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eClosing

FAN’s Aaron Davis discusses RON & eClosings in National Mortgage News

RON & eClosings in National Mortgage News

The mortgage industry is also talking about eClosings and RON. Naturally, one of its leading trade publications approached our own CEO, Aaron Davis for his thoughts recently. (Subscription required)

A recent study by Notarize found that lenders can save up to $444 on per loan costs with full eClosings. Title/settlement firms can save up to $97. These are significant numbers during a time of margin compression and heightened competition.  One would expect the premise to drive lenders and title agencies alike toward full digital closing adoption (by the way, FAN has some of the nation’s most advanced RON and eClosing capabilities—and has had them for some time).

However, as Aaron pointed out, while adoption of RON and digital closings was spurred, in large part, by the daily realities of the COVID pandemic, the historic surge of refinances that came with unprecedented interest rates forced lenders to put their focus—and resources—on processing refinance volume instead of on RON or eClosing initiatives. So we still have some way to go before digital closings are the norm.

Aaron’s spoken on this issue several times before. If you have some thoughts for him, or questions, contact him now.

eClosing

Our Closing Experience Technology Enhancements

Our Closing Experience Technology Enhancements: Making it Safe, Secure, and Faster

While we all hoped and crossed our fingers, toes, and everything in between that we would be returning to a sense of normality in 2022, we know that you still need closing options to keep you and your clients safe.

Through this tough time, we have been able to create safe closing options and learn to bring you a more enhanced closing experience using secure technology.
We are offering a variety of ways to complete your real estate transactions while decreasing the number of in-person interactions needed to close your deal safely and securely.

Here are our enhanced closing options we have that makes closing with us your top choice:

  1. Electronic EMD Delivery, without the need to bring a check in-person to one of our offices.
  2. Remote Online Notarization (RON) Closings allow customers to close from anywhere they want. These closings are 100% secure and completed in less than an hour with one of our trained RON closers, ensuring you get the same closing experience you would as if you were in person. This is our preferred closing method during this time for everyone’s health and safety, and FAN is leading the charge on increasing the adoption of RON statewide. Your Account Executive can advise you on if a RON closing is an option for you!
  3. Alanna.AI virtual Closing Assistant is available to you and your clients 24/7 via text message or chat feature on our website. Real estate agents can get answers anytime of the day or night. Text Alanna.AI now at 813-710-4126.
  4. Faster commission checks are now available. We will wire your commission checks directly to you. With a few documents in place, this can reduce your wait time to receive a check by mail or a trip to one of our branches. Let your closers know if you’d like to receive your funds via wire on your next transaction.

From start to finish, our investment in secure, easy-to-use technology helps to reduce unnecessary trips to our office.

 

eClosing

Aaron Davis Talks RON, eClosings

AMD Enterprises’ Own Aaron Davis Talks RON, eClosings in This Month’s ALTA Title News

Aaron Davis Talks RON eClosings

AMD and FAN CEO Aaron Davis is a little bit bearish on RON and eClosing crossing the adoption threshold in 2022. Yet, he’s also a little bullish, too. He shared his thoughts in an article written by ALTA VP of Communications, Jeremy Yohe in the January issue of Title News. (Membership Required)

(The feature, an industry outlook for 2022 featuring a number of the industry’s most successful and thoughtful decision-makers, is well worth the read if you’re an ALTA member).

Aaron observed that more than a few REALTORS and mortgage lenders do want to see digital closings go mainstream for a number of reasons. So that alone will likely drive the percentages up this year. However, he also sees headwinds—namely, in the form the practical ability for all parties to collaborate and the politics surrounding which party (buyer or seller) is calling the shot on the title company to conduct the eClosing.

Aaron’s spoken on this issue several times before. If you have some thoughts for him, or questions, contact him now.

Network News

FR/BAR “As Is” Contract Changes You Should Know

 

On November 1, 2021, the FR/BAR Residential Contract for Sale and Purchase (the FR/BAR “As Is” Contract) underwent several changes reflecting an intent to level the playing field between buyers and sellers of residential property. In case you missed it, here are some notable changes. PLEASE NOTE: This is NOT a comprehensive or exhaustive view of these changes. The Contract has further updates, new riders, and other changes that you should familiarize yourself with and contact legal counsel for further information.

Section 8(b) – Loan Approval Period

Two tasks must now be completed during this period: The buyer must obtain approval for financing as described in the section (as before) with a new requirement that the buyer’s lender must receive a satisfactory appraisal before the approval period expires. This aims to prevent a low appraisal from ruining a transaction up to and including at the time of closing. It also aims to ensure that the property can return to market much sooner to find a new buyer, should funding fall through.

Make sure you’re ending the loan approval period well before the closing date!

Section 19, Standard O – Delivery Methods

Under the revised contract, methods for delivery notice have changed. They can now be delivered by fax or email, in addition to the by mail or via personal delivery options that remain in place. Other electronic delivery methods have also been deleted, such as text messaging. Texting cannot be used to provide notice under this new contract! They are unreliable in terms of providing evidence that a notice was delivered by erasure or tech ‘fails.’

Other Notable Changes Include, but are not limited to:

The definition of “Personal Property” now includes thermostats, doorbells, TV mounting hardware, and storm protection items.
FIRPTA withholding and reporting costs have been added as an item to be paid by the seller.

  • The definition of closing now includes that “all funds required for closing are received by the closing agent and collected pursuant to STANDARD S”.
  • And of course, due to our new way of life in a pandemic, STANDARD G -Force Majeure has been revised to include “governmental actions and mandates, government shutdowns, epidemics, or pandemics.”
  • Along with these changes, there have been several updates and additions of new riders including Mold Inspections, Seasonal/Vacation Rentals/Pace Disclosure Riders, and others. Please keep in mind that this list is an overview of changes and NOT a comprehensive list. Should you have any questions on the contract, please contact legal counsel for advice.

You can review a full breakdown the contract changes here.

 

Events

2022 Title Tech Changes

In 2022, Title Tech Will Be the Same…Yet Different

FAN’s own Aaron Davis was at it again recently! This time, he joined an All-Star panel at the ALTA/MBA/MISMO Digital Boot Camp to discuss the state of tech in the greater real estate industry. Based on the turnout and engagement during his own session and throughout the event, there is no doubt that mortgage lenders and title businesses alike are very much fixed on using technology to battle the anticipated volume decline and margin compression we’ve been discussing for some time.

Except, this wasn’t the same old tech show. And there was little talk of things like “end-to-end” solutions or global fixes. The silver bullet we’ve all been seeking was not present at this conference. And it still doesn’t appear that Zillow, Amazon, Google or Tik Tok will be swallowing the biggest players in the industry and imposing a one-size-fits-all technology to save the day. (Thankfully.)

Finally, it would seem that the various CEOs and COOs, operations managers and tech buyers are learning to plan for tech stacks in order to achieve optimal results. They’ve tried, and failed, many times to make the major investment in an alpha production system, only to find their frontline workers using 3rd party phone apps and sticky notes to work around these “global solutions.”

By the way, this is not a knock on production systems. There are a lot of great ones out there. It’s just that few can solve every unique problem or challenge from a one-size-fits-all position.

The decision makers of our industry are realizing that the “best” technologies in the industry may not always be the best fits for their own unique operations. A multi-state title agency focusing on refinance business rarely has identical needs to the family-owned agency that’s built up a two state, multi-office system over four decades of purchase business. So why do we expect the same technology to have the same results for each of them?

We believe that the “traditionalism,” or “conservatism” or just plain stubbornness that once characterized this great industry when it comes to adopting new tech, is giving way to something else: practicality. Planned well, combinations of the right tech—even if it’s all single or simple use solutions which coexist and collaborate—can move mountains.

And that change of collective receptiveness? Well, it not only bodes well for our industry when it comes to new tech. It also portends good things for the adoption of existing tech. Like, say, RON or eClosings.

2022 may be a very good year in many ways. If this trend bears out, it could be a landmark year for us.

 

Network News

Mission Accomplished!

Aaron Davis

 

There aren’t a lot of business execs, owners or decision-makers out there who haven’t heard of the prestigious Harvard Business School’s Owner/President Management (OPM) Program. And there aren’t a lot of people…um….anywhere, who aren’t aware that Harvard Business School is one of the very best in the world. So we’d like to take a moment to congratulate our own Aaron Davis, who recently completed the 3-year OPM program, becoming an alumnus.

 

 

Harvard Business SchoolAaron tells us that this was no ceremonial event—the students worked hard!  The class was comprised initially of 180 CEOs from around the world, representing 42 different countries and spanning every industry from real estate to manufacturing to software and more. Once a year, Aaron and the students were required to leave their businesses and families for a month of on-site education. All told, they spent 300 hours in the classroom, 75 hours in small group discussions and more than 500 hours doing class prep. Aaron and the class analyzed over 120 case studies on topics like strategy, finance, leadership, innovation, control, marketing, sales, negotiation, operations and technology.

 

Harvard Business School

As you likely already know, Aaron is the visionary behind the FAN, PDS, NTS and AMD brands, driving a single office title agency to become one of the largest national title and real estate businesses in the country. (And, if you know Aaron, you know he would immediately interrupt us to give credit to the hundreds of hard-working folks who helped him with making that vision a reality!). So it was a natural progression for him to immerse himself (when not running his business, of course) in an intensive program designed for CEO’s actively involved in day-to-day operations, with a focus on leadership, assessing strengths and weaknesses, and identifying emerging opportunities.

 

Like pretty much everything else Aaron sets his mind to, mission accomplished! He can now add one more accomplishment to his list. And we at AMD, FAN and all of the AMD brands congratulate him for this noteworthy achievement.

Education

A Look Ahead to 2022

A Look Ahead to 2022

In some markets, it may not yet seem like it. But even as some lenders continue to ride the refinance wave, the forecasts for the coming year are fairly aligned in agreeing that the refinance boom will be receding soon. For some, it already has. For others, maybe in a month? Three months? Five months? Obviously, we don’t really know. But it seems likely that, barring some incredibly impactful and unexpected event, we’ll be doing much more purchase business in the coming year than we will be refinance.

The forecasts also agree that volume will be high again in 2022. The downside is that, like most boom markets, the mortgage and title industry expanded to meet the historic demand we saw in 2020 and 2021. That means there are more mouths to feed. And while the proverbial “pie” is still ample, it will be smaller than the giant feast we’ve been enjoying.

So what does that mean for you?

If you’re a REALTOR or loan officer, you already know what you need to be doing. You’re shoring up your relationships, scrubbing your leads and double-checking your CRM. A competitive purchase market is built upon leads, marketing and sales. But if you are a lender, you’re probably also becoming more and more aware that 2022 will likely be more expensive for lenders. “Margin compression” may end up being the phrase of the year, and with good reason. When volume is sky high and a product lends itself naturally to streamlined production processes, we don’t talk too much about margins. But the purchase transaction takes longer to close, comes with more complications and can be costlier to produce.

So, REALTORS and lenders, the service providers you choose on the title and closing side can make a difference in a purchase market as well. Turn time is a great example. If your provider helps shave a day or two (or three) off of the closing process because it’s already positioned for efficiencies, your closing process is that much shorter as well. Your staffs are more productive as they move on to the next file or next sale. And, as an added bonus, you’re likely to have a happier borrower on your hands when the closing process is smooth and quick. Can’t hurt the repeat or referral aspect of marketing, right?

For title companies and other service providers, now is also the time to revisit your production and service processes as well. How automated are you? Are there costly, way-too-manual elements to your workflow that require more labor than your margins can bear? Outsourcing has long been a Business 101 solution for shrinking margins for a reason. It works. Simply being able to eliminate some fixed expenses for a provider able to scale its services is a classic and effective way to relieve some of the margin pressure.

This isn’t the first posting we’ll do about the coming purchase market and it likely won’t be the last. But we haven’t truly seen a more-or-less nationwide purchase-dominant market in years. Here’s the best news. All indications are that the opportunity will be there. And a little competition never hurt, right? It’s time to get prepared and have a plan!

Events

A Reminder That It’s No Longer 2020…but We’re Not Back to 2019 Yet, Either.

ALTAOne

A few of us recently attended the ALTA ONE convention in New Orleans. In fact, our CEO, Aaron Davis, was part of a great panel presentation which discussed how to best integrate new offices after a title merger or acquisition.

Although we’ve been to a few of the first in-person conferences to be had since before the COVID lockdown, ALTA ONE was a nice barometer as to what’s gone back to “the way it was,” and what hasn’t, as we slowly reopen the doors to society. We thought it might be fun to share a bit of that with you if you didn’t have a chance to attend. And, by the way, ALTA did a great job navigating some of those challenges!

One of the first things you’d have noticed if you had attended this particular show was that many folks seemed to be in a vacation-like mood, and were clearly very happy to catch up with old friends, partners and peers. The fall ALTA show has always had a bit of a more leisurely, social vibe to it—not that plenty of real networking and work doesn’t get done. So this was no surprise. But there were even fewer suits to be seen. Dress was just a bit more casual than we remember. The parties and after-hour events were a little livelier. And the typical attendee eye color was a little redder at those 8am sessions (Yep. Those are still a thing.)

We wondered how the exhibit hall would work out. Attendance was a bit lower than you’d have seen in the past, but more robust than one might have expected this year, especially with the recent storm damage and pandemic surge. But there were few reminders of those tragedies at this convention. ALTA also did a nice job creating a hybrid model so that attendees who couldn’t or didn’t want to travel could still attend all of the sessions.

The exhibit hall, always a barometer as to the success of any conference, was anything but stagnant or empty. What was especially notable about this exhibit hall, in addition to its vibrance and energy, was what types of businesses were exhibiting. Not that long ago, you were likely to see exhibitors from only a few categories at any major title/settlement show. First, you could count on the production technology (title and vendor management) providers, no matter what. Then, you might find abstractor/examiner businesses or online search tech providers. Finally, you could count on back-office service providers, be they “offshore” or “onshore.” After that, you could also expect an additional smattering of other related businesses manning their booths and conducting their raffles.

Not this year.

We were struck by the variety of tech providers at this year’s ALTA show, and not just production systems. RON providers. AI providers focused on customer service. Electronic disbursement providers. In short, less evidence that the only cure for the title industry’s ills is an “end to end” technology, and more specialization. We also saw a lot more engagement in the exhibit hall as well. Maybe the title industry is finally catching on to the idea that this is a process that truly needs to be streamlined!

We’ll only tease you by sharing that one entrepreneurial exhibitor went so far as to offer Bloody Mary’s and a local jazz band at their booth for the early morning hours on the first full day of the event. Kudos to them!

All of that’s just the starting point. We observed a lot more at the ALTA ONE convention this fall. So much so that we’ll be bringing you another raft of observations in part two of this blog…coming soon!

Marketing

Missing Out on the Latest Social Trends Costs You Money

How to Create Engaging Instagram Reels to Bring Attention to You & Your Brand

You’ve seen Instagram Reels and TikTok videos everywhere and might be thinking to yourself, “How do I even create one of these?” Don’t worry. Here is your step-by-step guide to creating your first Instagram Reel for your real estate business.

Step 1: Select the Audio

Click on the music note icon on the left-hand side to open Instagram’s audio selection. From there, you can search trending audios, audio categories, and your saved audios.

Step 2: Select the Length of Your Reel

Under the music note icon on the left, you’ll find the option to change the length of your reel. You can choose from 15, 30, or 60 seconds. All you have to do is click on it until you get your desired reel time.

Step 3: Choose an Effect

If you’d like to use any beauty, background, or lighting effects that you normally use in your stories, you can click the star icon on the left-hand side of your reel’s menu. Instagram will give you tons of options, including your already saved filters, as well as trending ones.

Step 4: Set the Timer

If you need a little time to get into a position to do a viral dance or create a reel that incorporates a few different video segments, you can use the Timer/countdown option.

Once you click the timer icon on the left-hand side of the menu, you’ll find 2 countdown options of 3 or 10 seconds and notice a sliding scale where you can change the amount of time you want to record.

If you want to record multiple videos for your reel, slide the color bar to whichever spot you want to end that video segment. Next, select “set time.” You can do this multiple times depending on the audio length and the length of the reel you selected. For example, if you selected 60 seconds, you could create six 10-second videos for that one reel.

Once you’ve set the timer, your Timer icon should show a white background on the main reel screen. Then, when you’re ready, hit the record button.

 

Congratulations on Creating Your Very First Reel!

Remember, the more you create in reels, the more comfortable you’ll get, and the more content you’ll create for your audience.

Here are some ideas to get you started:

  1. Introduce yourself and your team. This can be fun – and quick!
  2. Tell your story/history of you and your brand.
  3. Share clips of your day to create an “a day in the life” video.
  4. Share what’s going on behind the scenes! Showcase the buying or selling process or what happened during a recent closing.
  5. Show off your listings!! Create a walkthrough of the listing and unique features of the property. Show off a little!
  6. Create how-to videos or answer FAQs. Agents can answer 1 question on each reel to create a lot of useful content.
  7. List your services. Reels give you a quick way to talk about each of your services.
  8. Provide helpful tips for your audience. You can discuss what a buyer or seller needs to know before they start the home buying/selling process, etc.
  9. Interact with your clients. Use trending audio or dances to get your clients engaged.
  10. Use trending audio. Trending audio and sounds can bring personality to your business and be used to enhance all of the content you create from the above ideas.

Want more inspiration or additional how-tos for social media trends like this one? Let us know!