HOW WELL DO
YOU KNOW
YOUR TITLE
COMPANY
?
KNOW YOUR
TITLE COMPANY
TOP 13
QUESTIONS TO CONSIDER
1. Do you consider them an extension of your company?
2. Do they support your pipeline and improve your turn times?
3. Are they current in their use of technology, and have a solid IT infrastructure ?
4. Is social media important?
5. Is E&O coverage in place and adequate to cover losses?
6. Do they have documented policies, procedures,
7. Do they have a broad and national base of experience?
8. Does your title company have a Surety Bond?
9. Who is their underwriter?
10. Do they have references?
11. Are Fidelity Bonds in place?
12. Do they have independently prepared yearly audited financials statements ?
DO YOU CONSIDER
THEM AN
EXTENSION
OF YOUR COMPANY
?
QUESTION #1
The answer should be yes. If you are unable establish
clear communication throughout your Title Company’s organization for your Management, Processors and Loan Originators, you should consider alternative providers. Remember, this is a Business to Business relationship, and the old adage “People do business with people they like”, cannot be overlooked in the Title and Closing Services Business Arena.
There are “many moving parts” in Title Business: It is experienced staff that makes sure the moving parts work to your advantage, delivering the service levels contracted for. Don’t settle for cost saving shortcuts with departments you find difficult to communicate with.
There are many National Title Companies that focus on keeping communications in the forefront of the client relationship. Seek them out!
DO THEY SUPPORT
YOUR
PIPELINE
AND
IMPROVE
YOUR
TURN TIMES
?
QUESTION #2
With the technology in today’s market, there is no reason to guess where you stand on any transaction. The wrong technology and reporting can be a detriment to your pipeline production and growth capabilities. Don’t settle for paper reporting and overnight data runs for your information.
Seek out real-time data systems available in the market place being used by national title companies.
DO THEY IMPROVE YOUR
BOTTOM LINE?
ARE THEY CURRENT
IN THEIR USE OF
TECHNOLOGY
?
QUESTION #3
It is a great idea to perform an informal audit of your Title Companies technology and how it is impacting your operating procedures. If you are still dealing with stacks of paper, faxes, multiple phone calls and emails then you need to challenge the technology your Title Company is providing you.
Today’s technology tools provide instant, accurate and secure environments to save you time and money.
Think of a paperless workplace!
DO THEY SAVE YOU
TIME AND MONEY ? IS YOUR
CUSTOMER’S DATA PROTECTED
?
DOES THEIR
IT INFRASTRUCTURE
SUPPORT YOUR GROWING BUSINESS ?
IS
SOCIAL MEDIA
IMPORTANT TO
YOUR TITLE
COMPANY?
QUESTION #4
Today’s environment and work culture calls on Social Media to enhance communications, keep current with industry trends, link people and expand industry knowledge.
Seek Title Companies in the forefront of Social Media.
This will give insight into the culture and see the real company you are partnering with.
IS
E&O COVERAGE
IN PLACE AND
ADEQUATE TO
COVER LOSSES?
QUESTION #5
Professional Liability Insurance (PLI), more commonly
known as Errors & Omissions Coverage (E&O) protects individuals and companies against claims made for inadequate work or negligence. E&O insurance often covers both court costs and any settlement or loss, up to the amount specified on the insurance contract. E&O is required to be carried by title agencies in
some states, but not all. Most, if not all, title underwriters, require that their agents carry E&O coverage. However, the amount of coverage the agent is required to have, will vary. Some title companies may have $250,000 in coverage, while others may have $10,000,000 in coverage
Ask your Title Company for proof of coverage before doing business.
DO THEY HAVE
FORMAL
POLICIES,
PROCEDURES &
TRAINING
IN PLACE ?
QUESTION #6
A sound Vendor Management process should include: Thorough Due-Diligence of the vendor’s
understanding and capabilities to comply with
consumer protection laws. This review should include a review of the title company’s policies, procedures, hiring practices, training documentation, internal
Ensure that your title company has internal resources responsible for understanding regulatory compliance and knows how to implement adherence to new laws, regulations and investor guidelines.
DO THEY HAVE A
BROAD AND
NATIONAL BASE
OF
EXPERIENCE?
QUESTION #7
Many Title Companies profess expertise in today’s marketplace. The key to doing business nationwide is to have a keen understanding of the local markets and the skillset to underwrite transactions in those areas to complete a successful closing transaction.
Don’t get caught with lending needs in and out of market areas, and find yourself “searching for a solution”. The days and hours to locate the one perfect provider for that one transaction, will result in the loss of other efficiencies, increasing your time to final closing.
Search for a Title Company with established and proven National Coverage.
DOES YOUR TITLE
COMPANY HAVE A
SURETY BOND
?
QUESTION #8
A surety bond protects companies and consumers should the title agent or agency fail to perform its tasks correctly, and any financial loss that may result.
All states don’t require a Surety Bond, nor do all Title underwriters.
Surety Bonds are not easily obtained.
Get a clear understanding from your title company of the Surety Bond protection they have in place for their customers.
WHO
UNDERWRITES
YOUR TITLE
COMPANY?
QUESTION #9
Does your agent work with a local, regional or national title underwriter?
The answer could effect your business in a number of ways: from the title insurance premiums your customers are charged for the policy being purchase, to the financial stability of that particular underwriter to pay claims, should they ever arise.
What is the relationship your agency has with their underwriters ?
Does your agent have high claims rates and are a liability to their underwriter, or does the underwriter and your agency work together as a true support partner in helping facilitate better solutions for you, and assist in resolving difficult or complex title matters, to help get your transaction to the closing table.
DO THEY HAVE
CLIENT
REFERENCES
?
QUESTION #10
There is nothing better than hearing how a prospective Title Company is handling clients like you. If you are national, seek national references. If regional, seek regional references. One thing to note, is that many lenders may not want to be specific, as it may give away their game plan. That is Understandable.
Confidentiality is a must in this industry, so you will need to respect that and proceed accordingly.
ARE
FIDELITY
BONDS
IN PLACE?
QUESTION #11
A fidelity bond is a form of insurance protection that covers policyholders for losses that they incur as a result of fraudulent acts by specific individuals. In the case of a title company, it usually insures a business for losses caused by the dishonest acts of its employees.
While called a bond, it’s actually an insurance policy protecting the business from employee related losses such as: checks, notes and other negotiable instruments, as well as funds in bank accounts, (including escrow accounts).
Make sure your Title Company is covered appropriately.
DO THEY HAVE
AUDITED
FINANCIALS
IN
PLACE?
QUESTION #12
Financial Statements independently prepared by a firm in accordance with GAAP (Generally Accepted Accounting Practices) provide the unbiased picture of a company’s health. A title company’s financial strength provides their customers the ability to grow, their business knowing they have a solid
As part of a sound vendor management process, request Audited Financial Statements from your title company.
A
HAVE THEY RECEIVED
AN
SSAE 16 (SAS
70)AUDIT
CERTIFICATION ?
QUESTION #13
The SSAE 16 Audit is the standard today for recognizing compliance with industry requirements and helps to understand a company’s management and controls. An SSAE 16 audit of a title company is conducted by independent SSAE 16 auditing firm, and consists of an in depth analysis of its accounting policies and
procedures, technology infrastructure, business processes centered on technology, and operational policies and procedures.
Ask your Title Company for a copy of their SSAE 16 Audit Report
YOU CAN
TRUST
FIRST TITLE &
ESCROW
WE ARE AHEAD OF
THE PACK
First Title & Escrow is a National Leader and Pioneer in the Title Industry
Our agency was the first in the nation to provide an Instant HUD-1 settlement statement and the first to interface their closing cost system into the GFE of a loan origination platform. We’ve maintained our status as trailblazers ever since. We focus intensively on mentoring our clients with the goal of creating solid operational strategies that will provide excellent returns
For more information, please visit:
OUR
PRODUCTS
TECHNOLOGY, FLEXIBILITY,
MATURITY
TRANSACTION TYPE EXPERTISE VENDOR MANAGEMENT
WE HAVE THE TECHNOLOGY FOR EFFICIENT TURN-TIMES, THE FLEXIBILITY TO INTEGRATE WITH YOUR PROCESS, AND THE MATURITY TO PROVIDE WORLD CLASS SERVICE. TITLE AND CLOSING PROPERTY INFORMATION TECHNOLOGY
ALTA Title Insurance in 50 States and D.C. Lender’s, Owner’s, and Limited Protection Policies Blanket Protection Policies for Bulk Purchase/ REO Transactions
Full Service Title Clearance
Professional, Mobile and E-Sign Capable Network of Title Agents, Attorneys, and Notaries Nationwide Borrower / Settlement Agent Closing Scheduling Mortgage Recording
Policy Issuance
Property Reports
Post-Closing Loan Review Services Research, Release & Assignment Services Document Recording
Document Retrieval Final Document Services Lien Release Processing Tax Searches
eRecording
Instantaneous Endorsement Generation Nationwide Closing Cost Calculator Instant HUD-1Production
“GFE Creator” Tool
Transaction Management Dashboard
Proprietary FirstVision technology allows users to manage pipeline, schedule closing, and communicate with entire team, and easily update title for loan amounts and proposed insured within system.
Reverse Mortgages REO/Default Transactions Commercial Properties
Refinance, Purchase, and Equity Loan Transactions
Appraisal Management Flood Determination Services Credit Reporting Services Agency Services
CONTACT
US
WE’D LOVE TO TALK!
To learn more about our real estate services, contact us today!
Phone/Fax:
Toll free 866-484-8537 (866-4TITLES) Fax 1-301-315-8181
Address:
7361 Calhoun Drive, Second Floor Rockville, MD 20855 Twitter: http://twitter.com/firsttitle Facebook: https://www.facebook.com/pages/First-Title-Escrow/167750113317928 E-mail: info@firsttitleservices.com