Can a Lender's Own Acts Void Its Title Policy?

Attorneys filing title claims have begun to notice that the reception from the underwriters has become downright chilly. Claims departments are re-
sponding slower, but denying claims much more quickly. There is anecdotal evidence that claims that were once given due consideration and the title underwriters once paid without much “drama” are now routinely denied. Even when they might admit having liability, claims departments now demand much more information from claimants before making a final decision regarding liability ' and certainly before issuing a check. Title companies now strictly adhere to the terms and conditions of the policy boilerplate. There is much less give and take. A lot of this is understandable. Title companies have been hit by the economic crisis just as severely and perhaps more so, as any other participant in the real property industry. It has long been recognized that claims go up in an economic downturn just as the underwriters' ability to pay decreases. But is there more going on in this new era of strict scrutiny for title claims? Is the evidence merely anecdotal?