07.31.07
Posted in Education, Industry News, Value of a title searcher at 4:22 pm by Jeanne
In researching the book “Title Insurance for Real Estate Professionals” for Dearborn Real Estate Education, I contacted ALTA, asking for updated claims data. I had an old Pie Chart showing claims history by category from a major Underwriter from the 90’s, but it was outdated, and I wanted new data. ALTA verbally told me that the Underwriters “had collectively decided to no longer share that information.” (They did not wish to put that statement in writing.)
I for one would love to know what is causing claims. I would rather learn from someone else than the hard way - by making the mistake myself!
I am not sure what the Underwriters are hiding, but my guess would be that some (many?) of the Underwriters and Agents have blatantly bought into a wholesale disregard for good abstracting and title underwriting standards.
As the market demands Faster, Cheaper, many seem to have decided to cut costs by basically “not telling the whole truth” about the title. By merely giving a cursory sketch, they can simply use a current owner search, done cheaply offshore in many cases. They can then use pure risk underwriting, and when errors come up - as they do in one out of three cases, says ALTA, they can just give each other “insured closing letters,” guaranteeing, that if the problem rears its ugly head before the expiration date of the lien (or whatever the problem is…)the first company who made the mistake (and gets caught) will fix it.
The sad thing for those of us who are abstractors and title searchers, and understand the business, is that the consumer is no longer informed about easements, restrictions or other key data, because the policies are being done from a last record owner search.
I, for one, want to know “the whole truth” about the title and what I am buying. I believe that we as an industry are getting a black eye, and the consumer is getting the shaft with a poor quality product by NOT telling the whole truth… and all for the almighty buck.
Your comments would be appreciated!
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02.02.07
Posted in Mortgage Problems, Mortgage and title Fraud, Regulation of Insurers and Banks, Value of a title searcher at 10:36 am by Jeanne
Are you better off today than you were ten years ago?
Whose fault is it. Let’s blame all errors, poor judgment, misconduct, wrongdoing, transgressions, egregious behavior and crimes on someone else. It’s easier to point the finger than to take responsibility. Sub-prime Mortgages, Predatory Lending, or One in Three closings with Title Problems? Our actions damage the Public and their perception of the mortgage and title industries.
Cases in point:
President of Mortgage Banking Company
The NY Times sites a mortgage banker who “acknowledges that standards were lowered, but he placed the blame at the feet of investors and Wall Street, saying they encouraged Ownit and other subprime lenders to make riskier loans to keep the pipeline of mortgage securities well supplied. “The market is paying me to do a no-income-verification loan more than it is paying me to do the full documentation loans,” he said. “What would you do?”
See NY Times article
Mayor of New Orleans
Mayor Nagin blames race, class, and President Bush for the devastation caused by Katrina.
Baltimore Sun article
Global Warming
Beijing shifts the blame for Global Warming on developed countries.
Sydney Morning Herald
When will we, as individuals in the mortgage and title industries, begin to take personal responsibility for the outcome of our actions? We need to enlighten the public and the media that subprime lending and fast-and-cheap titlework is NOT okay. Just because someone suggests you do something unethical (give the borrower a mortgage that doesn’t fit but makes you money, or do a last-deed-of-record only title search) doesn’t mean it’s the right thing to do. We will all pay the price.
Take individual responsibility for your actions, and quit pointing at everyone else. Take a good look at your situation. Are you better off today than you were ten years ago?
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01.29.07
Posted in 60 second title work, Don't underestimate a title searcher!, Value of a title searcher at 12:24 pm by Jeanne
WHAT IS THE REAL MESSAGE of “Title work in 60 seconds” - FAST? EASY? CHEAP? HOW ABOUT INFERIOR?
Are you selling yourself (the small title professionals) out? Do you make your work sound simple and cheap? Reality is that those who do the real work know it is not easy to provide a complete and accurate report on title. But complete and accurate is NOT what is being asked of us these days. Lenders only seem to want faster and cheaper - “just give us the name on the last deed of record” - sound familiar?
What has happened to the interests of the little guys - yes, that’s YOU - whose most important assets are your business and your home? Doesn’t anyone CARE anymore? Professionals who care need to band together to let the media and the consumer know what is happening, not just lay down and take the beating.
You have a valuable product. You are a professional. What you do matters to you and others.
Jane Doe and You NEED TO KNOW what you are getting when you pay good money for your house and take out your big mortgage. What are your taxes and assessments? Do you have to pay homeowner dues each month? Where are the easements on your property? Are their restrictions on my house - er, what do you mean I can’t take FIDO with me …or park my Company van outside?
The ony way to protect your biggest investment is to do GOOD, SOLID, RELIABLE, TITLE WORK, and NO, that does NOT mean fast, easy,cheap or inferior. Wake up everyone. This is a wakeup call for YOU the consumer, and YOU the title professional. Spread the word - your work is important!
See what other talk is on the web about Sixty-Second Title Work.
http://radicaltitletalk.blogspot.com/
http://title-opoly.squarespace.com/
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01.19.07
Posted in Don't underestimate a title searcher!, Education, Value of a title searcher at 12:01 pm by Jeanne
I was at the NALTEA convention in San Diego this past week. I was struck by the consistent themes resonating from these amazing professionals. I think what I wrote best describes how I believe these Professional Abstractors view themselves.
You are the honorable professionals. The little guys, not driven strictly by profit, speed and greed. You know there is much to know, and you care about education, quality products and differentiating yourself from the pack. You recognize what a quality product is, and believe what you do is truly important. You understand the significance of the complete system of land records; that they are core to our entire economy. You know that our lives rely on land records - the key to buying our most precious asset (and our biggest investment) – our home. You recognize that what we do is the driving force behind the mortgage and financial markets in the U.S.
You are concerned with accuracy and the integrity of the process. When asked to search something too fast, too cheap - something that would result in a bad product; you (reluctantly) turn it down. After all, it is better NOT to turn out a bad search… good abstracting takes time and effort to get it right. After all, a client can only get what s/he pays for… Faster, Cheaper is not Better, nor is it the Right Thing to Do. Moreover, all those seeming details a reduced search might skip - are critical to the owner! The title-holder needs to know what they can and cannot do to their property – where are the easements?… what are the restrictions?… how much are the taxes?… can I build a garage?… can I park my truck in the common area?… do I have to pay dues?… can I bring Tiger, and ninety-pound Fido and into my new condo?… It all matters.
You see privacy as an important issue. But you recognize the important role of both the government in keeping records, and the private sector in searching those records. You believe that not everyone should be data-mining the public records or looking at our private information, but still, there is the need to know – how else can we reliably buy a home, get a mortgage and know what we are really getting? There is a need for balance.
You are a professional, and there is much on your mind. It is not easy to be a professional abstractor today.
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12.15.06
Posted in Education, Land Title Technical Stuff, Regulation of Insurers and Banks, Value of a title searcher at 6:26 pm by Jeanne
From: Dearborn Real Estate Education [mailto:realestate@dearborn.com] Sent: Wednesday, December 06, 2006 2:50 PM
To: Melissa Kleeman
Subject: Build Your Client Base in a Softening Real Estate Market
Add Value by Offering Education to Agents with a Turnkey Course -Title Insurance for Real Estate Professionals
Looking for ways to have agents and brokers switch their alliances to you and your members? Give them a reason. Show them you truly know the Title Insurance business not just with the products you sell, but with the industry knowledge you possess.
Dearborn Real Estate Education, the leading publisher in real estate training for nearly 50 years, has created Title Insurance for Real Estate Professionals, a basic overview of the industry, giving you one more way to do just that.
Created as a course-in-a-box, Title Insurance for Real Estate Professionals is available with everything from booklets for students to instructor resources with PowerPoint slides from which to teach, including suggested topics and time per subject, and more, all designed as a “non- commercial” way to build relationships with real estate professionals.
The course was designed to be taught for real estate continuing education credit,* or as an educational seminar that can be given in a “lunch and learn” type setting. Spend quality time educating agents, establish yourself as an industry expert and then add a few minutes at the beginning or end of the course to tell them about the benefits of your organization.
Written by industry expert Jeanie W. Johnson, the course takes fundamentals and applies them to real life closing and title scenarios. When completed, professionals will be able to:
Explain what title insurance does and does not do
Identify red flag title issues for customers when they are listing, selling, mortgaging and closing property
Explain title work in plain English to agents, sellers, buyers and borrowers
Explain how liens and encumbrances legally attach to property
Determine how to remove unwanted items on title
Follow how title companies investigate and put together title work
Explain how title companies protect themselves and their customers from mishandling of closing funds, fraud, forgery, and a host of title issues
Jeanine W. (Jeanne) Johnson worked for over twenty- five years as a real estate agent and closer, then as an abstractor, closer, examiner, and Vice President of Old Republic National Title. She has authored a number of books, most notably Principles of Abstracting and Land Records Management; Title Examination for Title Insurers; Reading and Drawing Legal Descriptions; and most recently Title Insurance for Real Estate Professionals. She currently authors, consults, conducts seminars, and speaks at conventions and association meetings.
To learn more about offering this course in a box, and about bulk discounts, call your account representative at (800) 621-9621.
*In order to offer an approved continuing education course for credit, the course and instructors must be approved by the state in which the course is being offered. For information on how to do this, contact your account rep or state real estate commission.
————————————————————————
email: realestate@dearborn.com
phone: 800-621-9621
web: http://www.dearbornre.com
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08.30.06
Posted in Value of a title searcher at 4:04 pm by Jeanne
The Michigan State Financial and Insurance Services Department has issued a bulletin stating that “any insurance policy or product purporting to offer coverage related to possible liens against or defects in real estate title or purporting to cover any other risk identified in the Insurance Code definition of title insurance is classified as title insurance, regardless of the name under which the policy or product is marketed to consumers.”
And so the battle goes on, state by state, to retain the system of title insurance that has worked so well to protect both lenders and owners.
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