The title insurance industry works to help out potential homebuyers and lenders get the coverage they need during the mortgage approval process, and this is something that industry members take quite seriously.

Patrick Stone, the president and CEO of the Williston Financial Group, spoke during the October Research, LLC, National Settlement Services Summit in New Orleans to delve into the importance of title insurers as financial service providers, according to The Title Report. He explained that those who work in financial service focus on aiding in money management - just like title agents.

"My passion for this conversation increased dramatically in the past six months," said Stone. "If you are perceived as a financial services provider, your value proposition is clear to everybody. You handle the money as an independent third party. You keep track of the accounting. You make sure the property is free and clear, or you list what affects the property. You are a financial services provider if you embrace compliance enthusiastically."

The compliance and regulation aspect of the industry can be confusing, Stone explained to the news source. However, even with the added complexity, the industry is in better shape, and even with the introduction of the Consumer Financial Protection Bureau, title insurers could be in strong shape.

One lender that Stone visited in the recent past did not have 60,000 title insurance policies that it was supposed to keep track of, the news source added. However, with the recent changes in the industry, this would not happen today.

Title agents necessary for successful lenders
Working with title insurers can be quite necessary for those looking to help borrowers purchase their dream home. This is because they focus on ensuring that the process goes on without a hitch.

The title search process can be stressful for those looking to acquire a property, as there is no guarantee that it will come back without an issue. Having this type of insurance can help make certain that their investment is covered. Even when the home is purchased, and the owner moves in, the situation doesn't always end there. Homeowners can see problems arise months, or even years after the home purchase closed. Title insurance continues to work throughout the life of the mortgage, helping owners feel comfortable that they will be able to remain in their property without the concern of losing their home due to an error made long before they considered the property.

Considering title agents are a key part of helping lenders close the deal, Stone's assertion that agents are indeed financial service providers rings true.