A number of mortgage and title insurers signed a letter of intent Friday to formalize their commitment to launching a new industry association.
Wendy Rinella, treasurer and VP of public affairs at the TIIAC, said that the new organization will be renamed the Mortgage and Title Insurance Industry Association of Canada (MTIIAC) and strive to strengthen the group’s voice as a collective.
“We’ve been in operation since 2007 and we found were talking about the same issues as mortgage insurers so we decided that the partnership would be beneficial for us,” Rinella told MortgageBrokerNews.ca. “We added two new members who will add value to our group and bring us a stronger voice in the industry.”
Canada Guaranty Mortgage Insurance Company
Financial Mortgage Insurance Company of Canada will join the Chicago Title Insurance Company, the FCT
Insurance Company Ltd and the Travelers Insurance Company of Canada to comprise the MTIIAC.
Rinella said the TIIAC were in talks to join the Insurance Bureau of Canada (IBC) but found that working with mortgage insurers was a better fit for their objectives.
The purpose of the TIIAC is to promote the common interests and concerns of the title insurance industry while advocating issues for the betterment of the title insurance industry.
Title insurance protects homeowners against hidden title hazards that can threaten your financial investment in your home. When homeowners typically purchase a home, they are also purchasing the title to the property – the right to use and occupy the space.
That title may be limited by rights and claims asserted by others, which may limit your use and enjoyment of the property and even bring financial loss, making title insurance also pivotal and mandatory for homeowners, said Derik Rehou, a mortgage broker with The Mortgage Centre.
“It’s very important for homebuyers and owners, almost mandatory,” he said.
“It gives consumers a level of protection against identity theft, which we see more and more of in the industry. If something is amiss, then having title insurance offers you another layer of protection and keeps you safe against encroachment on your investment. It’s also mandated by most lenders as well so it’s practically a must.”
The new association is planning a website in the New Year and will continue to provide information on the association leading up to their official launch in early 2015.