For every action there is a reaction — a scientific notion that sums
up the lender/title industry dynamic in 2012. The action in question is
title insurance industry defalcations and the reaction is coming from
the mortgage industry in the form of more processes, more scrutiny and a
few radical solutions aimed at reducing risk.
Many mortgage
industry players are taking more precautions in terms of who they
conduct business with, which is a reaction to industry defalcations, but
also just a general sensitivity to risk after everything that went
wrong with mortgage lending in the previous decade.
According to Marie Gayo, senior vice president of operations for Trident Mortgage Co., there’s been a shift in mentality over the last five years.
“It’s not always about superior service and superior technology, but
also about the strength of a company’s risk and control framework,” she
said.