Home : Blogs : Rob Robinson- Lehigh Valley PA : Rob Robinson Blogs

Unify Independant Title Companies against the big boys and AfBA's

Some of you know that many moons ago, I actually blogged about important issues that I faced day to day or experiences.

One common theme was my absolute HATRED of Affiliated Business Arrangements (AfBA's) in which RESPA allows legal kickbacks from TITLE Companies to Realtors and/or Mortgage Brokers.

From the client standpoint, this of course may not be the best option. The Title company being recommended by the Realtor or LO is in almost all cases being recommended because of the money kickback. The vast majority of consumers do not really know what a Title company does, assume the Realtor/LO has their interests in mind when steering them (yeah right).

While scoping out SOT (Source of Title), basically an Abstractor site - I came across an organization in OHIO formed by independent Title Companies.... quite an interesting concept to unify against the 'big boys' and bring integrity back into the industry.

Has anyone come across organizations like this in their states?

http://www.oaita.org/

Posted by Rob Robinson- Lehigh Valley PA on 08/21/2008 11:08 AM

Comments (7)

bertrum settlements, lehigh county, rob robinson, title company, insurance, allentown, allentown pa, abstract company, afbas, integrity

Originally posted at: Rob Robinson Blogs: Unify Independant Title Companies against the big boys and AfBA's

This post has been included in Pennsylvania Information
Post is included in group: Almost Anything Goes
Post is included in group: New Jersey & Pennsylvania -- Realtors/Loan Officers/Title Clerks/Real Estate Lawyers
Post is included in group: Pennsylvania Professionals
Post is included in group: Title and Escrow Group
Post is included in group: Title & Escrow

7 Comments on Unify Independant Title Companies against the big boys and AfBA's

AUG

2008

Haven't heard of it but I'm all for it. As we've discussed, you know how I feel about this. The good news is that wholesale lenders such as Countrywide seem to be catching on and not allowing it:-)

AUG

2008

CLTA has tried to do this over the years in California -- The DOI in California will most likely replicate the same law in Washington -- a Real Estate professional will NOT be able to get more than $25 per YEAR in value. They are trying to stop the food, parties, ball games etc.

OAITA and the General Title and Trust Company are teaming up to provide two important events for independent title agents next month!

The inaugural OAITA Annual Meeting will take place on Monday, September 8, 2008 at the Columbus Marriott Northwest in Dublin, Ohio. The meeting starts at 9:30am and runs until 12:00pm. On the agenda for the meeting: (1) OAITA fundraising; (2) title insurance public policy matters in Ohio; and (3) a roundtable discussion on the plight of the independent title agent in Ohio and what can be done to improve our way of business.

The OAITA meeting is followed by a RESPA Section 8 & Affiliated Business Arrangements seminar sponsored by General Title starting at 1:00pm and running until 4:30pm. The seminar is good for 3.0 CE credit hours and 2.5 CLE credit hours. The seminar will cover the latest issues surrounding RESPA Section 8 compliance measures and will provide important information on AfBAs in Ohio.
The cost for attending the seminar is $50 for non-OAITA members and free of charge to current OAITA members. All attendees who plan to attend the RESPA seminar must reserve a spot by contacting Jennifer O'Boyle at (800) 344-7445 or via e-mail at joboyle@generaltitleandtrust.com.
For those interested in joining OAITA to enjoy both of these information-packed programs at the membership rate, please visit our website and sign-up today.

We will have more information on these exciting events as they approach! Stay tuned.

AUG

2008

Rob--I recommend our local guys. But the largest firm in our area (90+ agents here in little ole Schuylkill County with a total of 1000 agents across SE PA) has their own in house title + mortgage. They bundle it all toghether and claim it's easier for the client. No--it's easier for the company ($$$$).

One agent told me they did not order their agents to use in-house title/mortgage, but it was strongly urged. I think that's just plain wrong.

And I am against an article in Realtor Magazine this summer that had a 1-page "ad" for how great one-stop-shopping was. It was supposed to be an article, but it was a rah-rah piece that bragged that one-stop was the way to go.

Rob,

I remember reading somewhere a couple of years ago that because of agent demands for higher commission rates, more company paid marketing & services and generally higher staff costs, many large brokerages would not be profitable without their title and mortgage arms.

I know from talking to friends who work in some of the big box office locally, they are encouraged to use the in house services.

My feeling has always been service first. Many years ago I worked in an office that had an in house title company but found their service and response lacking, so I never used them after a couple of times.

AUG

2008

I read that too and it's bull. If you cannot make money off your deals, and have to use 3rd party agreements or in house services to make money, what are you doing in business?

NOV

2008

JUL

Those types of affiliations are (currently) illegal in Utah. It is considered an unfair marketing practice according to state law. Title companies cannot even have their company's name printed on the same signs, flyers, etc. as producers of title insurance (lenders, mortgage companies, real estate agents,etc.), nor can they share office space (just to touch the surface).

Leave a response…

Name:

Email:
(optional)

Comment:

What does the graphic say?