May/June 2008

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Old Republic National Title Insurance Company | Old Republic General Title Insurance Corporation | Mississippi Valley Title Insurance Company | American Guaranty Title Insurance Company Title News • Volume 87, Number 3

8 Deciphering RESPA - HUD’S Proposed Rule and Impacts on the Title Industry by Phillip L. Schulman

Despite HUD’s goal of simplifying the settlement process, the department has created a complicated rule that promises to be controversial. Read about Cover Photographer: Paul Hardy the most important changes to RESPA and what they Features mean for the title industry. 20 28 Running Your Business Inside ALTA Recognizing Mortgage Fraud, 2007-2008 ALTA Departments Part 2 Financial Report 2 by Carole Bullion By Mark E. Hernick Calendar Mortgage fraud is on the rise as perpetra- 2007 proved to be a challenging year for 3 tors continue to seek new and creative ways ALTA. This report will highlight the suc- Point of View to stay one step ahead of the law. cesses and give a financial snapshot of the 5 association. 26 ALTA News Running Your Business 30 34 Technology Corner Member News Stop Marketing! Start Re-Marketing! Boost Productivity With By Suzanne Penley Integrated Technology and Services Given the current challenges of the title industry, it is becoming increasingly difficult By Craig Muldoon to gain new customers through traditional New technologies can help create a desktop marketing approaches. “virtual title plant” and a nearly paperless office, improving productivity and profit- 18 ability as a result. 2008 ALTA Federal Conference Photos

www.alta.org > May/June 2008 > Title News 1 calendar PUBLISHER EDITOR IN CHIEF DESIGN/ELECTRONIC ALTA EVENTS Kurt Pfotenhauer Michelle Sweet PRODUCTION MANAGER Date Event Shawn Sullivan October 15-18 ALTA 2008 Annual Convention ASSOCIATION OFFICERS ASSOCIATION STAFF Grand Hyatt Kauai PRESIDENT CHIEF EXECUTIVE OFFICER Resort & Spa Gary L. Kermott Kurt Pfotenhauer First American Title Insurance Co. Kauai, Hawaii Santa Ana, CA SENIOR VICE PRESIDENT MARKETING & MEMBER PROGRAMS STATE CONVENTIONS PRESIDENT-ELECT Michelle L. Korsmo Michael B. Pryor Lenders Title Company VICE PRESIDENT OF OPERATIONS May 1-4 Palmetto Mark E. Hernick (South Carolina) Little Rock, AR May 3-5 New Mexico CHIEF COUNSEL AND TREASURER VICE PRESIDENT OF PUBLIC POLICY May 4-6 Iowa Mark A. Bilbrey Edward C. Miller Old Republic National Title Company June 1-4 New Jersey Houston, TX DIRECTOR OF EDUCATION June 5-7 Texas & TECHNOLOGY CHAIR, FINANCE COMMITTEE Kelly Romeo, CAE June 5-8 Virginia Theodore C. Rogers June 8-10 Wyoming The Security Title Guarantee GRASSROOTS & PAC MANAGER June 12-15 Pennsylvania Corp. of Baltimore Charlene Nieman Baltimore, MD June 12-13 South Dakota DIRECTOR OF MEMBERSHIP & MARKETING June 19-21 Arkansas CHAIR, TITLE INSURANCE Miriam Hankins June 19-22 New England UNDERWRITERS SECTION DIRECTOR OF MEETINGS (Connecticut, Theodore L. Chandler, Jr. AND CONFERENCES Maine, LandAmerica Financial Group, Inc., Cornelia Horner, CMP Richmond, VA Massachusetts, New Hampshire, BOARD REPRESENTATIVES. Rhode Island, TITLE INSURANCE UNDERWRITERS SECTION Vermont ) Christopher Abbinante Fidelity National Financial, Inc. July 10-12 Illinois Chicago, IL July 10-12 Utah Title News is published bimonthly by July 19-22 Michigan Mark E. Winter the American Land Title Association, Stewart Title Guaranty Co. Washington, DC 20036. U.S. and Canadian Washington, DC August 3-5 Idaho, Oregon, subscription rates are $30 a year (member Washington CHAIR, ABSTRACTERS AND TITLE rate); $48 a year (nonmember rate). For subscription information, call 1-800-787-ALTA. August 7-9 Montana INSURANCE AGENTS SECTION August 8-10 Kansas Anne L. Anastasi Send address changes to Title News, Genesis Abstract, Inc. August 14-16 North Carolina American Land Title Association, 1828 L Hatboro, PA Street, N.W., Suite 705, Washington, DC August 21-23 Minnesota 20036. August 23-24 Wisconsin BOARD REPRESENTATIVES, August 24-27 New York ABSTRACTERS AND TITLE INSURANCE Anyone is invited to contribute articles, AGENTS SECTION reports, and photographs concerning issues Diane Evans of the title industry. The Association, how- Land Title Guarantee Company. ever, reserves the right to edit all material Denver, CO submitted. Editorials and articles are not statements of Association policy and do not Jack Rattikin, III necessarily reflect the opinions of the editor Rattikin Title Company or the Association. Fort Worth, TX Reprints: Apply to the editor for permission IMMEDIATE PAST PRESIDENT to reprint any part of the magazine. Articles Gregory M. Kosin reprinted with permission must carry the fol- Greater Illinois Title Co. lowing credit line: “Reprinted from Title News, Chicago, IL the bimonthly magazine of the American Land Title Association.” ©2008 American Land Title Association

Members Call Toll Free: 800-787-ALTA • Members Fax Toll Free: 888-FAX-ALTA Visit ALTA Home Page: www.alta.org • E-Mail Feedback to: [email protected]

2 Title News > May/June 2008 > www.alta.org A MESSAGE FROM THE PRESIDENT-ELECT

point of view

HUD’s Missed Opportunity for Positive Change

very good leader understands that for significant change to occur, there must be a special climate that incubates that change. Every good leader understands that those special times...those opportunities...are rare and must be used thoughtfully in order to have maximum benefit. E The Department of Housing and Urban Development’s (HUD) proposed overhaul of the Real Estate Settlement Procedures Act (RESPA) arrives at a critical time of opportunity, but tragically misses the mark as a positive change agent. I, along with many in our industry, had high hopes that HUD would take real measure of this special time of interest in the housing market and use this rulemaking opportunity in a very surgical and progressive manner to help simplify the closing process for consumers. In my view, instead of simplification the proposed rule creates confusion. And rather than promote consumer choice, it ultimately will limit consumer choice. The implementation cost to small business is staggering. And it’s not just the financial cost. The proposal places an enormous burden on the settlement agent to explain items and/or discrepancies that were CREATED by the lender. The sheer lack of forethought and understanding of the component parts of the settlement process is alarming. In addition, the proposal provides a misguided marketing advantage to some players with the “guaranteed” pricing structure for some of the settlement charges. The guaranteed pricing structure has been described as “the discount store approach to lending and settlement,” largely because it is almost exclusively focused on price and concentrates the determination of that price into very few hands. It is this “concentration of choice” that will ultimately betray the American consumer. The net effect of the guaranteed pricing structure will tilt the playing field away from small title companies and small lenders. Both will be unable to compete as the flight from quality at a fair price becomes a train wreck of high-volume lenders dictating prices that can only be met by equally high-volume title companies. As competition is driven away, the consumer will be left with fewer choices. Not only will prices then rise, but the consumer’s ability to choose from a wide array of providers will have been snuffed out by the very agency that was supposed to be protecting their ability to choose. And, once again, the proposal forgets that for every buyer (that HUD purports to be protecting), there is a seller. The proposed rule acts as if the buyer is the only person affected by the process. During the last ill-fated rule discussion, the title industry repeatedly reminded HUD that many of the buyers were also sellers in a companion sale. HUD’s new rule still does not exhibit any understanding of “trading up” or the seller’s role in the transaction. This proposal does much more harm than good...to everyone. For every attempt to solve a perceived problem, the probability…the certainty...of unintended consequences looms large. Every good leader understands that an opportunity for substantive change is rare. Every good leader understands that such an opportunity, when lost, is seldom recovered, but I fear HUD will cling to this ill-advised rule, preferring to pass something rather than taking the more difficult path of substantive change. The homebuying process is too important to the American consumer and our economy to deserve such treatment. The opportunity for substantive change is not lost, but this proposed rule is wasting precious time. – Michael B. Pryor

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ALTA’s 2008 Annual Convention • October 15-18, 2008 Koloa, Hawaii • Innovative Strategies in Today’s Market ALTA’s 2008 Convention offers CE/CLE credits for Is your business positioned to face the challenges • many of the educational sessions. Participants will of the downturn in the real estate market? Are you be able to sign-up on site to apply for credits in taking advantage of these changes to position your their particular states. business for the new market? Come to the American Expanded concurrent programming offers at- Land Title Association’s 2008 Annual Convention to • tendees a choice to attend multiple professional hear from national experts, learn relevant industry development sessions specific to your needs as and management topics for your business, and net- an agent, manager, or underwriter. work with the leaders in the land title profession. This year’s Annual Convention features world- class experts on business, the economy, and Watch for specific program and registration details on politics who will present exclusive information on the ALTA’s Web site (www.alta.org) and in next month’s issue changes in their field and how the title industry will of Title News. be affected. Just weeks before the national election, our presenters will share timely information from an insider’s perspective. The professional development sessions offer more Spotlight on than a dozen educational programs providing strategies and tools to help ALTA members successfully Exhibitor Showcase navigate the challenges ahead. Sessions include: • Surviving the current real estate market Members can explore are scheduled to educate • Where to look for new business opportunities the vast array of new ALTA members on today’s • Ensuring compliance with federal and regulatory products and services at technological advances, requirements the Exhibitor Showcase. which may help your busi- • Shifting to a “consumer” culture More than six vendor ness run more efficiently • Adopting and adhering to ethical standards and product demonstrations and effectively. business practices • Educating the public about the value of the land title industry

WHAT’S NEW IN 2008 ALTA is continually striving to enhance the programming of our signature annual event. This year’s educational components are designed to educate you on topics specific to the current market and provide you with the tools you need for business success in the new market.

www.alta.org > May/June 2008 > Title News 5 > ALTA NEWS > GOVERNMENT NEWS

Michelle Korsmo The Return of Appointed SVP at ALTA Thaddeus Eagle

Michelle Korsmo joined Michelle’s “The Return of Thad- ALTA on April 7 as Senior husband, deus Eagle: Complet- Vice President of Marketing John, for ing a Title Insurance and Member Services. In many years Commitment Form,” a her new role, Michelle will owned and new educational video oversee corporate commu- operated in DVD format, is now nications, member services and abstract available from The and education, and mem- and title company in Fargo, Land Title Institute, Inc. The purchase price is bership development. North Dakota, and was a This updated program $71 for ALTA members Michelle was Executive long time member of ALTA replaces the previous and $101 for nonmem- Vice President of the Amer- and TIPAC. LTI Commitment Form bers. To order online, icans for Prosperity (AFP) According to ALTA CEO video. please visit the Land Foundation, a Washing- Kurt Pfotenhauer, ““I am The 17-minute video Title Institute page on ton, D.C.-based nonprofit very pleased to have Mi- provides a detailed ex- www.alta.org, or contact organization dedicated to chelle in this important role. planation of Schedules LTI’s Education Man- educating citizens about Her strategic vision and A and B of the 6-17-06 ager, Kevin Russell at economic policy. She man- management skills will help ALTA Commitment Form [email protected] or aged a team of 52 people us identify and implement and the differences 1-800-787-2582 x 232. and a $10 million budget programs and services between Exceptions and for the Foundation. that meet the needs of Requirements. Previously Michelle was our members in a rapidly Deputy Chief of Staff to changing economy and real U.S. Secretary of Labor estate market.” Elaine L. Chao, serving as Michelle can be reached at Pat Berman Retires liaison for the secretary to 800-787-2582, ext. 218, or Pat Berman retired as develop- various offices of the White [email protected]. Director of Education after ment of three House. 24 years of service to LTI corre- ALTA and its members. spondence Pat, known as “Mom” courses, the LTI Online Has a to most of us, started production of educational at ALTA in May 1970 as videotapes, coordinated New Vendor Executive Secretary to regional seminars and LTI Online is up and run- experience, and we hope William J. McAuliffe, Jr. educational sessions, and ning following the suc- that you enjoy the updated After a short hiatus, Pat was the creator of Title cessful online migration platform. For more informa- returned to ALTA as the Triumph. to Castle Worldwide, LTI’s tion about the courses, go to Director of Education and Pat and her husband Bill new online partner. All www.alta.org/lti/courses.cfm Member Services, and the will be living a quiet life in prior access codes and or contact Kevin Russell overseer of the Land Title Holly Springs, NC. ALTA pricing structure remain (800) 787-2582 ext. 232; Institute. In this capac- would like to thank Pat for the same. LTI made every [email protected]. ity, Pat spearheaded the her years of service and effort to simplify the student administration and wish her all the best.

6 Title News > May/June 2008 > www.alta.org > ALTA NEWS > GOVERNMENT NEWS

TIPAC Update Head of Small Business I highly recommend at- Administration Nominated tending the ALTA Federal Conference held in March. to Lead HUD The 2008 conference had a The Bush Administration services. He high level, powerful agenda nominated Steve Preston, previously featuring federal officials, we can exceed the mark. the Small Business Admin- served as the officials from state depart- Last year we had almost istration (SBA) Administra- company’s ments of insurance, and 600 contributors, with most tor, to be Secretary of the executive vice industry experts. Especially contributions arrive in sum- Department of Housing and president and CFO. relevant to 2008, attend- mer and fall. Urban Development (HUD) ALTA CEO Kurt Pfoten- ees heard analysis of the A tremendous thank you on April 18, 2008. hauer welcomed Preston’s presidential election from goes to three individuals If approved, Preston, 47, nomination saying, “his ex- nationally recognized politi- who have given TIPAC the would replace Alphonso perience with ServiceMaster cal analyst Amy Walter. maximum yearly contribu- Jackson, who resigned last and the Small Business Ad- On Wednesday, ALTA tion: ALTA President Gary month. Preston is taking ministration give Mr. Preston members were ambassa- Kermott, ALTA Board over at a sensitive time as great insight into the needs dors for the title industry in Governor Ted Chandler, demands grow for a more of small businesses involved important Federal meet- and ALTA Member William effective federal response to in the real estate community. ings. ALTA held a break- Peirson of Texas. These the home foreclosure crisis. I look forward to meeting fast in the U.S. House of “max-out” contributions are During his tenure as SBA with him quickly to con- Representatives, heard the cornerstone of expand- Administrator, Preston led a vey the land title industry’s legislative updates from ing the effectiveness of our reform agenda to make the priorities, especially as they Congressman Paul Kan- PAC. Another key indica- agency more accountable relate to the pending RESPA jorski of Pennsylvania and tor of the strength and and responsive, especially reform proposal.” Congressman Tom Feeney influence of our PAC is the to small business owners Preston also served as of Florida. FHA Commis- growth in the number of affected by natural disasters. senior vice president and sioner Brian Montgomery new contributors. This year The Bush administration treasurer of payment-pro- shared HUD’s priorities in we have seen tremendous credited him with managing cessing company First Data today’s market. ALTA mem- growth in first time contrib- loan guarantee programs Corp. between 1993 and bers presented our position utors giving amounts rang- similar to those run by HUD. 1997. Earlier in his career, he on RESPA Reform during ing from $25 to $2,500. All “The department requires was a senior vice president intimate meetings with our contributions are critical to strong leadership at a time in investment banking at Senators and Congress- our success in making this when our housing market Lehman Brothers. man. I was struck by the year’s goal a reality. is experiencing a period of Although Preston’s confir- romance, charm, and a feel Thank you for your sup- challenge and uncertainty,” mation to lead the SBA was of power when you walk port and please said Bush in announcing unanimous, there may be a the halls of Congress. continue to Preston’s nomination. bumpy ride this time around. I am proud to say that “REACH FOR Prior to his appointment to Senate Banking Commit- TIPAC has raised $67,620 THE STARS”. the SBA, Preston worked for tee Chairman Chris Dodd from 165 member contri- John Voso can home services provider Ser- (D-CT) has questioned the butions in the first quarter be reached at: viceMaster starting in 1997, nominee’s lack of housing of 2008. With a goal of [email protected] most recently as executive experience during a time of $200,000 in 2008, I believe vice president of strategic housing crisis.

www.alta.org > May/June 2008 > Title News 7 Deciphering RESPA HUD’S Proposed Rule and Impacts on the Title Industry Despite HUD’s goal of simplifying the settlement process, the department has created a complicated rule that promises to be controversial. Read about the most important changes to RESPA and what they mean for the title industry.

The wait is over. On Friday, March 14, 2008, the U.S. Department of Hous- ing and Urban Development (HUD or department) published its proposed regulations to reform the Real Estate Settlement Procedures Act (RESPA). HUD partially titles its rule a “Proposed Rule to Simplify and Improve the Process of Obtaining Mortgages”; however, the rule appears to be far from simple. >>

8 Title News > May/June 2008 > www.alta.org www.alta.org > May/June 2008 > Title News 9 cover story

In addition to expected changes to the originators. With regard to the initial 2. Disclosure of Yield Spread Premiums Good Faith Estimate (GFE), HUD interest rate, the GFE must acknowl- Although current RESPA regula- proposes to introduce tolerances for set- edge that the rate is available until tions require yield spread premi- tlement charges, require a new format a specified date. Until that rate is ums to be disclosed as paid to a for disclosure of yield spread premi- locked, however, the initial interest mortgage broker outside of closing, ums, modify the HUD-1 Settlement rate may continue to float. HUD’s proposed rule would require Statement (HUD-1), introduce a new such fees to be disclosed on the closing script, and amend certain es- 1. Tolerances second page of the new GFE form tablished RESPA definitions, to name Related to the estimate of settlement as a “credit or charge for the specific a few. As a result, RESPA reform is charges on the GFE, HUD proposes interest rate chosen.” The “credit” in never without controversy, and HUD to create three separate categories of this case encompasses a yield spread appears to have created a complicated settlement charges and subject them, premium, and the “charge” is meant and controversial rule. Accordingly, this absent “unforeseeable circumstanc- to denote the presence of discount article summarizes the most important es,” to different tolerances. The first points. changes proposed by HUD’s rule, and category of fees would be subject to identifies certain practical issues that a zero tolerance standard, meaning 3. GFE Fees may impact the title insurance industry. the fees estimated on the GFE may In modifying the GFE, HUD not be exceeded at closing (i.e., lend- states its preference that mortgage lenders and mortgage brokers not impose any charges for a GFE. The department, however, acknowledges n RESPA reform is never without controversy, that there may be incidental or nominal costs in providing GFEs and HUD appears to have created a complicated to prospective borrowers. The rule, therefore, proposes to permit a and controversial rule. lender to charge a fee but limits the amount to a lender’s actual costs, including the cost of an initial credit report. I. Seven Main Components of er’s own service charge, recording Proposed Rule fees). HUD would subject the sum 4. FHA Origination Fees A. Good Faith Estimate of the fees in the second category Finally, under current FHA regula- The GFE is the signature piece of the to a 10 percent tolerance. While tions, HUD limits the amount 2008 proposed RESPA rule. HUD’s each individual fee in this category of an origination fee a mortgagee proposed rule takes the current one- may increase or decrease, the sum of may collect to one percent of the page, suggested form for the GFE the total increases may not exceed loan amount. In the proposed rule, and requires a mortgage originator 10 percent at closing (i.e., ap- HUD has recommended that this to provide a four-page standardized praisal fees, title insurance fees if the limitation be removed. The depart- form within three days of receiving services are obtained from a lender- ment appears to believe that its new a GFE application. This proposed recommended provider). The final rule on the disclosure of settlement form would include a summary of the category of fees would be subject to charges and tolerance limitations key terms of the loan as well as an no restriction, meaning HUD would will force lenders to reduce their estimate of total settlement charges. not limit the amount of any increase origination prices which, in turn, The rule would require a mortgage in the fees. These fees, therefore, may will alleviate any need for a maxi- lender or broker to keep the GFE’s increase by more than 10 percent at mum FHA origination fee. offer for settlement costs open for ten closing (i.e., daily interest, title insur- business days to allow the consumer ance fees if the borrowers shop for to comparison shop with other loan their own provider). 10 Title News > May/June 2008 > www.alta.org ATF-0823-06-3_ALTAtitlead 4/23/08 4:12 PM Page 1

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ALTA Comments on RESPA The following interview with CEO Kurt Pfotenhauer describes how the association is tackling this difficult and important issue.

Why did HUD come out with this rule? HUD’s goal is to simplify the mortgage loan and settlement process and make it more transparent for consumers. While we certainly agree with that goal, we feel HUD’s proposal falls considerably short and only creates more confusion in a process that is already mired in regulatory procedures and requirements.

How does it fall short? For one, it would impose a burden on settlement agents by requiring them to prepare and read a detailed “closing script” at settlement that includes an explanation of the loan terms which, in many states, is the function of an attorney. The proposal also arguably puts more control over the selection of settlement service providers into the hands of large national banks, to the detriment of local banks and local title agents/abstracters.

What is ALTA doing? We have had staff, the Government Affairs Committee, and expert consultants pouring through the proposal to determine its impacts. We also have solicited broad member input as to how this would affect their businesses. This is a complex rule that has more than 100 pages of text and a 500-page economic analysis. The department spent four years drafting the proposal, and they’ve given us two months to fully explore all the ramifications from a business, economic, regulatory, and consumer perspective. We’ve asked for an extension, and hope that by the time this goes to print, we’ll have received it. Secondly, we have been actively talking to members of Congress to educate them about the negative impacts of the rule and to request hearings on certain aspects of the proposal. Third, we are engaged with the Small Business Admin- istration to bring its voice into the mix on behalf of all our small, independent agents who may be adversely affected. Fourth, we are engaged in discussions with other real estate trade associations—REALTORS®, mortgage bankers, brokers, and others—in an effort to unify our approach. Finally, we are engaging HUD directly and arguing our points face-to-face.

Where can members find additional information about the new rule and the industry’s position? The actual proposal and other materials are posted on ALTA’s Web site. Additional materials will be posted as soon as they become available. Meanwhile, there is a very good article in this issue of Title News that describes, in more detail, how the rule would impact our industry.

What are the next steps? We will continue to work with members of Congress and other trade associations in an effort to deal with issues raised by the proposal. We also will attempt to work with HUD to help craft meaningful alternatives to some of the more oner- ous requirements. Finally, we are asking our members to communicate the industry’s concerns to their representatives of Congress.

For more information, go to www.alta.org, Federal Issues/RESPA Reform.

12 Title News > May/June 2008 > www.alta.org cover story

B. HUD-1 Settlement Statement 1. HUD-1 Form While the current GFE and HUD-1 do not match or allow for easy comparison, HUD proposes to alter the HUD-1 form to allow a consumer to directly compare the fees identified on the GFE to those fees charged at closing. Specifically, the Department proposes to bold certain text and include bracketed language on the HUD-1 that identifies the section of the GFE where a consumer will find the estimated charge. In addition, while the current < Phil Schulman holds up a sample of the Good Faith Estimate during a HUD-1 requires a lender or mort- special session at the ALTA 2008 Federal Conference titled: “ALTA gage broker to itemize their internal Perspective on Proposed RESPA Rule.” Attendees were given a preview of origination charges, such as process- ALTA’s analysis of the rule and how it will affect the title industry. ing fees and document preparation fees, the modified HUD-1 would require only the lender’s bundled on an average cost price in ac- would contain the closing script form, “service charge” to be disclosed at cordance with paragraph (b)(2) of as well as detailed instructions and closing. Similarly, rather than item- this section.” If read literally, this examples a settlement agent would use ize fees for primary title services, language seems to suggest that the to complete the document. such as the title search, title exami- markup of third-party fees would nation, and title binder, the modified be prohibited under the new rule. D. Average Cost Pricing HUD-1 provides for a single “title In addition to proposing modifications services and lender’s title insurance” C. Closing Script to actual disclosure forms required fee to be disclosed on the HUD-1. The rule also proposes to create a under RESPA, HUD’s proposed This category of fee matches that on new addendum to the HUD-1, or a rule targets other aspects of the act the proposed GFE form. However, closing script, which the settlement to provide clarity and decrease settle- the split in title premiums between agent is tasked with preparing, read- ment costs for consumers. One such the agent and underwriter would be ing aloud to the consumer at closing, modification would allow lenders and separately disclosed. and providing in hard-copy format to mortgage brokers to use average cost obtain the consumer’s written ac- pricing for settlement services, rather 2. Mark Up of Third-party Fees knowledgment. Essentially, the rule than charge the consumer the exact In addition to the changes HUD would require the settlement agent to cost in every circumstance. HUD proposes to make to the HUD-1 explain specific loan terms as stated would allow a lender to determine av- form itself, the rule proposes to in the mortgage note, such as interest erage cost by using the actual average include new language in Section rate, monthly payment amount, and cost of a settlement service over the 3500.8 of the RESPA regula- the presence of a prepayment penalty previous six-month period or a tiered tions. This language would state and balloon payment. The settlement pricing approach. If a lender or broker as follows: “The amount stated on agent also must compare the loan uses one of these methods, HUD will the HUD-1 or HUD-1A for any terms and settlement charges to those deem the lender to have complied itemized service cannot exceed estimated on the GFE and indicate with the requirements of the rule for the amount actually received by whether certain settlement charges stating the actual charge. the third party for that itemized exceed the 10 percent tolerance. The service, unless the charge is based appendix to RESPA’s regulations www.alta.org > May/June 2008 > Title News 13 cover story

E. Negotiated Discounts settlement service provider; however, their customers who agree to use affili- Section 8 of RESPA prohibits any discounts, rebates, or customer incen- ated mortgage or title companies. person from giving or receiving a thing tives do not constitute required use of value in return for the referral of as long as the rebate or incentive is G. Miscellaneous Amendments business. As currently defined, “thing a true discount that is not made up In addition to the extensive modifica- of value” includes discounts, and Sec- elsewhere in the transaction. HUD’s tions discussed above, the rule propos- tion 8 prohibits the giving or receiving rule proposes to modify this defini- es to update mortgage servicing disclo- of discounts in exchange for the refer- tion of “required use” to include both sure requirements and remove expired ral of settlement service business. The economic incentives and disincentives provisions of the escrow regulations. rule, however, proposes to amend the that are contingent on a borrower’s use The rule also would amend RESPA’s definition to exclude discounts negoti- or failure to use a particular provider regulations to recognize the applica- ated by settlement service providers of settlement services. If, however, a bility of ESIGN, which would allow (i.e., title companies) in the price of settlement service provider offers an disclosures in electronic form. Con- a third-party settlement service, as optional combination of services at a sumers would be required to consent long as no more than the discounted lower price, these discounted services to the electronic receipt of documents, price is charged to the borrower and would not constitute required use. and a lender must ensure it meets all disclosed on the HUD-1. This modification appears to be a other ESIGN requirements. direct result of complaints the depart- F. Required Use ment has received concerning home Currently, RESPA’s regulations pro- builders’ offers of large discounts to hibit the required use of a particular

14 Title News > May/June 2008 > www.alta.org cover story

II. Potential Impact on Title Insurance Industry The “Rules” of Rulemaking Following is a synopsis of the rulemaking process by which Overall, the proposed modifications federal agencies create new regulations or amend existing ones— discussed above give every settlement service provider something to be concerned about. For the title Regulatory agencies create regulations according to rules and processes insurance and settlement industry the defined by the Administration Procedure Act (APA). The APA defines a “rule” newly proposed closing script is likely or “regulation” as: to get the most attention, and it raises The whole or a part of an agency statement of general or particular ap- several issues. plicability and future effect designed to implement, interpret, or prescribe law QQ First, the closing script would or policy or describing the organization, procedure, or practice requirements require a title agent to explain loan of an agency. terms and settlement charges to the And, the process of “rulemaking” is defined as: consumer, which, in many states, Agency action which regulates the future conduct of either groups of per- is a role that a licensed attorney sons or a single person; it is essentially legislative in nature, not only because is required to perform. In these it operates in the future but because it is primarily concerned with policy states, if HUD requires a title or considerations. settlement agent to be responsible Under the APA, agencies must publish all proposed new regulations in for explaining the loan terms to a the Federal Register at least 30 days before they take effect, and they must borrower at closing, the agent could provide a way for interested parties to comment, offer amendments, or to risk committing the unauthorized object to the regulation. practice of law. Some regulations require only publication and an opportunity for com- QQ Second, HUD acknowledges in ments to become effective. Others require publication and one or more the appendix to the rule that the formal public hearings. The enabling legislation states which process is to addition of the closing script to be used in creating the regulations, and those requiring hearings can take the settlement process will increase several months to become final. the time it takes to conduct a real New regulations or amendments to existing regulations are known as estate closing by approximately “proposed rules.” Notices of public hearings or requests for comments on 45 minutes and increase the cost proposed rules are published in the Federal Register, on the Web sites of the of a settlement by at least $54. regulatory agencies, and in many newspapers and other publications. The HUD, however, does not appear to notices will include information on how to submit comments or participate in anticipate the additional time it will public hearings on the proposed rule. take to provide answers to borrower In addition, the complete text of all proposed rules is published in the Fed- questions or give weight to the fact eral Register and typically posted on the agencies’ Web sites. that title and settlement agents will Once a regulation takes effect, it becomes a “final rule” and is printed in be required to update software and the Federal Register, the Code of Federal Regulations (CFR), and usually train employees, which only adds posted on the Web site of the regulatory agency. to the extra expense. HUD states The RESPA proposal was released on March 14, 2008, with an open com- that its purpose for the rule is to ment period until May 13, 2008. (ALTA requested a 60-day extension and it simplify the process and reduce was unknown as of this writing whether it would be granted). HUD will review consumer costs, but the proposed all public comments and amend its proposal, simply respond to comments, closing script may have the oppo- or seek further clarification. It can then release an amended proposed rule site effect. for comment or a final rule that may or may not contain changes. The final QQ Third, the rule does not provide proposal is then submitted to the Office of Management and Budget for answers to several practical prob- approval before becoming effective. Once passed, HUD has indicated that lems with the closing script. For there will be a 12-month period to move to the new forms and regulations. instance, if final settlement charges – Ed Miller, Chief Counsel & Vice President of Public Policy exceed the 10 percent tolerance, www.alta.org > May/June 2008 > Title News 15 cover story

should a settlement agent close the percentage of insurance premiums they rule. While the closing script appears loan when he/she knows the loan is receive as compensation. Moreover, if to have the most impact on the title in violation of Section 5 of RESPA? the disclosure of the agent and under- insurance industry, other aspects of If a closing agent must read aloud writer portions of the title premium the rule could make it more difficult, the closing script to a borrower, is intended to allow the consumer to for instance, for title companies to what does the closing agent do in negotiate a different title rate, the dis- compete with lender-owned affili- escrow closings, internet closings, closure of this split just one day prior to ated business arrangements as well as and closings by mail where there closing is too late to allow a consumer negotiated discounts offered by lenders is no face-to-face meeting? What to shop for another provider. and other settlement service providers. if the borrower does not speak Finally, certain aspects of the pro- As a result, the title industry should English; must the closing script be posed rule may disproportionally affect not assume this rule is for lenders only; read aloud or provided in writing in a title insurance or settlement agent’s your business could be directly affected another language? ability to offer the lowest prices to by HUD’s proposed changes. We expect that these are only a few their customers. Notably while the rule of the issues the title industry will raise allows for average cost pricing, the text III. Conclusion with HUD in connection with the refers to the determination of the aver- Despite HUD’s stated purposes for the proposed closing script. age cost based on activities of the “loan proposed RESPA rule, the department has delivered a complicated rule that will prove to be controversial. n No other insurance agents (i.e., homeowners, Every corner of the settlement service industries likely will raise an objection auto, and life insurance) are required to disclose to some piece of HUD’s proposals. For the title insurance industry, the the percentage of insurance premiums they re- proposed closing script and limitations on average cost pricing likely will ceive as compensation.” be hot issues that will elicit a strong response from title and settlement agents. Moreover, with the market in the midst of a credit crunch, one must With regard to the proposed originator.” By using this specific term, question why at this particular time HUD-1, this form includes two addi- one has to question whether only lend- HUD would create new consumer dis- tional disclosures that the Department ers and mortgage brokers may use an closures that will require providers to does not propose for the GFE. In lines average cost for the settlement services expend considerable time and money 1113 and 1114 of the new HUD-1, a they control. If this is the case, HUD to update necessary systems and train title/closing agent would be required fails to recognize that title and settle- employees. Buckle your seatbelts; it’s to disclose the title agent’s portion and ment agents would greatly benefit from RESPA reform time, and that means title underwriter’s portion of the total the ability to use average cost pricing, déjà vu all over again. title premium. Yet, in the Appendix to particularly as it relates to mortgage the rule the department expressly states recording fees. Because of the uncer- For current information on RESPA go that it removed the premium break- tainty of recording fees prior to closing, to www.alta.org/publications/titlenews. out from the GFE, as the title agents an average cost could help ensure that argued that itemizing the premium consumers do not pay more than actual Phillip L. Schulman is a split is costly and serves no useful recording fees, and the title or settle- partner with the Washington, purpose. If this is the case, then what ment agent is not at risk for claims of D.C. office of the law firm of useful purpose does the disclosure serve overcharges under RESPA. K&L Gates. He specializes in on the HUD-1? No other insurance Ultimately these items only skim the real estate and consumer agents (i.e., homeowners, auto, and life surface of the issues and impracticali- finance matters affecting the title insurance, insurance) are required to disclose the ties raised by the proposed RESPA mortgage banking, and real estate industries. 16 Title News > May/June 2008 > www.alta.org We know this stuff inside and out.

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62747_LA_CA_AltaNews_PRINT.indd 1 4/4/08 9:58:28 AM 2008 ALTA federal conference

< Representative Paul Kanjorski of Penn-

< sylvania spoke to members about the Three congressional staff members and ALTA’s Ed Miller provided upcoming economic stimulus package an insider’s view of the Senate Banking and House Financial and FHA Reform. Services Committee agendas. The 2008 ALTA Federal Conference was held and lending crisis, RESPA reform, the pro- March 10th through 12th in Washington, DC. posed Uniform Closing Instructions, and state Over 100 ALTA members gathered to hear regulators’ initiatives. In addition, participants from federal and state regulators, members received an overview of a developing ALTA of Congress and staff, and industry experts Ethics education program. on issues regarding the title and real estate Members of Congress and their staff joined industries. Sessions focused on the housing ALTA members on Capitol Hill for a breakfast

< Richard G. Carlston of Miller Starr Regalia, Dudley B. Ewen, III

(Maryland Insurance Administration), and Woody Girion (California < Representative Tom Feeney of Florida, a Department of Insurance) discuss their views during the State former title industry professional, reas- Regulatory Session. sured attendees that Congress is working for effective economic reform.

18 Title News > May/June 2008 > www.alta.org < Gary Kermott, The Honorable Brian D. < Kurt Pfotenhauer, CEO, talks with Representative Gary Miller (R - Montgomery of HUD, Kurt Pfotenhauer, and CA) at the Congressional Breakfast sponsored by ALTA. Representative Darrell Issa (R - CA) chat before the Capitol Hill Luncheon. reception and to hear briefings from leaders a content filled conference that also provided of the House Financial Services Committee. ALTA members with valuable networking op- ALTA members also visited their congressional portunities. Be sure not to miss this important representatives and senators to brief them on event in March 2009, when we will reach out problems for the title industry with the pro- to new members of Congress and tackle im- posed RESPA rule and to relate our support portant issues following the 2008 election. for the FHA Modernization legislation. It was

Thank You to Our Federal Conference Sponsors

< ALTA members from Texas enjoy a conversation with Representatives from Texas.

www.alta.org > May/June 2008 > Title News 19 BY CAROLE BULLION

running your business

financing QQ The sales price and appraisal are Recognizing inflated QQ Silent second mortgage can be involved Mortgage Fraud, QQ Zero money down sales are in- cluded QQ The source of funds is questionable QQ Parties to the transaction know Part 2 each other well or are affiliated Mortgage fraud is on the rise as perpetrators contin- Chunking ue to seek new and creative ways to stay one step Chunking usually begins with a seminar that is held to educate potential ahead of the law. Here are some of the latest trends investors on how to “get rich quick” by in mortgage fraud and what the FBI is doing to com- investing in real estate with no money bat this growing epidemic. down. A third party (usually the presenter at the seminar) encourages these attendees to invest in a real es- he problem of mortgage ties as quickly as possible to avoid tate property and acts as their counsel/ fraud is growing. In Septem- the cost of carrying a vacant home. agent. Under the presenter’s guidance, ber 2002, the FBI had 436 Mortgage payments, taxes, insurance, the attendee completes all of the nec- mortgage fraud investiga- and utilities can eat up any profit essary loan applications and shares all Ttions. Currently, they have realized and in some cases cause a of his financial information in order to more than 1,036. That’s an increase of loss to the builder/seller. The builder/ obtain financing to invest in this prop- 237 percent in the last five years. It is seller conspires with an appraiser to erty. Unbeknown to the attendee, the obvious that this white-collar crime is inflate the value of the home and sell presenter takes the information and on the rise and happening in new and to an unsophisticated buyer or even a applies for many loans on many pieces improved schemes. What are the new “straw” buyer. The closing takes place, of property. The scheme requires trends in mortgage fraud, and what the builder/seller walks away with the assistance from an appraiser, broker, are the FBI and local law enforce- inflated equity, and, in most cases, ment doing about it? the unsuspecting buyer or straw buyer Let us first take a look at the new- goes into default. The buyer will be est trends: unable to sell or refinance the home as the value is much lower than the origi- Builder/Seller Bailout nal inflated appraisal. The red flags to Builder/Seller Bailout schemes occur look out for in this scenario are: when the builder or seller is motivated QQ The builder/seller is willing to do to move inventory that has been sitting anything to sell property in a declining or depressed market. QQ The borrower is barely qualified They want to move these proper- or unqualified and needs special 20 Title News > May/June 2008 > www.alta.org running your business

and title company to ensure that the driver’s license with picture, signed all In the end, the title company, attendee/buyer does not have to bring of the documents without questions through no fault of its own, had to money to all of the closings. The and left. Three days after closing, pay the lender the full amount of the presenter acts as agent for the buyer in when the rescission period was over, mortgage which was $65,000. What all of these many closings. The result the borrower showed up to pick up could the closer of the title company is that the buyer receives loan proceeds his proceeds check in the amount have done differently? A black light from the original closing, and the pre- of $64,000. The file was closed and was used to verify that the driver’s senter pockets loan proceeds from all stored away and forgotten—until the license had the state seal on it, of the rest of the closings. The lenders foreclosure notice was received in the which made it a valid identification are stuck with defaulted loans on these mail by the real owner. The owner document to rely on in the state in properties as the buyer does not have not only was unaware of a mortgage which the closing took place. What the ability to repay all of these loans, on his lien-free property, but also was is surprising is that if the closer had and the properties are forced into substantially older than the man who checked the birth date on the driver’s foreclosure. had appeared at closing. Now what license and took a good look at the do you supposed happened from individual signing, they would have Identity Theft there? Was the real owner responsible clearly seen that something didn’t add We see the commercials on TV. The elderly grandma using slang and jammin’ to teenage tunes while n Currently, the FBI has more than 1,036 cases explaining the purchases she made at the skateboard shop and video game of mortgage fraud. That is an increase of 237 store. Or the prim and proper profes- sor claiming to have purchased a new percent in the last five years. hot rod and some heavy metal concert tickets. They are funny to watch. But, in reality, identity theft is happening each and every day in all parts of the for the debt in his name that he did up. The man who showed up at the country, and the catastrophic trail it not create? In this case, absolutely closing was at least 20 years younger leaves behind is not funny at all. not! than the real owner! As of this date, identity theft is on The culprit in this transaction One of the popular new ways to the rise. knew the victim, which is the case steal identities and real estate at the in a lot of stolen identity situations. same time is for the crook to prey True Story: He had plotted and orchestrated a on individuals who spend significant “Swindling Grandpa” plan to steal identity records (birth amounts of time in another state dur- A few years ago, a closing was con- certificate, drivers license number, ing the year. Here in the Midwest, ducted for a piece of property owned and social security number)from this we call them “snowbirds.” The culprit by a single man. The transaction was elderly man and headed to the office watches these residences, waits for the for a mortgage to refinance his prop- of the secretary of state. The secretary owners to leave, hires conspirators to erty to take cash out. It really wasn’t of state used this stolen information move into the house to pose as the a refinance as there was no existing to issue a valid state driver’s license rightful owners, and puts the house mortgage. The property was free and with the victim’s name and address, up for sale. The house is shown, clear. but with the criminal’s picture on sold, and closed on with unsuspect- Title work was ordered and showed it, thus allowing this thief to walk ing buyers and the thieves pocket the clear, appraisal was done as a “drive away with all of the cash. Now we cash, and take off for the next house. by,” and the value was comparable have a man who wants the title of his Meanwhile, the snowbirds return to to the neighborhood. The loan was property back to free and clear and a find another family living in their approved, so closing was set. The lender that wants the mortgage paid home! gentleman showed up, produced his that is now in default. What a mess! www.alta.org > May/June 2008 > Title News 21 running your business

What can you do? One quick that they had driven their moving van Equity Skimming and easy answer to that is Card the to their new home and when they Equity skimming often begins with customers and clients you work with! reached the front door, a woman came a “straw buyer.” This is a financially Pay special attention to the details out to see what was going on. The qualified individual who a scammer on the identification. If your state woman was the wife of the man who convinces to purchase a property on issues IDs with special marks, verify had signed as seller at closing. The the scammer’s behalf because the that the marks are present. Look at woman that had appeared with him scammer doesn’t want his name to ap- the picture carefully and question any was his mistress posing as his wife. pear on the deed and mortgage. discrepancies. The real wife knew nothing about the The scammer recruits the straw sale. She had been out of town taking buyer by promising to pay the indi- True Story: The Mistress care of her sick mother for some time. vidual a fee and make the mortgage Years ago, back in the 1980’s (I know, During that time, her husband had payments. After the closing, the straw I am dating myself!) a closing was con- put their home up for sale, sold it, and buyer deeds the property to the scam- ducted in a real estate office. In those left the country with his girlfriend. mer, but the scammer never records days no one ever asked for identifica- Unfortunately, the buyers were left the deed. The scammer rents out the tion. A man and woman came in to homeless and had to pay on their property, but makes no mortgage close on a home they owned. Closing mortgage until the issue was cleared payments and continues to collect rent took place with a good size mortgage up. I don’t believe the husband was until the eventual foreclosure several being signed. Everyone left happy. ever found. months later. Shortly thereafter, however, the buyers In another variation, a scammer came back into the office to explain steals an individual’s identity and ap-

22 Title News > May/June 2008 > www.alta.org GOT THAT SINKING FEELING?

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plies for a mortgage in that person’s Boy, if these new and improved name. Once the loan is closed, how- schemes don’t scare you, nothing will! ever, the result’s the same; the scam- Now that we have taken a look at the mer rents out the property and col- latest and greatest in mortgage fraud, lects rent without making mortgage the question still remains: payments until the lender eventually forecloses on the property. What is Being Done About It? While local law enforcement in most Foreclosure Rescue Scheme areas has the authority to police With a foreclosure rescue scheme, white-collar crime such as mortgage case basis the FBI receives close a scammer identifies a homeowner fraud, most local law enforcement cooperation with the lenders making who’s at risk of defaulting on a agencies are strapped for resources and the investigations much easier. mortgage or whose home is already in need to handle the dangerous crimes By working with individual lenders, foreclosure. The scammer then mis- first, leaving the FBI to handle these as well as national associations such leads the owner into believing that the investigations as the MBA, the Appraisal Institute, scammer can prevent the owner from Since 1999 the FBI has been the National Association of Mortgage losing the home. actively investigating mortgage fraud Brokers, and the National Notary As- One variation of this scheme all across the United States. The FBI sociation, the FBI will be more easily defrauds the homeowner without also works closely with the mortgage able to define and combat this serious defrauding the lender. The scammer industry to provide fraud-prevention problem. convinces the homeowner to sign a education and awareness. To raise The problem of mortgage fraud form that supposedly authorizes the awareness of this issue and provide is not going away. According to the FBI, the answer lies in teamwork. Teamwork of parties involved in n The problem of mortgage fraud is not go- these transactions. As a member of the title industry, I firmly believe ing away. According to the FBI, the answer lies in that we are a part of that team. We have front row seats to these transac- teamwork. tions, and if we take the time to look carefully at the details and follow our gut when something seems out of scammer to contact the lender on the easy access to personnel, the FBI has the ordinary, we can be a part of the owner’s behalf. In reality, the form provided points-of-contact to groups solution. is a deed transferring the property’s such as the Mortgage Bankers As- For more information on how the title to the scammer. The scammer sociation, Fannie Mae, Freddie Mac, FBI is fighting mortgage fraud, go to then pays off the mortgage, evicts the and others. www.fbi.gov owner, resells the home and pockets The FBI also has been working on the equity. creating a more productive reporting A second variation defrauds both requirement for mortgage fraud by the homeowner and the lender. With establishing broader rules involving this scheme, the scammer charges SARs (suspicious activity reports). the homeowner an up-front fee that The Bureau has been working with Carole Bullion is owner of supposedly will pay for the scammer’s the Financial Crimes Enforcement Classic Title Agency, in services. The scammer simply pockets Network (FinCEN) to promote an Brighton, MI; author of The this fee without doing anything, and efficient method of identifying and Dark Side of the Closing the homeowner ultimately loses the reporting mortgage fraud activity af- Room; and a presenter at home in foreclosure. fecting nonfederally insured mortgage ALTA conventions. She can be reached at: lenders. In addition, on a case-by- [email protected] 24 Title News > May/June 2008 > www.alta.org Are you missing the connection?

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running your business

al marketing approaches. No matter Stop Marketing! how streamlined your company, you may feel that you are barely keep- ing up and wonder why, with all the Start Re-Marketing! money you’re spending on marketing, there is less to show for it. When this In these tough economic times, it is becoming increas- happens, companies often allocate more marketing dollars. When that ingly difficult to gain new customers through traditional doesn’t produce the hoped-for busi- marketing approaches. Why go in search of gold when ness, they assume the problems are there’s a gold mine right in your own backyard? due to the current economic climate. While that’s certainly a huge factor, it isn’t the whole picture. “Right Under Your Nose!” Love’ Em or Lose’ Em Companies in the service business No doubt you’ve heard or said this Things change. The good feelings traditionally spend approximately 80 phrase countless times—when that your customers had for you when they percent of their marketing dollars temporary bout of forgetfulness turns were new shift as they begin to feel going after new customers, while only to the realization that you’ve been unappreciated. As transactions become 20 percent of their business comes looking at something all along. Then methodical, you may start to become from new customers because of those you wonder how you missed it in the complacent. The bloom is off the rose, marketing efforts. Reverse the per- first place. so to speak. centages and what you are doing is The lost file sitting where you left Leaner times mean stiffer competi- “Re-Marketing.” it on the filing cabinet while you tion for business, your business, and What if you could double your frantically searched for it. Or your being mediocre is not enough. When business and spend little or no mon- missing pair of eyeglasses forgetfully a customer stops doing business with ey? Sound too good to be true? The placed on top of your head. It’s amaz- one company and goes to a competi- solution is “right under your nose!” ing how often we don’t see what is tor, they typically report they did so Before you spend money on a literally right in front of us, including because they felt the service levels new slogan or advertising campaign, our customers. had declined and they felt unimport- stop and redefine who you want to Your customers are the revenue- ant. Because we don’t consciously or impress and why. producing assets for you and your intentionally provide poor service, company. They choose to bring you we wonder what could have caused a More Customers or their business, and need to believe customer to feel that way. More Business? that their decision was the right Start by asking this question: “Is the one—especially when it comes to Save Your Money: way to grow and increase revenue the service they receive. When they Stop Marketing! through more customers or more receive good service, they feel they Businesses succeed by getting, keep- business?” Common sense tells us that matter to you. ing, and growing customers. Given the more customers mean more transac- current challenges of the title industry, tions, and more transactions mean it is becoming increasingly difficult to more revenues. But more customers gain new customers through tradition- will do little good if existing custom- 26 Title News > May/June 2008 > www.alta.org running your business

ers are leaving out the back door. You same token, have you ever changed Did you do save them time? Did the don’t have to go in search of gold your mind about going to a particular information or advice you provided when there’s a gold mine right in your restaurant or movie after someone increase their knowledge, resulting in own back yard. told you how terrible it was? an increase of their business? People like to do business with Also focus on the feelings you want people they know and like—people Re-polish Your Silver them to have. Do you create a sense with whom they feel a connection, How did you treat your more estab- of comfort for your customers because or relationship. These are your cur- lished customers in the beginning? they have confidence that you’re rent customers, and they are “right Did you spend a lot of time with always on top of things? Do you show under your nose.” You talk with them them, returning all of their phone calls them how important they are by call- frequently and they are in your office immediately, patiently answering all ing or sending a hand-written note several times a month. They have in- of their questions, any time of day? In thanking them for their business? vested in you. Shouldn’t you take the effect, you wanted to shine like freshly Re-Marketing is the way to earn extra time to invest more in them? polished silver. and keep the trust of customers who Your customers are your great- Do you still treat these customers will in turn give you more of their est “sales force” because they will with the same amount of attention? business as well as refer new custom- promote you by word of mouth. This If not, then it’s time to re-polish your ers to you through word of mouth. kind of referral, from someone who silver! Just as silver becomes tarnished If only one in ten of your custom- has had first-hand experience with when it isn’t polished regularly, we ers sends you a new client in a year, you, is invaluable. too can begin to look a little dull how many new customers would that and blotchy in our customers’ eyes. be? I’d be willing to bet the num- Story Time They aren’t quite sure what’s differ- ber would be a lot higher than the With all the choices that customers ent because the changes occurred so number of new customers you might have today, what are the factors that gradually. Because you believed they have gotten through costly marketing will steer them to you? Stories—re- were satisfied, perhaps you didn’t see programs. And in the process, you peated by existing customers to their the need to keep up the high level of are building an incredibly powerful colleagues, friends, and other acquain- attention. sales force—one that you could never tances. The stories people tell about Once your customers start to feel afford to pay. In addition, when the you and your company related to their unappreciated, they may start to people who are selling your services positive experiences are worth their look over the fence at the neighbor’s are speaking from their personal ex- weight in gold, and are a many times pasture to see if it’s greener over perience, and have nothing to gain by more valuable than an advertisement there. Your job is to keep their eyes referring you, the credibility of their or brochure. People need a reason to focused on your pasture! To do that, “sales pitch” goes through the roof. tell a story, whether good or bad, so you need to treat your customers as if To grow your business in this make it a top priority to ensure that they are the most important people in volatile economy, stop Marketing each and every one of your custom- the world. and start Re-Marketing. Remember, ers has a positive story to tell. Always the source of future business is “right try to go above and beyond, and treat Re-Marketing under your nose!” them as if they are a brand new cus- Tips & Techniques tomer no matter how long you’ve been Re-Marketing is easy and effortless. Suzanne Penley is President working with them. In other words, Recall the things you did for custom- and CEO of Customer never take your customers for granted. ers when they were new to make them Focused Systems, an To give an example, haven’t you feel welcome and appreciated. If you award-winning company that tried a new restaurant simply because aren’t still doing those things, do helps individuals and organiza- someone you know raved about the them! tions create a competitive advantage through food? Or gone to see a movie solely Don’t just think in terms of the unsurpassed excellence in customer relations. because someone you know oozed physical tasks. Focus on the desired She can be reached at (713) 592-8282 or with enthusiasm about it? By the results you want them to experience. [email protected] www.alta.org > May/June 2008 > Title News 27 BY MARK E. HERNICK

inside alta

the market could still be some time away. Historically, ALTA’s financial 2007-2008 ALTA performance has closely mirrored the financial cycle of the title industry. Accordingly, in formulating ALTA’s Financial Report 2008 budget, management planned significant declines in revenue and 2007 proved to be a challenging year for ALTA. The minimal increases in expenses. Budgeted income for 2008 is association accomplished many goals in the areas $5,620,000 with expenses budgeted of government affairs, education, membership, and at $6,000,000. This very conservative public relations. budget results in an estimated net loss of $380,000 for the year. The association, like many member companies, is espite the significant Year-End Financials indicate that the taking steps to make the most of the downturn in the overall association has assets and liabilities downturn in the market by retooling real estate market, ALTA’s in balance at $11,220,000 with a net and strategically positioning itself for revenues remained on income of $70,000. the future. It is management’s goal to Dplan or as expected, and The final financial hurdle for minimize losses in 2008 and imple- expenses were kept beneath budgeted 2007 will actually take place in May ment best practices that will maxi- limits. A brief synopsis of ALTA’s 2008, when the association will be mize income opportunities in 2008 financial picture for 2007, and a look audited by the accounting firm of and beyond. at the approved 2008 budget follows. Johnson Lambert & Company, LLC Exhibit 1 represents the approved (JL&Co). JL&Co. brings special 2008 Income and Expense Budget. Year In Review expertise to the engagement and is Exhibit 2 represents the percentage In anticipation of a continued decline well respected in the Washington, of revenue and expense categories as in the real estate market, ALTA’s DC, not-for-profit business commu- they relate to the overall 2008 budget. 2007 operating budget was developed nity. ALTA staff is looking forward with a conservative outlook on rev- to the process and is confident that enue and tight controls on expenses. a positive report will be given to the As expected, the market downturn association’s Audit Committee. continued in 2007; however, ALTA’s overall revenue did not decline as A Look Ahead much as anticipated. In fact, a few of With the first quarter of 2008 already the association’s income-generating behind us, the association is well programs, such as meetings and in- positioned for what is already shaping Mark E. Hernick is ALTA’s vestment income, were more success- up to be a very challenging year. The vice president of operations. ful than the previous year. Expenses real estate market is at levels that many He can be reached at were closely monitored throughout the in the title industry have not seen in 800-787-2582 ext. 222 or year and, overall, came in more than decades, and some have never seen at [email protected]. $500,000 under plan. Unaudited 2007 all. Unfortunately, a bounce back in 28 Title News > May/June 2008 > www.alta.org inside alta

ALTA Revenue 2008 Approved ALTA Income and Expense Budget

GENERAL FUND INCOME Dues $3,125,000 Investment Income 675,000 Convention / Tech Forum / Fed Conf. 970,750 Public Relations Campaign 347,000 Title News 125,000 Directory 27,500 Product Services 85,000 Web & E-News / (E-Communications) 50,000 Other Income 215,000 TOTAL INCOME $5,620,250 Dues 55.6% Title News 2.2%

Investment Income 12% Product Services 2.9% GENERAL FUND EXPENSES Legal / Professional Services $350,000 Meetings 17.3% Other Income 3.8% Convention / Tech Forum 824,118 Committees 201,500 Public Relations 6.2% Public Relations 375,000 Rent - Occupancy 295,000 Personnel - Salaries 2,333,224 Personnel - Benefits 328,386 Personnel - Pension 247,330 ALTA Expenses Travel 122,500 Telephone 25,000 Postage 27,500 Supplies 20,000 Information Technology 95,300 Duplicating 17,500 Title News 100,000 Directory / Leadership Directory 65,000 E-Communications 77,500 Dues and Subscriptions 25,000 Insurance 40,000 Audit 35,000 Product Services 130,000 Bank / Credit Card Fees 50,000 Professional Services 5.8% Personnel 48.5% Bad Debt 2,500 Meetings 13.7% Information Technology 1.6% Miscellaneous 82,500 State Legislative & Regulatory Fund 10,000 Committees 3.4% Depreciation 1.7% Depreciation / Amortization 100,000 Lobbying Tax 20,000 Public Relations 6.3% General Admin 12.9% TOTAL EXPENSES $5,999,858 Rent - Occupancy 4.9% OPERATING INCOME (LOSS) ($379,608)

www.alta.org > May/June 2008 > Title News 29 BY CRAIG MULDOON

technology corner

Boost Productivity With Integrated Technology and files without stepping foot into a county courthouse. A few courthouses Services have even adopted e-recording systems for some transactions. New technologies can help create a desktop “virtual Industry service providers have adapted accordingly, developing title plant” and a nearly paperless office, improving new kinds of automated title search productivity and profitability as a result. technology and solutions that take advantage of Web connectivity and aced with a rising tide of of customer service by collaborating desktop publishing tools for man- foreclosure orders, Florida- with an outside vendor. The secret of aging document images. Today, a based New House Title New House Title’s success? A state- title agent, underwriter, attorney, or began looking for ways to of-the-art, Web-based, automated related service provider can expedite Framp up its statewide title title search solution integrated with the “paper chase” that a real estate search and examination services for in-house production systems and closing entails. New technologies attorneys and underwriters special- combined with some creative think- and services are available to help title izing in foreclosure. Historically, the ing about the company’s business companies, default and foreclosure company’s in-house staff had pro- model. vendors, attorneys, and other parties cessed foreclosure title search orders in the title process create a desktop using data purchased from outside The Changing “virtual title plant” and a nearly pa- sources. However, that approach was Technology Landscape perless office, improving productivity becoming too cumbersome for the With the advent of desktop computers and profitability as a result. company’s growing volume. New and the Internet, obtaining title re- Today’s automated title search House Title needed a more efficient cords and managing real estate trans- systems are far more powerful and solution that could improve turn time action files has become an increasingly adaptable than in the past. With the and could grow or shrink in accor- streamlined process. Many—although higher quality title search systems, a dance with demand. certainly not all—county recorders real estate professional can easily gain Today, New House Title is now maintain electronic databases access to a uniform set of courthouse, processing orders more quickly and containing scanned images of deeds tax, and property appraisal data across easily than before, while maintain- and related documents, allowing real every county covered by a particular ing its commitment to a high level estate professionals to access electronic database. In minutes, such a system 30 Title News > May/June 2008 > www.alta.org technology corner

can automatically create geographi- pieces of paper, and that situation is In an ideal scenario, a company cally indexed plants and empower not likely to change anytime soon. turns to outsourced services to per- the user to quickly compile a range of The challenge for settlement ser- form lower level work, such as index- title evidence, from legal and vesting vices providers lies in optimizing the ing or scanning hard copies of docu- reports to full statutory reports. Some right blend of people and technology ments, so the title agent, underwriter, of the more sophisticated automated to lower costs, ensure quality, and lender, or vendor can deploy their title search solutions can actually be improve turn times. The key ques- expert in-house staff only on expert- seamlessly integrated into a com- tion for title agents, underwriters, level tasks. This arrangement not pany’s existing production systems, attorneys, lenders, and other parties only pushes work down to the most eliminating the need to retype data in the transaction process is whether affordable resources on a variable, from one software application into it is best to perform this essential rather than fixed, cost basis, but also another and freeing up staff attention manual labor with in-house staff or to empowers the company to deploy to focus on larger issues. Emergence of New Operational Models n Today, a title agent, underwriter, attorney, or All parties in the title process can benefit from integrated title search related service provider can expedite the paper software and services that streamline work production and reduce costs. chase that a real estate closing entails. Title agents and underwriters are looking to expand their services and coverage areas and operate more efficiently by outsourcing some aspects of title production. Lenders and integrate technological tools and an in-house staff on more challenging settlement services providers need outsourced resource to handle some work that builds their knowledge and the full range of title evidence, from of the more mundane aspects of the involves higher level thinking rather legal and vesting reports to full statu- work. Some title search technology than manual document management. tory reports, to secure lender’s title partners offer the best of both worlds, It’s important to note that this insurance. Foreclosure and default providing an automated title search combination of technology and out- services providers, including attor- system that can be integrated into ex- sourced services is available right here neys, need systems and processes that isting production systems along with in the United States. Much ado has can shrink or expand as needed, since outsourced staff and services. These been made about outsourcing work the current tsunami of default and additional resources can assume the to India and other offshore locations, foreclosure orders is not expected to responsibilities involved in manu- but that strategy only works to a continue indefinitely. ally obtaining title documents and point. Domestic title search resources Technology is only the beginning, converting them into electronic form, are far better equipped to understand since even the best title search tech- such as PDF or TIF files, that can be U.S. legal terminology and cultural nology does not eliminate the need easily transferred electronically to the practices, and to physically obtain for human labor and judgment in search and production system. documents from a county courthouse preparing title documents, title com- A high-quality title search tech- if need be. Integrating technology mitments, and policies. Often, clos- nology partner can help a company and services into your workflow can ing documents must be obtained in integrate title search tools into an be a powerful efficiency strategy person at an actual courthouse before existing production system and can because it is costly for highly com- being copied and possibly scanned augment client staff with outsourced pensated title examiners or abstracters and transferred into a digital, search- services for functions that require hu- to spend time on routine title produc- able database. Many title searches man expertise. tion work that could be performed invariably require handling of actual by lower cost labor. A company that www.alta.org > May/June 2008 > Title News 31 technology corner

integrates automated title solutions tion solutions for residential realty, into their production systems gains title, lenders, commercial, builders a competitive edge, especially if it is and developers, underwriters, home able to reconfigure its workflow to buyers, and sellers in the United maximize operational efficiencies. States and abroad. A key business strategy for the Boosting Turn Time, company is to integrate “best of Adding Connectivity breed” technologies into its products Westcor Land Title Insurance to enhance the real estate transaction Company, licensed in 23 states, is initiate the process. As a result of process for clients. Thus, when the another example of a company that these technology-enabled process division sought to expand its database found new efficiencies through a stra- improvements, the title underwriter product and to build greater efficien- tegic combination of technology and requires only one examiner for every cy into its workflow management, services. In its home state of Florida, two support staff—realizing at least a it collaborated with an automated the title underwriter historically had 20 percent annual savings in produc- title solution that was integrated into hired three high-level title examiners tion costs. Also important, Westcor the company’s production system, for every one lower level support staff now completes all title orders within expanding the database’s reach into person processing title orders, despite 48 hours. four additional states. The division’s having access to a title search system. database now provides access to a Seeking a replacement system, West- Connecting Case Management hundred county databases and more cor adopted a Web-based technol- and Title Search than 65 million images. ogy solution that could be custom- An increasing volume of foreclosures ized and integrated with Westcor’s and mortgage defaults has placed Gaining a Competitive Edge production system. The new system increasing demands on attorneys that Whether the real estate market is covers nearly every county in Florida specialize in these areas. Automated booming or slowing, companies that and contains an image database dat- title search technology can expedite build efficiency into their workflow ing back several decades. Production the work but must accommodate the stand to gain a competitive edge. With staff can quickly locate deeds, ap- many different kinds of case manage- today’s user-friendly title search tech- praisal, and tax records before a title ment software used by attorneys in nologies, integrating current technol- examiner is involved. Also important, this field. Today, new systems integra- ogy into legacy production systems is the system’s powerful search function tion technology such as NetDirec- no longer the painful challenge it once can locate mis-posted or mis-indexed tor can provide an interface between might have been. Today’s leading- documents. attorneys’ case management systems edge title search technology is driving Another advantage of the new and title technology. Staff no longer operational innovation and improving system is that Westcor’s Florida title must re-key data into their produc- efficiency in every aspect of the title plants are connected via a Citrix tion systems and manually perform process. server through which employees at cumbersome data assembly tasks. any plant can view the workload for any other Florida plant. Work Enhancing a National Title is shifted to plants with the most Search Database available capacity at any given time, A division of a real estate infor- creating a steady, cost-efficient use of mation services company processed company resources, with faster turn- more than 7.8 million title searches around time than before. Westcor in 2007. One of the division’s popular now uses entry-level staff to produce products is a national database of Craig Muldoon is director, title services, Red title reports and gather 70 percent or searchable public record information Vision Systems. For more information, contact more of the search data immediately, and recorded document imagery, Craig at [email protected], call without a title examiner having to along with other real estate informa- (352) 331-8242 or visit www.redvision.com. 32 Title News > May/June 2008 > www.alta.org TSS_1014 Land and Title 3/14/08 2:59 PM Page 1

Our title software is underwriter friendly and gives you the flexibility to work however you want. One try and you’ll see what makes TitleExpress so irresistible. Try it today. You’ll wonder how you ever did without it. Call 888-268-0422 or visit us online. FLORIDA CONT. GEORGIA CONT. New Members Jane Vazquez John Davis JNV Research & Retrieval LLC TSAE, Inc. Naples Temple ALABAMA Mary Jiunta-Summers Lynda Bradley ILLINOIS Eufaula Lighthouse Title of East Florida, Inc. Daytona Beach Joseph Lynch Wanda Johnston Linda Martin CJL Title Services Wanda W. Johnston, LLC New Lenox Smiths Martin Title Services, LLC Havana Dana Caughey William McAlduff Document Retrieval Service CALIFORNIA East Peoria Anthony Farwell Treasure Island ClosingCorp Inc. Lazaro Dubrocq Hope Ireland La Jolla Roadway Enterprises Corp. GHI Abstracting, Inc. Miami Highland COLORADO Melissa Rubah Brian Meierkord Richard Talley Tampa Family Title Marshall County Title Company American Title Services Company Brandon Lacon Greenwood Village Sue Martin Ron Jonites Title Network Services, Inc. Midway Title Services CONNECTICUT Coral Springs Lombard Lizabeth Bloom Trace White Brenda Sprengeler Stonington Title One Florida, LLC Sprengeler Abstracts, Inc. Final Trac, LLC Orlando Belleville Hartford Mindy Salvage Gary Spurling Janet Brandolini Tropical Title Services of Spurling Title, Inc. G & J Titlesearch South Florida, Inc. Taylorville East Haven Hollywood Joseph Niola INDIANA Edson Lucia Eddie Frederick Niola Associates United International Title, Inc. Ridgefield Pompano Beach Indy Title Search Tamath Rossi Indianapolis Rossi Title Co., LLC GEORGIA Douglas Kvachkoff Naugatuck Byron Davidson McDermott Title Company Sarah Markesky BD Title Abstract, Inc. Griffith Sally Markesky, Title Research Loganville Essex KANSAS Michael Carroll Jolene Weiser Michelle McKean Carroll Abstracting, LLC Security Abstract Company Statewide Title Searches Hoschton Norton Branford Barbara Freeman Freeman Abstract Services KENTUCKY FLORIDA Kathleen Cheryl Wall Jeffrey Eannarino J. Douglas Barrow Bluegrass Land Title, Inc. Advantage Title Insurance Agency Inc. Horizon Title, Inc. Campbellsville Palm Beach Gardens Mcdonough Dawn Andrie Joseph McArdle LOUISIANA Consumer Title Services, LLC JOMAC Title Service Christopher Bradley Coral Springs Columbus Bradley Abstract, LLC Kelly Deutsch Mary Ellen Tippen Lafayette Executive Land Title Agency LLC M. E. Tippins, LLC Terri Cole Indialantic Savannah Land Title Abstracts Marta Alonso Angela O’Neal Baton Rouge Executive Title Agency Bremen Patricia Lemaire Miami S. Leigh Enfinger Lemaire Title Abstracts, LLC Lee McCaskey Public Record Collectors, LLC New Iberia Florida Records Research Blakely Sidney Torres Naples Amy Hibbert Property Title, Inc. Jerry Jelincic Southeastern Land Title Co., Inc. Chalmette Full Service Title & Escrow, LLC Atlanta Miami Lakes

34 Title News > May/June 2008 > www.alta.org LOUISIANA CONT. MISSOURI NEW YORK CONT. Linda Marinello Michael Mundwiller Dawn Foley The Title Group, LLC Casconade County Abstract Co., Inc. East End Abstract Corp. Chalmette Hermann Calverton Jill Hackmann Michele Murrell-Baker MARYLAND Great Rivers Title Company Morningstar Abstract LLC Michael F. Ciesielski St. Charles Brooklyn Baltimore Carol Bullard Fred Ilarraza Theresa Craddock Polk County Title Company, LLC Settlement Abstract, Inc Berlin Bolivar Brooklyn Victor Chopro Balram Kakkar CRESS Inc NEBRASKA Student Resources, Inc. Largo Bobbi Wilson Hicksville Rosemary B. Gallis Phelps County Title Company Salisbury Holdrege NORTH CAROLINA John R. Hosford Lynn Forbes Annapolis NEVADA American Patriot Title Norma Spaeth Ian Hill Insurance Agency, Inc. TitleOne of Las Vegas, Inc. Huntersville Legacy Title & Escrow, Inc. Las Vegas Hyattsville Marcus Berry Robert Gunte BranMarc Legal Research LLC NEW JERSEY Charlotte Michaels Title & Escrow, LLC Allison McCafferty Layce Staehle Rockville ALO Closing Services, LLC Randall Rothstein Medford LKN Title Agency Huntersville NRT Title Services of MD Pankaj Puri Paul O’Connor Bethesda First Alliance Title, LLC Bayonne The Accurate Group, LLC Huntersville MAINE Samuel Adams Andrea M. Boland Metro Title Agency, Inc. OHIO Andrea M. Boland Title Examiner West Caldwell Sanford Vicki English Deborah Zorbas Robert Danielson Birch Tree Title Agency Myron Corp. Toledo Old Port Title Maywood Portland Christine Reilly Susan Fredericks Builder Title Company, LLC MASSACHUSETTS Renaissance Title Agency Columbus Alan Hooker Crosswicks Elizabeth Bage AMH Associates Jennifer Issa Cardinal Hope Exam Company Andover Ridgeview Title & Settlements LLC Elyria Mary Gifford Wayne Charlene Reeves C&P Research Mark Schwarz CBR Title Service Chicopee Superior Title and Settlement LLC Akron Dunellen Susan Hunter MICHIGAN Kyle Mahler Hunter Clerical Services Company Ltd. Jan Althearn Theta Documents, Inc. Bremen Expedient Exams Union City Walter Russell Cedar Lake Claudia Demmler Russell Title Research Inc. Victory Title Agency, LLC Amherst MINNESOTA Newton Tania Packard Ryan Mouw Hosam Ashor T. Packard Abstracting LLC AccuLand Search Your Title Insurance LLC Cincinnati Edina Piscataway Donald Longwell MISSISSIPPI TeamWork Title Agency, Inc. NEW YORK Grafton Sidney C. Person Mark Gugino Vivian Slyker Potts Camp Abstract, Closing & Title Services, Inc. Ithaca Tri-Star Abstract Services, Inc. Sandusky Kathy Franzone Aurora Abstract Incorporated Islandia

www.alta.org > May/June 2008 > Title News 35 PENNSYLVANIA RHODE ISLAND VIRGINIA CONT. A&A Abstract & Rose Coleman Terri Thomas Settlement Services, LLC Warwick Closings Unlimited, LLC Carlisle Virginia Beach Linda Curello SOUTH DAKOTA Jan Fronabarger Assured Closing Services LLC Thomas Deadrick Cooperative Title Services, LLC Bala Cynwyd Platte Title Co. Chesapeake R. Lynn Groves Platte Teresa Pellatt Buckingham Abstract, LLC Cornerstone Title & Settlements, LLC Buckingham TENNESSEE Marshall Tammy Headrick Pamela Ottey Alliance Title Services, Inc. D&A Abstract, Inc. Charm City Abstracting, Inc. Knoxville Penhook New Freedom David Close Ann Dalton Diane Jackson Close Real Estate Services Dalton Land & Title, LLC Choice Settlement Agency, LLC Alexandria Evington Mohnton William Garcia Karla Mullen Christine Tufts Garcia Abstracting Dolphin Title, Inc. Foremost Settlement Services, Inc. Knoxville Virginia Beach Scranton Gary Wolff Angela Donahoe Jeff Esbenshade GLW Title Exams Donahoe Title & Research Keystone Abstract Inc. Harrison Winchester Lancaster Grace McGee JoAnne J. King Catherine Coleman Nolensville Downtown Title and Settlement, Inc. Lehigh Valley Hometown Abstract, LP Chesapeake Stephanie Garrison Allentown Garret Fitzgerald Southern Legacy Title and Escrow, LLC Derek Pagliaro Spring Hill Excalibre Title Lincoln Settlement Services, LLC Montclair Donald Ridge Huntingdon Valley Melissa Davis Sterling Title Services, LLC Bonnie Browndorf Mount Juliet Excel Title & Escrow Company, Inc. Mercer Assurance Abstract Company South Boston Bennie Poole Doylestown Brett Thompson Sunrise Title Services, LLC Denise Latta Murfreesboro Greater Norfolk Title, LLC Noble Land Transfer Inc. Virginia Beach Philadelphia Title Services of Tennessee, Inc. Chattanooga Sheldon Leggett Francine Wirsching Independent Settlement Group, LLC North American Land Transfer, LLC Ryan Rafoth Lorton Blue Bell Windmill Title, LLC Brentwood Faisal Qureshi Tara Rodman London Title, LLC Premiere Settlement Professionals, LLC Richmond Pittsburgh TEXAS Lynwood Sanders J. Bradley Carr Karen Clarkson Sabine Title Company Lowland Title, Inc. Real Estate Settlement Team, LLC Orange Roanoke Pen Argyl John Long Diane Menhorn VIRGINIA Meridian Title Services, Inc. RWK Agency Inc. Marcia Holzbach Springfield Greensburg AAA Williamsburg Title Agency, LLC Mary Lynn Drew Joyce Valentine Williamsburg Premier Abstract & Title Inc. Settlement Funding Solutions, LLC Dianne Holmes Mechanicsville Pittsburgh Ameri-Title Settlement Services, LLC Faisal Qureshi Jacqueline Wheeler Fredericksburg Premier One, LLC United Financial Deborah Gayle Richmond Settlement Services, Inc. BOC Title of Hampton Roads Todd Hoyle Clarks Summit Norfolk Richmond Professional Scott Froggatt C. Melanie Boone Title Services LLC United Southampton Abstract LLC Montpelier Richmond Southampton Sherry Crittenden Samantha Weidner Chatham Title, LLC Sam’s Title Exams Arlington Chesapeake

36 Title News > May/June 2008 > www.alta.org VIRGINIA CONT. KANSAS Michael Weissman Associate Members Ken Eland Searchcor, Inc. Hoxie Norfolk ALABAMA Debby Roberts MICHIGAN Reid Manley Scott Hogan The Roberts Group Title & Abstract, LLC Birmingham Virginia Beach Grand Rapids Edward Piotrowski ARIZONA MINNESOTA Virginia Statewide Title, LLC Heidi Hoot Richmond Tom Fischer The Wise Agent West Central Indexing, LLC Fountain Hills WEST VIRGINIA Alexandria Amy Facemyer CALIFORNIA OREGON City Insurance Professionals FIS Data Services Winfield Thomas Ped Pasadena Portland William Phillips WISCONSIN El Segundo Kim Cowles TEXAS Oakwood Information Service Charles Pohl Lucia Hathaway Kansasville Costa Mesa TDMS, Inc. Denison MEXICO COLORADO Manuel A. Castro Troy Griffin WASHINGTON Naucalpan ImageDoc USA, Inc. David Nelson Northglenn CourtTrax Corp. INDIA Bellevue Manoj Malhotra FLORIDA Salient Business Solutions Ltd Adrienne Mann Gurgaon Mandrien Corporation Coral Springs

Marketplace Title News Advertisers First American SMS—www.payoffassist.com ...... 14 Situations wanted or help wanted ads are $80 for the first 50 words, $1 LandAmerica (Right Minds)—www.landam.com/commercial ...... 17 for each additional word, 130 words maximum. Insertion rate drops to $70 for first 50 words for three or more North Point/Old Republic Title—www.oldrepublictitle.com . . . . .Cover 2 consecutive placements. For sale or wanted to buy ads are $250 for 50 words, $1 for each additional word, RamQuest Software, Inc.—www.ramquest.com ...... 4 & 25 130 words maximum. Insertion rate drops to $225 for 50 words for three or more consecutive placements. Placing Scott Insurance—www.scottins.com ...... 22 a box around an ad costs an extra $20 for help wanted or situations wanted, SoftPro Corporation—www.softprocorp.com ...... Cover 4 $50 for sale or wanted to buy. Blind- box service available upon request. Stewart—www.stewart.com ...... 11 To place a classified ad in Marketplace, send ad copy and check made payable to ALTA to: TIAC—www.cpim.com/tiac ...... 23 Title News Marketplace ALTA, 1828 L Street, N.W., Suite 705, TSS Software Corporation— www.iwanttss.com ...... 33 Washington, DC 20036.

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