The End is Nigh! But Here’s the Good News for Title Agents

Title Agents

Good News for Title Agents

Ok. We’re pretty sure we’re not truly at the End of Days. Or even the end of the mortgage industry as we know it. We just wanted to grab your attention. But by the tone we’ve seen and heard on the origination side of our industry, it can certainly seem at times like the mortgage industry is on the verge of collapse.

It’s absolutely not. There has been and will continue to be a decline in origination volume. The origination sector, which needed to bulk up to handle historic refinance volume last year, is now finding it needs to shed resources (and capacity) to match the new normal for order volume. But, from the accounts of the majority of reputable economists and forecasters out there, we’ll still see a steady purchase market—even robust at times. And that’s where many title agents have shelter. With the exception of refinance-focused agencies, a good number of title businesses make their living servicing purchase mortgages. In combination with unprecedented home values, many agents we know are earning more revenue with a reduced number of orders.

And while the variables could change again, we mention all of this as yet another reminder that margin and profit should be taking precedence (if they’re not already) in a market like this. Even though there’s plenty of purchase business to be had, home values will eventually stabilize and possibly decline as rates continue to surge. 

Please consider this our friendly reminder to those who are reluctant to thoroughly digitize their title operations. Your investment in more efficient, effective technology which truly increases your efficiencies will not only save cost in the long run, impacting your margins. It will also provide another competitive differentiator as the market does grow more competitive, and things like repeat business or client referrals become even more important. 

Other factors that eventually convince REALTORS or LOs to send more title orders your way? Shorter than average time to close. Instant and continuous communication with the title agency. A streamlined process for electronically gathering client data needed to push the file to close. An operation where challenges, complexities and hiccups don’t disappear into the proverbial cracks, taking that time-to-close with them.  All benefits of well-thought out technology investments. And, since it’s our blog, we get to say this, too: all benefits of letting Alanna help your staff, freeing them to get out there and do some marketing, or else handle some of the tougher tasks!