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Volume 77, Number 5

$5 per issue (member rate) $8 per issue (non-member rate)

AMERICAN FEATURES LAND TITLE ASSOCIATION 7 Believe It! The Year 2000 Peter de Jager, considered to be the world's Problem Is for Real foremost leader in creating awareness of the Year 2000 Computer Crisis, finds the most difficult aspect to be convincing people the implications are serious. (He will be a featured speaker during ALTA's 1999 Technology Forum & Expo in February.) Members Call Toll Free: 800-787-ALTA Moving to the Head of the An old fashioned atmosphere of learning will Members Fax Toll Free: 11 Class ... ALT A's Technology guarantee an abundance of useful information 888-FAX-ALTA in Orlando. There will be a multi-track agenda Forum & Expo tailored for different experience and knowl­ E-Mail Feedback to: edge levels. [email protected] By M Kathleen Hendrix

Customer Service for the McSettlements of yesterday are rapidly giving 15 way to just-for-you mass-customized buffets, 21 •1 Century whose customers can select from a vast array of settlement service choices. On the cover: It's time to plan for moving to the head of the class in By Karen E. Koogler technology during the 1999 ALTA Technology Forum & Expo, to be held February 7-9 at Disney's 23 Land Title Institute Beginning February 28, LTI will offer a week Coronado Springs Resort, Orlando, Employee Education Moves long, comprehensive, university-level, inter­ FL. Besides top-of-the-line guest active manager education course designed speakers who will take a searching To Manager Training Level specifically for the land title industry. look over the horizon attechnology's impact on the title business, plans By Patricia L. Berman include a computer classroom, two full days of continuing education credits, and a hands-on demonstra­ tion area. For more information on what's ahead, please tum to page I I. AND MORE ... 17 MERS - - Close-Up

Reprinted in this issue of Title News are the two most recent editions of the Mortgage Electronic Registration System (MERS) newsletter. Besides our own MERS coverage, ALTA will reprint additional future editions of the newsletter in its magazine, in order to keep Association members better informed on this important development.

27 Coming - - ALTA's Tax Information Reporting Compliance Telephone Seminar

Need to be in the picture on the latest tax information reporting requirements? AL TA will cover the subject in a nationwide telephone seminar to be held November 10.

©1998 American Land Title Association. Title News is produced by ALTA and may not be distributed to non-ALTA members without permission of the American Land Title Association.

Title News is published bi-monthly by the American Land Title Association, 1828 L Street, N.W., Suite 705, Washington, DC 20036. U.S. and Canadian subscription rates are $30 a year(member rate); $48 a year (non-member rate). For subscription information, cal l 1-800-787-ALTA. Send address changes to: Title News, circulation manager, at the above stated address. Anyone is invited to contribute articles, reports and photographs concerning issues of the title industry. The Association, however, reserves the right to ed it all material submitted. Editorials and articles are not statements of Association policy, and do not necessarily reflect the opinions of the editor or the Association. Reprints: Apply to the ed itor for permission to reprint any part of the magazine. Articles reprinted with permission must carry the following credit line: "Reprinted from Title News , the bi-monthly magazine published by the American Land Title Association." 1998 $§=i;tit.i4'* 1999 6 AL TA Board of Governors 21-22 Title Insurance Agents Palm Beach, FL Executive Conference Las Vegas 6 Public Relations Committee Orlando, FL

7-9 1999 ALTA Technology Forum & Expo 14-17 AL TA Annual Convention Disney's Coronado Springs Resort, New York Marriott Marquis, New York Lake Buena Vista, FL City 28-March 5 AL TA Land Title Institute Management Development Program Houston Baptist University Campus, 2-3 Title Counsel Houston, TX Santa Fe, NM

16 Title Reinsurance Company Board San Francisco 29-31 ALTA Mid-Year Convention Hotel Inter-Continental, ew Orleans

7 Membership and Organization Committee Key West, FL

7 -8 Land Title Systems Committee Key West, FL AMERICAN LAND TITLE A MESSAGE FROM THE PRESIDENT-ELECT ASSOCIATION ALTA Programs Meet Changing Business Environment

educational ASSOCIATION OFF1CERS he American Land Title Association programs continue to rally and adjust to recent President changes in our industry. Malcolm S. Morris, Stewart Title Much has been written recently about the changing Guaranty Company, Houston, TX business environment in which our industry now finds (E-mail: [email protected]) itself. As a result, questions have been raised as to whether President-Elect or not the ALT A can adjust the pursuit of its goals in a Joseph M. Parker, Jr. , Parker Title Insurance Agency, Inc ., Winston­ manner which meets the new environment. Salem, NC ALT A has been successful in meeting modern day Treasurer challenges in several fields including government affairs Jeffrey A. Tischler, LandAmerica Finan­ but, what has been particularly pleasing to me, and I hope cial Group, Inc ., Richmond, VA to all of us, is the way our educational programs have Chair, Finance Committee immediately risen to these new challenges. Stanley B. Friedlander, Continental Several accomplishments should be mentioned. One, of course, has been the Title Agency Corporation, Cleveland well documented success of our Technology Forum and Expo, which will be held Chair, Title Insurance Underwriters again in February, 1999. I have just returned from attending the Agents Seminar on Section Strategic Alliances held in Chicago in August. The objective of the seminar was to Charles H. Foster, Jr., LandAmerica for survival in Financial Group, Inc. , Richmond , VA provide information and ideas to agents, to help them adapt and plan today's changing business environment. Speakers included experts in the field of Board Representatives, Title Insur­ agents who have ance Underwriters Section business alliances, underwriting executives and counsel, as well as John N. Casbon, First American Title entered into alliances and were able to speak of their experiences. The responses to Insurance Company, New Orleans the seminar were excell ent, and I am sure it will not be the last seminar organized to Alan N. Prince, Chicago Title Insurance quickly respond to a current need of the industry. Company, Chicago Another example of ALT A's continued response to a present need is the Chair, Abstracters and Title Insurance upcoming Land Title Institute Management Development Program to be presented Agents Section February 28-March 5, 1999, at Houston Baptist University. Research has indicated a Cara L. Detring, Preferred Land Title need for this type of seminar, particularly for mid-size agents and regional , Farmington, MO Company underwriters. This again demonstrates ALT A's ability to rise to the needs of its Board Representatives, Abstracters members. and Title Insurance Agents Section sitting still while the new environment passes by, but Steven M. Evans, Evans Title Compa­ In summary, ALTA is not nies, Appleton, WI instead is adjusting its programs and responding to its members needs. Many A should be congratulated for their help in meeting the new Tony Winczewski, Commercial Part­ people in the ALT ners Title, LLC , Minneapolis challenges. Particular credit should be given to our ALT A staff for planning, the programs. ALT A also appreciates those members Immediate Past President organizing and implementing Dan R. Wentzel, North American Title from both the agent and underwriter sides who voluntarily give of their time and Company, Inc., Walnut Creek, CA talent to serve as speakers and panelists. I hope that all of our members will take advantage of the effective and timely ASSOCIATION STAFF programs being presented. Executive Vice President James R. Maher Sincerely, Director of Research Richard W. McCarthy Vice President- -Administration David R. McLaughlin Legislative Counsel Joseph M. Parker, Jr. Ann vom Eigen Director of Education Patricia L. Berman Director of Meetings and Conferences Liza Trey Director of Membership/Marketing M. Kathleen Hendrix Director of Information Systems and Technology Kelly Throckmorton Title News Compositor Susan M. Cicirelli

Believe It! The Year 2000 Problem Is for Real

he Year 2000 Date Problem is computer. If the system has the wrong behaved properly... I "knew" the oper­ for real. In the view of Peter de date, then all your software has the ating system could not be wrong! TJager, the most difficult aspect is wrong date. Powering off the machine during the convincing people the implications are The good news is that this was only roll-over makes all the difference. indeed serious. a test. The bad news is that on Decem­ Each PC responds differently to the A globally prominent speaker on ber 31 , 1999, it won't be, it will be pain­ year 2000. If I reset it to January 1, 2000, change, creativity and management fully real. then it rolls over to January 2, 2000 cor­ technology who shares his views on the More than 80 million PCs will be rectly. Now all I have to do is remember Internet, de Jager will provide his switched off as people leave work. When to reset my computer on Saturday, Janu­ thoughts on Year 2000 to the title indus­ they return, their computers will be all ary 1, 2000. Other PCs will not accept the try in person as a featured speaker dur­ but useless. year 2000, refusing to believe it exists. ing the 1999 ALTA Technology Forum & How bad is the problem? How many All your applications, spreadsheets, Expo February 7-9 in Orlando. In the PCs will really fail? Based upon predic­ accounting packages, day-timers, e-mail meantime, here are selections from his tions of people involved in the Year 2000 systems, even backup cycles will be at previous World Wide Web musings that problem, upwards of 80 percent of ex­ risk a few years from now, unless you offer intriguing insight on what to ex­ isting PCs are unreliable. solve the problem. pect. On January 1, 2000, more than 80 What can you do? You've several op­ In an Internet presentation entitled, million PCs will think the Berlin wall is tions. Replace all your computers. A few "Early Warning," de Jager sets forth his still standing and that Trudeau is still letters to vendors explaining how you're perspective as follows . the Prime Minister of Canada ... a tad upset ... might be appropriate. When this test was first explained to Apply a kludge to your operating sys­ me, I didn't listen properly. I changed tem, Have it read 1980 from the BIOS and More than 80 million PCs the date, and waited ... The date and time add 20 years. Trouble is, each PC fails differently, making sure all your PCs will be switched off as have been fixed, and remain fixed, will people leave work. When Peter de Jager is be a logistical nightmare. considered to be the Another option is, do nothing. Why? they return, their comput­ world's foremost Because, the problem won't take effect ers will be all but useless. leader in creating for a few years; you'll probably be in a awareness of the different job; someone else will fix it; it Year 2000 Computer can't be as bad as I make out, etc. etc. Early Warning! Crisis, speaking to In the meantime, your problem is technical and general audiences growing. Right now, a new PC is being the world and appearing installed. ls it Year 2000 compatible? This is just a test. It'll only take five throughout on network television. He writes What about the PCs you buy tomorrow, minutes. It won't be painless, but... the extensively on the subject and next week and in 1996? results may save a lot of anguish in the comments through his Internet home I think the 80 percent failure rate is not too distant future. page, The Year 2000 Information high. This is not based upon any lack Set the date on your personal com­ too Center. In Congress, he has testified in predictions. It's more an un­ puter to December 31 , 1999. Set the time of faith before the House Science Subcom­ to 23:58hrs (11:58pm) and then POWER willingness to believe such a "stupid" mittee, and he has been invited to OFF the computer. Wait at least three error, could be so prevalent. On the speak before the World Economic minutes and then turn the PC back on. other hand .. . I have great faith in the Forum in Switzerland and the Check the date and time. It SHOULD be laws of Murphy. If anything can go Canadian House of Commons a minute or two past midnight, on the wrong ... Standing Committee on Industry. A morning of Saturday, January 1, 2000 .. . (Actually I was wrong ... after this ar­ graduate of the University of My computer responds with January 4 .. . ticle was printed in Information Canada, Toronto, he serves as a special 1980. Not exactly what you would ex­ I received more than 140 responses ... 97 advisor to the United Kingdom pect. percent of the PCs tested ... failed . PdJ) Taskforce 2000. The problem lies somewhere in your Did you test your computer(s)? How

Title News- September/October 1998 7 many failed? Now do you believe in the After December 31, 1999, computers and the computer will loudly and Year 2000 Date Problem? won't know what year it is. proudly proclaim that I'm -55 years old. The power of this little demonstra­ This sounds insane. It sounds like a Which is silly, and wrong, and will cause tion lies in its simplicity. It doesn't take science fiction story. It just happens to havoc with every type of interest cal­ much to imagine all the PCs in the be very true. Here's why. culation in every program in every com­ world ... all of them ... producing some We programmed computers to store pany in every country, worldwide. very strange reports. Does this place the date in the following format: dd/mm/ It affects more than just interest cal­ you at risk? yy. This means that we've allowed 2 dig­ culations. It affects all information Where exactly does the problem lie? its for the day (dd), 2 digits for the based on time. When will your driver Is it in the RTC? (Real Time Clock) Or in month (mm) and only 2 digits for the license expire? When will your credit the BIOS? Or in the operating system? year (yy). Can you see the problem? card expire? When will this drug no Does it matter? The fact is, an error in Some examples might help. I was born longer be safe? When should this ma­ processing the Year 2000 will occur on January 23, 1955. So we store that in­ chine undergo regular maintenance? more than 80,000,000 times. formation in the computer as 23/01 /55. When was this product built? How long Many folks point out that (a) the com­ The Wright Brothers achieved their first has this invoice been overdue? Has this puter on their desk will be replaced be­ flight on December 17, 1903 and that's subscription expired? All of these cal­ fore the Year 2000, (b) that someone will stored as 17/ 12/03. When we get to Janu­ culations are based on the date, and if fix it with a software patch, (c) that the ary 1, 2000 we'll store that information the computer does not know what date next release of the operating system will in the computer as 01 /01 /00. it is, then these calculations are no solve the problem! longer possible. All of these observations are true ... If I were a mind reader, I'd say the but they don't eradicate that this error All your applications, thoughts in your head at this moment was replicated millions of times ... now. .. would be a collection of "How could ask yourself the question. If the manu­ spreadsheets, accounting computer programmers be so stupid? facturers of PCs could make this type of packages, day-timers, Didn't they know the year 2000 would error. .. what leads you to believe your arrive? Why didn't they store all 4 dig­ accounting software is safe .. . and will e-mail systems, even back­ its for the year?" And last, but not least, handle the Year 2000 correctly? up cycles, will be at risk a would be, "Well... just put the extra dig­ its back into the program! How difficult *** few years from now, unless could that be?" you solve the problem. These are very natural responses More specifics on the Year 2000 Prob­ from anyone just hearing about the Year lem are found in de Jager's 1997 Web 2000 Computer Date Crisis. The listener offering, "You've Got to be Kidding!" See the problem yet? We've told the becomes even more incredulous when computer to assume that 23/ 01 / 55 I mention that the estimated costs of fix­ You've Got to be Kidding! means 23/01 / 1955, and that 17/ 12/03 ing this problem are upwards of $600 means 17 / 12/ 1903. What will it assume billion (US) worldwide. Unless they are fixed ... all computer 01 /01 /00 means? It will assume that 01 / $600 billion to fix 2 missing digits, programs .. . everywhere in the world ... 01 /00 means 01 /01 / 1900 or January 1, otherwise all the computers worldwide will go on strike on January 1, 2000. Can 1900. That's it. That's the problem. The go on strike ... you're right. It does in­ you imagine ... just for a moment ... the computer, all computers, will think that deed sound like science fiction. Unfor­ chaos this would cause? There would all "dates" past December 31, 1999 are tunately, it's not. It's very real and af­ be no air traffic, no traffic lights, no 100 years in the past. fects everyone on earth. lights in your company, companies So what? To understand the implica­ could not produce goods, no goods de­ tions of this little error, we must look at Why Only 2 Digits? livered to the stores, stores could not one of the most basic, and most com­ send you bills, you could not send bills mon, calculations performed by the Let's answer your obvious questions. to anyone else. Business would come to computer. The calculation that deter­ "Why did we use only 2 digits when we a halt. mines how much time has passed from knew we'd need 4 of them when the Year Could such a catastrophe happen? one event to the next. For example, how 2000 rolled around?" Well, if you read this article and think old are you? Well, the bad news is that we did it about the consequences, then you'll I was born on January 23, 1955. If I deliberately, but with the very best of decrease the likelihood of this unset­ ask the computer how old I am, it sub­ intentions. Honest! tling event. If you ignore this warning, tracts my birthdate from the current When computers first entered the or fail to ask yourself the question, date. So it'll perform a calculation simi­ business world in the late '60s and the "Could this happen?," then you become lar to 96-55 (remember it only has 2 dig­ early '70s, they were very expensive. a part of the problem. its for the year information) and gives This 'expense' was tied directly to two How could computers possibly go on me the answer of 41 years old. Which, aspects of computing, how much data strike? The explanation is very simple, while unfortunate, is also true! could the computer store and how fast so simple, that many people like your­ On January 1, 2000, the calculation could it process that data. Even tiny, self, have great difficulty believing the will be exactly the same. Subtract my incremental increases in either attribute problem is real. birth year from the current year, 00-55 resulted in huge cost increases.

8 Title News- September/October 1998 One way to store data, was on a piece never made in isolation, compromises calculation, and make the necessary of stiff cardboard known as a Hollerith are always a conspiracy or collaboration. changes to the program to make the card. By literally punching holes into Computer managers would tell the cli­ problem go away. The problem is ... this Hollerith card according to a set of ent that if they stored all 4 digits, they'd that's not the problem! patterns, and reading those patterns have to buy a bigger computer or they'd When someone makes the statement, with a beam of light, one could store and have to write a much more complicated "Put the 2 digits back in," they are mak­ retrieve information. program to store the data of 2 or 3 or 4 ing an assumption. The speaker is not Each of these cards had enough Hollerith cards. The client would typi­ even aware of the assumption they are space to hold only 80 characters of in­ cally respond "Are you crazy? You want making, which makes it all the more formation; 80 characters is not a lot of me to spend another million dollars to dangerous. information. Write down your full name, store an extra 2 digits that won't even The assumption is that we know address, birthdate, bank balance and be used for 30 years! Just store the 2 dig­ where the dates are. bank account number. The chances are its and leave me alone! In fact, store a That's right. We don't know where very good you'll have written down single digit and save even more money?" the dates are, we have to go find them. more than 80 characters. Finding them is a large part of the Which means you'd have trouble Compromise Becomes Standard problem, for two reasons. storing all that necessary information First, do you have any idea how onto a single Hollerith card. So, this compromise became an indus­ much programming we've done in the This is exactly the problem program­ try standard. Computers have remained past 30 years? It is not unusual for a mers ran into in the late '60s and early very expensive until only the last decade, company to have more than 100,000,000 '70s. Hollerith cards were not big enough when it became possible for nearly any­ lines of code! (For the purposes of this to store all the data they needed to store. one to purchase a computer for their article, assume your company has So they compromised. They wrote home. These home computers are much 100,000,000 lines of code.) 230155 instead of 23/01 / 1955, thereby 100,000,000 is not a number we run saving themselves 4 precious characters, into very often, and it's rather difficult 2 of which were the crucial "19." As we move forward, to get a sense of just how much work When designing a computer applica­ that represents. tion you're always making compro­ urgency increases and the How long would it take you to just mises. There are compromises between difficult decisions are look at all that code, if you spent just each line? what you'd like the computer to do and made. one second on what you can afford. You compromise finally being Assuming 8 hours a day, 5 days a between the speed of delivery and the week ... It would take you just over 13 , years to look at all your code. Or it quality of the final product. Hopefully more powerful than the computers used would take 13 people one year. Or 156 you understand the consequences of by entire businesses in the '70s . people could do it in a month. the compromise, because compromises Trouble is, while computers So the haystack we're searching, to are never perfect solutions. changed, the standard didn't. Many pro­ find all these little date needles, is huge. We compromised on accuracy vs. grammers, even as you read this, are 2 cost when we decided to store only writing code that will fail in the year even A Date? digits of the year. Our reasoning, 2000. Why? Because business is not very What's now, makes a lot of sense. Especially if proactive when it comes to anything The problem though, is more than you keep in mind when this compromise happening after the next annual report. and just the sheer size of the haystack. The was taking place. It was the '60s Our focus is on immediate cost savings, or 40 really lies in the next, almost '70s, when the year 2000 was 30 immediate profits and immediate con­ problem was philosophical question. years away! Part of our reasoning sequences. be replaced What's a date? that surely our code would We're not very good at looking out not a facetious question. It's by then. We assumed that the program into the future and planning for events That's not very serious. It sits at the heart of this we were writing in the '60s would that'll take place 5 years in the future. whole problem, and if we had a clear, be in use 30 years from now. Another unfortunate chapter in this 100 percent accurate (and useful!) an­ That particular assumption was story is that computer "professionals" the problem would be much wrong, very wrong. We have way too are very mobile. It is unusual in the com­ swer, then to solve. much old code, known as "legacy sys­ puter industry to work for a company easier To understand the complexity of the tems" in use today. Major applications for more than 5 years. Why worry about "What's a date?" we need to are still using code developed in those a problem that will take place in the fu­ question a key concept regarding early days. ture, when you'll most probably be understand computers. Computers are idiot sa­ Another interesting fact to take into working somewhere else? perform miraculous tasks, account is that the programs were written "Okay," you say, "How we got here is vants. They but have no understanding of what they by programmers who themselves were understandable, but surely the problem are doing. most likely less than 30 years old. Surely is easy enough to fix. Just put the 2 dig­ One way to describe computers is to their code would not last longer than its back in ... how difficult is that?" assert that they are nothing more than they'd been alive? It seemed a very rea­ Well, in a sense, it's not difficult at sonable compromise to make at the time. all. Practically any programmer can Also, keep in mind, compromises are look at a line of code containing a date Continued on page 28

Title News- September/October 1998 9 Go AHEAD.

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EDUCATIONAL TRACKS AND SESSIONS

MAGI NG & TITLE PLANT TECHNOLOGIES J.agine a world without paper. The sessions in this track will help you How can you use technology to help you work more efficiently, increase ·nvert your paper plant to images, integrate your image plant into your business and maximize employee time? Strategic technology man­ 1ur workflow, and show you ways to make your plant interact with agement answers those questions. Learn to use your technology not just her offices and the county courthouse. to survive but to help you thrive. INTERNET & THE WORLD WIDE WEB >Ur customers are using the Internet to do business. It has never been Mobile phones, pagers, desktop faxing - all are important tools. ore important for successful companies to get on-line. Attend these But how do you make the most of them? Getting the most out of ssions to learn how to make your company Internet-savvy and when your communications gadgets is a problem all title managers face. establish your own web site. Learn to maximize employee time by making the most of your communications technologies. ELECTRONIC COMMERCE CONTINUING EDUCATION lt your company on the road to more efficient, less paper-intensive Nationally recognized speaker Karen E. Koogler will lead two days of 1stomer service and product delivery. The experts speaking at these continuing education geared specifically for the title industry. Title ssions will show you how to streamline your delivery process using professionals across America know Ms. Koogler for her interesting, day's technology. entertaining, and informative presentations. While attendees may MAKING TECHNOLOGY WORK FOR YOU choose to attend as many or as few individual sessions as they wish, only those persons pre-registering for and signing into each session increase your business. The proper techno­ 'chnology can help you will receive full C.E. credit. Monday's topic "Fraud Forgery and staff more efficient in the jobs they already gical tools can make your Embezzlement" and Tuesday's topic "Customer Service for the 21st to improve >. Attend these sessions and learn how to use technology Century" have been pre-approved for credit in a select number of states. 1stomer service, sales and marketing. (Please contact Pat Berman, ALTA Director of Education, at 1-800- 787-ALTA for more specific information.)

Bring On Strategic Alliances the Bandwidth! ISDN, DSL, or Tl

Disaster Recovery

Cutoller Sena Thin aient Telephones & viaMnoioo Technology Voice Mail

Copiers & Sales &: Marketing Cellular Telephones Multi-Function & Pagers via Tedmolotr Products

Fax Machines & Computer Hardware Desktop Faxing & Peripherals Software FEATURED SPEAKER SUNDAY, FEBRUARY 7 Dr. Jam.es Canton 4:00 - 5:30 p.m. Opening General Session "Emerging Technologies: Featured Speaker Shaping The Customer Dr. J runes Canton Relationship" "Emerging Technologies: Sunday, February 7, 4:00 p.m. Shaping The Customer Relationship" known expert on the Dr. James Canton is an internationally 5:30 -7:00 p.m. "Back to School Night" future of technology and its impact on business and society. Reception & Expo Opens He has accurately predicted the influence of many technology Get ready to learn! Join your peers in exploring , the trends such as the personal computer, the Internet over 50 exhibit booths for the latest technology modem, and satellites. Dr. Canton will share with us his available to the title industry. insight into the future and how technology will become increasingly crucial to successful customer relationships. MONDAY, FEBRUARY 8 7:30 - 10:15 a.m. Continental Breakfast Served in FEATURED SPEAKER the Exhibit Hall Peter de Jager 8:00 - 9:45 a.m. Featured Speaker "The Year 2000 - It's Not too Late!" Peter de Jager Monday, February 8, 8:00 a.m. "The Year 2000 - It's Not too Late!" With only months to go, the year 2000 is nearly here. But there is still time to make sure your business will thrive and 10:00 - 12:15 p.m. Educational Sessions survive. Peter de Jager is the foremost leader in creating Continuing Education Session awareness of the year 2000 computer crisis. Since 1993, he 12:15 - 1:30 p.m. Lunch and Entertainment has written numerous articles, testified before Congress, and appeared on NBC, ABC and the Discovery Channel. He will featuring the comedy of Tim Bedore offer solutions for what you still can do to avert disaster. Nationally known comic Tim Bedore has appeared on numerous programs including Comedy Central's "Comic Strip Live" and A&E's ''An Evening at the lmprov." Come CONTINUING EDUCATION FEATURED SPEAKER for lunch, stay for the laughs as Tim shares his unique Karen E. Koogler observations on many of life's little annoyances. "Fraud Forgery and Embezzlement" 1:30 - 2:30 p.m. Dessert Served in the Expo Hall Monday, February 8, 10:00 a.m. - 4:45 p.m. 2:30 - 5:00 p.m. Expo Sessions "Customer Service for the 21st Century" Continuing Education Session Tuesday, February 9, 8:30 a.m. - 3:00 p.m. Nationally recognized speaker Karen E. Koogler will lead 5:00 - 7:00 p.m. "Extra Credit" Reception two days of continuing education geared specifically for After a day and a half of education, you may need a little something extra! Join your fellow professionals across America the title industry. Title Tech Forum attendees for an evening of know Ms. Koogler for her interesting, entertaining, networking and winding down. and informative presentations. TUESDAY, FEBRUARY 9 8:00 - 10:00 a.m. Continental Breakfast Served in The newest jewel in Disney's crown, Disney Coronado the Exhibit Hall Springs Resort, will host the ALTA Tech Forum for the second consecutive year. This "mid-priced hotel" offers 8:30 a.m. - 12:00 p.m. Educational Sessions many amenities found at more expensive locations while Continuing Education Session maintaining room rates at just under $120 a night. And, of course, the service, food and fun are up to Disney's 12:00 - 2:00 p.m. Lunch Served in the Exhibit Hall impeccably high standards. As with other Disney properties, the Coronado Springs offers free transportation to all areas 2:00 - 3:00 p.m. Expo Sessions of Walt Disney World. Continuing Education Session materials for the 1999 Technology Look for registration 3:00 - 3:30 p.m. Last Chance to Visit the Expo Hall! Forum & Expo to arrive on your desk in October. Be sure to mark February 7 - 9 , 1999, on your calendar. Once again, 3:30 - 5:00 p.m. Closing General Session we'll look forward to seeing you in Orlando - for the best buy anywhere in title industry technology education! 5:00 p.m. 1999 Technology Forum & Expo Adjourns AMERICAN An American Land Title Association Telephone Seminar LAN D TITLE ASSOCIAT ION Compliance with Tax Information Reporting Requirements Telephone Seminar (#ALT4264-0) Tuesday, November 10, 1998 at 3:00 p.m., EST

Chip K. Collins, partner, KPMG Peat Marwick, LLP, and Ann vom Eigen, ALTA legislative counsel will lead the 90-minute telephone seminar on issues that affect how you do business, including topics such as:

W New Attorney Fee Reporting W TIN Solicitation W 1099-S Form vs.Certification W Review FIRPTA Procedures Chip K. Collins, Partner KPMG Peat Marwick, LLP At this Big Six accounting firm, Chip's Register today for the November 10 ALTA Telephone Seminar focus is on tax information reporting and backup withholding. He has also worked extensively as an IRS advisor. Registrant Name------Mr. Collins is author of the essential book ''A Guide to TIN Compliance." Title ------Company ______

Street Address ------

City, State, Zip ------

Phone ------F~ ------

E- mill------~

D Compliance with Tax Information Reporting Requirements Telephone Seminar, $100 ($115 for registrations received after Oct. 23, 1998.) The registration fee includes: one telephone connection, one set of handout Ann vom Eigen, materials and unlimited participant attendance at your site. ALTA Legislative Counsel As the primary lobbyist for ALTA, Ann D Audiocassette and materials package, $115 +$5.50 shipping & handling spearheaded change on several tax is­ sues including the 1099-S Certification Payment: D Check enclosed payable to KRM Information Services, Inc. Alternative. Ann is also a former mem­ D MasterCard D VISA D AMEX D Discover ber of an IRS information reporting advisory committee. Card Nwnber Expiration

Signature Telephone participants across the country will have an op­ Three Ways To Register: portunity to question the 1. Fax completed form to KRM at 800-582-8456; speakers in a format similar 2. Mail completed form with payment to KRM Information Services, to a radio call-in program. Inc., P.O. Box 1187, Eau Claire, WI 54702-1187; 3. Phone KRM at 800-775-7654 with credit card information ready. Customer Service for the 21st Century

By Karen E. Koogler

The opinions expressed in this article have been met with a resentful and re­ are those of the author and not neces­ A nationally sistant roar. "It's technology's fault, " goes sarily of the American Land Title prominent speaker, the common cry. "If it weren 't for tech­ Association. Portions of the text have the author heads nology, things would be the same." Not been extrapolated from the book, The Koogler Group, so. As everyone's attention is turned in "TechnoTitle 2020: FutureFocus on based in Largo, FL. the direction of what some refer to as the Settlement Service Industry" She also has the technological revolution - - with in­ written, (copyright© 1998 by Karen E. Koogler). dustry professionals concentrating on TechnoTitle 20/20: gigabytes and electronic commerce - - *** Future Focus of the Settlement there has been another massive change Service Industry, and a series of nless you've been visiting a underfoot. The generational evolution. job skills training textbooks includ­ That's right. Not only have processes foreign country or hiding ing Closing Concepts, Title Basics . under a barrel, you've probably changed. People, too, have changed. U and Liability 101. She will present customer of industry pro­ noticed that the title insurance indus- The collective two continuing education courses fessionals today is no longer of the Ma­ Forum during the ALTA Technology ture/ Senior variety. The dominant pur­ February , & Expo to be held 7-9 chasing power for the 21st century are Today (and tomorrow), Orlando, FL: Customer 1999, Baby Roomers, in the process of pur­ 1 and Boomers/X'ers demand Service for the 21• Century chasing second homes, vacation homes Fraud, Forgery and Embezzle­ and, for a lucky few, retirement homes; freedom of choice and ment. followed closely by Gen-X'ers. In order to receive CE credit for will likely choose not The last statement is an important these courses in Orlando, attendees one in two respects. First, the reference between individual ser­ must sign in for every hour of the ses­ to the generational shift in purchasing sion concerned. At this writing, insur­ vice providers and prod­ power. Until now, the settlement service ance departments in the following industry has been serving the same cus­ ucts but, rather, among states have approved credits for the tomers for more than three decades sessions as follows (the first number various packaged ser­ complacent in their understanding of shown is for the fraud session, the sec­ vices offered through what made such customers "tick. " Sec­ ond for the customer service session): ond, the reference to the collective cus­ affiliated providers .... Florida (5-5), Indiana (44), Kansas tomer. In the past, most sub-settlement (44), Nebraska (44), New Jersey (5- industries (title, settlement/escrow, ap­ 5), Oklahoma (4-2), Texas (44), Utah try - - make that the entire settlement praisal, survey) have served transac­ (44), Virginia (44), Wyoming (44). service industry - - is in a state of flux. tion middlemen (real estate salespeople, During the upcoming ALTA McSettlements of yesterday are rapidly lenders, builders) rather than those Forum/ Expo, she will introduce her giving way to just-for-you mass-customized who actually pay for their services and latest book, Walking in Integrity: buffets, where consumers can select from ~roducts . Consumers. Fortunately, there Fostering Relationships and service choices ts promise that future purchasing deci­ a vast array of settlement Leading Change in the Market· they need, want: will be made not by middlemen partaking of only those place and Workplace (and That sions to line their pockets with ille­ desire and are willing to pay for. Place You Call Home). Additional seeking consumers For a "multi-cultural" industry (real information on her books, courses, gal referral fees, but by them­ attributed to two estate, lending, title, settlement/es­ consulting and seminars is available selves. This can be ~row~ which has been likened to a sleep­ by telephone (727-391-6848) or fax main factors: (1) the demand by ing dinosaur by outsiders, much of the (727-393-0324). Roomers and X'ers for information which changes occurring within the industry will place them in control of their own

Title News- September/October 1998 15 purchasing decisions; and (2) the ad­ aside in favor of business-as-usual. lenders in charge - - hence the interest vent of technology which provides the McSettlements of the one-size-fits-all va­ in the ill-advised lender pay provision vehicle by which industry professionals riety are not for them. They demand our under current consideration. Should it can (and will) provide such information. respect -- of their time and intelligence pass, lenders would be exempted from and their right to choose. They, like their RESPA Section 8, thereby allowing them Marketplace Tilt predecessors are looking for faster-bet­ to beat down the prices of other indus­ ter-cheaper and they are not averse to try professionals; pocket part of the We need only look to the past packaged services; however, they are profit re same, rather than passing it on averse to controlled business of old. They commoditization of industry services to consumers; and enable them to re­ are willing to consider packaged ser­ and products - - coupled with the main quire use without providing disclosure. traits of the Mature/ Senior generation - vices provided through affiliated busi­ Anyone with a modicum of common - to see how transaction middlemen first ness arrangements (strategic alliances) sense can see that such exemption will came into power. When price, service and whereby the savings derived from the quickly stretch beyond "legalized kick­ product became nearly indistinguishable relationship are passed through to them, backs " into illegal kickbacks of gargan­ from provider to provider, such provid­ as consumers. tuan proportions, the like of which the ers looked for a tie-breaker -- something There is a subtle, but marked, differ- settlement service industry has never or someone to tilt marketshare in their before seen. Perhaps HUD should have favor. After competing on price, where considered the 1997 Gallup Poll on Hon­ "it" couldn't be done any cheaper, then The relationship with esty and Ethics in business practices, on service, where "it" couldn't be done where consumers ranked Realtors, lend­ any faster, then on product, where "it" was consumers (the collective ers and other industry professionals virtually the same contract or loan pack­ customer) is not dead. It embarrassingly low on the ethical totem age or title policy or appraisal or survey pole. Or perhaps HUD should have or pest inspection as that of the nearest is, however, nearly mor­ asked themselves the question, "Have competitor -- it's no wonder settlement tally wounded. And it will lenders done right by consumers in the service providers were looking for some­ past?" To which the answer is a resound­ thing or someone to help them stand out take much effort on the ing "No. " We need only look to the fol­ from the crowd. That something was con­ part of all settlement lowing to substantiate the answer: (1) trolled business and someone were trans­ lender-hoarded excess escrow deposits action middlemen who were in the envi­ service providers to resus­ which proved as beneficial to lenders able position of being first to meet-and­ citate it and rebuild the as they did detrimental to consumers· greet consumers. Middlemen who - - level of trust once enjoyed (2) the sweetheart deal between lend~ thanks to the dominant traits of the prior ers and mortgage brokers where lend­ generation (high conformity, high trust, by the industry. ers paid higher commissions and bo­ and respectful of authority and expert ad­ nuses to mortgage brokers who were vice) -- were easily able to easily lead willing to sell consumers higher-cost consumers in the direction of the high­ ence, between controlled business and loans than what they could otherwise est bidder. Give me a trip and I'll give you affiliated business relationships. Yester­ qualify for; (3) and the fact (which any my next deal. Give me a computer and day, Mature/ Seniors allowed themselves closing agent or escrow officer can at­ I'll send the next loan your way. Give me to be told what service providers to use test to) that lenders have consistently free printing and I'll promise you all fu­ and which products to purchase, mak­ not done their job in explaining loan ture business. "What's in it for me " ing the transactional relationship heavily terms and disclosing related costs to quickly replaced "what is best for the co~­ one-sided, in favor of the person mak­ consumers at the inception of the loan, sumer" in the thought-process of far too ing the referral. Today (and tomorrow), preferring instead to say as little as pos­ many industry professionals. Boomers/ X 'ers demand free dom of sible and allow the chips to fall where Enter Boomers and X'ers whose domi­ choice and will likely choose, not be­ they may - - at the closing table. nant traits include high non-conformity, tween individual service providers and Frankly, consumers are more than a low or no level of trust and low or no products but, rather, among various little annoyed with Corporate America, respect for authority and expert advice. packaged services offered through affili­ government inaction and business-as­ These are not people to be taken lightly. ated providers -- and the deciding fac­ usual. They are tired of being sold sec­ They are the current dominant purchas­ tor will likely be based upon the ability ond rate services at inflated prices. ing power in America (make that the of providers to serve the relationship They are sickened by the bevy of slick world") and will remain so for the next which will be weighed heavily in favor sales pitches and empty promises. They two to three decades. These people -- of consumers. are looking for answers. They are looking our collective customers -- want what to build life-long relationships with ser­ they want, when and how and where Kickbacks: Trouble Ahead vice providers they can trust. Relation­ they want it, at a price they are willing In the recent past, the National As­ ships such as those they have built with to pay. They do not want hype. They are sociation of Realtors has attempted to family doctors, dentists, financial advi­ tired of empty promises. They are sick convince HUD that consumers want Re­ sors and attorneys. Relationships they of slick sales pitches. And they can spot altors to take charge of the transaction a phony a mile off. Their message to while the lending community has tried Corporate America is clear. They are not to convince HUD that consumers want a generation to be trifled with or cast continued on page 32

16 Title News- September/October 1998 ---1113fi§ America's Loan Registry Volume 1, Issue 5 WWW.MERSINC.ORG August, 1998, Periodic Newsletter

First MOM Loans Congratulations, Blazing the Registered in J uly MOM! Foreclosure Trail It's 1WINS! B'9' S~~~ MERS Tops 1 00,000 g'9'~ ~~ The foreclosure pioneers have set off on the foreclosure trail. MERS, First .. Nationwide Mortgage, Norwest A tip of our hat, and profound appreciation Mortgage and Aurora Loan Services to John Wheeler and the folks at Merrill have teamed up to forge the way for Lynch, for achieving the distinction of Friday, July 24, 1998 other MERS Members to follow their being the first member to register MOM lead. loans on the MERS system that were originated and closed naming MERS as For the past couple of months, an the Original Mortgagee (MOM). experienced group of representatives from these members along with The first two MOM loans were registered Freddie Mac, Fannie Mae, FHA and on July 24, 1998, and were originated by VA have been working together on Cendant Mortgage, a private label starting the process of foreclosing originator for Merrill Lynch. MOM loans loans in the name of MERS. Together, are now being originated and closed we have been reviewing and discussing nearly daily, representing a continuing MERS is America's Electronic the MERS recommended procedures so flow of Original Mortgagee loans on the Loan Registry System that MERS Members can begin MERS System. implementing foreclosures in 25 target At about the same time, MERS passed the Your Comments states. The target states are a mix of 100,000 registration mark. Are Welcome judicial and non-judicial states. We are delighted to exceed this initial America's Loan Registry is published Currently, Aurora Loan Services has and mailed to each member and user milestone and achieve registrations in the foreclosures fi led in the name of of the MERS system every month, as six-digit range. , Illinois, well as other interested parties. You MERS in Arizona, California Nevada and New Mexico with many Norwest and NationsBanc are readying may receive the publication by other states to follow. First their MOM loan purchase programs for electronic mail if MERS has your e­ address. Otherwise, the Nationwide Mortgage and Norwest correspondents beginning this August mail newsletter is mailed during the first Mortgage are gearing up to begin a through the fall. We expect greatly week of every month. Just call us and limited number of foreclosures in increased MERS registrations as these asked to be added to our Newsletter target states sometime in September. programs come on line. list if you're not currently on it. MERS commends these three members The focus of the newsletter will be to for their leadership in blazing the bring you up to date on industry trail. We also thank This Month developments, news about MERS, foreclosure loan registration progress and issues Freddie Mac, Fannie Mae, FHA and First MOM Loans ...... 1 concerning implementation of VA for being a part of this important electronic loan registration default team. As the foreclosures Foreclosures ...... 1 throughout the country. We 'll also progress and as we continue to gather EVERY Loan Needs introduce members of the MERS staff information, we will refine our through articles authored by them recommended procedures if need be. a MOM 1...... 2 appearing here. Member and user comments are Certifying Officer ...... 2 Continued on next page ... welcome at 1-800-646-MERS(6377). MERS Is Travel­ ing To: Every Loan Needs A MOM! 8'~ VM9 V-'4

MBA Document Custody MOM is simply the best way to originate mortgages. We're speaking of l\1ERS as Original Conference, Mortgagee, of course. By adopting a policy now to close all your originations as MOM loans, Minneapolis, MN, you'll achieve real cost savings now and in the future as mortgage rights are traded. MOM is the September 14, 15 nominee language used in mortgage security instruments approved by Fannie Mae, Freddie Mac, Eastern Regional FHA and VA that allows MERS to be the original mortgagee in all 50 states. Secondary Market You may finally stop the assignment paper chase and eliminate all assignments forever. MOM Conference, Charlotte, creates real up front savings. If you are the correspondent selling your loans on a flow basis, you NC, September 12 -15 could save as much as $22 per file. MBA 's 85th Annual In the event that an end investor is not yet ready to accept a MERS loan, all that's required is to Convention, Chicago, IL, prepare an assignment for that investor in the same manner as you do now. Since your company October 17-21 will have a Certifying Officer when you become a MERS Member, you can produce a paper Hope to See You There! assignment for MOM loans if ever necessary just as you do your non-MOM loans now. MERS will work with you to encourage new investors to accept MOM loans in the regular course of Foreclosure ... business, so that paper assignments are never necessary again . . . .continued from front page. I believe that you ' ll find the majority of your major secondary sources will accept MOM loans The MERS recommended very soon. Eliminating the assignment paper chase is in their best interest too. MERS will be procedures reflect as pleased to coordinate these efforts with you. Just give us a call. closely as possible the MOM benefits are too good to ignore: cleaner current foreclosure chain of title, elimination of assignment chain of title problems, eliminating assignments in bulk procedures when sales, less time tracking down assignments from your correspondents, and speedier processing of foreclosing a non-MERS lien releases. Did I mention that you save (make) money, too? MERS is coming to loan. What we have a town near you, and remember. .. "Every loan needs a MOM". learned is that even though each state has their own foreclosure What is a Certifying Officer? procedures, MERS role in 8'~ S'4M.e -:fl~ the foreclosure is similar to the role the servicer How are Members able to sign necessary documents on loans that are now assigned to MERS? plays. The answer is by certifying officers ofMERS. What is a certifying officer? A certifying officer is an employee of a member who becomes a dual officer ofMERS and the member with the authority In most instances, it is a to sign documents on behalf of MERS. How do employees become certifying officers? The matter of simply Member submits the names of their nominated employees to MERS. A corporate resolution is substituting in the name then signed by MERS that grants specific powers to the certifying officer. This corporate resolution of MERS where the empowers the certifying officer to continue to sign the same documents that now need to be servicer's name usually signed by MERS because MERS is the mortgagee of record. appears. MERS will continue to keep you What authority is granted to the certifying officer? The certifying officer is authorized to do the posted as we move along following on mortgage loans that are registered on the MERS System to the member: the trail. We look • release or assign the lien of the mortgage loan; forward to guiding other • execute any and all documents necessary to foreclose upon the property securing the mort­ Members on the trail gage loan; when they are ready to go. • take any and all actions and execute all documents necessary to protect the interest of the AMERICA'S LoAN REGISTRY member, the beneficial owner of such mortgage loan, or MERS in any bankruptcy proceeding; PUBLISHED MONTHLY and EDITOR: CARSON MULLEN • take any such actions and execute such documents as may be necessary to fulfill the Member's CONTRIBUTING EDITORS: servicing obligations to the beneficial owner. MERS STAFF' & GUESTS ENTERED FIRST CLASS MAIL The AND INTERNET MAIL title given a certifying officer does not necessarily correspond to the title held as an employee McLEAN, VIRGINlA 1998. of the member. A certifying officer of MERS is an assistant secretary unless the member shows Corporate Offices: that certain states require the signatory of a document to hold another office. 8201 Greensboro Drive, Suite 350, Members should submit a list of nominated employees to MERS during their integration process. McLean, VA 22102 MERS will keep on record the official master list of all certifying officers. It is requested that the member notify MERS any time their certifying officer list changes for whatever reason. America's Mortgage Loan Registry Volume 1, Issue 6 www.mersinc.org September 1998, Periodic Newsletter

Brea.king New Ground Special Invitation! Is MERS in Your 8'~~~~ 1999 Budget Plan? ~'!)-~~ Welcome to another edition of our newsletter. We hope you find the For most of us, it's budget time again. newsletter format to be informative Norwest Funding has If you need even minimal support from and easy to read. Several good things announced its national your IT department to support your have happened this month. correspondent program for MERS implementation plan, now is purchasing MERS regis­ the time to bake it into your 1999 First, Norwest is now open for MERS tered loans. Details below. business. They mailed a marketing budget plans. brochure to all their Correspondent Furthermore, if you are in the process lenders introducing MERS and of selecting a new origination or encouraging them to originate and servicing system, be sure to include deliver loans to Norwest naming MERS compatibility as a requirement MERS as Original Mortgagee in your Request for Proposal or (MOM). Of course, every MOM loan contract. Service bureaus and software saves the Correspondent $22, so we vendors are planning for 1999 as well. expect this to stimulate a significant They won't include your requirements amount of registration activity. for MERS unless you make it a MERS is America's Electronic priority. Second, we have accomplished the Loan Registry System first foreclosure sale with MERS as If you need assistance in writing mortgagee of record. Aurora Loan requirements or would like to discuss approximate costs for modifying Services was the first company to push Norwest Launches a foreclosure in the name of systems for MERS, please call us at through Purchase Program MERS and we appreciate their efforts. (703) 761-1277. My staff and I will be Moreover, the foreclosure sales were in 8'~~~ happy to work with you. far the California and Texas-by Norwest Funding has mailed largest states. We also finished one in special announcements to all of its Data Verification Georgia. Congratulations to Aurora correspondents throughout the ~Lta'l~ Loan Services. You can read more countJy, inviting them to join MERS COMMUNICATION! ... a term that MERS about the foreclosure details in Sharon and begin to submit MERS­ takes very seriously. To meet our commitment Horstkamp's article on page 2. registered loans to Norwest for delivery on and after September28. to providing the best in customer service and the most up-to-date information, we regularly This Month Norwest is the first major wholesale confirm the data in our corporate database. lenderto announce its program for Breaking New Ground.... 1 correspondents. Norwest will In early September, we sent all of our members Norwest Launches ...... 1, 2 accept loans that have been a Data Verification form. Reflected on the closed on security insbuments with form is the information currently in our Data Verification •.•••.•...... 1 MERS as Original Mortgagee database about your company, and a request (MOM) or loans that are assigned for updates and data that may be missing. 1999 Budget Plan ..•....•... 1 into MERS using regular paper assignments. Please take a moment to complete and return Foreclosures Completed ••.. 2 it. To obtain another copy, please contact me Desktop Maintenance .... 2 at (703) 761-1278, or by e-mail at liai@mersinc org. See 'Norwest Correspondent' on next pa e ... Continued on next a e ... MERS Is Traveling To: First MERS Foreclosures Completed MBA Document Custody B'91S~-:il~ Conference, Minneapolis, MN, September 14, 15 The first foreclosures to be commenced in the name ofMERS have been successfully completed Eastern Regional in the states of California, Texas and Georgia. Congratulations to Aurora Loan s·ervices Seco11dary Market for having the foresight to be the leader in foreclosing loans in the name of MERS that were Co11fere11ce, Charlotte, NC, assigned to MERS and registered on the MERS System. September 12-15 For the last four months, MERS has been working closely with a group of foreclosure pioneers MBA 's 85th Annual that are ready to implement the process of foreclosing loans in the name of MERS. The Convention, Chicago, IL, group is composed of First Nationwide Mortgage, Norwest Mortgage, Aurora Loan Services, October 17-21 Fannie Mae, Freddie Mac, FHA and VA. Foreclosing a loan in the name of MERS is based upon the premise that MERS, as the Hope to See You There! mortgagee of record, is the proper party to commence a foreclosure. This premise is consistent with the process followed today of foreclosing loans in the name of the servicer when the Norwest Correspondent servicer is the mortgagee of record. In other words, after examining the current foreclosure Purchase Program ... procedures in all states and the District of Columbia, MERS stands in the same shoes as the ... continued from front page. servicer by virtue of being the mortgagee of record. Norwest has taken a As a team, we decided that the best course of action was to begin foreclosing loans in the leadership position in name of MERS in a certain pre-determined number of states. The combined total number of introducing MOM loans target states for First Nationwide, Norwest and Aurora Loan Services is 35 states, plus the for purchase from its District of Columbia. The remaining states will be in the second stage. The three members correspondents. have divided the 35 states among themselves so that we can effectively monitor the progress. Companies joining Currently, foreclosures have been filed in the name ofMERS in Arizona, California, Florida, MERS through this Georgia, Hawaii, Illinois, Indiana, Michigan, Minnesota, New Mexico, Nevada, Ohio, Texas special Norwest and Washington. campaign will receive MERS, together with our state counsels, developed state by state recommended procedures special membership for our members to follow. We have been ab le to keep the MERS recommended procedures pricing from MERS. consistent with each state's existing foreclosure procedures. The goal of the recommended procedures is to avoid adding any extra steps or incurring any additional taxes or costs by foreclosing in the name of MERS instead of the servicer. Correspondents may register MERS loans We anticipate in the coming months to rapidly add states to the list of states where loans themselves or ask have been successfully foreclosed in the name ofMERS. Norwest to register loans for them. System Maintenance Scheduled for October 12 The procedures are B'91~~LC$ simple and getting started is easy. In response to members' suggestions for ways to improve MERS and to address some server Just telephone maintenance items, we will electronically distribute a system maintenance release on October Customer Service if 12th. With the new release, if a member opens the MERS desktop application and does not you have questions enter any activity for 15 minutes, the application will automatically time out and shut down. at 1-800-636-6377. Prior to the release the application was timed to shut down after 30 minutes of inactivity. Members felt that the 30-minute time out increased the risk for unauthorized transactions to be entered into the system if the PC was left unattended with the application open. The 15- AMERICA'S LoAN REGISTRY minute time out minimizes that risk and reduces unnecessary on-line access charges. PUBLISHED MONrHLY The new release will also provide specific error messages when duplicate borrower or corporate EDITOR: CAHSON MULLEN CONTRIBUTING EDITORS: information is provided for registration. For example, if the same social security number is MERS STAFF & GUESTS given for the borrower and co-borrower an error message wi ll indicate the same social security ENTERED FIRST CLASS MAlL number was given at registration. Prior to the release the error message simply indicated AND INTERNET MAlL duplicate borrower information was provided at registration. McLEAN, VIRGINIA 1998. Corporate Offices: The Release Notes are being distributed to members in production and other interested parties. 8201 Greensboro Drive, Suite The release will be downloaded through the network on October 12'h when members access 350, McLean, VA 22102 the system on that day, or the next time a member accesses the system after October 12th. Please call me at (703) 761-1273 if you have any questions about this release. SMART TITLE SOLUTIONS

Introducing Smart Title Solutions. For your information. If this were a simple F.Y.I., we would leave it at that: we're now Smart Title Solutions (STS), formerly Experian Title Information Services. But our new name is just the beginning. You'll soon be hearing a lot more about us. About our expanded geographic coverage, from Seattle to Detroit, from Chicago to Orlando. About our new imaging capabilities. And about our new Windows-based Smart Title System, a smarter, single desktop solution for accessing tax and title information, maps, document images and more. What's in a name? Visit our booth at the ALTA show and discover why STS is the smarter solution for today and the future. --1Anew name. Anew commitment. --1Expanded coverage across the country --1Anew Windows-based information retrieval system. --1New imaging capabilities. --1Formerly Experian Title Information Services.

SMART TITLE SOLUTIONS

C a I I 8 0 0 4 2 6 - 1 4 6 6 INTERSTATE INSURANCE GROUP Fireman's Fund

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Title Pac®- E&O - Bonds Title Pac®Inc. phone 800-331-9759 fax 918-683-6842 Land Title Institute Employee Education Moves to Manager Training Level

By Patricia L. Berman LT! Director of Education

usiness is great! Your staff is Nine Program Courses agent and underwriter communities, to working hard. You have define management issues of particular B invested in new technology - Nine program courses, each in four­ concern. In addition, a number of these computers and programs - and maybe hour segments, have been selected as industry representatives will be invited even your core employees have com­ the core material. They include: to participate as guest lecturers in vari­ pleted one or both of the Land Title ous components in the program. Institute's Correspondence Courses. • Principles of Managing Who should attend? For the mid to Now it's time to think about your man­ • Leadership Skills large size title agency, participants for the agers and their education. • Human Resources Management Management Development Program LT! is moving to this next level of • Finance for Land Title Managers should be your key managers, your ris­ employee education - the new Manage­ • Communication/Listening Skills ing stars, your one or two employees ment Development Program - a week­ • Marketing Strategies whom you believe are ready for this uni­ long, comprehensive, university-level, • Customer Service in the Title versity-level-management-training. For interactive manager education course Industry the smaller title agency, this course is designed specifically for the land title • Managing Change in the Title perfect for the owner/ manager who wants industry. Held primarily on the beauti­ Business to better manage his or her company. ful campus of Houston Baptist Univer­ • The Internet and Intranet Sometimes referred to as our "mini­ sity in Houston, the program will begin MBA course," the Management Devel- the afternoon of February 28 and con­ Members of the HBU faculty are in­ clude early afternoon on Friday, March terviewing approximately a dozen title 5, 1999. industry representatives, both from the confined on page 33

Its aim is to broaden the participant's perspective and to sharpen manage­ ment skills by providing a diverse and highly interactive format ....

The Management Development Pro­ gram is offered for present and future managers and emerging leaders of the title industry. Its aim is to broaden the participant's perspective and sharpen management skills by providing a di­ verse and highly interactive format to learn - to facilitate acquisition of - the newest management and leadership techniques. The Management Develop­ ment Program will be taught by HBU faculty, supplemented by guest lectur­ ers from the title industry. Hinton Center - - Houston Baptist University

Title News- September/October 1998 23 NAMES IN THE NEWS

Chicago Title Corporation has ap­ pointed William E. August vice presi­ dent and audit director. Bryan R. Willis August Willis Ostrander Desalvo has joined the company as vice presi­ dent and corporate controller, replac­ agency coordinator), all Buffalo, NY, and executive vice president-real estate ser­ ing August in that position. Shaun Ryan (remains underwriting vices and president of the OneStop sub­ Elsewhere in the organization, re­ counsel), Rochester, NY. sidiary, LandAmerica Financial Group, cently appointed resident vice presi­ James Rauber has been appointed Inc., Richmond, VA. Previously, he was dents for Chicago Title Insurance Com­ branch manager, Porterville, CA, and executive vice president of pany include Mark Lotterer, Lockport, Jane Cox and Janet Johnson West have LandAmerica's national commercial ser­ NY; Barbara Mueller, Rochester, NY; been named senior escrow officer, Chi­ vices. Elsewhere, Peter H. Ostrander Jeffrey Pallin, Buffalo, NY; Benedict cago, where Chrystyna Cameron has has been appointed vice president-­ Sander, Syracuse, NY, and Gary been appointed escrow officer and Ann sales for the company's National Com­ Urquhart, New York. All remain district Manarik is now title officer. Karen mercial Services division, Seattle. managers except for Urquhart, who re­ Walquist has been named manager, Con­ T. Tolly Spence, Jr., has joined In­ mains senior claims counsel. cord, NC, while Jacqueline Stuck has vestors Title Insurance Company, New assistant vice presidents for been appointed metro marketing man­ Chapel Hill, NC, as vice president-­ Chicago Title Insurance are Mark ager, Crown Point, IN, and Wayne Will­ lender relations, Stephen J. Smith has Burnham (remains underwriting coun­ iams is now technology manager, been named assistant vice president­ sel), Lockport, NY; Gilbert Hoffman (re­ CastleLink, Chicago. Jane Depeaux has Michigan operations, and Leslie A. mains underwriting counsel), Syracuse, been named product manager, Chicago Smith now is national accounts opera­ NY; Molly Irvin-Peter, Mary Jane Title Credit Services, Inc., Kingston, NY, tions manager. Brandon F. Garren has Keyse (remains underwriting counsel), and Diana Meyer now is market infor­ been named Mid-Atlantic operations David Mineo (remains area claims mation manager, Pasadena, CA. support manager. counsel), Katherine Rusek (remains Jeffrey D. Vaughan has been named Joseph DeSalvo has joined L & H

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24 Title News- September/October 1998 Abstract Corporation, White Plains, NY, a division of First American Title Insur­ ance Company of New York, as counsel. AmeriTitle has appointed Jenifer Lis as branch manager, Mill Run, OH, office. Debbie King has joined the organiza­ tion and has been assigned to that of­ fice and the downtown location. David Tandy has been named chief information officer for Stewart Informa­ tion Services Corporation, Houston. Andrew Sloan replaces Tandy as presi­ dent of Landata Systems, Inc., Stewart's technology arm, and Jason Nadeau has been promoted to chief technology of­ ficer for Stewart Information Services.

Oklahoma Search Helps Distant Need For ALTA Abstracter-Agent Section "MY PEOPLE ARE Research Subcommittee Chairman Mark Bilbrey of El Reno, OK, it simply meant doing the right thing. After learning financial reasons kept an elderly Los Angeles woman from suc­ ONTHEBALL. cessfully obtaining a report of possible ownership interest in her grandfather's farm in Okmulgee County, OK, the Okla­ homa title executive and his associates THEY DON'T NEED at Warranty Title & Abstract went to work. Cheryl Cox, a licensed abstracter from Warranty Title, drove to the Okmulgee County Courthouse in that CLOSING SOFTWARE:' distant location and spent a day search­ If you're still tied down to doing real estate ing the records there on the elderly closings manually, then ProForm auto]llated closing woman's behalf. software is your ticket to freedom. By piecing together the woman's You enter the data only once, and ProForm does memories of her childhood in Oklahoma all the calculations automatically and generates the and her known family history, along closing documents, including the HUD-1, Disburse­ with searching the public records, it ments Summary, checks and more. You can also add appears that any beneficial surface in­ any of your own documents such as notes, mortgages terest may have long been extinguished, and deeds using the WordPerfect integration feature although the number of deceased heirs and ProScan, SoftPro soptional document imaging program. outside Oklahoma makes that unclear ProForm is easy to learn and use, with expert support only a phone from the public records. However, Chair­ call away. man Bilbrey is attempting to determine The price offreedom is only $995 (for one ProForm license). To receive whether the woman may still have a more information and a free demo disk, call SoftPro today at 1-800-848-0143. mineral interest and has asked her to provide him with the names of now de­ ceased relatives to possibly facilitate CORPORATION that part of the search. Warranty Title has provided its ser­ vice without expense to the woman. "We do this s.ort of thing for people in our area when the need is apparent," Or Visit Our Web Site: http://www.softprocorp.com Chairman Bilbrey said. "It is just a nor­ mal response for community minded title people throughout the country."

Title News- September/October 1998 25 AVAILABLE FIRST QUARTER 1999

~ TITLEPRO"FOR IN Dows·

DESIGNED

FOR

TITLE PEOPLE

BY

TITLE PEOPLE

TITLE OFFICE PRODUCTIVITY SYSTEMS www.go -titlepro.com e-mail: sales @go -titlepro .com 800-786-8776

Titlepro is o !rodemor~ of Landmark Professional Systems , Inc . All producl names menlioned ore lh 1 properly of their mpeohe holders . Windows , Windows 95/ 98 , Windows NT or e registered lrodemorks ol 1h1 Mlmuoft Corporation . one time. The only equipment needed is • Unlimited participant atten­ Telephone Seminar a touch-tone telephone. For more than dance at a site one person, a touch tone speaker phone Covers Compliance is required. KRM Information Services again will be Persons who will benefit from this pro­ the service provider for the telephone Compliance with Tax Information Re­ gram include title owners and managers, seminar. In addition, KRM will handle the porting Requirements is the topic for the closers, settlement officers, processors, registrations for the seminar. Approxi­ next ALTA-sponsored telephone seminar, escrow closers, paralegals, attorneys and mately one week before the event, each which will be held on Tuesday, Novem­ counsel. Invite as many participants as registrant will receive the toll free num­ ber 10. The speakers will begin the pro­ you like and pay only one connection ber to dial in for the seminar, their unique gram by reviewing basic information re­ charge. This is also an opportunity to in­ PIN number, and their handout materials. porting requirements on such topics as vite customers (Realtors, lenders, etc.) Unable to participate on November attorney fee reporting, which is required to join in an educational event of great 10? Audiocassettes and the materials for the first time for 1998; TIN Solicitation interest to them. package from the telephone seminar may Requirements; 1099-S implementation The registration fee of $100 ($115 for be ordered in advance or after the event. and the certification; and Foreign Invest­ registrations received after October 23) (Audiocassettes will include the entire ment in Real Property Tax Act (FIRPTA) covers: program plus the question and answer procedures. session.) The purchase price is $115 plus Ann vom Eigen, ALTA legislative coun­ • One telephone connection (no $5.50 shipping and handling. sel, and Chip K. Collins, partner, KPMG long distance charges) Questions? Please call Sherri-Lynn Peat Marwick, LLP, will be the speakers • One set of handout materials Kirby toll free at ALTA, 1-800-787-ALTA for this hour and a half program begin­ ning at 3:00 p.m., Eastern time. During the last half hour of the program, seminar participants will have an opportunity to ask questions of the speakers. The expe­ rience is similar to a radio call-in program. The telephone seminar is designed for educating staff right in the office - all at WE HA VE RELOCATED - BUT THE QUALITY OF SERVICE REMAINS UNCHANGED

1998 AFFILIATED We specialize in service to the title insurance industry ASSOCIATION by offering objective, detailed valuations of title insurers, CONVENTIONS agencies and plants as well as acquisition analysis and performance analysis. We facilitate the transfer of September ownership by valuing or negotiating transactions. 10-12 Missouri, Holiday Inn, Cape Girardeau, MO Call today to learn how we can help you. 17-19 North Dakota, Holiday Inn, Bis­ marck, ND 17-19 Wisconsin, Concourse Hotel Madi- CORPORATE DEVELOPMENT SERVICESTM son, WI ' Lawrence E. Kirwin, Esq., Accredited Senior Appraiser 18-20 Dixie, Brasstown Valley Resort, Young Harris, GA American Society of Appraisers Effective October 16, 1998 20-22 Ohio, Akron West Hilton, Akron, OH 174 Thomas Johnson Drive, Suite 201 23-25 Nebraska, Regency Inn (formerly Holiday Inn), Kearney, NE Frederick, MD 21702 24-27 Washington, Rosario Resort - Orcas (800) 296-1540 Fax (301) 631-6745 Islands de San Juan, East Sound, WA November Member: American, California, Maryland, Ohio and Pennsylvania Land Title Associations 3-7 Florida, Buena Vista Palace, Buena Vista, FL December 3-4 Louisiana, Chateau Sonesta Hotel, New Orleans, LA

Title News- September/October 1998 27 YEAR 2000 kindergarten, then I can assume that even further behind, with less than 10 continued from page 9 any year greater than 90 is a "19nn" year percent of organizations actively solv­ and that those less than 10 are "20nn" ing this problem. symbol manipulators. The symbols years. Of course, I'd either have to up­ Those companies who have begun to themselves have no "meaning" to the date this "date range" on an annual ba­ address the issue, have never overesti­ computer. The symbols might mean sis or have the computer change the mated the amount of time required to something to us, but to the computer range depending on the current date. (I solve the problem. The problem has al­ they are "just" ones and zeroes being warned you it was more difficult to ex­ ways proved to be larger, uglier and manipulated according to the rules plain!) more costly than anyone imagined. we've defined. There are other more esoteric solu­ Costly... more costly than you can When the computer subtracts 55 tions to the problem. None simpler than imagine. Those are chilling words. Yet from 00 and offers the result of -55, it what we've already described and all we have to talk about the cost. How does so following the rules of arithmetic suffering from the same failing ... there much will this cost to fix? A mercenary and does so correctly. The answer it are still 100 million lines of code to consultant might ask, with an evil grin ... provides is arithmetically correct. change in your company. "How much do you have?" It's correct until -- we -- decide those So, no matter which solution you Here is a very rough guideline being numbers represent years and since choose, you're still left with 100 million used in the industry: $1.00 for every line these numbers don't contain all the nec­ lines of code, containing an unknown of code. Which means that, if you have essary year information, the answer is number of errors, that are difficult to 100 million lines of code, then the cost meaningless. It's meaningless because identify, and have to be fixed by Decem­ will be $100 million (Please keep in mind 00 should represent 2000, but we have ber 31, 1998. that this is a very difficult project to es­ instructed the computer to "assume" timate and the final cost will be depen­ that 55 represents 1955 and also that 00 dent upon a hundred different vari­ represents 1900. And these incorrect Many programmers, even ables). instructions result in the error. Remember how big 100 million was? If we had labeled all the dates accord­ as you read this, are writ­ If you spent a dollar every second 8 ing to some naming standard, for ex­ ing code that will fail in hours a day, 5 days a week, it would take ample all dates must be prefaced by the you more than 13 years to spend $100 word DATE. Then finding the dates in the year 2000. million. our programs would be easy. We didn't Companies have discovered to their create such a standard. (Hindsight is a amazement it will take them hundreds 1998? That's another part of the bad wonderful skill, pity it's not around of years to solve this problem. That they news. No matter how much code you when you need it!) Dates have been la­ must place 30 or 50 people on the have, no matter how much budget you beled everything under the sun. Every­ project. That these people will do noth­ have available for this task, no matter thing from 'Bdate' (for Birthdate) to ing else for the next 2 or 3 years but how skilled you are at the conversion, Snowball (for reasons known only to the work on the Year 2000 project until the you have the same deadline. December programmer). problem is solved. 31, 1998. You must be complete by this So the advice that we should "Just Other companies are suggesting date so you can test the hundreds of add back the 2 digits," while well inten­ someone will come up with a simple thousands of changes you'll have made tioned, is, to put it kindly, useless. solution. That they can leave the prob­ to your applications. There are some other alternatives to lem until later, because like in the old the "just add in the 2 digits," although cowboy movies, the cavalry will ride in this happens to be the simplest to com­ Full Year of Testing to save them at the last moment. municate. Here are two more "solutions" Those experts who have studied this to the problem. You'll need a full year of testing be­ problem in depth agree on very little, but Create another bit of data known as cause you need to test the full suite of they do agree on one thing. The likeli­ applications required to process the full the "century" indicator. If the indicator hood of a magical solution is non-exis­ fiscal year for your company. is set to 0, then the year of 55 refers to tent. Personally, I don't gamble much, You must do this before the year 2000 1955, if it's set to 1, then 55 refers to and I certainly never bet on a loser, so because, it is risking the business to dis­ 2055. This is a little bit more compli­ I'd suggest a different, less risky strategy. cated and takes more time to commu­ cover errors when you have no idea how long it will take to fix them. Meanwhile, So it's big and it's ugly, and unless nicate. It also creates a second problem. you solve it, the computers go on strike. Will all companies use 0 to indicate "19" your production line is stopped, you're unable to bill your clients or ship your Where do you start? You start by check­ or will some of them use 0 to indicate ing to see if the problem is real. "18" and 1 to indicate "19"? product, because the programs which drive these functions are not working. The only good thing about this prob­ Another solution, much more com­ lem is that you don't have to believe this plicated to explain and therefore much As of September, 1996, you had less writer or anyone else who claims this more susceptible to error, is to use "date than 120 weekends to fix all your sys­ problem is real. All you have to do is logic" to have the computer determine tems. As I write these words in early the proper century. 199 7, less than 35 percent of Nor th examine your systems to see if a date of For example. If I'm entering in new American businesses have addressed 01/01/00 will be processed correctly. birth records to the computer for the this issue in any significant manner. Before you start examining your busi­ purposes of enrolling students into Based upon informal surveys, Europe is ness systems, open your purse or take

28 Title News- September/October 1998 out your wallet and examine all the While you're getting the program in­ tions must be changed? And when must documents you carry. Look at your bank ventory together, you can start taking a they be ready? How many people will card, your credit card, health card, look at what tools and services are be­ you need at each phase of the project? driver's license, insurance, identifica­ ing offered by the blossoming Year 2000 What are your critical deadlines and tion card, etc. etc. How many of them conversion marketplace. what will you do as you begin to miss contain 2 digit years? How many sys­ Despite what I said earlier about the deadlines? tems that use the data contained on difficulties in identifying dates, there are Unlike every other project you've ever these documents will assume an expiry some very good tools available to per­ been on, this one has immovable dead­ year of 00 implies 1900? form automated inventories. There are lines. You cannot miss the January 1, 2000 To continue this mini-audit, go to all also some extremely clever tools that deadline. It will NOT be postponed. your systems and see if they accept 4 can actually change some, not all, of On that date, your systems will be digit dates. If they don't , then the your code automatically. The ability of on strike and will not work again until chances are very good that those sys­ these tools to help in the process de­ fixed. If your accounting system fails, tems will be adversely affected by the pends greatly on what language you then you will be unable to produce any year 2000. used to develop your applications. invoices until it's fixed . How long can Then get a bit more aggressive in Be prepared for some disappoint­ your organization survive without the your testing. Start entering some test ment when examining these tools. ability to bill for its services? information into your system. Where Chances are there will not be any tools With a project plan in place, you can the computer can only accept 2 digit available for a substantial portion of begin the largest, most important project years, enter 00 as the year and see what your program inventory. you'll ever work on. The road will be happens. If it accepts the data, don't There are close to 500 programming long, difficult and with the most uncom­ rejoice too soon. Wait until the com­ promising deadlines you'll ever face. puter tries to process that data and look There is only one good bit of good at the results. Did the computer assume lan news in all of this, and that is that sala­ the 00 year was actually 1900? If it did, With a project p ries for programmers are expected to then you now have conclusive proof in place, you can begin skyrocket in the coming years and com­ that you have a problem. the largest, most impor­ pany after company discover the Year What are you going to do about it? 2000 problem is real and that they do That's the key question. Will you ignore tant project you 'II ever require the services of a finite number it until your system fails? And then try work on. of programmers. to fix it? Or will you fix it now? (Of course this will not be good news to those who have to pay these salaries, Steps to Fix It languages used to develop applications. seemingly to people who caused the Most of these conversion or inventory problem in the first place!) To fix it, you must follow these steps. tools are directed toward a very small Do the math. Take the estimate of Appoint someone as responsible for subset of those 500 languages. A major­ $600 billion and spread it over three making sure your company can sail into ity of the tools are focused on COBOL, years, that's $200 billion per year. As­ the future and not crash against the the most popular business program­ sume that a programmer makes reefs of 00. Someone who has no other ming language in the world. Very few $100,000 per year, (they don't today, but responsibility except making sure your tools, if any, have been designed to help they soon will!), that means we need 2 company can operate in the Year 2000. in the area of APL or JOVIAL for ex­ million programmers working on this, If you try, as some have tried, to make ample. each year for the next three years. And this a part time responsibility, you'll fail. Once you've selected a vendor from all because programmers tried to save You'll fail because, if this is not a first the hordes of vendors entering the fray, space on a Hollerith card 30 years ago! priority, then there will be too many you'll be ready to perform your first im­ other demands on this person's time pact analysis. The purpose of the impact *** and the project will either never start, analysis is to determine in greater detail or it'll never finish. the nature of your problem. Finally, de Jager sets a philosophical Next, you need to find out how much There are important questions to be tone in these additional Web comments. code your have in your organization. If answered. Which are your mission criti­ you only have 50 thousand lines of code, cal systems? These are the systems that It would be amusing if it were not then your problem is very different than MUST work each and every day, other­ so sad. What a pitiful commen­ if you have 500 million lines of code. wise you cannot do business. When will tary on our well proven ability to The first thing you'll find out as you they fail? Many systems will fail before overcome adversity. try to identify how much code you have the Year 2000 arrives. They'll fail early is that no one will know the answer. because for some reason the application I've been at this battle longer than Why? Because we've never had any uses dates in the future. An example is most and my message has always been project that spanned the entire organi­ a car rental agency which accepts driver the same. The code is broken, let's fix zation. Companies have found that just licenses that expire in the future. it. In the beginning I was described as a getting the answer to that first basic Once you have the information from doomsayer.. . today I'm seen as a mod­ question takes anywhere from 3 to 6 the impact analysis, you can begin to erate. Amazingly, by some, I'm now even months, sometimes longer. create the project plan. Which applica- described as a Pollyanna!

Title News- September/October 1998 29 The message never changed. What point. The point is, we're not helpless for days and weeks at a time. Ice changed was the general awareness of children lost at sea in a fierce storm, storms, hurricanes, earthquakes, the problem. I have never underesti­ we're grown ups, capable of fixing things etc., etc., are all recent examples. Did mated the size or the severity of the when they break: we survive them? You're reading this, problem. The code is broken. If today so I guess your answer is yes. (August 5, 1998) were the first day of Social Security checks don't print 2000, then civilization as we know it on January 1, 2000? Nuclear power stations go boom? would stop and people would die. Hav­ ing food, guns and money would be a Reprint the printfiles for the cheques After a while, the solutions become good idea. But, it's not January 1, 2000, you printed last week. And do that childlike ... turn the damn thing off if it's today. week after week until you fix what you're not 100 percent sure. Will turn­ you now know must be fixed . A per­ ing it off have an impact on the power We are now working on the problem. fect solution? No! It stinks to high grids? Of course it will but, if planned heaven. But it serves 99 percent of for, the systems can handle the load. Yes, we started late. our immediate need. Will there be problems with the Grid? Of course there will but, once iso­ Yes, some management folks are Train switches don't work automat­ lated, the problems can either be still clueless. ically? fixed or bypassed.

Yes, our leaders are nervous and Put men with lanterns along the A worldwide recession? at a loss as to what to do. tracks. An inhuman use of people, but the trains will move. If the Ahem ... been through a few of those Yes, the problem is serious. switches no longer have manual ca­ myself. Lived to tell the tale. pability, then replace them with So? those that do ... none available? Build You get the general idea -- for every it! Take a piece of track and lay it problem, there's either an ugly way to Awareness and understanding con­ down so it can be moved manually avoid it, or an even uglier way to cope tinue to grow. As it grows, more and by a gang of men using crowbars ... a with it. Let's move on. more unnecessary activities are being ludicrous image? Of course it is ... will Remember, part of the Year 2000 put to the side. As we move forward, it work? It worked for more than a problem, perhaps the largest part, is urgency increases and the difficult de­ hundred years ... Will it handle the that we don't know what will fail in ad­ cisions are finally being made. We're fi­ current level of traffic? Of course not, vance, so we have to fix everything nally facing the problem and beginning but Beanie Babies are not a vital part which might break. to treat it with the respect it deserves. of our economy, don't ship them for However when it breaks, and we'll Will we fix everything? Of course not. a few weeks ... or would you rather see enough computer breaks to last us But I honestly believe the mission criti­ curl up in a corner and die? a lifetime, we almost immediately know cal stuff will get done. And where it where the break is . True ... we'll fix a doesn't get done, workarounds can, and FAA not ready or not 100 percent problem, only to have a new one crop will, be found. certain the systems will work okay? up and have to fix it again and have the Why this belief that, what must get same thing happen again and again. This done, will get done? For 7 years I've Don't fly the planes at the same rate is not going to be pretty, but the notion been baffled by the thick headedness of you're currently flying them. There that we should all run for the hills is some individuals, the press, manage­ are airports all over America which truly silly. ment and the politicos ... How could they have no computers, no radar, no elec­ Why? Because it's like finding a hole ignore and deny what could be, and was, tronics, period. Planes take off and in the boat, giving up immediately, and demonstrated time and time again - land every day. Is this a desirable jumping overboard, only to either drown that the code upon which society de­ situation? Of course not. But would anyway in the deep water or looking like pends is broken ... this slowdown in air travel cause the a fool standing in a foot of water. ... But I have seen one behavior pat­ death of civilization? I sincerely Nobody, but nobody, knows how this tern play out over and over again. Once doubt it. one will shake out. Let's at least try to someone gets it, no matter how difficult fix it, before we give up. it was for them to get it, once they get No dial tone? Worldwide? Don't misunderstand me. I'm not it, they become fanatics about fixing it. against contingency plans for applica­ Nothing else matters, everything else is That's unlikely in the extreme. Why? tions and/or services. I live in Canada put to the side and they become mania­ Because no matter how pessimistic and they have lots of snow up here. It cal in their dedication. And , perhaps you are, you have to concede that gets rudely cold in winter. Having a gen­ more importantly, they infect others some of the people we've hired must erator in the garage has always been a with their zeal. be competent. So ... no worldwide Consider some of the absolute worst Jack of communications. good idea. If I go for a long drive with cases imaginable. Please note, I'm not my family in the dead of winter, it is ir­ saying the following are going to hap­ No dial tone? In local areas? responsible for me as a parent not to pen or are even likely, I'm using the have some emergency supplies in the worst examples I can find to make a We've already been without dial tone trunk.

30 Title News- September/October 1998 But moving to the South Sea islands to escape the mere possibility of an ice Title & Closing Services storm AND advising everyone else to follow me, is irresponsible at a totally different level. The Year 2000 project is most likely the largest, and most important, project and§ 1037 Exchanges we'll ever attempt. We could, I guess, look up at it and say to ourselves, that's too big for little 'ol me and run away to mommy. for Commercial For myself? I guess I'm just an arro­ gant SOB, I've never yet come across a problem too big to tackle ... So, I guess my final question to you is this ... are you an arrogant SOB? If you & Industrial Properties are, then hang on, the ride gets inter­ esting from here on in .

Yours in defiance of defeatism,

Peter de Jager [email protected] ~

Visa Escrows Now At First American Prospective homeowners now can use their Visa® cards to pay for selected escrow services at more than 100 First American Title Insurance Company lo­ cations in northern California, accord­ ing to a recent announcement. Accord­ ing to the announcement, the California launch is the first phase of a planned national rollout of this service. Consumers now can use their cards for non-recurring costs such as title in­ surance, escrow fees, miscellaneous fees for document preparation and no­ tarization, and home protection plans. First American will accept credit and signature-based debit cards for up to 2 percent of the sales price or loan amount.

Nationwide Data Use Aids Elliptus Elliptus Software Solutions, Inc., has announced the signing of a three-year agreement to use real property data of Acxiom/DataQuick nationwide in its NiteOwl product. Previously, Elliptus used DataQuick to provide property information for sev­ eral western states. Elliptus is a subsidiary of LandAmerica Financial Group, Inc.

Title News- September/October 1998 31 CUSTOMER SERVICE goal in the development of faster­ and other electronic support sys­ continued from page 16 better-cheaper services and products. tems which will place industry pro­ fessionals in front of consumers in • Elimination of RESPA regulations new and innovative ways. can count on with people they can trust. and government involvement in in­ To paraphrase the 1992 presidential elec­ dustry practices, in favor of industry­ • Services and products based upon tion ... "it's the relationship, stupid. " wide self-regulation with the estab­ consumers' needs, wants, desires Government can continue to look the lishment of bipartisan ethics and en­ and expectations. When, where and other way as controlled business pro­ forcement boards, promising swift how they want "it" and at a price they viders and middlemen continue to sell and decisive action against the un­ are willing to pay. consumers short in favor of lining their ethical minority. own pockets. Or government can get out of the way and let the ethical majority of Finally, thanks to the generational evo­ • Industry evolution from one-size-fits­ the settlement service industry take lution applying not only to consumers, but a// McSettlements to just-for-you mass­ to society as a whole, we will see great over and weed out the bad seed that customized services and products. strides made within the workplace - - as Jong ago took root and nearly destroyed Boomers and X'ers, followed by Echo's, the confidence consumers once had in • Pay-per-service fee structures placing bring their dominant generational traits the honesty and ethics of industry pro­ financial control of the transaction in of non-conformity and no (or low) level of fessionals. The relationship with con­ the hands of consumers who will or­ trust and respect for authority to bear on sumers (the collective customer) is not der only those services and products workplace issues. Organizations will flat­ dead. It is, however, nearly mortally for which they are willing to pay. ten, hierarchies will crumble, position wounded. And it will take much effort on power will give way to people power and the part of all settlement service provid­ • Collaboration between small busi­ leaders will learn to serve their constitu­ ers to resuscitate it and rebuild the level nesses (collaborating with competi­ ents with credibility. Mission, vision, val­ of trust once enjoyed by the industry. tors in the AM and competing with ues, goals and strategic direction will no them in the PM) to enable "micros" longer be relegated to book learning and Predictions to compete with "megas" on a level theory, but will become part of the fab­ playing field. Collaboration in the ric of organizations which recognize the Which brings us to the FutureFocus sharing of resources - - financial, hu­ of the settlement service industry, value of the relationship. People will be­ man and physical - - as well as in sup­ come as important as processes and where the following predictions will port of consumers through the estab­ come to pass. Count on it. Plan for it. workers will be viewed as assets rather lishment and dissemination of "Know than liabilities. Principles (integrity, hon­ Your Rights " quantifiable and qualifi­ • Consumers as kings whereby free - esty, fairness, equity, compassion) will able industry information designed become as important as profits -- per­ dam of choice and the right to choose to serve the relationship and protect are respected. haps more so, as companies discover consumers. that when you pay attention to people and principles, processes and profits are • Packaged services at reasonable • Electronic commerce to evolve be­ natural byproducts. prices, with savings passed on to con­ yond its current form of glorified e­ Your success (or Jack of it) with re­ sumers. mail. spect to Customer Service for the 21st • Establishment of an industry identity • Mergers and acquisitions resulting in Century will be dependent upon your (brand) by the title insurance indus­ a handful of big players in all areas willingness and ability to foster strong try, based upon consumer advocacy. of the settlement service industry - - relationships with your constituents -- Eventual inclusion of other industry real estate, finance and title insur­ from consumers of your products and professionals (real estate, lending, ance. Simultaneous expansion of services to coworkers, collaboration part­ etc.) who choose to take the ethical smaller niche markets served by ners, and other customers. Serve the re­ highroad in the transaction by hon­ companies dedicated to personal ser­ lationship well (do right by people) and oring the relationship between the vice. Virtual elimination of mid-sized the relationship will serve you well in settlement service industry and con­ businesses (similar to the extinction return. It's that simple . ~ sumers, as collective customers. of middle management). Such mid­ sized companies will either merge to • Harnessing the power of technology form mega organizations or will break Arkansans Elect and the establishment of consumer­ apart into smaller niche entities. friendly on-line malls and neighbor Wall New President hood kiosks for electronic shopping • Proliferation of more informal busi­ Gregg Wall, president, of homes, loans, and related settle­ ness structures -- i.e., joint ventures Tucker Abstract, ment services and products. in lieu of formal partnerships; stra­ Bentonville, AR, has tegic alliances between stand-alone been elected 1998-99 • Strategic alliances between settle­ entities in lieu of mergers and acqui­ president of the Arkan­ ment service providers based upon sitions. sas Land Title Associa­ like minds and like values where "co n­ tion during the annual sumer satisfaction" is the overarching • Telecommuting, video-conferencing convention of that organization.

32 Title News- September/October 1998 LT! and participants then will be free for Westin Oaks and HBU continued from page 23 dinner and relaxation. - Graduation ceremony with award­ Classes Monday through Friday will ing of Certificates of Achievement opment Program actually will be a sam­ be held on the HBU campus in the re­ pling or brief study of the many busi­ cently completed, state-of-the-art Hinton CEU credits will be available through ness philosophies, practices, and skills Center for Graduate Studies (see photo­ Houston Baptist University. necessary to succeed in today's chang­ graph) . HBU is providing bus transpor­ Early enrollments will help the HBU ing title industry environment. There tation between the Westin Oaks partici­ staff properly allocate their faculty and are other organizations that offer simi­ pant accommodations site and the HBU classroom requirements to meet our lar types of management training, but campus. Classes will begin at 8 a.m. and needs. As a monetary benefit to stu­ none are specific to the title industry. conclude at 5 p.m., Monday-Thursday. dents or their employers, and as an in­ The Management Development Pro­ Friday's classes will start at 8 but the centive to register early, LT! is offering gram is the Land Title Institute's effort program will adjourn by 2 p.m., allowing an early registration discount of $199 for to target our industry's future leaders. participants to schedule flights home. enrollments received before December The Management Development Pro­ 31 , 1998. On January 1, full tuition for gram will begin at 1 p.m. on Sunday, Computer Connections Available ALTA members is $1,999; for non-mem­ February 28, at the Houston Oaks in the bers, it is $2 ,499. Payment may be made Galleria. During the first half of the For the "techy" participant who trav­ by check or credit card -- VISA or Opening Session, entitled, "Managing in els with a laptop computer, every seat MasterCard only. A New Millennium," participants will be in every classroom in the Hinton Cen­ The enrollment form and a descriptive addressed by industry representatives ter is wired for a computer hook up. brochure will be available at the LT! ex­ who will "set the stage" for the week­ Laptop computers are not necessary, hibit booth at the 1998 ALTA Annual Con­ long event. They will discuss changes however, because program materials vention, and by mail later in October. in the title industry that managers will will be bound in binders for ease of note We have arranged for a sample of the need to meet in the next century. taking. For the Internet/Intranet seg­ Management Development Program to ment, the two computer labs in the be presented at the ALTA Annual Con­ Hinton Center will be used. vention in New York. One of the Friday, ... the Management Devel­ A block of rooms has been reserved concurrent educational sessions, "Man­ at the Westin Oaks in the Galleria, which agement 2000," will be offered by Dr. R. opment Program actually is located in "uptown Houston." The Bruce Garrison, director, Master of Sci­ will be a sampling or brief daily group rate is $125 for a single room ence in Human Resources Management or $140 for a double. During their sev­ Program and Professor of Management study of the many business eral free evenings, participants may re­ at HBU. If you are going to attend the philosophies, practices lax and eat dinner in one of the 30 res­ ALTA Annual Convention, please plan to taurants, shop in over 300 stores, or sit in on this session and judge for your­ and skills necessary even ice skate in the Olympic-size rink self the quality of this program being to succeed in today's in the Galleria. Participants are respon­ developed for LT!. changing title industry sible for making their own hotel reser­ ALTA Education Committee members vations, as well as air fare and transpor­ are very excited about offering this new environment. tation between the airport and hotel. level of employee development, and we The Management Development Pro­ are confident that participants will re­ gram is a five-day, college-level course turn to the office reinvigorated, ener­ The second half of the afternoon will with a curriculum specific to the title gized, more focused, and better informed be devoted to a general explanation and industry. The tuition fee for this pro­ about effective business practices.~ confidential written analysis of the gram covers: participant's scores in the Hartman Value Profile, which will be adminis­ - Opening Session, "Managing in A tered through the mail prior to arriving New Millennium" Greco Succumbs in Houston. The Profile is designed to - Ice Breaker Reception on Sunday gain insight into a person's "value pack­ evening In Detroit Hospital age" - that system of values and evalu­ - Five-day program at Houston Bap­ ative capacities which derives attitude, tist University behavior, performance, and excellence Services were in Grosse Pointe - Administration, scoring, and con­ in the work environment. It is an excel­ Shores, MI , for Philip F. Greco, 82, a well fidential interpretation of the lent catalyst to greater self-understand­ known ALTA member who in 1972 Hartman Value Profile ing and self assessment. An individual founded the title insurance agency bear­ - Notebook of Program materials who is exposed to the Profile and its ing his name in Grosse Pointe. He died - Five lunches interpretations will immediately find in a Detroit hospital after an extended - Two evening events, which will confirmation and affirmation of illness. strengths and the clear challenge of include dinner on campus A graduate of the Detroit College of weaknesses to be overcome. - Morning and afternoon refresh­ Law, he was regarded by many as the The program on Sunday will con­ ment breaks leading authority on title insurance in clude with an Ice Breaker Reception, - Transportation between the Macomb and Wayne counties.

Title News- September/October 1998 33 MARKETPLACE RFECTION Rates for situations wanted or help wanted are $80 for first 50 words, $1 for each additional word, 130 words maximum (per insertion rate drops to $70 for first 50 words, $1 for each additional word, for three or more consecutive placements). For sale or wanted to buy ads have a rate of $250 for 50 words, $1 for each additional word, 130 words maximum (per insertion rate drops to $225 for 50 words and $1 for each additional word for three or more consecutive placements). Placing a box around an ad cost an extra $20 per insertion for help wanted or situations wanted, $50 per insertion for sale or wanted to buy. Blind box service available upon request . Those desiring to place classified advertising in Marketplace, send ad copy and check made payable to American Land Title Association to Title News Marketplace, American Land Title Association, Suite 705, 1828 L Street, N. W, Washington, D.C • 20036. Responses to classified placements should be sent to same address unless Monastery otherwise specified in ad copy. Fruitcakes Help Wanted CHIEF FINANCIAL OFFICER being sought for title insurance company with annual revenues in the range of $120M-$140M. Subsidiary of major home building and financial services NYSE-listed company. Operations located in California, Arizona and Colorado. All phases of CFO responsibilities, including financial reporting, liaison with banks for cash management and credit lines, statutory Baked by insurance reporting, internal accounting and audit policy development. CPA or other graduate business degree preferred, insurance industry background helpful. Attractive salary and benefit Trappist Monks package. Send cover letter, resume and salary history to Marketplace, Box H-131. of Holy Cross Abbey Satiifaction Guaranteed. Bridges Retires From Dixie Post TITLE NEWS Choice fruit & nuts Marguerite H. Bridges, executive di­ ADVERTISERS rector of the Dixie Land Title Associa­ in brandied batter. tion for 17 years and a prominent leader 2 1/4 lb. cake among regional/state title association managers across the nation, is retiring ACS Systems ...... page 6 in gift tin. in September at the conclusion of the organization's 1998 convention. Corporate Development Services During her tenure, she has watched ...... page 27 the Dixie Association grow from a few members to nearly 100 companies and Elliptus ...... cover 2 $2290 law firms across Alabama, Georgia and including postage Mississippi. The Atlanta-based associa­ Smart Title Solutions . page 21 and handling. tion executive has helped guide the or­ ganization through numerous initia­ Holy Cross Abbey page 34 tives, including legislative involvement and the establishment of title schools. VA res. add 77

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