Stable mortgage lending rates, relaxed lending standards & a strong demand from millennials are some of the key trends which are starting to see in the year 2019, favoring a much stronger purchase market. This is a promising trend for title insurance agents to grow revenues.
The title insurance industry reported a 3% year on year increase in revenue during the 3rd quarter of 2018. State-wise Texas, California, Florida, New York & Pennsylvania were the top contributors. (Source: ALTA report)
Although the market prediction looks optimistic, we still cannot be naïve and ignore the volatility that the economy & the mortgage market has seen of late. While cyber threats, operating costs, staffing issues, increase in the competition are some of the major concerns which title agents face, there are some simple yet very effective ways which can help title agents grow their title business in the new year.<
Check out these 4 mantras which can help you get an edge over your competition in 2019:
1. Adopt a multi-channel marketing strategy: It’s simple, to win more business you have to be in front of your target audience. All the time. It’s essential to create a strong & positive brand awareness first before you can expect your target audience to remember you and get new business. With millennials forming the majority of the home buyers, companies have to understand the buying patterns of this market. Check out ALTA’s article on How to market your title company like Beer.
Having a mobile-friendly website, utilizing social media platforms, creating branded viral videos, effective email marketing – Title agents must have an effective multi-channel marketing strategy.
2. Speed, Speed, Speed: The need to deliver property searches faster is now bigger than it ever was. The advent of technology and increased competition among lenders has caused the average time to close a loan nationally drop down by 5% (Check out the article on MBA). With millennials forming around 37% of the market share and with their demand of speed, this trend of lenders trying to close loans faster will continue, and lenders, in turn, will look for the same responsiveness from their vendors. To sustain & flourish in 2019, title agents have to ensure that they are on top of their game in every order they receive. This may seem to be challenging, and not cost-effective especially when the market is volatile, but partnering with third-party vendors can help title agents easily meet & exceed their turn time commitments to lenders. Did you know that there are providers can deliver this promise? Leveraging SLK’s technology-enabled platform SmartProp®, title agents can deliver property searches in as little as 4 hours!*( Know more about SmartProp® by clicking here)
To sustain & flourish in 2019, title agents have to ensure they deliver property searches faster…much faster than their competition.
3. Expand your reach nationwide: To get more business, lenders are constantly increasing their footprint across the nation and hence title agents need to be equipped to take on business from any state… and any county in the country. Let’s face it – saying No is not an option, especially as it may inhibit the lenders’ growth. Having said that, it’s neither easy nor advisable to add additional resources and increase the fixed costs just to enter new geographies, especially when operating expenses of Title companies was up by 1.3% in Q3 2018 as compared to a year ago. And with potential volume fluctuations as rates change, it makes it even more challenging for title agents to take on additional business across the nation and increase their business footprint. A simple solution to this problem could be leveraging a technology platform like SmartProp® which can help title agents get property title search reports like current owner search across all 3,537 counties with a large online database & strong abstractor network.
It’s neither easy nor advisable for a title agent to add additional resources just to increase the business footprint to new geographies, especially with fluctuating business volumes and increased operating expenses.
4. Leverage the right technology: Title insurance transactions are often labor intensive and hence prone to delays & errors. This can be a huge financial & reputational risk for the title company. Fintech companies are aware of this as much as the title insurance companies and have come up with tried and tested, best in class solutions like SmartProp® which can help title agents deliver property searches 70% faster than their competition.
From blockchain to e-recording, 2019 will see an increased impact of technology in the title insurance industry.
To know how our products & solutions can help you grow your business in this year, do reach out to us at firstname.lastname@example.org