Recent news of sustained economic recovery, lower levels of unemployment, with solid wage growth & a limited supply of homes for sale are just some of the key reasons placing positive pressure on the mortgage market. Meanwhile, it has been a tumultuous journey for title insurance industry with many title companies reporting an increase in their revenues, with some even showing a double-digit rise during the first quarter while many title agencies have seen a downward trend in terms of revenue, or are not growing as well as they had hoped for.
However, even with market conditions being favorable, there are many title agencies that have seen a downward trend in terms of revenue, or are not growing as well as they had hoped for. Even though much of this dip in revenue can be attributed to the higher interest rates damping the refinance activities, yet one hard look into day to day operations may reveal some critical factors that may also be affecting how a title agent is competing with their peers – like lack of better technology, limited access to a nationwide data and abstractor network, slower turn times, poorer quality of title reports – all leading to lower customer satisfaction. All of these factors can eventually lead to a dip in the bottom line for title insurance companies.
MBA’s Quarterly Mortgage Bankers Performance Report Q1 2018, shows a decline of 9% in the average loan production volume quarter over quarter with 63% of the volume contribution from purchase transactions. Additionally it reported that this was the second time in the nearly 10-year history of the MBA’s quarterly mortgage bankers performance report that lenders lost money originating mortgages
How should Title agencies respond?
Title agencies should brace themselves for the upcoming peaks & troughs in volume. However, they must keep in mind the critical factors we discussed which, if not taken care of, can adversely affect market shares. To respond, they can choose to improve each of the areas mentioned – e.g. gain access to databases and abstractors for newer counties and states – by spending a large amount of money & time, and increasing their one-time and fixed costs. This can mean lack of focus on getting new business.
Or, alternatively, they can choose to partner with a service provider, a vendor, with proven title insurance support experience, and with a robust nationwide network database – someone who can take care of achieving operational efficiency for them, while being cost-effective and timely, and while complying with the information security, quality and other compliance needs to be requested by all stakeholders.
SLK Global is one such vendor with 17+ years of title insurance support expertise, serving 100+ title insurance & tax customers nationwide, including 3 of the top 4 national title insurance underwriters. SLK’s wide variety of transformative products & solutions for the title insurance industry includes the SmartProp platform that can get you property title search reports in 4 hours* & the SmartTrak tax solution that can get you property tax reports in 24-48 hours, with 100% financial guarantee.
SLK Global is an established provider, with expertise in delivering customizable services and technology-driven products to other industries as well, such as Banking, Mortgage Origination, and Servicing, Cards and Payments, and Insurance.
To know more, write us at firstname.lastname@example.org and schedule a discussion today! You can also visit our website at https://www.slkglobalsolution.com