Title Insurance Underwriting Best Practices | Title Agents Podcast Ep17

Episode Summary

Bill O’Connell brings 24 years of title insurance expertise to this deep dive into underwriting fundamentals. He explains the art and science of underwriting decisions, covers common challenges like bankruptcies and mechanics liens, breaks down title endorsements agents need to understand, and shares how he helped pass Maryland’s quiet title statute. O’Connell offers practical compliance advice, discusses automation’s role without replacing professionals, addresses cyber fraud threats, and provides mentorship guidance for young title professionals entering legal and underwriting roles.

About William O’Connell

Bill O’Connell is Vice President and Division State Manager at First American Title, where he has served for over 15 years. He earned his J.D. from the University of San Francisco and spent his early career as a title and escrow litigator in California before transitioning to underwriting. O’Connell has been instrumental in Maryland title legislation, including drafting and securing passage of the state’s quiet title statute in 2016. He is an active member of the Maryland Land Title Association and the state bar’s real property section.

Key Takeaways

• Title insurance underwriting is both art and science—creativity to solve problems combined with precise knowledge of law, policy language, and factual application.
• Agents aren’t expected to solve every problem; their job is to spot issues and call underwriters who take the risk and provide solutions.
• The five critical compliance areas are: maintaining current licenses, completing CE requirements, accurate escrow reconciliations at least monthly, charging correct premiums, and reading closing instructions every time.
• Title endorsements add specific coverage beyond the base policy—common residential ones include Alta 9 for encroachments, Alta 4/5 for HOA assessments, and Alta 8 for environmental liens.
• Maryland’s quiet title statute passed in 2016 after O’Connell worked through judicial opposition by changing mandatory ‘shall’ language to permissive ‘may’ language that judges accepted.
• Automation will handle repetitive tasks faster and eliminate human error, but machines cannot replace title professionals because real estate remains a people business requiring human judgment and interaction.
• The biggest emerging threat is cyber fraud, particularly vacant land seller impersonation schemes that sophisticated criminals run at industrial scale across the industry.

Episode Chapters