An escrow allegation
Hanah Cho reports today:
Maryland Insurance Commissioner Ralph S. Tyler ordered yesterday that business licenses for Day Title Inc. and owner Deborah A. Williams be suspended and revoked. The Maryland Insurance Administration issues licenses and regulates title companies, which conduct real estate closings.Security Title says homeowners will not be responsible for any losses.
Tyler's action follows an order issued last week by an Anne Arundel County Circuit Court judge appointing a receiver to oversee the liquidation of Day Title. The court action was initiated by The Security Title Guarantee Corp. of Baltimore, the title insurance company for Day Title.
Industry players say escrow misuse is rare, but it can crop up "when title company owners who are facing financial difficulties use money in their escrow accounts to operate their business," Cho notes:
Tyler said his office is seeing a spike in complaints involving title companies not making mortgage payments, a trend the commissioner attributes to the slowing real estate market.