Purpose
The purpose of this Bulletin is to urge property and casualty insurance carriers, residential service contract (home warranty) providers, consumers, and contractors who have recently engaged or been involved in a real estate transaction with United Title of Texas ("United Title") to confirm delivery of escrowed funds held by United Title to the appropriate recipient(s).
Background
United Title is a title agency licensed in Texas. On July 29, 2008, United Title's parent company instructed United Title management to shut down its operations. United Title did not notify consumers or regulators prior to its cessation of operations. On July 30, 2008, United Title consented to an Administrative Order pursuant to Chapter 404 of the Texas Insurance Code, which authorizes the Commissioner to monitor United Title and requires prior written approval of business transactions from the Commissioner.
Because United Title failed to provide prior notice or warning to consumers, contractors or regulators, numerous transactions have been completed or are scheduled for completion without the attendant disbursement of funds as contemplated by the transaction. Because these funds for disbursement are held in escrow, many disbursements have been delayed in their delivery to the appropriate recipient(s). TDI staff has gained access to almost all of United Title's 27 offices and are facilitating the turnover of United Title's files to the appropriate title insurance underwriters. The underwriters are reviewing files and other records to determine whether disbursements have been made and, if not, are working to deliver all disbursements to the appropriate parties and to complete and finalize all transactions. There is no evidence at this time that any escrow funds have been misappropriated.
Advisory
Any non-payment or late payment of funds held in escrow by United Title and intended for an insurer, residential service contract (home warranty) provider, or contractor is not the fault of consumers. The Texas Department of Insurance urges all parties to be patient, with the understanding that funds coming from United Title have been delayed, but are forthcoming. Before proceeding with cancellation, insurers or home warranty providers are urged to determine whether payments were to be coming from United Title.
This bulletin provides notice to residential service contract (home warranty) providers and contractors as a courtesy. The Texas Real Estate Commission regulates residential service contracts, not the Texas Department of Insurance.
Contact
Consumers who believe they may have been affected by this are urged to contact their realtor, title underwriter, and insurance agent first to check if funds have been disbursed. Following that, consumers are encouraged to direct their calls and inquiries to UnitedTitleConsumerSupport@tdi.state.tx.us and to Rob Carter , Title Division , at the Texas Department of Insurance, at 512-305-7402. More information can be found online at www.tdi.state.tx.us/consumer/cpmunitedtitle.html.
For questions related to residential service (home warranty) contracts, please contact Cindy Mahoney at the Texas Real Estate Commission at 512-465-3917.
Mike Geeslin
Commissioner of Insurance