The 9.2 percent jump in home sales last year and record refinancings translated into a 21 percent increase for the nation’s title industry and $504 million in profits.

The American Land Title Association (ALTA) reported $11.4 billion in title insurance premiums written during 2012, up nearly 21 percent from 2011, according to the association’s Year-End and Fourth-Quarter Market Share Analysis.

“Positive operating results in 2012 further strengthened the industry’s already strong financial position”

Title insurance premium volume has steadily increased the past two years since 2010 snapped four consecutive years of declining premium volume. The improved market conditions resulted in the land title industry reporting a net operating gain of $504 million in 2012, compared to a $20-million loss in 2011.

“Positive operating results in 2012 further strengthened the industry’s already strong financial position,” said Michelle Korsmo, chief executive officer of ALTA. “The land title industry has come out of the real estate crisis well positioned to meet the needs of homeowners and homebuyers in the future.”

The industry’s total assets exceed $8.8 billion, with cash and invested assets at more than $7.8 million. While statutory surplus increased 33 percent to $3.5 billion, statutory reserves are down $372 million as a result of claims settlements, but remain at over $4.4 billion.

The industry paid $908 million in claims during 2012, compared to $1.02 billion in claims paid during 2011. These payments were made to, or on behalf of, insured homeowners for losses they experienced under policies issued to them or their lender, or to defend those titles from the claims of others

Thirty-eight real estate markets have been tagged as “dangerous” for investors looking to make money on buying homes as rental properties in new quarterly data compiled by HomeVestors of America (known as the “We Buy Ugly Houses®” company) and Local Market Monitor.

The list categorizes markets according to different investor risk preferences and assigns a numerical score from minus-ten to plus-ten based on population, job growth, unemployment, home price changes, the market’s equilibrium home price (a proprietary measure of how much a market is over-priced or under-priced relative to local income) and the 12-month home price forecast.

“Despite the fact that home sales and home prices are increasing on average across the country, we are still seeing weaknesses in some markets,” said Ingo Winzer, president and founder of Local Market Monitor. “Sometimes weaknesses can signal opportunity for real estate investors, but not in the markets we ranked as ‘dangerous.’ In those markets, the risk far outweighs any opportunity.”

Leading the “dangerous” list is Battle Creek, Michigan, which drew a minus-four score because of its continuing job losses and weak home prices. Battle Creek is one of three Michigan cities-the others being Muskegon and Saginaw-that were ranked as “dangerous.” Only Florida had as many cities ranked as “dangerous” as Michigan. They are Port St. Lucie, Daytona Beach and Tallahassee.

The top ten “dangerous cities were, in order, Battle Creek, Salisbury (MD), Norwich (CT), Dalton (GA), Muskegon, Augusta, Decatur, Tuscaloosa, Dover and Port St. Lucie. The largest city to earn a “dangerous” label was Providence, Rhode Island, which ranks as number 26 on the “dangerous” list.

“All of the markets we ranked as dangerous have a combination of factors such as high-unemployment or weak job growth and falling or weak home prices,” said Winzer.