Title Industry Observations

Interesting article about title insurance ...

on GazetteXtra.com (Janesville, WI).

The article suggests that some title companies are starting to focus marketing efforts on consumers.

Posted on Saturday, March 15, 2008 at 07:37AM by

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As the pendulum swings…

This week I spoke with a title agent in Florida who informed me of this new phenomenon where lenders are now adding a 10% reduction from the appraisal price due to a declining market.

Here’s how the situation works…an elderly lady in Miami purchased a house for $800K at the peak of the real estate boom and put down $100K as a down payment. She is now looking to refinance as her monthly payment is too high and understands that the value of her house may have depreciated since she bought it. Her appraisal comes in at $700K, which is not an issue since she owes $700K on the current mortgage. Due to the market that we are in, the lender is taking an additional 10% reduction off the appraisal for the new loan. This means the lender is only going to lend $630K for a house that appraised at $700K.

Upon hearing this I was in disbelief, that was until I spoke with another agency who said the exact same thing, however, it was for a buy/sell transaction. From what I understand, these types of reductions are only in South Florida, but the question is for how long?

Is this the beginning of a new era in home loans?

Posted on Thursday, March 13, 2008 at 08:50PM by

Jonathan Yasko in related industries, foreclosure crises, jonathan yasko |

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Why order a survey?

Consider this legal description: That part of the South 165 feet of Lot 4 included in the North 196 feet thereof in Block 8 in Wallen & Probst’s Subdivision ETC …

At best the description is vague, really poorly written, it doesn’t adequately describe the parcel. This is one of the reasons for ordering a survey.

The land surveyor provides an independent third party opinion in the real estate/mortgage process.

If an affidavit in lieu of survey was used in the above example would anyone raise a red flag?

The land surveyor is part of the checks and balances in this process. When any check is removed from any process the door or window opens for potential problems.

The Chicago Tribune ran an article in their February 24^th issue. A house on the south side of Chicago changed hands 3 times fraudulently while the dead owner’s son lay dead within the home. I’m not saying that a survey could have helped prevent this, but maybe someone, the appraiser, home inspector or surveyor might have noticed the skeletal remains of this man dressed in a red jogging suit sitting on the floor along with the skeleton of his dog laying along side him.

Some say that by using owner affidavits it saves money for the client. One could also make the argument that ending childhood vaccinations would cut health care costs. After all, when was the last time you saw anyone with polio? When the drug makers cut back on production and their employees move on or retire, that’s when the epidemic will hit. The epidemic has already hit the real estate industry. The checks and balances that were in effect in the past, like the survey was there for good reasons. Cutting out the checks and balances only cause’s trouble.

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Written by Mike Vanderwalker, PLS
Vanderwalker Land Surveyors, Inc., 708_423_8202

Posted on Wednesday, March 12, 2008 at 05:59PM by

Guest Writer in land surveys, Mike Vanderwalker |

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Could be a first

Last week, I shared a comment made by an unnamed Chicago surveyor on my static web-site. After a little back and forth e-mail discussion, the mystery surveyor, Mike Vanderwalker, agreed to become a contributor to Title-opoly.

The work-product of qualified surveyors, in my opinion, is as critical to the examination/insuring/ deeding process as the work-product of qualified abstractors. The elimination of surveyors from the closing equation results in increased (unnecessary) risk to consumers.

Mike, experienced and witty, offers a holistic perspective that’s desperately needed during this era of questionable standards within the title industry.

To my knowledge, Mike is the first land surveyor to actively blog. I’m looking forward to his posts.

Posted on Wednesday, March 12, 2008 at 03:10PM by

Ed Rybczynski in land surveys, Mike Vanderwalker |

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A case for title company blogging

An excerpt from Predicting the Title Industry Future (Jan/Feb 2008 TitleNews):

The industry must make a valid moral case for title insurance and the profits it earns from selling title insurance and related services. The essence of such a case is that the industry has a right to succeed by offering products and services that consumers need and want, so long as it does so without engaging in coercion or fraud.

The statement was made by Barbara Miller, the president of TSS Software headquartered in Annapolis, MD. TSS is the developer and provider of an industry software package that I’ve used in the past and recommend very highly. Just one of its many strengths is escrow reconciliation.

Consumers need to understand the benefits of title insurance, and the industry that delivers it, as a value proposition. Consumers don’t trust you because they don’t know you. They don’t know who you are or what you do. Consumers don’t understand that most title professionals are under compensated for the work-product provided and risk assumed.

Blogging is quickly distinguishing itself as the most effective form of public relations to ever exist.

Blogging is a cultural phenomena that can’t be ignored or overlooked. Title companies can’t afford not to blog.

Ms. Miller has made as compelling an argument for title industry transparency visa vie title company blogging as I’ve seen to date.

Posted on Tuesday, March 11, 2008 at 09:07AM by

Ed Rybczynski in title insurance, title industry, title insurance industry, title company blogs |

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A pathetic case of abuse by an escrow agent ...

Dallas Man Sells Phony Property But Gets Real Prison Time

Posted on Monday, March 10, 2008 at 07:46PM by

Ed Rybczynski in mortgage fraud |

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Jeanne Johnson has a must read post ...

Title Insurance Industry Draws Down its Reserves

Posted on Monday, March 10, 2008 at 07:26PM by

Ed Rybczynski in title insurance, title industry, title insurance industry |

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Some damn fine writers

I was asked to review, or judge, the mortgage related posts made to Active Rain for the week beginning 3/3/08 and ending 3/9/08.

The idea is to highlight, and celebrate, the best and the brightest among a quickly growing group of real estate professionals.

The posts that follow are well worth reading:

Blogger: Bo Hunt
Post: Down Payment Assistance Programs…Saviors or Scoundrels?

Blogger: Janet Guilbault
Post: Mortgage Person, Take The Wheel (And Try NOT to Crash This Car)

Blogger: Kevin Fase
Post: Spend it or Save it? Your ‘08 Stimulus Tax Refund

Blogger: Jeff Belonger
Post: The credit crisis aka the Wheel of MisFortune

Blogger: Brian Brady
Post: What Should You Give Consumers? What They Want, Of Course

Blogger: Lenn Harley
Post: Can The Government Fix The Mortgage Mess?

Blogger: Don Draughn
Post: Applying for a Mortgage in 2008: A Primer for First Time Home Buyers

Blogger: Larry Morris
Post: Are You Commiting Fraud With Seller-Pait Concessions Pt 2

Bogger: Fran Gaspari
Post: Truth In Title Insurance…A Transparency Pledge!!!

Blogger: Scott Gormley
Post: The “Liquidity Crises”, “Economic Stimulus Package” and my “Sleeping Tiger” Theories!

Posted on Monday, March 10, 2008 at 02:52PM by

Ed Rybczynski in related industries |

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