Call Timothy Dwyer a trailblazer in the world of title insurance.
He took what he viewed as a “lack of price competition” and turned it into the business model for Entitle Direct Group Inc. in Stamford, Conn.
“When I closed on my own home that I purchased in New Canaan in 2005, I was taken aback by the cost of title insurance and the whole closing process,” Dwyer said. “I worked on Wall Street advising insurance companies for ages and I talked to clients and colleagues and decided in 2006 to pursue what ultimately became Entitle Direct to offer the consumer a savings of about 35 percent.”
To put it simply, EntitleDirect.com is a direct-to-consumer platform, which eliminates commission fees and allows you to view closing documents in real time.
“We felt very confident that consumers across the country were not only smart about title insurance, but if you”™ve gone through a home closing or a refinance and you”™ve seen that big number on the HUD-1, you”™re going to pay attention the next time around,” Dwyer said.
Three years ago, parent company Entitle Direct Group acquired Guardian National Title Insurance Co., and changed its name to EnTitle Insurance Co.
The company just gained approval from the New York State Insurance Department to reduce title insurance rates by 10 percent.
“We want to reduce the cost of buying a home and to be in the position of helping the market become more efficient,” said Christopher Meyers, chief operating officer of Bronxville-based Houlihan Lawrence real estate brokerage, which through affiliate Thoroughbred Title Services L.L.C. utilizes EnTitle as its title insurance underwriter.
Meyers said to file for rate reductions, EnTitle had to supply loss, claims and balance histories and “show that they had enough capitalization and reserve to be able to do business and meet their obligations.”
Stamford-based real estate attorney David Lasnick said he “could not speak as to whether (title insurance) premiums are appropriate or not,” but did note his observations on the other side of the border.
“In Connecticut, all title companies”™ rates are registered with the insurance commissioner and there”™s very little difference from company to company,” he said. “They don”™t vary and they”™re all disclosed up front. As far as transparency goes, when you fill out the HUD-1 settlement statement, if you do a closing with the bank, as required by the federal government, it discloses all of the costs of the closing and one will be the cost of the title insurance, the cost of the lenders”™ policy, owners”™ policy and agent”™s commission.”
He noted that in some parts of New York state, title insurance agents get 80 percent of the fee, but in some areas, the percentage could be much less.
