What NTP Means to Me...

I certainly haven't had the longest career and I don't have the most compelling resume in the title insurance industry. I've spent the majority of my 17 year career working on the agency side, most of that time spent working for a very small agency that still feels like home when I visit. I've entered orders, searched, examined, closed, funded, recorded, later dated, typed policies and remitted. Not to mention sales, making payroll and reconciling accounts. I don't think my story is very different from many of yours. Nobody sits in their third grade class and dreams about the day that they grow up and work at a title company. That said, we all found ourselves here, and I can honestly say that there is nothing I would rather do.

I've spent much of my career sitting in closing rooms, helping borrowers refinance or buy, sellers move on, and yes, sometimes listening to attorneys argue while realtors and bankers looked on while crossing their fingers. One thing though about this scene has always rubbed me the wrong way. Why is the person who handles all the documentation, funds and non-public private information the only professional at the table without a certification or designation? Think about it... The banker, realtor, attorney, heck, even the appraiser and termite inspector have certifications. To me, this is all about value.

I am important; I play an exceedingly critical role in protecting a sector of our economy that make up an 18% share of our nation's Gross Domestic Product, not to mention the single largest purchase most American's will make in their lifetimes. I would argue that there is nobody at that closing table who should be certified or designated more than the Title Professional. If we don't claim our value, who will?

Becoming an American Land Title Association (ALTA) designated National Title Professional (NTP) is one of the greatest accomplishments of my professional life. That said, the NTP doesn't make me valuable. Exactly the opposite. I AM VALUABLE, THEREFORE I NEEDED TO GET MY NTP. It is my duty to the industry that I love and hold near and dear to my heart to do whatever I can to preserve its place and secure its future. Getting my NTP designation is a declaration that I am valuable... Now it's your turn.

Illinois Land Title Association Annual Convention Wrapup

That’s it, it’s over, it’s all over.  Another ILTA Annual Convention is in the books.  Each and every year the outstanding staff of the association keeps finding ways to outdo themselves.  Michael and Darlene Lane along with Susan Tolley put in countless hours of work to ensure that the ILTA offers new and exciting venues and programs.  This year’s Convention at the iHotel & Conference Center in Champaign, IL was no exception.

The Convention began with the 4^th Annual “Agent’s Only” dinner.  Though this event is young, it’s hard to imagine a convention without the camaraderie that this dinner inspires.  We find ourselves in a challenging environment, but optimism was heard and a vision for the future is beginning to take shape.  Our industry and indeed our nation is best served with a strong and vibrant agency model and events like the “Agent’s Only” dinner show our memberships commitment to these great businesses. 

The following day began with Committee Meetings and the Board Meeting, after which the convention moved seamlessly into a panel discussion featuring two of our own. Frank Pellegrini, past ILTA President and past ALTA President and Dan Mennenoh, past ILTA President and current Chair of the ALTA Agents and Abstractors Section joined Leslie Wyatt of Softpro for a lively discussion of the regulatory environment, upcoming changes and the new realities of our industry. 

Later in the evening after wonderful PAC and Underwriter Receptions the convention transitioned into the Installation Banquet.  As the crowd thanked now Past President Walt Adams for his thoughtful leadership over the past year, we also congratulated incoming President Paul Presney, Jr and the others installed as leaders.  Always a special event, this Installation Banquet took on even greater significance as the association recognized 40 members in attendance who had completed either their ITP (Illinois Title Professional), IEP (Illinois Escrow Professional) or both.  The celebratory mood lingered long into the evening.

The final day of the convention kicked off with reports from Wisconsin, Missouri and Iowa as well as a report from ALTA and the DFI update.  I believe the highlight of the day was a mortgage fraud report delivered by Brad Geary of Housing and Urban Development and Lyle Evans of the FBI and moderated by Linda Grahovec.  This was a humbling look inside the criminal world of mortgage fraud.  This fraud is still happening and it is getting more complex.  It’s quite clear that we as an industry must remain vigilant against this ever present danger.  After lunch the convention concluded on a high note with a very informative and positive financial markets update from John Chapman of BSC Private Wealth Management.

On a personal note, I have made no secret of the fact that the ILTA Convention is a highlight of my calendar.  For me this event has always been about friendship and fellowship.  Coming together as friends to celebrate our commonalities instead of our differences for a few days is truly special.  I’ve made dozens of wonderful friends at these events and each year I add a few more to the list.  I hope to see many of you at the quarterly committee meetings in October as we begin to build the bridge to next year’s annual convention.   

Reaction to ALTA’s Policy Licensing Initiative…

The American Land Title Association (ALTA) has been long accused to caring only about the interests of the Underwriters, or more appropriately, their Donors. ALTA is too slow to change, lacks the clout it deserves, and generally fails to inspire the rank and file in the title industry. For too long, ALTA has been nothing more than a Social Club for the CEOs and Vice Presidents of our Underwriters. I have to admit, that up until the last few years, I was in agreement with this line of thinking. You might ask, what has changed? Why am I now seeing some light at the end of the tunnel of these problems? Simple, I have gotten involved.

Our state Land Title Association’s are the backbones of ALTA. We are the support structures that give ALTA its strength to tackle the issues that affect us all. Now, it is true that I am often disappointed with the lack of speed with which ALTA works, but I attribute this to the general speed of Washington politics. Action comes slow, but in this marketplace, inaction as opposed to overreaction can be a positive thing.

I see the most glaring problem with ALTA being its lack interested parties. Our industry, especially when it comes to our agents, fails to take proper ownership in our Association. How is ALTA going to advocate for us when we don’t stand up and be counted. ALTA sometimes makes this difficult, with yearly membership fees, exorbitant pricing for conventions, and their confounding hierarchy, but the benefits of making your voice clear are abundant.

It is with great hope that I say I support the Policy Licensing Initiative. I hope that writing that $195 check to ALTA each year (or hopefully a bit of a larger check for membership) will force agents to speak up. Let ALTA know what is affecting your day to day business. Tell ALTA what current legislation will do in your marketplace and to your company. As much as I like Mike Pryor, he isn’t a mind reader and neither is the Board of Governors. They represent a segment of the industry but members and non-members alike must take some ownership in the importance of our national image and our national product. At worst ALTA now has a larger war chest to fight the battles that need fighting, but at best, ALTA now has a new pool of invested parties to lead us into the next generation of Title Insurance.

What do consumers want…

I mean what do they really, really want? When a consumer is choosing a title company with which to close their transaction, what are they looking for? For that matter, are they looking? If not, why? With all the press going to companies such as Entitle Direct where supposedly the consumer can save 35% on their title charges, you would be downright stupid not to shop around. The local title companies must only exist to prey on the consumer and charge exorbitant and outlandish fees from their neighbors. It seems to me that the mysterious stranger from out of town must always have your best interests at heart.

I would argue that Entitle Direct has actually hit on something with their approach. Consumers should absolutely shop around for title insurance! I can’t stress this enough. Title Insurance is a must. Your lender is going to require a Policy on a refinance and you must furnish clean title to your new buyer on a sale. But when it comes right down to it, a title policy is a title policy. So Entitle and others like them take the approach that if the end product is the same, then price must be the only factor with which a consumer should comparison shop. As Lee Corso would say, “Not so fast my friend.”

So if it’s not just price, what is it? The answer isn't that hard to figure out… Trust. The consumer must not only trust that the end product will protect them or their lender, but they also must trust that they aren’t being taken advantage of. The consumer wants to know that the policy they paid for is priced fairly and completed in a professional and safe manner. Why? Simple, in the end, Title Insurance is really Title Assurance.

Who can the consumer Trust? The internet is the wild wild west, anything goes. I don’t know anything about Entitle’s underwriting practices, but for the sake of this post, I’m going assume that they are even handed and accurate. But here’s the thing, you don’t know. They are their own underwriter, they don’t have to answer to Chicago Title, Fidelity National Title or Old Republic when they aren’t doing something correctly. Your local ALTA title agent does and has strict standards set by their underwriter. Some may call us the middle man, but we have checks and balances. The consumer has true Title Assurance.

Now as to the 35% that Entitle Direct is going to save you. I don’t fault them for marketing this way. I don’t know what the other markets they do business in are pricing at. I can tell you this though, in the Chicago Market, where I do business. I am going to save you 42% on a refinance… Not on some fictional rate but off of Entitle’s quote. IS that a special deal? No… That is every single day. Am I special? No, not really. The market dictates that a refinance should cost a certain amount in Chicago and Entitle is just that much more expensive.

Would I have put a link to the Entitle Direct website if I coulldn't beat them? So don’t believe the hype… Shop around, but shop local first! You’ll save time, save money and you’ll be Assured of that fact. You can Trust in that fact!

Advocate!

How many of us support or serve our state Title Associations?

We complain about the government interceding in our business, but we do nothing to effect change. Now is the time for us to stand up with our State and National Title Associations and who are fighting for us everyday. We must stand up and be heard! Contact your State Title Association and ask how you can help. Let’s protect our industry.

Thank you!

My morning ritual…

Each day I come into the office, sit and my desk and do a simple Google News search of, “Title Insurance.” It used to be that I would get some quarterly profit statement news from some underwriter, or news of some small agent defalcation in a market I’ve never heard of. Now, the news is Wall Street Journal story’s about exorbitant title fee’s and Consumer Protection stories from Local Evening news segments. We also have articles about the ever present threats from D.C. talking about regulation.

Is regulation a bad thing? I don’t really know. I work in one of the most title rate depressed regions in the country. I would think that if the federal government decided to regulate rates, I would benefit. I suppose that’s not really the point though, the question isn’t whether we are going to be regulated, it’s how much and by whom. Are we an Insurance Industry or a Financial Service Industry?

If we are poorly classified, I think regulation can be a terrible thing for us. Repeat after me… TITLE INSURANCE ISN’T A PART OF THE INSURANCE INDUSTRY. As the GAO Report of 2006 correctly noted, we pay out about 5% of rates charged towards claims, when a typical Home, Auto, Life Insurance Agency pays out upwards of 75%. If we allow ourselves to be classified as an Insurance Company we are doomed by further regulation.

The Obama Administration seems to understand this, but at what cost? We are being lumped into the Consumer Protection legislation of the Financial Services Industry. Our lobby, the American Land Title Association (ALTA) is working hard to blunt unnecessary regulation, but I fear that they are fighting a loosing battle. How do you argue against consumer protection? You don’t, especially when public sentiment is being swayed so heavily against us by the clueless and sensationalist media.

So, a hearty thank you goes out to Google News for keeping me up on things, but I sure long for the days when I didn’t fear my morning ritual.