I was speaking with my Dad on the phone last night as we were watching the Patriots game. He was telling me about a segment on The Kudlow Report from last night where they discuss the current title insurance catastrophe. I pulled it up on my Tivo list and watched the segment during half time. I was shocked to hear CNBC's excellent reporting on the issue as well as their honesty.
To sum up the problem best:
Title insurance companies are not providing insurance right now because they do not know who has title to the loans. Mortgages cannot be issued with title insurance. Home buyers cannot purchase homes without a mortgage.
Look for the government to do something very, very, stupid to resolve this issue. Here is the segment from last night's show: