For the next few days, I'll be posting about 2009 changes to the Real Estate Closing and Title Insurance business.

Have you seen your friendly neighborhood title guy lately? Possibly not. Many of us are buried under a sudden avalanche of refinance title insurance orders.

New Title Orders Explode

After October and November, two of the slowest months I've experienced since 1981, refinance title orders in many locations are off the charts. In 35 years I've never seen order counts turn around this quickly. I went home at Thanksgiving preoccupied with how I was going to get through the winter with my current staff. I did an interview the first week of December for WTIU-TV talking about how title companies cope with severe downturns in the real estate market. Today, that seems farther in the past than when Republicans were fiscally sound.

As a result of various governmental stimuli directed at lowering interest rates and improving liquidity in the mortgage market, refinance order counts are the best in four or five years. Many of my colleagues around the country are reporting similar trends. How long this will last is anyone's guess, but I'm thinking for a few months at the minimum.

Gulp!

The big question here is "Are we ready?" The title industry shed tens of thousands of jobs the last two years. Many companies, particularly those that chased sub-prime business, went away completely. During the last few years, some companies off shored significant parts of their process. These off shore groups didn't exist during the last boom. How will their service levels hold up now? The same concerns are there for other participants in the closing process as well. Appraisers. Underwriters. Will they hold up?

Be alert.

As a client of the title business, now is the time to pay closer attention until you're sure about your chosen company. My crew is already in "warp speed" mode. I'm confident we'll continue to meet and exceed our client's expectations. Many other companies will as well, some better than others. Recognition on your part that the environment is changing will help you and your client avoid the craziness that comes with last minute deals.

I'll be back later tomorrow with specific recommendations to help you avoid any unexpected craziness.