It’s weird sometimes how rumors are quickly become reality.  Last week news broke that Mercury Companies was closing down all operations in every state they were in except Colorado.  Mercury Companies owned several Title and Escrow Companies here in the west and here locally they owned Security Title.  Today the rumor is (and I say rumor because nothing has been officially confirmed) that Western Title and Escrow will cease their Portland operations as well.

This raises several questions.

First, these are Title Insurance Companies, so what impact will this have on policy holders?

My answer…NONE!  Companies like these are underwritten by larger companies.  Take Security Title, they were owned by Mercury Companies and Mercury Companies are underwritten by First American.  First American is the largest title insurer in the world.  Furthermore, since these are insurance accounts they are protected.

Second, what happens to my money in escrow?

Again, escrow accounts (especially in Washington and Oregon) are regulated by state law and are continuously audited by the state.  If you had deposits in escrow they are still there.

Third, what happens to those employees?

That is still to be determined.  However, Fidelity Title and Stewart Title seem to be buying those books of business.  Here in Portland Stewart Title of Oregon has actually acquired Security Title along with approximately 25 employees.  Sources have told me that several of those employees will have to interview for their job.  However, several of their managers are assuming the same management positions at Stewart.

What can you do?

In many cases Real Estate Professionals build great, long lasting relationships with their Escrow Officer.  If your Escrow Officer’s company has been absorbed by another company and really like them stick with them.  They need you now more than ever.

If you are uncertain in regards to what’s happening with your title company then request a transfer of escrow form from the title company that you would like to close the transaction.

Most of all don’t panic!  Remember, Title Insurance Policies are underwritten by larger more secure companies and escrow accounts are protected accounts and in cases where fraud has taken place someone will go to jail.

If you enjoyed this post, make sure you click here to get free updates in your feed reader or via email!