Jamie how do you tie annual escrow payments, taxes and homeowners insurance, ground rent, to title insurance.

Title insurance only covers defects in the title should they present themselves after the closing. Before a title insurancer will issue title insurance it must be shown there are no known prior defects in the transfer of the property title to the new owner.

The title company only collects the amount of escrows, taxes, insurance, etc, as instructed by the lender. If those funds are not remitted to the lender a different set of law govern their malfeasance.

Click on the link about escrow money disappearing, and you'll see a Maryland case against title agents.

But you're not arguing that title agents don't ever do this, right? Would you have preferred I phrase it "title insurance industry" as the state did, or do you think the state is also using an inaccurate term?

When you purchase a home, the title insurance is optional. It is not required to purcahse owner's coverage title insurance. The lender does however require you to buy lender's coverage. Maybe, if anything, they should force the lender to pay for it and not the buyer since it is protecting the lender's interest. Title insurance fees are very high, but there is a way around it. You need to ask the title company how you can receive the "re-issue rate". This will cut the title insurance by more than half. Make sure that they do not change your other title fees to compensate for the lower title insurance fee. Also, when you purchase a home or refinance, it is up to you, the buyer/borrower to choose which title company and closing agent to use. If they will not let you pick which title company you can use, then find another lender to do the loan.