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Newsletter - May/June 2008
 
Title Insurance - Low cost risk management tool in times of market insecurity
 
"The first quarter of 2008 has been marked by a noticeable change in sentiment towards risk and risk management strategies. The tightening of credit and an uncertain investment outlook has focused minds on ensuring that there are as few obstacles to exit property investments and property loans as possible. Title insurance has proved a very cost efficient tool in easing their title concerns" said Mr. Philip Walden, Managing Director of First American Title Insurance Company in Hong Kong.
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In a business environment which has become more complex with the subprime and liquidity crisis, risk managers are increasingly looking to title insurance to anticipate, identify, quantify and manage investment and loan risks across their real estate portfolios.
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Title insurance can be of significant value to real estate secured lending business and mortgage-backed securitization as it insures validity and enforceability of mortgages as well as collateral priority, deals with fraud and forgery risk and improves rating, credit quality and liquidity in the secondary markets.
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Having a high level of business activity over the past few years we should be looking at the human error factor as to an additional risk for which title insurance provides coverage, specifically clerical defects in loan documentation (omissions, inconsistencies or inaccuracies) that affect the value and recoverability of the collateral (omissions, inconsistencies or inaccuracies). Should there be any claim to the lender's mortgaged properties coverage of defense cost is assured as well.
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For investment and trust managers with fiduciary duties owed to their investors, title insurance is an increasingly common compliance requirement. First American can offer a custom-designed coverage for both purchase and mortgage transactions saving your time and expenses involved in negotiations and due diligence.
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The premium for title insurance is a single one-off payment based on the property value or loan amount (for lender's policies) and is due once only on the issuance of the policy. When amortized over the average life of an investment or loan period, the cost is negligible compared to the protection of the policy
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Announcement
 
We are delighted to inform you that Mr. Philip Walden has been appointed Managing Director of First American Title Insurance Company in Hong Kong. Also Ms. Irina Ciobanu has joined the team as Commercial Sales Manager - Asia.
 

 
For further information about title insurance please contact us at +852 2161 9105 , or by visiting www.firstam.com.hk.