Tucson title agency abruptly shut

But in a matter of hours Tuesday, the company was shut down by its Colorado-based parent, Mercury Cos. Inc.

The call came around 4 p.m. Tuesday, said Lenny Robles, senior vice president in charge of Pima County operations for the title business.

"I think there are a lot of us that are trying to sober up to this," Robles said, with emotion, at his company's 2502 E. River Road office Wednesday evening.

As he spoke, a locksmith arrived to change the door locks.

Arizona Title's closure comes as other Tucson title businesses merge or reduce their presence to cut costs in today's weak housing market.

Mercury Cos., which didn't return calls for comment, closed title businesses in several states, including Arizona, California, Texas and Oregon, Robles said.

Robles said the recent collapse of Mercury's California title business, Alliance Title Co., may have burdened the entire company.

Despite the slowdown in the real estate market, Arizona Title's business in Tucson remained profitable for most of this year, employees said.

"This is a powerful group," said Denise Monahan, the River Road office branch manager. She added that she is hopeful another title company will take on most or all of her staff. The company also had a branch at 301 W. Ajo Way.

Title businesses provide third-party services in real estate transactions. They supply title insurance, which protects buyers or lenders from losses associated with title defects, such as unforeseen ownership claims or liens. They also provide escrow services, which entail holding and transferring money in real estate transactions.

Escrow agents are licensed by the state Department of Financial Institutions and are required to ensure escrow funds are properly handled once transactions are opened, said Jack Hudock, spokesman for the department.

Arizona Title Agency employees continued to work through Wednesday — without pay — to make sure their escrow funds and files were handled.

Robles said the funds have been transferred to First American Title Insurance Co.

"There will be some holdups, and that's unfortunate," he said. "But consumers will not be damaged in any way."

Title companies in Tucson have been on a steady path of consolidation as the real estate market slows.

Last September, Mercury merged two other title businesses, Title Guaranty Agency and American Heritage Title Agency, into Arizona Title Agency. The company also used to have two more Tucson area offices.

Fidelity National Title Insurance Co. reduced its Tucson offices from seven to three over the past couple of years, said Lisa Quigley, manager of the company's office at 1825 E. River Road.

Premier Title Group, a company launched by Tucson-based Title Security Agency, will be folded back under the name of its founding company starting today, said Premier Title executive Eleanor Ortega.

But up until this point, there haven't been any major layoffs in the title business, said Jim Mize, a consultant who handles employer outreach for the Pima County One-Stop employment centers. Affected Arizona Title employees should contact Pima County One-Stop at 243-6700, he said.

Tucson employees of Arizona Title said they don't expect to see paychecks for work in July, and their health insurance benefits have been canceled. In light of that, Robles said he was impressed when he saw his entire staff show up to work on Wednesday.

There was a "99 percent chance I could have been here all by myself this morning," he said Wednesday.

Find more local business coverage at AzStarBiz.com.