Ticor is claiming that they should not have to cover a title claim because Countrywide should not have given the loan to these scammers. Heck yes, Countrywide should never have given this loan. But Ticor agreed to take some money to insure title. Unfortunately, their local agent may have been a bit sloppy according to the article. That's not really Countrywide's problem. Maybe Ticor should have done a better job of qualifying and/or checking on their agents.
I understand the sentiment, really I do. If Countrywide had done its job and seen all of the neon clues that this was a scam from top to bottom, they would never have given the loan, and therefore, they would never have hired Ticor to give them a title policy, and therefore, there would be no title claim. But isn't this tantamount to your car insurance company refusing to cover you because the accident would not have happened if you were not driving? If Ticor succeeds in this case, haven't they demonstrated that title insurance is worthless? And, having done that, wouldn't they have litigated themselves out of existence?