Kroll Bond Title Insurance Industry Report

Yahoo! Finance recently reported that Kroll Bond Rating Agency (KBRA), a credit rating agency, had released its annual report on the United States title insurance sector. The report opens by saying, "While 2016 was an excellent year for the U.S. mortgage industry with almost $2 trillion in new loan originations, KBRA believes it was also likely to be the peak in terms of lending volumes for years to come. The Mortgage Bankers Association is forecasting a sharp decline in refinancing volumes in Q1 2017."

Despite the alleged decline, KBRA does hold the position that "the title insurance industry is well positioned to manage this considerable decline". This claim is supported by an all-time high for policyholder's surplus and expense and loss ratios nearing 15-year lows.

Despite this, "some regulatory concerns remain such as market share concentration, licensing and consumer value". That said, the general consensus is that the title insurance industry will be maneuver through these obstacles and "companies with more favorable expense management and relatively lower fixed costs should continue to report strong operating results".

For questions on how this outlook will affect title insurance policyholders and lenders, please contact Cambridge Title Company via phone at 224-330-1886 or email at info@cambridgetitleco.com.