Close more loans with a title expertMichael P. Meehantitle agent, licensed attorney, settlement services, closing issues
Legal issues affecting title can be complex, confusing, and
frustrating, which usually translates into delay, or worse yet,
failure to close a loan for the mortgage broker. It's no secret
that "problem deals" are least favored by most loan officers, and
such deals are often left to wither on the vine, while the
"cherries" are picked and closed. Paradoxically, the "problem
deals" may be the most financially rewarding for the loan officer
and mortgage broker, yet through fear or ignorance of the unknown,
these deals fail to close. Of course, the customer still needs the
loan, and most likely, some other broker will close it. The
difference may very well be a title expert.
Choose wisely
Most title issues can be resolved in a timely fashion with the help
of a knowledgeable title agent, who can identify title problems
early on in the closing process, and explain, in layman's terms, to
both the loan officer and the customer (if necessary) the title
problems and their resolution so that the loan will close.
Typically, this service is provided free of charge in conjunction
with the settlement services for which a fee is normally charged.
Because the title agent is an important resource to resolve title
problems, the choice should be made carefully. Is the title agent
truly an expert? What are the title agent's qualifications? What is
the title agent's reputation for fast, efficient, ethical service
with other area brokers?
Put an attorney on your team
Because of the plethora of legal issues affecting title, e.g.,
foreclosure, bankruptcy, divorce, lawsuits, judgments and liens,
just to name a few, and due to the fact that the society in which
we live is becoming increasingly more litigious as time goes by,
the insurers underwriting the title agent are increasingly
requiring that the agent they appoint to sell title insurance be a
licensed attorney with a lending, real estate, or title background
(or any combination thereof). The insurer's theory in imposing this
requirement is that an attorney is uniquely qualified to understand
and resolve legal issues pertaining to title. From the insurance
company's perspective, such an agent is less likely to generate
claims against the premium dollars produced by the agent, and is
therefore more profitable to the insurance company.
The insurance company's preference for title agents who are also
attorneys has an unintended and beneficial consequence to the
mortgage broker in that today's broker has more opportunity to
develop a relationship with a title agent who is also an attorney,
who in essence is available to the broker and the loan officers for
free legal advice in connection with the closing of a transaction.
Think about it--it's commonplace for an attorney to charge $150
(and up) per hour for legal services, yet the broker and loan
officers can have legal advice for free, which directly benefits
them because they will close more loans. Take advantage of this
valuable free resource. Ask the prospective title agent if he or
she is a licensed attorney, or if there is a licensed attorney on
staff to answer your legal questions. Make sure that the "on staff"
attorney does more than merely prepare the deeds and does not
maintain an office at the title agency; you deserve and therefore
should demand actual timely legal advice for your title
questions.
Put a title expert on your team. You will notice the benefits in
the form of more closed transactions, more satisfied customers and
more referrals.
Michael P. Meehan is president of Evergreen Title Agency
Ltd., which is licensed in Ohio, Mich., Ind., Ky. and Colo., and a
licensed Ohio attorney at law. He can be reached at (877)
427-2270.
