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The Title Report Daily
As Featured
M arket Intelligence for th e Ti t l e I n s u r a n c e I n d u s t r y
www.thetitlereport.com
industry news, operations
As Featured
May 3, 2010
June 14, 2013
Volume 11, No. 13
Technology
adoption
gains
How
to communicate
value
to
ground in
world
customers
innew
newRESPA
era of compliance
agents were forced to upgrade their systems or, worse yet for some,
Friday, JuneTitle
14, 2013
purchase entirely new platforms to support the regulatory changes.
By Andrea Golby
However, the untimely cost became an investment that has many benefits.
With all of these changes going on, how do you differentiThroughout
the National
Settlement
Services
Summit,
For agents across
the country,
the reality
of the
RESPAthe
final rule finally set in around November or December 2009.
ateJan.
your
to being
your customers?
Arcidiacono
Hopes for an
delay
began
to wane through
industry-wide, and
1 agency
went from
an unlikely deadline
to said the
buzzword
wasimplementation
compliance. That
word
permeated
becoming an immediate threat.
first thing is see how all of these changes are going to
several regulatory-focused sessions, but also made its way
impact your customers and ask them what they are coninto
business
development
sessions.
In one
session,
For many
in the
title insurance
industry,
the such
regulatory
change was partnered with the need to upgrade production
cerned
platforms described
to support ways
the new
forms and processes attached to the final rule. However, for
othersabout.
who had resisted
speakers
to commutechnological
advancements
to
date
and
were
working
off
of
legacy
systems,
the
new
regime
meant
a massive
nicate value to customers in this new
expense in the adoption of much more sophisticated solutions than what they had been working from before.
“If you don’t understand that, you
era of compliance. “Last year, in particularly in the last couple of months leading up to the changes, was can’t
quite figure
hectic out
on what
everyyour
frontmessage is
Set up a meeting, sit down
for existing
customerschief
andmarketing
new customers. Change always is good as it relates to technology.
It gives
going to
be to providers
them; youancan’t figure
John
Arcidiacono,
talk with
them.
opportunity to show what they do and really and
accentuate
some
of Ask
their them
necessity in this
process.
And
this was
out how you are going
to communiofficer,
Stewart
Information
Services
what they
arefor
concerned
obviously
a big one,”
said Paul
Bandiera, chief strategy
officer
Plano, Texas-based RamQuest Inc.
cate the difference of your agency,”
Corp., started the session by telling
about, what is changing
The
hands
of
many
were
forced
by
RESPA
and
the
necessity
that
came
with
it
for
agents
adopt
more
advanced
hetosaid.
“The
best
way to do that is to
attendees the importance of differentheir industry and what do
technologies in their offices. So, as it turned out, the rule that was written specifically call
to help
consumers
in a
the
upon them. Set up
meeting, sit
tiating their business in the new era of
you need to do to provide
home-buying process has also become one that holds unintended benefits for the title insurance industry at-large.
down and talk with them. Ask them
assurances that will help
increased transparency and scruwhat they are concerned about, what
them know they can continue
tiny. He
noted that
customers have
The
RESPA
push
to
do
business
with
you.
But
is changing
their industry
That
benefitaccess
did nottocome
cheaply,
however, noted Barbara Miller, co-founder, president and
chief operating
officer ofand what
increased
online
commuAnnapolis, Md.-based TSS Software Corporation.
you have to ask the question
do you need to do to provide assurnication and information about your
and
find
out
what
the
conances
will help
them
business.
time,
regula“The
valueAt
of the
thissame
benefit
must
be considered in the broader context of the enormous costs
thatthat
RESPA
reform
hasknow they
cerns
are.
to do business
imposed
on the
at aFinancial
time when it could least afford such new and additional costs.can
So, continue
our observation
is that with you.
tors
— from
theindustry
Consumer
a significant percentage of settlement services providers have
taken
a
minimalist
approach
to
technology
changes,”
But
you
have
to
ask
the question and
— John Arcidiancono
Protection Bureau to state regulators
Miller said.
Chief Marketing Officer
find out what the concerns are.”
— are creating regulations that will
“
Stewart Information Services
“
While
many may
not the
haveindustry.
yet taken advantage of the options available in the tech marketplace today, Miller said many
significantly
change
agents rather upgraded to what was necessary to comply with the RESPA final rule.
After you understand what your
customer is concerned about, you
“This
goingtime
to change
our processAt theissame
the industry
accepted that the new RESPA would become a reality, Jennifer Dumas, senior vice
have to figure
whatalso
message you
president
development
and customer care at PropertyInfo Corp., a Stewart company,
noted out
agents
es
of how of
weproduct
do business;
processes
realizing
theinteract
extent of
theour
regulation’s
reach
and howofit would
how
conduct business.
are going
to they
communicate
to your customers. That means
for
how we
with
customers;
processes
how vastly change
establishing a value proposition. What are you providing to
we people
take thestarted
transaction,
step-by-step,”
said.
“As
learning
and realizing ithewas
not“Then,
just a form change, that started making them look to their software
thatinissoftware
valuablesales
to them?
with
all these,
to be more
compliant.
So We
we have
to handle
a lotwe
of have
the process
changes
for them.
definitely saw them
a surge
in the November and
December
2009
timeframe,
Dumas
said.
to think about the things that are going to be changing our
industry and making it more compliant and what we are going to do about it.”
STEWART100001_TheTitleReport 1
http://www.thetitlereport.com
After that, Arcidiacono said it’s important to prioritize what
7/6/10customer.
3:26:47 PM
message you are going to share with your
6/14/13
now to
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live:
studio Artist: A. liAnDRo
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Project Manager:
The Title Report Daily
Market Intelligence for the Title Insurance Industr y
www.thetitlereport.com
As Featured May 3, 2010
June 14, 2013
Volume 11, No. 13
Technology adoption gains
“You can’t sit there and
tell your in
lender
‘we
do 20 different
“What are you doing to train your associates on the
ground
new
RESPA
world
Title agents were forced to upgrade their systems or, worse yet for some,
things and that is what makes
usnew
spectacular,’”
he said.
changes? What are you doing to train your associates on
purchase entirely
platforms to support the regulatory
changes.
However, the untimely cost became an investment that has many benefits.
Instead, focus on a few key things, explain in detail how
the processes that you’ve got coming up,” he said. “Then,
you do those better than anybody else and why those
equally, from an external perspective, what are you doing
features could benefit them. There
to train your lender customers about
are many messages you could focus
what this means to them from what
on. Arcidiacono gave several lenderyou are seeing and how do you open
specific examples.
the dialogue and keep the conversaThe RESPA push
Do you have security in
tion going. You can train your lender
place for your systems and
“You’ve got lenders concerned about
customers on what you are seeing,
technology? What are you
the CFPB, and you have vetting
what you are hearing and how it may
doing around security with
conversations going on,” he said.
impact them.”
your customer data? That
“So, what are the messages that
is important. It is important
you can communicate to your lender
He also said attendees should think
to your lender. What are you
customers?”
about a message surrounding their
doing around security of your
agency’s use of best practices. The
customer data? And then seThe first example was security.
message could surround simple
curity as it comes to internal
perspective. What are you
things the agency is doing, such as
doing
around
security
for
your
“Do you have security in place for
timely issuing policies, conducting
associates, for your employyour systems and technology? What
audits, and maintaining errors and
ees,
for
personnel?
Are
you
are you doing around security with
omissions insurance.
doing
background
checks
to
your customer data? That is impormake sure you have the right
tant. It is important to your lender.
“If you have E&O insurance, you can
people and the same people
What are you doing around security
communicate to your lenders about
within your organization?
of your customer data? And then
that to assure them so they feel more
—
J
ohn Arcidiancono
security as it comes to internal percomfortable,” Arcidiacono said.
Chief Marketing Officer
spective. What are you doing around
Stewart Information Services
security for your associates, for your
“All these things I just mentioned,
employees, for personnel? Are you
you may be doing now, or you may
doing background checks to make
be planning on doing in the future
sure you have the right people and
and that is all great, but if you are not
the same people within your organization?” he said.
communicating these to your lender customers, they may
not know you are doing that. You’ve got to get them that
He then talked about education, both internal and external.
assurance; you’ve got to tell them,” he concluded.
For agents across the country, the reality of the RESPA final rule finally set in around November or December 2009.
Hopes for an implementation delay began to wane industry-wide, and Jan. 1 went from being an unlikely deadline to
becoming an immediate threat.
For many in the title insurance industry, the regulatory change was partnered with the need to upgrade production
platforms to support the new forms and processes attached to the final rule. However, for others who had resisted
technological advancements to date and were working off of legacy systems, the new regime meant a massive
expense in the adoption of much more sophisticated solutions than what they had been working from before.
“Last year, in particularly in the last couple of months leading up to the changes, was quite hectic on every front
for existing customers and new customers. Change always is good as it relates to technology. It gives providers an
opportunity to show what they do and really accentuate some of their necessity in this process. And this was
obviously a big one,” said Paul Bandiera, chief strategy officer for Plano, Texas-based RamQuest Inc.
“
The hands of many were forced by RESPA and the necessity that came with it for agents to adopt more advanced
technologies in their offices. So, as it turned out, the rule that was written specifically to help consumers in the
home-buying process has also become one that holds unintended benefits for the title insurance industry at-large.
That benefit did not come cheaply, however, noted Barbara Miller, co-founder, president and chief operating officer of
Annapolis, Md.-based TSS Software Corporation.
“The value of this benefit must be considered in the broader context of the enormous costs that RESPA reform has
imposed on the industry at a time when it could least afford such new and additional costs. So, our observation is that
a significant percentage of settlement services providers have taken a minimalist approach to technology changes,”
Miller said.
While many may not have yet taken advantage of the options available in the tech marketplace today, Miller said many
agents rather upgraded to what was necessary to comply with the RESPA final rule.
At the same time the industry accepted that the new RESPA would become a reality, Jennifer Dumas, senior vice
president of product development and customer care at PropertyInfo Corp., a Stewart company, noted agents also
realizing the extent of the regulation’s reach and how it would vastly change how they conduct business.
“As people started learning and realizing it was not just a form change, that started making them look to their software
to handle a lot of the process changes for them. We definitely saw a surge in software sales in the November and
December 2009 timeframe, Dumas said.
STEWART100001_TheTitleReport 1
7/6/10 3:26:47 PM
“
http://www.thetitlereport.com
6/14/13