March 09, 2014
OneTitle’s new business model is reforming title insurance
Wall Street Journal
OneTitle’s transformative approach to title insurance in New York State was covered by the Wall Street Journal. You can read the full article here.
Here are some highlights:
On the industry side, a new company is trying to bring title insurance reforms through an alternative business model. OneTitle National Guaranty Co., launched last month, seeks to eliminate the role of title agent by acting as a title insurance underwriter and working directly with clients. Its founders said their fees will be more than 20% less than competitors.
“We wanted to create a direct, seamless relationship between the purchaser, their attorney, the loan officer and the actual insurer to improve the service level,” said Daniel Price, who co-founded OneTitle with Seth Brown.
Mssrs. Price and Brown have raised $6 million from private-equity firms and individual investors to back their effort.
The company has six employees and wants to expand rapidly. Mr. Price welcomed the proposed legislation for the industry, which he characterized as insufficiently regulated.
“You’re going to see a lot of pressure on agents,” said Mr. Price. “It’s a good first step.”