Source of Title Blog Responds to Poizner

"If the goal is to get the title companies to market directly to consumers, that may increase operating costs. It may be difficult to get the title companies to spend more money on marketing in the face of rate caps."

Whenever you cap rates and not let a business run in the market as a capitalist, there is a risk of putting people out of work.  Why cap the rates?  Why not let the businesses allow the market demand set the prices? 

I have no problem with marketing direct to the consumer. I agree it would be a positive to get rid of those RESPA approved ABA kickback alliances.

Of course Marketing costs would increase...thus operating costs.. the mere fact that the number of consumers is so much higher than the number of Realtors/Mortgage Brokers would change the marketing dynamics.

Heck - if anything needs to be capped in this world, it's CC rates. :^)

ABA kickbacks?  I'm not familiar with that term?  As far as caps go, they generally don't work.  Here in the St. Louis market for title work, it's very competitive and title rates are pretty low.  I did a loan out of state once and was surprised at how expensive the title work was.  When I asked the agent about it, she told me that title companies "HAD" to charge their card rate.  I thought that was odd.

Bob Mitchell

ValueList Real Estate Services, Inc. 

I simply mean the whole concept of an AfBA (Affiliated Business Arrangement), where in for example - clients are STEERED to a Title company by a Realtor or Mortgage Broker BECAUSE the Realtor or Mortgage Broker receives financial compensation. 

Kickback......A return of a percentage of a sum of money already received, typically as a result of pressure, coercion, or a secret agreement.

The actual Title Insurance in PA is regulated.  Everyone must charge the same rate for the Insurance.

(The differences in actual companies are service, after hour closing fees, search fees, etc...)

I love a thread where discussion can take place without the 'defenses' going up by everyone.

Mark & Robert - thanks for the insight.

Mark:  You know I agree with you 100%.  I just can't understand why most title agents can't see how easy it is to market to consumers.  Just take whatever money you might have spent on gifts, ads, Realtor meetings, etc. and direct it to advertising that a consumer can relate to.  It's not rocket science.

In our area the local Realtor boards ask for door prizes and meeting sponsorship ALL the time.  Despite the RESPA concerns, most title agents give and give and give, hoping to get back.  Lunch sponsorship can be hundreds of dollars for one meeting.  In the same market, that money buys a half page ad in the homes magazine for a year!  DUH!!!

Web sites cost, what $20 a month at most?  DUH!!!!!

Blogs cost NOTHING.  DUH!!!!!

All of these tools are available for title agents and what do most do?  Give away the lion's share of their earnings through ABAs or gifts or free title work and hope to get referral.  DUH!!! 

Control your destiny, folks.  It ain't tough. 

Hey........   I love your thought process and professionalism.  Don't laugh at the 'new' Title Guy. :^)

;)  Thanks.

Yes, this is the part that is so beautiful.  Consumers really prefer to make their own provider selection once they understand they have the power to choose.   Those who have used a title agent geared towards servicing the consumer act as market mavens.  They tell all their friends and family to use you.  We've built a solid book of repeat business just paying attention to the consumer and serving their needs.

The extra great thing about that kind of marketing is that the excellent Realtors and mortgage lenders will hear from their consumers and follow them to you!  Excellence likes to deal with excellence.  Mediocrity likes company, too, so pick your crowd and who you want to hang with.

Focus on the consumer.  Ask for their business.  Give them great service at a fair price.  Spend your money and thinking on the consumer and eventually you will have changed your professional life.  You'll find true independence.  That doesn't mean you won't be working with other professionals, it means you won't be beholden to them or subservient to them.  That's the yoke you've got to break and it's entirely doable.

If you're a gardener, think of consumer marketing like a garden.  You're starting from scratch, work the soil, sow the seeds, and eventually reap the rewards.  I know it's hokey but I think of every marketing effort like gardening.  Some work, some won't, but you just keep working it.  Realize it takes time but if you want independence, it's the right path.  

Hmmmmm.....one more thing.  Don't be afraid to appear unbusiness-like if you know what I mean.  Take a look at Mark's web site and mine - www.tcsclosing.com.  Mark's is better but mine's not bad.  Neither looks stodgy or serious, right?  Think friendly, think fun and go from there.

Thanks, Mark.  I love Radical.  I stopped because I felt it had served its purpose.  It was born out of the need to defend title insurance.  Last October, the product itself was in danger.  I think Radical along with the efforts of others, helped to shift the focus where it belonged, on the delivery system. 

There was no effective argument or defense being raised by ALTA or our underwriters so a few of us had to scream at the tops of our lungs to get attention and that we did.  We had to make the arguments that others couldn't.  We had to clearly point the finger at the ethically degraded delivery system as the culprit.

I felt like we were cutting a path in the woods for others to follow.  You helped cut that path and now here we are in the clearing and thousands have joined us.  Thousands now understand the real issues and truth is breaking out all over.

Title insurance has been defended and now correction and change is in play.

I've shifted my attention to the consumer.  If we empower consumers and defend their interests, the RIGHT choices will be made by regulators and lawmakers.  The conversation on Title Insurance Talk is towards that end.  Defend consumers.  Give them the ammo to go to battle with the bad guys in the biz and watch what happens.

Well, we probably beat this issue to death, but I just remembered an image to share.  If I were an artist, I'd draw it for you, but as it is you'll have to use your imagination.

Imagine a door freely standing, attached to no walls.

At the door we have a velvet rope and a long, long, never ending, long queue of title agents.  Waiting.

The rope is controlled by two small groups, Realtors and mortgage lenders.

On the other side of the door we can see vast crowds of people milling around, sitting at tables, walking about, doing their thing, going about their business, not really noticing the door.  These are consumers.

Each title agent in line negotiates passage through that door by dealing with the Realtors and mortgage lenders. It's expected.  It's how it's done. 

Now some of us standing in line look at the crowd of people and ask..."Why can't we just go over there?  Why do we have to go through the door?  There nothing to stop us.   Hey you guys, follow us!"  ..and we walk over and start talking with consumers and having a good ole time and the other title agents in a daze, turn back to the line and wait because that's how it's always been done.

Kinda creepy, huh?