Episode Summary

Nancy Gusman, a real estate attorney with 35+ years in title, reveals how title companies create hidden liability by allowing processors to work without standardized systems. She walks through the operational upgrades that prevent rejected recordings, banking errors, and E&O claims—from quality control checkpoints to proper commitment structure. Nancy also discusses ALTA advocacy efforts including the Fannie Mae attorney opinion letter debate, why Congress opposes alternate products, and how TAN (Title Action Network) amplifies the industry’s voice on legislative threats.

About Nancy Gusman

Nancy Gusman is a real estate attorney and title operations consultant with over 35 years of experience specializing in complex transactions and title defect resolution. She previously served as underwriting counsel for a national title insurance company and as president of the Maryland Land Title Association (MLTA). Nancy currently serves on ALTA’s membership committee, homeowners outreach program committee, and marketing work group. She helps title companies modernize operations, reduce liability, and implement consistent systems to protect against E&O claims and regulatory exposure.

Key Takeaways

• Most title companies still use 1980s processes despite new compliance requirements and liability exposure, creating gaps that E&O carriers may refuse to cover due to late notification.
• Allowing experienced processors to use their own systems creates inconsistent service and liability; McDonald’s-style standardization protects against claims, unemployment disputes, and operational costs.
• Every recording package and closing document should pass through a second pair of eyes before leaving the office to catch detail errors that lead to rejected recordings and uncollected fees.
• Requirements versus exceptions are often confused: requirements must be cleared before closing (mortgages, taxes, ground rent), while exceptions define what the policy won’t cover (future HOA dues, standard easements).
• Rejected recordings in Maryland can take six months to two years to resolve and cost agencies hundreds of thousands in errors, with the added risk of intervening liens between commitment and policy dates.
• Fannie Mae’s attorney opinion letter push won’t save consumers money because attorney malpractice carriers will require high fees to offset liability, and the program only targets low-risk refinances in higher income brackets.
• Title agents must join state and national land title associations plus TAN (Title Action Network) to influence legislation, as the industry is the smallest voice in real estate compared to realtors and mortgage companies.

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