HOUSTON — United Title of Texas has closed all its offices around Texas, including six in the Houston area, as a result of financial troubles at its Denver-based parent company.
Mercury Cos., a holding company of title, escrow and other real-estate-related service firms, said Wednesday it stopped funding operations in Arizona, Texas and California and would not be taking any orders in those locations.
In a statement issued Thursday, Mercury said Colorado companies — including Security Title, First American Heritage, Title America, United Title Co. and Guardian Mortgage Documents Inc. — are unaffected by the decision and will continue business as usual.
“This decision was precipitated by an unexpected, and in our opinion unwarranted and unjustified, act by our syndicate of banks, which deprived us of the cash we needed to sustain and to continue those operations,” chairman Jerry Hauptman said in a memo to employees.
About 190 employees statewide were affected, including 60 in the Houston area. As for its customers, the situation could complicate closings for deals in the pipeline.
“We have a lot of closings that are supposed to occur,” said Jim Hilbun, chairman and chief executive of Austin-based United Title since October 2006. “If people miss closing dates, they can lose their loans.”
Mercury said it is working with its underwriter, First American, to ensure that all escrows are safe and that closings through the Arizona, Texas and California offices take place.
Hilbun said Mercury is a family-owned company that has been around since the 1940s.
This article has been corrected in this online archive. Originally, due to an editor’s error, the headline may have implied that Colorado offices of United Title Co. would be affected. They will not.
