We know that three regional underwriters had to shut their doors in 2011 because of agency defalcations. All three were put in unfortunate — and possibly unavoidable — situations because as the old adage goes “when there is a will, there is a way.” That’s usually an inspirational saying, but it applies just as readily to a desperate or motivated fraudster. With that as the backstory, what are regional underwriters doing now, in 2012, to try to prevent those motivated individuals from accomplishing their nefarious missions?  What are these companies doing to avoid being the next New Jersey Title or Southern Title?

Every year, Demotech asks each underwriter that question — it asks for details about their agency review processes and defalcation prevention and mediation measures. The company provided The Title Report with a checklist of these reported protocols to review. The checklist was a selection of 30 regional underwriters, with the company names redacted, and listed all of the agency review/defalcation prevention protocols that have been reported with checks next to the underwriters that reported to Demotech that yes, they do that.