LETTERS TO THE EDITOR

Pass the savings to the title consumer

Re: 'Fidelity gets time-saving title report technology' (May 11)

Dear Editor:

Since there is continual innovation in streamlining the title process, will the consumer reap any benefit, such as reduced title fees, for example? Or, will consumers continue to read about the problems many title companies encounter with alleged kickbacks (old news that been ongoing for years) that continue to give a black eye to the industry? In generating these efficiency gains, is the cost of the technology prohibiting the capacity to pass along savings to the consumer?

One hour to complete a title search turnaround sounds good. Will premiums still command several hundred dollars or more depending upon the sales price of a home? We all read recently on Inman News that the title insurance industry pays out somewhere around 5 percent of the premium towards actual claims. The question remains for our allied real estate professionals...we've collectively been singing innovation, "streamlining" the purchase process mantra for years and years, so when will these innovations result in lower costs to the consumer? A healthy handful of people benefited from the tremendous market over the last few years. I've always wondered how much real estate would change hands if total transaction costs were 10 percent to 20 percent less across the board?

Tim Kane
Legacy Escrow Service Inc.
Everett, Wash.