What’s utterly lacking is an understanding of the services they are allowed to perform. Preparing Contracts and Deeds in Pennsylvania is considered the practice of law and is prohibited.
I really can’t blame them – they probably don’t know better. Over the last several years the primary requirement for a job in the title industry has been a heartbeat. Which would be OK, if anyone ever bothered with training. Based on my experience at the interview table, the little training that was delivered was based more on urban legend than on good practices, regulations, and the law.
There is a whole “generation” of people with title insuarance on their resumes. Most have several years experience, but have very little understanding or knowledge of the Title Insurance profession.
Imagine the consumer who purchases a defective “dollar deed” from the above author. Who’s going to clean up that mess? Fun times ahead.
{ 5 comments… read them below or add one }
Dave:
I understand your concerns and generally agree with you. The lack of knowledge or understanding is often the fault of the people that managed these folks, not the folks themselves. The person in your example probably doesn’t know any better because she wasn’t trained to know to know the difference. When business recovers, these same managers will be hiring warm bodies and putting them into responsible situations with little or no training and support. The cycle of life repeats itself.
When it comes time to hire, two things we all keep in mind: first, there’s a difference between five years experience and one year of experience five times; second, it’s easier to train a smart person with related experience, such as mortgage processing, than it is to untrain someone with previous title experience before you can train them to your standards.
Regards, John Bethell
John –
Welcome to the Blogosphere. I recently found your blog and have been enjoying your posts.
My biggest concern is the vast group of “title people” who have been cut loose in the last months and have decided to enter into the market by starting new “businesses.”
Their entry into a market that has faux-regulation, one where rules abound, but enforcement is lax, is extremely dangerous to consumers and the industry as a whole.
Dave:
In the short to medium term, I don’t see the major underwriters facilitating the proliferation of title agencies as they’ve done in the past. Fidelity and First American are hell bent on reducing their agent numbers right now and as industry profits continue to be non-existent, Land America, Stewart and OR will adopt a copy cat strategy, if they haven’t already. It’s a great opportunity for the regional underwriters with a good support system and balance sheet. Generally, that group is more cautious about who they affiliate with. The sweetheart contracts are a thing of the past, too, another good development for established companies like ours. Thanks for the kind words.
Regards, John Bethell
Hello Dave, I like your post. You are correct that over the past few years a Title Underwriter would sign anyone who could bring in business, and simultaneously fog a mirror. My big concern right now is that the Underwriters appear to be allowing their Agents to write owner’s policies that cover virtually nothing. The title commitments are done with virtually no title search, just as simple check of the last record owner and a look for a outstanding mortgages and liens. There is no search made for such things as restrictions and or easements, that are of course, excepted out. These title agents have the gall to charge full boat for an owner’s policy title premium. I think it is a tragic disservice to the consumer. I think it is fraudulent. I think it is bad for our industry. I think we need a movement within the title industry to stop this. All of those were ethical enough to write a full policy should be screaming. The only reason to write this simplistic policy is to cut the cost of the search and put more revenue into the pockets of greedy agents.
I would appreciate your thoughts.
Best, Jeanne
Jeanne -
While I haven’t witnessed the “short search,” I have heard a number of stories where agents and underwriters are diving right in to the cesspool. I can’t decide if its greed, laziness, incompetence, or a combination of all three.
But I’d bet that an issue like this will set the Title Insurance Industry squarely in the sights of regulators and legislators.
Cutting corners that ultimately damage consumers is going to be very hard to explain away.