Most people do not shop around for title insurance when they buy a home. Instead, they usually just go to the title insurance company that the real estate agent recommends.This article highlights the problem with this model.
1. Using the fraud triangle, discuss what factors are at work in the title insurance industry.
2. What two groups have uncovered corruption in this industry? What type of specific schemes did they unearth?
3. Explain why the 2014 rule set forth by the Consumer Financial Protection Bureau is flawed.
Editorial Board. (2015) The Title Insurance Scam. The New York Times, May 12 (Retrievable online at http://www.nytimes.com/2015/05/12/opinion/the-title-insurance-scam.html?action=click&pgtype=Homepage&version=Moth-Visible&module=inside-nyt-region®ion=inside-nyt-region&WT.nav=inside-nyt-region&_r=0)