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February 10, 2011

Title company misused escrow funds, state says

While you're waiting for January home sale stats to appear today, here are two very different stories to read that both have something to say about the housing market:

First, Crofton-based Beltway Title and Abstract Inc. has had its licensed suspended by the state after auditors discovered that more than $1 million in escrowed funds intended for real estate transaction costs had been misappropriated, the Maryland Insurance Administration said Wednesday. The money, pulled out over a period of seven months, was spent on business expenses, the state said.

Here's the insurance administration's license-suspension order.

Second, the new Census 2010 numbers show population growth -- and decline -- across the state. According to the count, Baltimore has 30,000 fewer residents than it did a decade ago. As one colleague pointed out, that works out to a loss of eight people per day. ("I hope people aren't leaving because of me - I have so many arms to embrace you!" quipped @manwomanstatue, the self-proclaimed "most hated public art in Charm City.")

The city has successfully challenged census estimates before: The 2003 figures were revised upward by nearly 15,000, for instance. But the decennial census is a count rather than an annual estimate.

Baltimore Mayor Stephanie Rawlings-Blake said in a statement that the 30,000-person loss was the city's smallest since the decade of the 1950s. (Baltimore's population peaked in 1950 at about 950,000 before dropping by nearly 11,000 by 1960.)

Still, the newest loss figure is striking for a decade that brought an inflow of housing-bubble newcomers and ended at a time when moving -- if you had to sell your home first -- was no easy proposition. (Still isn't, but it's a new decade now.)

Thoughts?

Posted by Jamie Smith Hopkins at 1:00 AM | | Comments (1)
Categories: Closing costs, Housing stats, Moving
        

Comments

The general public, as a rule, doesn't know what title companies do, who they are, and how they fit into the settlement picture. So when these stories arise about title company defalcations the average person is left with a bad taste in their mouth when it comes to title companies. Also, when title companies go down in flames it prompts big brother to want to breathe down our necks even harder. As a title company owner for over 10 years I am here to say that we work very hard and most of us are honest.

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About Jamie Smith Hopkins
Jamie Smith Hopkins, a Baltimore Sun reporter since 1999, writes about the regional economy. Her reporting on the housing market has won national and local awards. Hopkins is a Columbia native and has lived in Maryland all her life, save for 10 months spent covering schools in Ames, Iowa.
She trained to become a wonk by spending large chunks of time as a geek and an insufferable know-it-all.
Baltimore Sun articles by Jamie
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