Quote:
Originally Posted by ahnuld
Lennar sold them NA title in 2018. Much lower valuation than todays spac value, which is insane. Im sure Lennar will unload their large interest asap.
Speaking of which, have you looked at lock up terms? any comment?
Insurance is insurance except for title. Of course basic actuarial math can model out loss rates without doing any real title work. But WFC will black ball you. Imagine you're Wells and 3 years later all these clients of yours, who do a lot of business with you including their home mortgages, start coming back and saying their titles are all defective, their neighbour owes 10 ft of their property, and its a massive PITA. The client will blame Wells. You think wells wants to deal with this or will just switch over to the title guys who actually check the title?
and yes the claim is from an insider who was with the company for most of its existence and left in 2020.
your last comment really makes no sense, a disruptive fintech should be growing above the stogy incumbents, not below them.
I edited my post a bit.
I'll very lightly accept an internet forum post of secret insider knowledge about the credibility of their product, but with a big grain of salt. If it turns out to actually be true- its all just Scamtech and will eventually come tumbling down ala Theranos- this post will probably get a subpoena someday when the investigations kick off, since its absolutely the first I've seen of a claim anything like that in public. Since your position goes back to that one credibility claim and that claim can't be proven or disproven without the passage of time, we can leave it there.
Title insurance is no different than any insurance from an origination standpoint, it all comes down to risk and the probability of a payout event based on the absence of defect indicators in certain databases/sources, which is a process that can be automated.
We completely agree that Wells, BofA and all their other fairly major enterprise clients have a massive incentive to not be issuing garbage title insurance under their brand, yet they very much are using DOMA, which means that either they've been taken in by the scam warned of by your secret former insider, or the secret former insider is wrong (or its just BS).
The play here in:re your claim is betting on the likelihood that your insider is correct and WFC, BOA, Lennar, etc all failed in their DD and got taken in by a huckster, or your insider is wrong (or doesn't exist, or was just spouting untrue BS)
I'll be on the lookout for their ability to scale into purchase titles. That's valid point.
Disruptive fintech with structural/legal barriers to entry isn't going to scale instantly, but I don't think adoption will be a problem if their product is shown to be credible. Wells Fargo, B of A, Lennar, etc all think it is, your insider says it isn't. Time will tell.