Agency Today – A Magazine About Growth and Prosperity™ - Issue 8 by First American Title - Agency Division

AGENCY

TODAY A M AGA ZIN E A BOUT GROW TH A N D PROSPER IT Y

eClosings and eSignings CFPB Issues New Rule Clarifying Existing TRID Rule Uniform Closing Dataset Pending or Threatened Litigation

Issue 8 | April 2018

Expert Underwriting Trusted Relationships First American Title is focused on providing our agents with simple and effective solutions that make it easy to do business. It is our hope that this issue of Agency Today finds a home in your collection of reference materials. As your underwriter, it is our commitment to not only help you resolve everyday challenges but to help you achieve new levels of success in your business.

Agency Today | Issue 8

CONTENTS FROM THE EDITOR All of us at First American Title, thank you for your business and loyalty. It is with great pleasure we bring you this edition of Agency Today – A Magazine About Growth and Prosperity™ produced exclusively for policy-issuing agents of First American Title. The focus of the magazine is to provide articles that deliver value to further enhance your organization. Louis Pontani CHIEF ADMINISTRATIVE OFFICER AGENCY DIVISION

EXECUTIVE SPOTLIGHT

DELETING THE GENERAL MINERAL EXCEPTION

EDITOR/COMMUNICATIONS SPECIALIST

ART AND DESIGN Sheli Cordero DIRECTOR, MARKETING & COMMUNICATIONS

Danielle Aguilar SENIOR GRAPHIC DESIGNER

SMS ADVERTISING Elizabeth Sarber FAPRES/SMS Agency Today – A Magazine About Growth and Prosperity™, published by First American Title Insurance Company.

First American appreciates the articles contributed by independent vendors and the statements contained therein are solely those of the vendor and are not attributable to First American. The information contained in this document was prepared by First American Title Insurance Company (“FATICO”) for informational purposes only and does not constitute legal advice. FATICO is not a law firm and this information is not intended to be legal advice. Readers should not act upon this without seeking advice from professional advisers. First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates.

Ruth Dillingham, NTP, VP, Sr. Underwriting Counsel, Corporate Underwriting Gene Aalseth, VP, Underwriting Counsel, Corporate Underwriting

PENDING OR THREATENED LITIGATION

ECLOSINGS AND ESIGNINGS

CHIEF ADMINISTRATIVE OFFICER AGENCY DIVISION

Lynn Tarala

CFPB ISSUES NEW RULE CLARIFYING EXISTING TRID RULE

AGENCY TODAY STAFF EDITORIAL Louis Pontani

Lou Pontani, SVP, Chief Administrative Officer, Agency Division

Thomas Imperiale, Senior Underwriting Counsel, Agent Advantage

HOW WAGE GROWTH BOTH HELPS AND HURTS HOUSING AFFORDABILITY Mark Fleming, Chief Economist, First American Financial Corporation

EMAIL WIRE FRAUD IN THE NEWS

MARIJUANA

UNIFORM CLOSING DATASET (UCD)

HIT BY WIRE TRANSFER FRAUD? USE THE KILL CHAIN PROCESS

WHAT’S IN A NAME?

2018 RESCISSION CALENDAR

2030 MARKS IMPORTANT MILESTONE FOR U.S. POPULATION, HOUSING MARKET

EMBRACING CULTURAL DIFFERENCES AGENT SPOTLIGHTS

Attorneys Title Town Title Agency Regional Title Services, LLC

Law Office of Michael C. Lima Legend Title Company Baillie & Hershman, PC

Agency Today | Issue 8

Executive Spotlight

Lou Pontani SVP, CHIEF ADMINISTRATIVE OFFICER AGENCY DIVISION Q What was your first job in the title industry, how did you get there and what were some of the accomplishments you consider to be the most significant in your career?

A I began my career in the title industry in 2005, when I officially became the last employee to make the internal transition from Cendant Mortgage to Cendant Settlement Services. The company was later renamed Title Resource Group® (TRG), a subsidiary of Realogy Holdings Corporation, and my first position with TRG involved selling an affiliated business program for Realogy franchisees. I temporarily relocated to Florida, spending six months in Orlando and six months in Tampa. My biggest accomplishment at TRG was a self-realization brought to light by the Great Recession that began in December 2007. I learned I was not just a sales guy, I was more of a business guy. As business retracted, I took on new roles and was placed in situations with responsibilities beyond those normally assigned to someone in a sales position. Each time I was given a new opportunity or project, I successfully and consistently delivered exceptional results. The business acumen and confidence I gained from that experience inspired me to pursue a Master of Business Administration, where I honed my leadership, business and management skills. Ultimately, I was growing faster than the company could sustain my aspirations so I began exploring new horizons. I was very fortunate to be recruited by First American and in 2013, I accepted a position as Director of Marketing and Communication for the Agency Division. I am thankful for the time I spent at TRG; I learned valuable lessons from good managers and keep in touch with many of them today.

Q You were recently promoted to Chief Administrative Officer and are responsible for leading the administrative departments of the Agency Division. What challenges do you face and what goals have you set for your new position?

A Leading the administrative departments of the Agency Division is an exciting opportunity. The First American administrative leaders are fantastic. They are not single-subject experts, but well-rounded executives knowledgeable in all facets of the industry and we are very fortunate to have them. 4

Agency Today | Issue 8

The most energizing element of this new role is the variety of daily conversations. One moment I can be in a marketing discussion, the next thing I know, I’m involved in a claims conversation, and then it’s on to a conference call with the Information Technology team. The challenge I face is not knowing what I don’t know because I am fresh to the role. As I become acclimated to the new groups I lead, my knowledge base continuously expands. To expedite the learning process, I have been meeting with individual leaders since January in addition to attending the Audit, Claims and Financial Services Group department meetings. Our team works very hard to drive revenue and we have a

“

The groups I lead are focused on value and what that looks like to our customers, that means agents and employees. From an administrative perspective, I think of value in terms of operational efficiency and agent experience.

”

responsibility on the administration side to figure out how to be more efficient, while positioning the team to be more successful. Improving operational efficiency might mean deploying a BOT to reduce human workload dependencies, or creating a web portal or software integration for agents to have a more productive experience with First American. To aid in delivering value, I am also highly focused on alignment. One reason the Chief Administrative Officer role was created was because of all the disciplines on the administrative side of the business that overlap. Even when individual leaders

communicate well, gaps remain, creating missed opportunities to better manage and execute. Aligning the administrative side under one leadership group enables us to work with maximum efficiency and fire on all cylinders in one direction.

Q What is your role in creating and executing a strategy to provide a competitive advantage for both First American Title and our agents?

A Strategy is a word that gets tossed around quite a bit and is often replaced for activities that are actually tactical; so I’d like to define what strategy means to me. At the simplest level, strategy is doing something that is different, profitable and hard to replicate. When your strategy is immune or at least highly resistant to replication, you’ve achieved competitive advantage. My job, like many other executives, is to identify, develop and challenge strategies that protect or grow both the agency channel and the greater organization. When I say “challenge” the strategy, it is important to know we have an open and friendly culture at First American; we discuss things a great deal with lots of people. We all bring a unique perspective about First American’s businesses based upon where we sit in the organization, so strategy is a group endeavor with plenty of conversation and socializing. One of the great things about First American is many of our managers go through an Experienced Leader program where they are given the opportunity to explore the academic side of strategy and how it relates to our company. I have also had an opportunity to hear Dennis Gilmore, our CEO, talk about our company mission and the supporting pillars which define our enterprise strategy and outlines who we are as a company. As a new employee in 2013, I found this to be extremely helpful because it took a huge topic, First American’s strategy, and boiled it down to a highly focused and logical path of what we do and how we will accomplish our goals.

Q A leader must be equipped with a set of competencies

necessary to perform their role. Which would you say are your most valuable abilities?

A I think the ability to build influence and ask the right questions have helped me become a good leader. Another important competency for leadership – one I constantly work on – is public speaking. Learning a new skill takes persistence and practice. I am getting better and my game has improved, but there is still room to grow.

Q How do you measure success? A There is no easy answer to this question, and not enough space allotted to cover all the areas of my life where success could be quantified. Generally speaking, I think success is based on the happiness you bring to yourself and others. My plan is when I leave this role it will be in a better place than when I started.

Q Who is your role model and what qualities do you admire about them?

A Hands down, my role models are my mom and dad. They did a great job raising my sister and me. I am very thankful for the opportunities they provided and the encouragement they gave both of us as we were growing up. My dad ran a successful business with his brother for over 35 years and was a firefighter for the city of Trenton in New Jersey. They are both retired now and enjoying life at the beach. I’ve never known anyone who worked harder or is more dynamic than my dad.

Q What is the best piece of advice you were ever given and who gave it to you?

A Years ago, in my first supervisor role, I had an opportunity to sit in a meeting with the Bob Kunisch, CEO of PHH Corporation. Two of his comments have stuck with me throughout my career and still ring true today: (1) Know the economics of your business, both the micro and macroeconomics. If you don’t understand them, how can you expect to make money now and in the future? (2) Sometimes it pays to be behind the eight ball; if you are continually the tip of the spear in every endeavor, the market tends to flatten you out.

Q What might someone be surprised to know about you? A I am a huge ice cream fan and I don’t care if it is bad for me. Agency Today | Issue 8

One of the proposed insureds in a transaction is insisting that the general mineral exception be deleted. If minerals are not listed as an exception, they are insured. The policy insures ownership of the mineral estate unless a speciďŹ c or general mineral exception is included in Schedule B or the mineral estate is excepted from the description of the Land in Schedule A.

Agency Today | Issue 8

General Mineral Exception The exact language of a general mineral exception will vary by jurisdiction, but it is intended to negate coverage for loss or damage that arises by reason of any claim of ownership of, or rights to, all minerals and similar subsurface substances.

practices and state law. In some states, it is not appropriate to delete the general mineral exception even with a full search that fails to disclose a mineral severance. Conversely, some states have favorable dormant mineral and/or marketable record title acts that may allow for a shorter search period or a basis upon which to delete the general mineral exception.

Specific Mineral Exception In contrast, a specific mineral exception only negates coverage for loss or damage that arises by reason of mineral rights found in a specific document. For example, an oil and gas lease to Oil Company XYZ recorded as Document No. 1 or a reservation of all minerals and mineral rights by John Doe in a 1956 deed. (In some states, it is customary to place these mineral “exclusions” or “carve outs” in the legal description.) A specific exception is not intended to show the current owner of the mineral estate and often a note to that effect is shown after a specific exception. If mineral ownership information is desired, it may be necessary to hire an outside vendor.

Do You Need Both Exceptions? It may be acceptable to delete the general mineral exception if it is clear that the policy does not insure the mineral estate, e.g. when there is a speciﬁc mineral exception(s) in Schedule B that clearly carves out 100% of the mineral estate, the seller or previous owner has reserved 100% of the mineral estate or has conveyed the surface estate only, or the mineral estate is excluded from the description of the Land.

Searching For A Severance It may also be acceptable to delete the general mineral exception if a satisfactory search failed to disclose a severance of the mineral estate. To make this determination, you must ﬁrst determine what type of search was done. (Remember that some title plants do not capture mineral information at all.) The only way to determine whether the surface owner also owns the mineral estate is to search the Public Records back to patent or sovereign (or when severances began in that particular state). If a diligent search of the appropriate length has been done and no severance or reservation was found, First American can be reasonably comfortable that the mineral estate was not severed from the surface estate.

Local Practices And State Law It is important to speak with a local underwriter regarding local

Such acts should be distinguished from local practices regarding shortened search periods, e.g. 40- or 60-year searches. Abbreviated searches are often based upon an attorney’s standard of care for negligence or some other legal basis. Sometimes these searches are only adequate for purposes of insuring the surface estate and are not an appropriate basis for a title insurer to rely upon to insure a mineral estate. A patent-or sovereign-forward search is usually necessary.

Endorsement Coverage If you do not have an adequate title search, the best practice is to keep the general mineral exception in the policy and, if appropriate, offer surface damage or enforced removal coverage via an ALTA 9, ALTA 35, or similar endorsement. Do not forget that this coverage requires proper underwriting. (See the ALTA 35 series Issuing Standard.)

Escalate The Issue If you are unable to reach a resolution with the insured or you are unsure of what to do, bring this issue to an underwriter. Along with information about the search, local practices and state law, be prepared to discuss: (i) the coverage given in a prior First American policy, if any, (ii) if the land is improved or vacant and the current and proposed uses of the property, (iii) what constitutes a “mineral” in the state where the property is located, (iii) current or historical mining and oil and gas activity in the area, (iv) size of the insured parcel and its location, i.e. rural or urban.

Key Takeaways For Future Transactions Get in front of this issue by discussing mineral coverage expectations at the time an order is placed or as early as possible in the process. Certain types of transactions (energy projects, quarries) and customers are likely to want the type of mineral coverage that requires a “full” search. Customers will have a better experience if you are proactive in discussing coverage early and obtaining the proper searches.

Agency Today | Issue 8

CFPB Issues New Rule Clarifying Existing TRID Rule

By: Ruth Dillingham, NTP VP, Sr. Underwriting Counsel Corporate Underwriting

Agency Today | Issue 8

By: Gene Aalseth VP, Underwriting Counsel Corporate Underwriting

On July 7, 2017, the CFPB released an Amendment to the TRID Rule intended to clarify some parts of the existing TILA-RESPA Integrated Disclosure Rule which has been in effect since October 2015. The topics covered by the Amended Rule cover many different issues, some highly technical and some more relevant to settlement/title providers than others. After a brief summary of some of the impacts the Amended Rule is anticipated to have generally, this article will concentrate on the issues of interest to settlement/title agents and attorneys.

When Does This Take Effect? • The CFPB decided to let the businesses adopt their own implementation dates, providing only a first date and final date. • As a result, lenders, and all who work with them, were able to begin complying with as much, as little, or none of the Amended Rule on October 10, 2017. Everyone must comply with all aspects of the Amended Rule by October 1, 2018. For closing/settlement agents, this staggered effective date will mean software will need to be updated, or reliable workarounds found, as soon as a lender requires it for the closing documents. Closing/settlement agents will need to monitor their lenders’ closing instructions to see when some or all parts of the Amended Rule are adopted by their lenders.

Did They Fix the Simultaneous-Issue Title Insurance Premium Mess? No. The Bureau said it would not reopen any major policy decisions with this rulemaking, and it considers the disclosure of title insurance costs to be a fundamental policy choice.

What About Sharing Closing Disclosures with Real Estate Agents?

Expanded Coverage of TRID Requirements to Both Trusts and Cooperatives Trusts • Under the Amended Rule, when the borrower is a trust which has been established for tax or estate planning purposes, it is considered to be a natural person for the purposes of Truth in Lending and triggers TRID disclosures.1 • Under existing regulations, (1) the trustee and the trust are considered the same person, and (2) any one of multiple borrowers can receive disclosures on behalf of all.2 • While multiple names and addresses may be required on the LE or CD, the disclosure only has to be provided to one of the applicants/borrowers. Example Joe Smith, Trustee of the Smith Family Trust, Sallie Smith and Laura Smith apply for a loan. Sallie and Laura, beneficiaries of the Smith Family Trust, are the only two whose incomes are being used to qualify for the loan. Title to the property being mortgaged is in Joe Smith, Trustee of the Smith Family Trust, as tenant in common with Janet Smith, individually. Borrowers on the Loan Estimate • The lender can name Laura Smith, Sallie Smith and the Smith Family Trust on the LE, with their mailing address included. • Joe Smith, Trustee, would not be named and Janet Smith would not be named as a borrower, since her income is not being considered for the loan application.3 • The lender may provide the LE to all, or just one, of the named applicants.

The Amended Rule does not include any Gramm-Leach Bliley language that permits, or requires, sharing. Notwithstanding some optimism among the greater real estate community, it is likely that lenders will continue to make individual decisions on the issue of who gets what documents and what level of consent is needed to give them to various parties.

What About the Lender’s Black Hole Issue? At the same time the Bureau issued the Amended Rule, it also issued a Notice of Proposed Rulemaking to resolve the problem that arises when a lender needs to issue a revised Closing Disclosure more than four days prior to closing (aka the Black Hole). The proposal would permit a lender to issue the revised Closing Disclosure at any time to reset tolerances. Removing the four-day limit would resolve these issues identified by the Bureau: • Due to the limitations on when a revised CD can be issued, Lenders may have been increasing costs for all borrowers to cover the costs they can’t currently recoup or rejecting applications to restart a transaction where a cost has increased they can’t recoup. • Lenders who deliver the initial CD well in advance of the closing/settlement date are unable to accommodate changes by issuing a corrected CD. Comments on the proposal were due to the CFPB by October 10, 2017, and a further Amended Rule will be issued.

Borrowers on the Closing Disclosure • Each borrower extended credit must be named on the CD, with their mailing address included.4 • The CD only has to be provided to one of the borrowers, on behalf of all. The Mortgage/Deed of Trust • Signed by Joe Smith, Trustee of the Smith Family Trust and Janet Smith • Janet is not a borrower but is signing as a co-owner so the entire property interest is encumbered. Right to Rescind Transactions (Refinances) • The Closing Disclosure must be provided to all persons obligated on the note as well as all title holders. • The additional person(s) not obligated on the note are not named on the CD as a borrower.5 New Official Staff Interpretation of §1026.2(a)(11)-3 Current TILA §1026.2(a)(22) and §1026.17(d) and their commentary Current §1026.37(a)(5)-1 4 New Official Staff Interpretation §1026.38(a)(4)-4 5 New Official Staff Interpretation §1026.38(a)(4)-4 1 2 3

Agency Today | Issue 8

CFPB Issues New Rule Clarifying Existing TRID Rule CONTINUED • The existing rule continues as to signature lines6 for non-obligors who have rescission rights.7 In this example, the CD must be provided to Joe Smith, Trustee of the Smith Family Trust, Laura Smith, Sallie Smith and Janet Smith. Cooperatives Now Included • Real property securing the loan has been amended to read real property or a cooperative unit. • The Official Staff Interpretation regarding coverage reads that the Amended Rule applies to “covered loans (closed end credit transactions that are secured by real property or a cooperative unit, whether or not treated as real property under State or other applicable law.)”8

Clarifications Disbursement Date on Page 1 • This is the date funds are expected to be delivered to either the borrower, the seller or to a third party; • Not the date the funds are delivered to the closing/settlement agent9 Issuing a Corrected CD • A corrected CD must be provided when an amount changes within 30 days postclosing. • A corrected CD is not provided if the only change is the per diem interest amount. • If the per diem interest and other date-dependent amounts (tax prorations, payoff figures, rent adjustments) change, a corrected CD must be issued.10 Amounts Can Be Added to the Closing Disclosure, Even if Not on the Loan Estimate • The Bureau clarified that not every fee charged to the borrower must be disclosed on the LE, and not every fee for a service where the borrower is allowed to shop must be included in the written list of providers. • The creditor is not required to provide a detailed breakdown of all related fees that may be charged such as a notary fee, title search fee, or other ancillary/ administrative services needed to perform or provide the settlement service required by the creditor.11 Expansion of ‘Good Faith’ • The definition of good faith in the original Rule was that the charge disclosed be based on the best information reasonably available to the creditor at the time the disclosure was provided. • The Amended Rule expands the definition of good faith to require the charges be bona fide; defined as charges that are lawful and for services that are actually performed. • Closing/settlement agents should be mindful of this broader definition when quoting fees to lenders and confirm that all fees quoted meet this new criterion.12

If included as permitted by §1026.38(s) Current §1026.23 New Amended Rule §1026.1(d)(5); §1026.19(e)(1) 9 New Amended Rule §1026.38(a)(3)(iii) and new Official Staff Interpretation §1026.38(a)(3)(iii)-1 10 New Official Staff Interpretation §1026.19(f)(2)(iii)-2 11 New Official Staff Interpretation §1026.19(e)(1)(vi)-2 and §1026.19(e)(1)(vi)-4 12 New Amended Rule §1026.19(e)(3)(iii); New Official Staff Interpretation §1026.19(e)(3)(iii)-4) 6 7 8

10 Agency Today | Issue 8

PENDING OR THREATENED

L I T I G AT I O N You just found out that your transaction is the subject of pending or threatened litigation, or a dispute that may eventually lead to litigation. The parties want to move forward with the closing anyway.

What type of litigation concerns us? We are concerned about any type of litigation or dispute that might affect the coverage in our policy or its endorsements (“Coverage”). Some examples include: (i) authority disputes amongst partners/investors; (ii) challenges to a foreclosure; (iii) allegations that a required law or procedure was not followed (such as a governmental hearing or approval); (iv) family disputes; (v) landlord/tenant battles; (vi) actions pertaining to land use and environmental actions; (vii) bankruptcy and (viii) any litigation for which a lis pendens has been recorded. Generally speaking, litigation involving personal injury matters (unless the litigation has ripened into a judgment that is now a lien on the property) does not concern us. Disputes and threatened litigation, too? Just because a dispute has not ripened into a lawsuit yet does not mean one won’t be initiated in the near future. Moreover, if it affects Coverage, it likely would be a covered matter even if the lawsuit were filed after the closing. Therefore, you should look closely at any threat of lawsuit or unresolved dispute that could eventually lead to a lawsuit that would affect Coverage.

What if a lis pendens has not been recorded? We still must be concerned. A lis pendens is merely constructive notice that an action is pending. It is not dispositive of whether a dispute or litigation goes to title. Furthermore, once the parties have notice of the dispute or litigation, it does not matter whether a lis pendens has been filed—the parties have knowledge and would likely lose any bona fide purchaser (BFP) protection. What if the litigation is on appeal? As long as the case is being appealed or the judgment is within the appeal period, the issue is not resolved. Generally, we need to treat the transaction as if it has active litigation until a final, nonappealable order has been entered. Even in the face of a final judgment, consideration should be given of the likelihood of continued litigation and collateral attack on the judgment.

What is our risk? The worst-case scenario for us is litigation that challenges the core title, is not easily quantifiable in dollars,

and has no definitive step that could readily remove the title challenge at our discretion without cost to us. Insuring in the face of pending or threatened litigation is akin to providing “outcome” insurance for an unsettled matter. Because of this, upon closing, we would likely need to open a claim file to monitor the litigation.

What is the Company’s position? Except as stated below, the Corporate Underwriting Department must be consulted with or approve all transactions where First American will insure in the face of pending or threatened litigation, whether or not there is a Schedule B exception for the litigation risk. Court proceedings commonly encountered in residential transactions, such as chapter 7 bankruptcy, probate and divorce, should be underwritten according to state underwriting standards and protocols, and do not need to be escalated to the Corporate Underwriting Department. What should you do? Gather all of the information that you can and then contact a Company underwriter to help you work through the issues. If after the below analysis, you, and underwriting and business leadership believe that you have an acceptable path to insure the transaction (even with a Schedule B exception), reach out to the Corporate Underwriting Department. Analysis. Determine whether the dispute involves title failure or defect risk, or whether it is limited to a monetary damage issue. If it has the potential to affect Coverage, issues to address include: (i) What coverage will we provide (outcome only or are litigation costs included)? (ii) How will we provide coverage (by endorsement, affirmative insurance or an omission of the exception)? (iii) What are the legal arguments supporting each side’s position? (iv) What are the specific factual justifications for insuring? (v) What is the business motivation for insuring? (vi) Will we have an indemnity from an acceptable credit party? (vii) Will the indemnity be secured? (viii) Will insuring over the litigation conflict with our duties under the policy? (ix) How will we monitor the litigation? Key takeaways for future transactions. Inform clients of the difficulty of insuring with pending or threatened litigation and the time necessary to review and analyze relevant pleadings. In some cases, we may not be able to provide coverage for the matter or even close the transaction. As such, consider simply advising the client that we cannot insure from the outset of taking the order. Agency Today | Issue 8 11

By: Thomas Imperiale Senior Underwriting Counsel Agent Advantage

eClosings and eSignings are frequent topics of conversation in the industry and the interest around eClosing and eSigning capabilities is expected to only increase in the months ahead. Below is some preliminary background information to help you better understand these important topics.

INTRO TO eCLOSINGS

digital and eSigned in the presence of a notary. Finally, there is a remote online notary eClosing, where all documents are digital, eSigned, and eNotarized by a notary during an online video session with the signer.

What is an eClosing? • An eClosing is any real estate closing event or process in which the buyer, seller, borrower, notary or other party to the transaction uses an electronic signature (eSignature) to sign some or all of the closing documents.

Are there different types of eClosings? • Yes. There is a hybrid eClosing, which involves wet ink (think Note and Mortgage) as well as digital and eSigned documents (think procedural/disclosure docs). There is also an in-person eClosing where all documents are

12 Agency Today | Issue 8

UNDERSTANDING RISKS Risk • eClosings impact the entire process chain of financing residential real estate for purchase or refinance. These impacts have implications to lenders, secondary mortgage markets, as well as consumer ownership rights, property recording, local governments and more.

• Remote online notary eClosings carry considerable consumer risk. Because the buyer/seller/borrower is not in the same room as the notary public, it can be difficult to detect serious problems, like fraud, duress, elder abuse and mental incapacity. These problems create substantial risk of claims unless stopped in advance. • The processes and technology needed to adopt eClosings on a broad scale must be well designed to address current risk conditions and any new risk conditions that arise. • Until these new methods are properly load tested with transaction volume and courts have ample case law history, these transactions will carry a different risk profile than traditional methods of closing, particularly for remote online notary eClosings, where the buyer and seller are not physically appearing for the consummation of the transaction. • State and local laws, as well as the processes that lenders, servicers, title agencies and local recording offices deploy to handle eClosings, need to include consumer safeguards that prevent undue risk to lenders, title insurers and consumers alike. In some cases, this may require changes to state and local laws to enable eClosings.

What challenges need to be addressed? • State laws concerning the use of remote online notaries are currently inconsistent and often inadequate. • Texas has passed a law that provides a promising model, but some states have passed or considered passing laws that increase the risk to home buyers, lenders and real estate professionals. • Our industry needs more regulatory clarity governing the use of online notaries. First American believes the Mortgage Bankers Association (MBA) and the American Land Title Association (ALTA) model legislation for remote online notarization sets the best standard for the industry. • Other challenges include county recorders’ legal ability and willingness to accept eSigned documents, as well as secondary market investors obtaining the correct technology to manage eSigned notes.

OUR POSITION What is First American doing to prepare for eClosings? • First American is identifying practices that enable secure eClosings and is currently engaged in a number of initiatives and pilot programs to pave the way for the adoption of secure eClosings.

• First American is actively working with our lender customers to provide integrated solutions and support their individual digitization efforts. • First American representatives played a significant role in shaping the successful remote online notary legislation in Texas, which has provided a model for other states. • First American is deeply engaged with the ALTA and MBA, which have collaborated to develop industry-supported model legislation on remote online notarization. You can find more about the model legislation on the ALTA website: http://bit.ly/2G26Hwk.

When will First American underwrite eClosings in my state/county? • Each state and county will likely have a different timeline for the adoption of eClosings because the laws surrounding remote online notarization and eClosings vary by state and region. • Depending on the state and local laws involved, First American will consider underwriting transactions involving hybrid eClosings and in-person eClosings. • Remote online notary eClosings carry legal risks that are of unknown severity. Title agents should talk to their First American underwriter to determine the criteria when remote online notary eClosings may or may not be acceptable.

Why are other underwriters encouraging their title agents to adopt remote online notary eClosings? • All underwriters maintain a strategy addressing their tolerance for transaction risk. Some underwriters are willing to accept the risks involved in remote online notary eClosings. Early adoption of eClosings, especially remote online notary eClosings, carries a higher level of risk. Title agents need to determine if their risk tolerance aligns with their underwriter’s tolerances or approvals.

What to expect in 2018? • First American views 2018 as a critical pivot point in the industry’s evolution toward a digital closing experience. Based on conversations with our lender customers, we know lenders are shifting their focus from the digital mortgage loan application process to transforming the closing process in 2018.

Who do I contact for more information about First American’s perspective on eClosings? • Please reach out to our agency experts, Tom Imperiale (714.250.4252) or Sheri Olsen (801.316.0610), if you are interested in learning more about First American’s view on eClosings and eSignings. Agency Today | Issue 8 13

Billions

$6.2 $5.7

$5.8B

REVENUE CAGR: 7.1%

$5.2

$5.4B

$4.7 $4.2 $3.7

$3.8B

INVESTMENTS CAGR: 12.6%

$3.2 $2.7

$2.6B

$2.2

2011

2012

2013

2014

2015

2016

2017

How Wage Growth Both

Helps and Hurts Housing Affordability

The Bureau of Labor Statistics reported that average hourly earnings increased in January by 2.9 percent compared with a year ago. This was a big splash of economic news that had ripple effects on the housing market, as the 2.9 percent increase in wages surpassed expectations.

By: Mark Fleming Chief Economist First American Financial Corporation

Rising wages mean home buyers can borrow more. In other words, consumer house-buying power -- how much one can buy based on changes in income and interest rates -- is growing, which is a boon to the housing market.

However, the larger than expected increase in wage growth set off a chain reaction. It increased concerns among investors that inflation will rise and the Federal Reserve will increase rates at a faster pace than previously expected. Consequently, the 30-year, fixed-rate mortgage rate increased to 4.4 percent. The consensus among economists is that 30year, fixed-rate mortgage rates will approach 5 percent by the end of the year. Rising interest rates increase borrowing costs for home buyers, thereby decreasing consumer house-buying power. So, on the one hand, rising mortgage rates reduce the affordability of housing, as the cost of borrowing increases. But, on the other hand, rates are increasing because wages are rising faster than expected. Wage growth simultaneously helped and hurt housing affordability. However, rising household income has largely offset the increase in borrowing costs brought about by higher interest rates in the past year. In December, consumer housebuying power was up 5.6 percent compared with a year before, even though mortgage rates increased in 2017. Continued

Agency Today | Issue 8 15

How Wage Growth Both Helps and Hurts Housing Affordability Household income varies substantially by housing market, so comparing house-buying power with house prices by market can provide perspective on housing affordability. In the figure below, home buyers in markets below the line have house-buying power that is greater than the average house price in their market – houses are relatively more affordable in these markets. Home buyers in markets above the line have house-buying power that is less than the average house price in their market – houses are relatively less affordable in these markets. It’s no surprise that house prices exceed house-buying power in markets like San Francisco, New York and Los Angeles. Yet, housing markets generally considered expensive, like Washington, D.C., Boston and Denver, are actually more affordable than many believe. The fact is most of the markets we monitor in our Real House Price Index (RHPI) have more than enough house-buying power when compared to the average house prices in the market.

It’s important to remember that rising mortgage rates are often the result of positive economic conditions, like rising incomes and strong economic performance. In 2018, home buyers may have to take the good, wage growth, with the bad, rising mortgage rates. For Mark’s full analysis on affordability and weekly analysis of real estate and mortgage market trends, subscribe to the First American Economic Center at www.FirstAm.com/Economics. 16 Agency Today | Issue 8

TAKE THE PAIN OUT OF LENDER SUCCESSION RESEARCH PayoffAssist.com’s online directory puts the information you need on thousands of mortgage lenders and servicers—active and inactive—right at your fingertips. Quickly identify and locate the correct lender for a payoff statement or the successor to clear an old lien.

Email Wire Fraud in the News

The real estate industry is being targeted. Wire fraud is a real threat in today’s real estate market and too many people are still ignoring the warning signs. Don’t just take our word for it. See what these institutions are advising buyers, sellers, and anyone involved in the real estate industry:

American Land Title Association

National Association of REALTORS ®

Consumer Financial Protection Bureau

Share This Consumer Alert: Beware of Wire Fraud Schemes When Buying a Home

Urgent Alert: Sophisticated Email Scams Targeting the Real Estate Industry

Buying a Home? Watch out for Mortgage Closing Scams

http://firstam.us/FraudeNews1

http://firstam.us/NARNews1

http://firstam.us/CFPBNews1

Federal Trade Commission

Financial Crimes Enforcement Unit (FinCEN)

Protect Your Mortgage Closing from Scammers

Advisory to Financial Institutions on Email Compromise Fraud Schemes

http://firstam.us/FTCNews1

http://firstam.us/FCEUNews

Federal Bureau of Investigation (FBI) Business Email Compromise: The 3.1 Billion Dollar Scam

http://firstam.us/FBINews1

Incidents of email based fraud like this have risen over 1,300% since 2015* and are still on the rise. We all must do our part to stay vigilant, look for warning signs, and assume fraud is involved with anything out of the ordinary. *FBI Business Email Compromise Alert, June 2016

Thank you for joining First American Title in fostering a secure real estate transaction process.

18 Agency Today | Issue 8

You have a transaction in one of the states that “legalized” marijuana–and you just found out, or strongly suspect, that the property was, is, or will be used for the production, sale, or distribution of marijuana. Is it legal? Over the past few years, several states passed laws decriminalizing marijuana and allowing licensed and regulated use. Although using the property for the production, sale, or distribution of marijuana may be allowed under these new state laws, the problem is that it remains illegal under federal law. Therefore, parties to the transaction may be subject to criminal prosecution under federal law regardless of what state law says. The conflict between state and federal laws, as well as the uncertainty of when and if federal authorities will enforce these laws, makes this a difficult landscape for title insurers to navigate. What is First American’s position? First American will not knowingly participate in a transaction that may be viewed as facilitating a criminal enterprise. Underwriting Communication NA-2013-010-Advisory states that if you receive a request to provide title insurance or serve as the escrow/closing agent for a transaction in which you have “actual knowledge” that the property is currently used or will be used for the production, sale, or distribution of marijuana, you must decline to participate in or insure the transaction, or contact a First American underwriter for further guidance. What does “actual knowledge” mean? In this context, “actual knowledge” means that you know or reasonably believe that the property was, is, or will be used for the production, sale, or distribution of marijuana. Do I need to investigate? It may not be customary to question customers about the current or proposed use of the insured premises. In some circumstances, however, you may be told that the property was, is, or will be used, for the production, sale, or distribution of marijuana. In other cases, there may be red flags that necessitate further investigation. Do not turn a blind eye to facts and circumstances that would lead a reasonable person to believe that marijuana activity is involved. Some red flags include: i) extensive use of cash - entities linked

with the production, sale, distribution and use of marijuana typically run on cash due to the reporting regulations of banks; ii) a steep increase in the valuation of a property suitable for the production, sale or distribution of marijuana, such as a warehouse or agricultural lot; and iii) the entity name references marijuana (real life examples include: Hollyweed, Grin Reefer Deliveries, Grateful Meds, HIGHlands Health, and Buds and Roses). Communicate with an underwriter. It can be challenging to know what to do in some circumstances. Gather the relevant facts and contact a First American underwriter to help you decide whether the past, current, or planned use of the property has the potential to be considered a criminal enterprise. If you and your underwriter are uncertain how to proceed, or your transaction includes special circumstances warranting further review, the issue will be escalated to state underwriting or divisional counsel. A decision to insure in such an instance will be made only after consultation with Divisional underwriting leadership, the Corporate Underwriting Department and the Corporate Legal Department. Key takeaways for future transactions. Communication is key. Inform customers of First American’s position on insuring property that was, is, or will be used for the production, sale, or distribution of marijuana as early as possible. The earlier they know and understand our position, the less chance there is for a poor customer experience. This is especially important when a state first “legalizes” marijuana because the customers in that market may not yet know or understand our position. If you have a transaction that warrants consideration by a senior underwriter, be sure to manage the customer’s expectations regarding our potential inability to insure. If you have actual knowledge that the property was, is, or will be used for the production, sale, or distribution of marijuana, consider how you might best decline to insure the transaction. Discretion should be exercised in (i) being non-accusatory, (ii) communicating with the “innocent” party about the reasons for declining, and (iii) divulging the basis of your knowledge or reasonable belief.

Agency Today | Issue 8 19

IT headaches weighing you down? Ask us about Cloud Hosting your settlement software!

VALUE

QUALITY

SERVICE

No costly IT infrastructure for you to maintain

Secure data protection and backups

We manage applications and updates for you!

Uniform Closing Dataset (UCD)

Government Sponsored Enterprises Require Loan Data in XML Format The UCD is a common industry dataset that allows information on the Closing Disclosure (CD) to be communicated electronically. Fannie Mae and Freddie Mac developed the UCD at the direction of the Federal Housing Finance Agency as part of the Uniform Mortgage Data Program® (UMDP), an ongoing initiative to enhance loan quality and consistency through uniform loan data standards for loans purchased by Government Sponsored Enterprises (GSEs).

Benefits of the UCD According to Fannie Mae FAQs: • Greater Data Consistency: promotes better and more efficient data integration and exchange across business partners. • Common Understanding: all parties use a consistent approach and language to describe the information on the CD. • Improved Data Accuracy: the UCD will eliminate the need for proprietary formats that can be costly to maintain and can lead to misinterpretation of the data. For more information, visit FannieMae.com or FreddieMac.com and read their FAQs.

Format and Timeline

• Borrower CD XML data is required. • Seller CD XML data will be accepted as of September 25, 2017, but is not mandated until September 2018. Note: The borrower CD XML data will include some seller CD data by virtue of sending the CD.

Impact • Lenders may request CD UCD in XML format from Agents because their LOS is not able to generate one. • Policy-issuing agents using First American’s exclusive production software, FAST™, will have access to enhanced functionality that can export UCD XML files compliant to Government Sponsored Enterprise’s specifications.

UCD file information in XML format is required for all loans delivered to Government Sponsored Enterprises with a promissory note date on or after September 25, 2017. Important: In order to protect Non-public Personal Information, Agents must implement secure email protocols when delivering UCD XML files to lender customers.

Agency Today | Issue 8 21

Keeps Your Best Practice on Course Daily 3-way Reconciliation | Unclaimed Property Service | 1099 and W-9 Service

Let our team of experts with over 40 years of experience provide the best practice trust accounting processes youâ&#x20AC;&#x2122;re looking for.

Hit by Wire Transfer Fraud? USE THE

KILL CHAIN PROCESS American Land Title Association, January 30, 2018

Criminals launder billions of dollars overseas through financial fraud schemes like wire transfer fraud, corporate account takeovers, business email compromise scams and other financially motivated crimes. The FBI offers a Financial Fraud Kill Chain (FFKC) process to help recover large international wire transfers stolen from the United States. (http://amd.firstam.com/FBI-FFKC.pdf) The FFKC is intended to be utilized as another potential avenue for U.S. financial institutions to get victim funds returned. Normal bank procedures to recover fraudulent funds should also be conducted.

The FFKC can only be implemented if the fraudulent wire transfer meets the following criteria: • • • •

the wire transfer is $50,000 or above the wire transfer is international a SWIFT recall notice has been initiated the wire transfer has occurred within the last 72 hours.

Any wire transfers that occur outside of these thresholds should still be reported to law enforcement but the FFKC cannot be utilized to return the fraudulent funds.

Agency Today | Issue 8 23

Agency Office Directory

What's in a

Name?

"What's in a name? That which we call a rose, by any other name would smell as sweet." This line from William Shakespeare’s play, Romeo and Juliet, is often used to imply that the names of things don’t affect their fundamental nature. In the title industry, however, names matter. The specific names in title searches, commitments, policies and settlement statements are all very significant. Furthermore, because identity-related information is associated with an agency’s legal name, the agency name has business-level implications.

If the name of the agency, as listed in the Articles of Organization or Incorporation, is “Montague and Capulet, LLC,” then also use “Montague and Capulet, LLC” on the: • • • •

First American Agency Agreement Errors and Omission Policy Trust Account (IOLTA or otherwise) ALTA Registry

Even when business relationships are well established, entering a variation of the agency’s legal name can cause issues. As lenders work to verify their settlement vendors, a differing legal entity name may cause confusion and delay. Similarly, legal name differences on agency-related documents can also impede First American’s ability to quickly distinguish one similarly named entity from another. As a final point, with the advent of the ALTA Registry, First American, as an insurer, must be able to confirm an agency’s ALTA Registry record. First American follows a process that includes an accuracy check of details including office locations, the company name and, most importantly, confirmation that the agency has an active First American relationship. Submitting the agency name to ALTA as it is listed on the Articles of Organization or Incorporation and in First American’s records will assist First American with the confirmation process. 24 Agency Today | Issue 8

State Alabama Alaska Arizona Arkansas California Colorado Connecticut Delaware Florida Georgia Hawaii Idaho Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia Washington West Virginia Wisconsin Wyoming

Phone 205.879.1818 206.336.0736 602.685.7085 901.821.6500 714.250.2178 303.305.3358 860.727.9908 302.855.2120 877.798.7058 404.250.1604 808.206.8420 206.336.0736 866.213.4920 800.999.1176 402.697.4646 913.681.0600 502.425.7200 504.588.9252 207.774.6884 443.741.4540 617.345.0088 800.399.3003 763.416.2093 601.366.1222 816.622.3120 206.336.0736 402.697.4646 702.855.0837 603.227.9210 609.528.6860 505.881.3300 212.381.6600 336.668.7233 763.416.2093 614.310.8097 405.706.2008 206.336.0736 610.265.8440 401.434.1000 803.731.4409 763.416.2093 615.771.9141 281.588.2200 801.316.0600 802.764.3065 703.480.9500 206.336.0736 304.736.1111 608.236.1300 303.305.3358

National Agency Division: 866.568.0403 Agency Service Center: 866.701.3361 agencysupport@firstam.com

100%

0% Salt Lake Los Spokane, City, UT Angeles, CA WA

Nashville, TN

San Jose, Provo, CA

Oxnard, CA

Honolulu, HI

Austin, TX

Baton Rouge, LA

200%

100%

0% Kingston, NY

Ithaca, NY

Morgantow, Auburn, WV

AL Manhattan, KS

Gadsden, AL

Florence, AL

Walla Walla

Midland, TX

Odessa, TX

Get It Done with FasTrax Release Tracking and Title Clearing Services

™

FasTrax helps you: • Reduce closing delays • Stay compliant • Clear title • Reduce time on unreleased liens www.smsfastrax.com 800.767.7832 x1362

2018

Rescission Calendar Sundays and Federal holidays are excluded from the rescission period. Observed Federal Holidays include: New Year’s Day (1/1)

President’s Day (2/19)

Independence Day (7/4)

Columbus Day (10/8)

Thanksgiving Day (11/22)

Martin Luther King, Jr. Day (1/15)

Memorial Day (5/28)

Labor Day (9/3)

Veterans Day (11/12)

Christmas Day (12/25)

JANUARY Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

Consummation

Rescission Ends

FEBRUARY

MARCH

APRIL

M AY

JUNE

J U LY

AUGUST

SEPTEMBER

OC TOBER

NOVEMBER

DECEMBER

Visit closingdates.firstam.com for Closing Disclosure timelines.

Dates in RED Represent Sundays and Observed Holidays. Documents signed on: (The “date of this transaction”)

Mon.

Tues.

Wed.

Thurs.

Fri.

Sat.

Sun.

Rescission expires at midnight of:

Thurs.

Fri.

Sat.

Mon.

Tues.

Wed.

Agency Today | Issue 8 27

2030 Marks Important Milestone for U.S. Population, Housing Market American Land Title Association, March 14, 2018

The year 2030 marks an important demographic turning point in U.S. history, according to the U.S. Census Bureau’s 2017 National Population Projections. Why? By 2030, all baby boomers will be older than age 65. This will expand the size of the older population so that one in every five residents will be retirement age. “The aging of baby boomers means that within just a couple decades, older people are projected to outnumber children for the first time in U.S. history,” said Jonathan Vespa, a demographer with the U.S. Census Bureau. “By 2035, there will be 78.0 million people 65 years and older compared to 76.4 million under the age of 18.” This will significantly affect the type of housing needed in the United States. The 2030s are projected to be a transformative decade for the U.S. population. The population is expected to grow at a slower pace, age considerably and become more 28 Agency Today | Issue 8

racially and ethnically diverse. Net international migration is projected to overtake natural increase in 2030 as the primary driver of population growth in the United States, another demographic first for the United States. Although births are projected to be nearly four times larger than the level of net international migration in coming decades, the Census Bureau reports that the rising number of deaths will increasingly offset how much births are able to contribute to population growth. Between 2020 and 2050, the number of deaths is projected to rise substantially as the population ages and a significant share of the population, the baby boomers, age into older adulthood. As a result, the population will naturally grow very slowly, leaving net international migration to overtake natural increase as the leading cause of population growth, even as projected levels of migration remain relatively constant.

Other highlights from the census population projections: Population Growth • By 2060, the U.S. is projected to grow by 78 million people, from about 326 million today to 404 million. The population is projected to cross the 400-million threshold in 2058. • In coming years, the rate at which the U.S. population grows is expected to slow down. The population is projected to grow by an average of 2.3 million people per year until 2030. But that number is expected to decline to an average of 1.8 million per year between 2030 and 2040, and continue falling to 1.5 million per year from 2040 to 2060.

Aging • As the population ages, the ratio of older adults to workingage adults, also known as the old-age dependency ratio, is projected to rise. By 2020, there will be about threeand-a-half working-age adults for every retirement-age person. By 2060, that ratio will fall to just two-and-a-half working-age adults for every retirement-age person. • The median age of the U.S. population is expected to grow from age 38 today to age 43 by 2060.

Race and Ethnicity • The non-Hispanic White-alone population is projected to shrink over the coming decades, from 199 million in 2020 to 179 million in 2060—even as the U.S. population continues to grow. Their decline is driven by falling birth rates and a rising number of deaths over time among nonHispanic Whites as that population ages. In comparison, the White-alone population, regardless of Hispanic origin, is projected to grow from about 253 million to 275 million over the same period.

• The Two or More Races population is projected to be the fastest growing over the next several decades, followed by single-race Asians and Hispanics of any race. The causes of their growth are different, however. For Hispanics and people who are Two or More Races, their high growth rates are largely the result of high rates of natural increase, given the relatively young age structures of these populations. For Asians, the driving force behind their growth is high net international migration.

Children • By 2020, less than half of children in the United States are projected to be non-Hispanic white alone (49.8 percent of the projected 73.9 million children under age 18). In comparison, about 72 percent of children are projected to be White alone, regardless of Hispanic origin. • The share of children who are Two or More Races is projected to more than double in coming decades, from 5.3 percent today to 11.3 percent in 2060. • The racial and ethnic composition of younger birth cohorts is expected to change more quickly than for older cohorts. In 2060, over one-third of children are projected to be non-Hispanic white alone compared with over one-half of older adults (36.5 percent compared with 55.1 percent, respectively).

Agency Today | Issue 8 29

Embracing Cultural Differences America’s home buyers are becoming more and more diverse every day. The real estate market is changing because of increased cultural interactions between nations, communities and neighborhoods. Evolution in technology, communications and social migrations has made our country a nation comprised of many different cultures. Exceptional customer service feels the same in any culture, but it may look different depending on the traditions, customs, individual beliefs and practices of the multicultural customer base that is projected to make up the home buying public of the next decade. By: Lynn Tarala Communications Specialist Agency Division Marketing First American Title

Having a working knowledge of the basic traits of other cultures, along with the ability to recognize, understand, respect and respond to the individual’s distinctive needs, will enable you to successfully interact with home buyers and sellers who are participating in the real estate closing process.

Do the Research Many cultures have specific etiquette centered around communication. An encyclopedic knowledge is not required, but take the time to gain a general understanding to ensure you make a good impression, and more importantly, don’t offend anyone.

Simplify Use less complex sentence structure and vocabulary when discussing transactions details. Even the most highly educated individual may have difficulty understanding conversations where technical real estate terms are not in their native language. Effective communication is a two-way process, be sure to listen before you speak and avoid rhetorical questions, slang and use of industry jargon.

Slow Down Speak clearly, enunciate and communicate in an organized, easy-to-understand way. Take the time to repeat information or write it down to ensure accurate communication has taken place. It is also helpful to avoid asking double questions such 30 Agency Today | Issue 8

as, “Do you have any questions about the settlement statement or can we move on to signing the documents?”

Pay Attention You can learn a lot by simply paying attention to how your customer conducts themselves, whether in person, over the phone and in writing. Noticing how they communicate and then mirroring their behavior can be an effective way to build rapport and establish trust. Beyond normal good manners, which you already use in the course of business, success in the multicultural arena requires an awareness of cultural differences, making individuals feel comfortable, doing your best to keep all forms of communication clear and simple and, above all, treating people with respect.

Agent

SPOTLIGHT

Q What was your first job in the title industry and what were some accomplishments you consider to be the most significant in your career?

A My first job in the title industry was with a national underwriter in Hendersonville, North Carolina. I started in an entry-level position and quickly moved up to Branch Manager. I held that position until I decided to go to law school. I reentered the title industry in 2005.

Q How do you differentiate yourself in the marketplace?

A Customer Service. We have a staff of title professionals, including six title counsel, who are committed to producing a quality product in a short amount of time. North Carolina is a rating bureau state and we donâ&#x20AC;&#x2122;t compete on price; we compete on service and are second to none. Also, the technology we utilize increases efficiency.

Kimberly Rosenberg President Attorneys Title 8000 Regency Parkway Suite 165 Cary, NC 27518 919.861.1427 kimberly.rosenberg@attorneystitle.com

Some of the most significant accomplishments in my career were the result of collaborating with other title professionals on initiatives important to the industry. During my tenure on the North Carolina Land Title Association Board, I worked on several important pieces of legislation. Our biggest accomplishment was getting legislation passed to revise our mechanics lien statutes to address hidden liens. It is satisfying to work on issues that improve things for consumers, buyers, lenders and the title industry. I am still the co-chair of the NCLTA legislative committee. Most recently we were able to get legislation passed that ensures more predictable recording fees for real estate transactions. The thing that gives me the most pride and I consider it my best accomplishment is having the privilege of running Attorneys Title and working with a great group of people.

We were recently purchased by Berkshire Hathaway HomeServices of the Carolinas. We are excited to be a part of such a great company and are looking forward to having more resources and tools to create an even better customer relationship.

Q What First American products and services are you currently using to improve operational efficiencies?

A AgentNetÂŽ and its integration with SoftProÂŽ saves us a lot of time. If 360 is flaky (technical term), it is not a good day at Attorneys Title! Sometimes it is the simplest things that make the most difference. The addition of the Agency Verification Letter in AgentNet, that we can easily pull ourselves for our approved attorneys, has been a real timesaver. We also use the pass-thru marketing kits.

Agency Today | Issue 8 31

Q How did you get into the title business? A After graduating law school, I was unsure of what

Q How do you think your agency will evolve in

e-recording, and integration of all facets of a transaction becoming the norm. At Lima Law, we are transitioning to new software that will increase our efficiency and align our processes to be current with the best available technology. In this fast-paced industry, it is necessary to be efficient and also have marketing tools to ensure your name is prominent on the web. Rarely does a homebuyer look through a newspaper or magazine to find an attorney offering settlement services, so our marketing focuses where the industry is headed: online.

the next 2-5 years, and what is your role in generating those changes?

Q What words does a client think of when they

type of law I wanted to practice. I received job offers ranging from criminal law to real estate law and decided on real estate based on the proximity to where I lived. It was a great decision. I love everything about the real estate industry; it plays such a big part in the strength of our economy and it is people driven. Be good to people, have a strong work ethic, and success is your reward. Michael Lima Attorney Law Office of Michael C. Lima 692 Warren Avenue East Providence, RI 02914 401.270.1144 mlima@limalawoffices.com

A The real estate market has its ups and downs. There is no way to forecast the future of our market, but regarding the industry and agency as a whole, I see us evolving technologically. Technology will change the industry in ways that help consumers, and hopefully, help those who make their living from real estate. Right now, social media is driving much of the real estate agentsâ&#x20AC;&#x2122; business, which means lenders and title attorneys need to follow. The ease at the front end of the transaction related to products like Zillow heightens the pressure to improve the operations on the back end. I see e-signing,

Joseph Ciambrone President

Q What are some accomplishments you consider

Christopher A. Rotio Executive Vice President

A The first that comes to mind is the evolution and

to be the most significant in your agency? growth of what started as a small, two-person operation to a prominent, highly regarded organization. Town Title started in the basement of a two-family home in Rochelle Park, New Jersey in the early 2000s and 17 years later we are a significant player in the title industry in the New Jersey/New York markets and nationally as well.

Town Title Agency 40 East Midland Avenue 2nd Floor Paramus, NJ 07652 201.996.1099 chris@towntitle.us

Q How do you differentiate yourself in the marketplace?

A Our industry is highly regulated, which can make it difficult to gain a competitive advantage or stand out in the crowd. The quality of our work and a commitment to service excellence are two critical components that must exist every day - without exception. On the settlement side, the responsiveness and attentiveness of our paralegals and staff, coupled with a proactive approach to anticipating the needs of our clients, are key to a smooth and successful transaction. 32 Agency Today | Issue 8

hear your companyâ&#x20AC;&#x2122;s name?

A Service and Communication. At Lima Law, we strive to make communication our number one priority. What sets us apart from others in the industry is our ability to be available and reachable at all hours, every day; we will never be the ones to hold up a closing. Given the volume of our real estate transactions, we compete with the top real estate law firms in New England but deliver a personalized level of service with a small-town feel. This tailored attention keeps our clients returning to Lima Law for all their real estate needs.

We have learned to evolve and adapt to a fast-paced and ever-changing industry. The business of title insurance is certainly not what it was 17 years ago, ten years ago, or even five years ago. Clients we targeted then are not the same type of clients we pursue today. Another thing our organization does well is develop a comprehensive marketing and business development plan, which we follow religiously.

Q What First American products and services are you currently using to improve operational efficiencies?

A The support First American provides has been critical to our success. From assistance with implementation of our policies and procedures manual which adhere to Best Practices and our TRID Compliance Program, to offering an array of marketing material available on AgentNetÂŽ, First American really is second to none when it comes to providing resources to its agents.

Agent Spotlight Q How did you get into the title business? A It may seem out of the ordinary, but our first

Peter Palermo President Legend Title Company 2675 South Abilene Street Suite 200 Aurora, CO 80014 303.805.4949 pete@legendtitlecompany.com

job in the title industry was when we started Legend Title. We were recruited to open a branch office for another agent and after looking into the industry, realized we had the business acumen, management skillsets, and previous customer relationships to start our own agency from scratch. It was a huge leap but we found great people and the rest is history.

to add offices in the next 2-5 years which will help provide more convenient closing locations for the community. Our partnership with First American is a significant driver to growth in these areas. Todayâ&#x20AC;&#x2122;s customers are savvy, and having First American behind us opens the doors to growing relationships. It is my role in the evolution of Legend Title to not only drive business development, but also lead our team through the changes and challenges facing our industry.

Q How do you think your agency will evolve in

Q What words does a client think of when they

the next 2-5 years, and what is your role in generating those changes?

A We are fortunate to have customers give our

A We are relatively new to the market and many customers are not familiar with us, but our market penetration increases each month with every transaction we complete. Legend Title will continue to grow and evolve by capitalizing on each relationship and transaction. The diversity of our business mix will continue to evolve as our builder and commercial business grows. As our residential business continues to grow, we plan

Q What words does a client think of when they

took advantage of it. We thought we could offer a high-quality product, coupled with great customer service, and it would be well received in our market.

A We have been very fortunate to experience

and foremost, customer service. We view ourselves as a customer service company, and we strive to provide an exceptional level of customer service on every transaction. Ultimately, we hope our customers leave each transaction with the impression that we went above and beyond to help them achieve a successful closing.

consistent growth over the past few years and are doing everything we can to keep the momentum going. We will continue to improve the processes and procedures which have been successful in the past and actively look for new markets to enter with the hopes of bringing our product to as many customers as possible.

Second, we take significant pride in the quality of products we offer. We want our customers to recognize the pride and professionalism we put into our work, place significant value on the quality of our products and have confidence in the opinions and guidance we provide.

the next 2-5 years, and what is your role in generating those changes?

Owner and Attorney Regional Title Services, LLC 7820 Eagle Crest Blvd. Suite 201 Evansville, IN 47715 812.759.5555 andrew.briscoe@regionaltitlellc.com

young company an opportunity when they could have chosen a more established competitor. I believe customers would describe Legend Title using words such as forward thinking, flexible, and consistent. We strive to customize our service to meet the needs of the customer, from commitment delivery to offering and encouraging split closings. We truly embrace opportunities to go the extra mile.

Q How did you get into the title business? A We saw what we believed to be an opportunity and

Q How do you think your agency will evolve in

Andrew Briscoe

hear your companyâ&#x20AC;&#x2122;s name?

I believe our industry will see major technological advances in the near future allowing business to be conducted in a more efficient and versatile way. While the future is very exciting, staying on top of the latest technological advancements can be difficult. I have found attending the annual Indiana Land Title Association conference to be a great resource for learning about new products and how they can improve your agency.

hear your companyâ&#x20AC;&#x2122;s name?

A First

Finally, we want our customers to view us as a trustworthy partner in their transaction. Given the significant responsibility our clients place in us when they choose our company, we do everything we can to ensure our customers feel secure and confident throughout the transaction.

Agency Today | Issue 8 33

Agent Spotlight Q How did you get into the title

Baillie & Hershman has already made great strides in becoming compliant with ALTA Best Practices, but sees these standards as a launch pad to bigger and more robust possibilities. We look forward to providing our clients with fully digital closing solutions that give the same value, knowledge and legal insight as our in-person solutions do today.

business?

A I always had an interest in real estate. After law school, I was fortunate to begin practicing law in partnership with Don Baillie who already had an established practice focusing on real estate.

Q How do you think your agency will Jay Hershman Attorney

Don Baillie Attorney

jhershman@bhhlegal.com

Baillie & Hershman, PC 290 Highland Avenue Cheshire, CT 06410 203.272.7000

evolve in the next 2-5 years, and what is your role in generating those changes?

A Baillie

& Hershman believes technology will be at the epicenter of change across the entire real estate industry. We believe it is our responsibility to adopt new technologies, innovate and guide our clients toward the fully digital closing, while providing confidence in our security and maintaining sensitivity to consumer privacy.

Q What words does a client think of when they hear your company’s name?

A We want our clients to experience

First American Title is Excited to Announce the Arrival of

reliable service backed by an honest and loyal veteran staff. Integrity is at the core of every transaction we take part in and we strive to provide streamlined value for our clients with our extensive transaction knowledge and punctual professionalism.

AgentNet 3.0 ®

AgentNet 3.0 is a fully integrated title and escrow application, enabling you to stay in one system for all of your file production needs. With ease of use in mind, this powerful system offers First American agents the ability to: • Order Closing Protection Letters and title policies • Create documentation including, Title Commitments, HUD forms and Closing Disclosures • Manage invoices and automate remittance For more information, or to schedule a demonstration, contact your First American representative.

34 Agency Today | Issue 8

D I G I T A L

O F F I C E

M A N A G E M E N T

S O L U T I O N

MAKING PAPERLESS A REALITY GreenFolders® empowers title and settlement agents, escrow companies, and law practices to overcome the limitations and hassle of paper files while safeguarding Non-public Personal Information. Intuitive yet robust, GreenFolders is fully customizable and will accommodate your unique workflow. Whether you’re looking to go completely paperless or transition only a portion of your operations to a digital workflow, GreenFolders has a solution to suit your needs.

www.greenfolders.com

801.747.2132

Expert Underwriting Trusted Relationships First American Titleâ&#x20AC;&#x2122;s Agency Division is committed to providing the resources, services and underwriting guidance our title agents/attorneys need to achieve new levels of success in their business.

First American Title Insurance Company makes no express or implied warranty respecting the information presented and assumes no responsibility for errors or omissions. First American, the eagle logo, First American Title, and firstam.com are registered trademarks or trademarks of First American Financial Corporation and/or its affiliates. AMD: 04/2018