Big Reversal: Title Insurance Underwriter Fidelity Repeals Decision on Mechanic’s Lien Coverage

By Samuel M. Shiel, Esq.
Director National Title Services / Senior Underwriting Counsel
Madison Title Agency

In my May 31, 2012 blog post, I wrote of the decision by the Fidelity Title Insurance Group to stop offering coverage over mechanic’s liens effective June 15, 2012. Yet, within six weeks of the May 10th announcement, Fidelity reversed its position and decided in fact to continue to provide coverage. Read on to learn what led to this major reversal in such a short period of time. Continue reading →

Underwriter Fidelity Title Changes the North Carolina Real Estate Landscape

By Samuel M. Shiel, Esq.,
Director of National Title Services and
Senior Underwriting Counsel, Madison Title Agency

In my February 16, 2011 blog post, I addressed the decision that major underwriters made to end the practice of removing the creditor’s rights exception from their policies. This changed the practice of negotiating the removal based on significant financial analysis. It was with great intrigue that I followed that development within the real estate industry.

Now, a little over a year later, we are seeing yet another significant change to real estate title by one title insurance underwriter. After many years of significant loses on Mechanic’s Lien claims in North Carolina, the Fidelity Title Insurance Group, parent company of Fidelity National Title, Chicago Title and Commonwealth Land Title, announced on May 10th that they would no longer issue Mechanic’s Lien coverage for title commitments issued after June 15, 2012. (See their letter below.) Fidelity is also placing restrictions on the effective date of endorsements for previously issued policies. Why this change and why now? Continue reading →