Is this a title insurance issue?

[Marty Happle]

Let me set the stage here...

1.  Bought an investment property cash that was a short sale on April 17

2.  I'm doing a re-fi right now

3.  Title came up that the mortgage was not discharged 

4.  My attorney's paralegal closed the deal and said he filed the paperwork himself

5.  Now that same paralegal is saying that we are waiting for the discharge since the lender sent it to the county 

6.  I asked if this was something that the title insurance policy would take care of and I was told that "this is not a title issue or claim by any stretch"  

  I'm either ready to call the title company myself monday morning or get a new attorney. 

Can we close with title insurance taking responsibility?