't protect their position in a foreclosure anyway.
Heck, even the federal government is doing this.  Just look at the SBA loans we find "securing" a loan with a second mortgage on personal real estate.