Forbes reports: "Fitch Ratings said the outlook on US title insurers has turned negative due to a sharp decline in revenue and profits for the fourth quarter and full year 2007, as well as expectations for further deterioration in 2008 and 2009."
"Fitch said the continued unfavourable credit and property market conditions spurred by the subprime mortgage crisis support the revised forecast."
"As title insurance is a cyclical business, ratings are assigned at a level that can withstand a normal industry cycle. However, the downtrend may be unusually severe and longer in duration than past cycles, and create significant pressure on some company ratings, the agency said."
"Fitch said leading indicators of future title insurance revenues, including mortgage origination and title insurance order flow, reveal that further challenges lie ahead."
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