April/May 2023

THE TITLE AND ESCROW ISSUE

GATHERING OF EAGLES by

2023

FORGING OPPORTUNITIES

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HousingWire

MANAGING EDITOR JAMES KLEIMANN

EDITOR ANGELICA LEICHT

SENIOR MORTGAGE REPORTER BILL CONROY

REAL ESTATE & TITLE REPORTER BROOKLEE HAN

MORTGAGE REPORTER FLÁVIA FURLAN NUNES

REPORTER CONNIE KIM

LEAD ANALYST LOGAN MOHTASHAMI

PRESIDENT MIKE SIMONSEN

VICE PRESIDENT OF REAL ESTATE MARK ADAMS

DIRECTOR OF RANKINGS PROGRAMS LIZ SMITH

TECHNICAL DIRECTOR KEERI TRAMM RESEARCH AND RANKINGS COORDINATOR ALICIA WYNTERSEND

REVERSE MORTGAGE DAILY EDITOR CHRIS CLOW

EDITOR-IN-CHIEF SARAH WHEELER

CORPORATE

CEO CLAYTON COLLINS

COO DIEGO SANCHEZ

VICE PRESIDENT OF FINANCE ANDREW KEY

DIRECTOR OF PEOPLE AND CULTURE AMY BEARD

VICE PRESIDENT OF GROWTH CAREN KARRIS

GRAPHIC DESIGNER BRANDON JOHNSON

VICE PRESIDENT OF PRODUCT HOLDEN PAGE

UX/UI MANAGER BO FRIZE

AD OPS COORDINATOR ELIZABETH LEDOUX

DIRECTOR OF HW+ & EVENTS BRENA NATH

SENIOR WEBINAR & EVENTS MANAGER ALLISON LAFORGIA

MARKETING PROGRAM MANAGER LESLEY COLLINS

MEMBERSHIP COORDINATOR SARAHI DE LA CUESTA

PEOPLE OPERATIONS MANAGER JAMIE BRIDGES

AD OPERATIONS MANAGER MATTHEW STAFFORD

MEMBERSHIP DEVELOPMENT SPECIALIST CAROLINE ABAD

EMAIL MARKETING SPECIALIST ALI MORRISSEY

GROWTH COORDINATOR SYDNEY SMITH

EVENT SPECIALIST MAKENNA CLAY

BUSINESS ANALYST WHITNI ROWE

SALES

SVP SALES AND OPERATIONS JENNIFER WATSON LAWS

VP STRATEGIC SALES CHRISTI HUMPHRIES

WESTERN CASS HECKEL

CENTRAL & NORTHEAST SAMANTHA STEIN

DIRECTOR OF REVENUE OPERATIONS ADINA RITTER

STRATEGIC ACCOUNT MANAGER BRIA SOYELE

SALES MARKETING MANAGER TOD MOHNEY

CONTENT SOLUTIONS

SENIOR DIRECTOR OF DATA AND CONTENT TRACEY VELT CONTENT EDITOR JESSICA DAVIS

MAGAZINE EDITOR AUDREY LEE

MULTIMEDIA PROJECT MANAGER DALTON JOHNSON

JUNIOR DIGITAL PRODUCER ELISSA BRANCH CONTENT SOLUTIONS COORDINATOR EUNICE GARCIA

HOW TO REACH US

LETTERS TO THE EDITOR EDITOR@HOUSINGWIRE.COM TIPS AND STORIES EDITORIAL@HOUSINGWIRE.COM

CURRENT MEMBERSHIP / SUBSCRIPTION HWPLUSMEMBER@HOUSINGWIRE.COM

NEW MEMBERSHIP / SUBSCRIPTION HOUSINGWIRE.COM/MEMBERSHIP

MARKETING & ADVERTISING JLAWS@HOUSINGWIRE.COM OR (469) 870-4572

ADVERTISING CLIENT SUCCESS CLIENTSUCCESS@HOUSINGWIRE.COM

LETTER FROM THE EDITOR

The race for the homebuyer

WHEN LOOKING AT the home-buying process, I’ve always found it fascinating and impressive that the title agent usually wins the buyer-driven social media post. The homebuyer just wrapped this long process with their real estate agent and mortgage loan officer, but it’s the photo with the title agent that they tend to post on social media as they hold the keys to their new house. To add to the story, the buyer usually doesn’t even pick the title agent — the seller does.

That observation is not the center of this issue — the title and escrow companies are — but some of the top behind-the-scenes and consumer-facing companies are featured in this issue. So why do I bring up that social media observation?

It’s to point out the heightened focus on the consumer experience in the title process. This is also a topic that all companies in housing are trying to address — how to create a beneficial

and educational experience for the buyer and seller.

In both this year’s list of TECH100 winners and this issue’s commentaries from thought leaders in the title space, the consumer is at the center of the conversation. The concept isn’t necessarily new, but after a few years of record-setting demand, the race has begun for who will win the consumer as competition within the industry hits a new high.

Lastly, I want to give a huge congrats to this year’s esteemed list of TECH100 winners. I’ve had a front-row seat to how this list has grown, shifted and adapted over the years, and I can say with confidence that these companies are Moving Markets Forward and continue to push the envelope in housing.

Brena Nath Director, HW+ & Events @BrenaNath

The information contained within should not be construed as a recommendation for any course of action regarding legal, financial or accounting matters. All written materials are disseminated with the understanding that the publisher is not engaged in rendering legal advice or other professional services. HW Media does not guarantee the accuracy of information provided, and is not liable for any damages, losses or other detriment that may result from the use of these materials.

© 2023 by HW Media, LLC • All rights reserved

Social

14

Check out what real estate and mortgage professionals are posting on Facebook, Instagram and LinkedIn.

Appraisal

62

Growing demand for more equitable appraisal practices can be felt in all corners of the housing ecosystem.

Kudos

66

Homes for Heroes is helping open a burn center for firefighters in Minneapolis, Minnesota.

Trade organizations from across the housing industry share their plans to modernize in this market.

Checklist

68

Lee Davenport shares her advice for housing industry professionals during Fair Housing Month.

Technology that fills the gaps of other platforms could be the solution the title industry needs.

The latest trends in LGBTQ+ home-buying habits show that cities are less popular than small towns.

History of Housing

69

Housing looked different in 1953. Credit was relaxing and minority homeownership was struggling.

Parting Shot

70

HW Media was proud to present the Housing Market Update webinar in February. Join us again in May.

By Rachel Luna

By Brandon Weiss

Jennifer Deason | Home Partners of America | CEO

Home Partners of America appointed Jennifer Deason as its CEO in February. Her professional career spans more than two decades in leadership positions. She recently helped launch Belong Capital and served as chairwoman of Belong Acquisition Corporation prior to joining Home Partners. She also co-founded Flowcode in 2019 and served as the company’s chief business officer and chief financial officer.

Jim Daras | Cenlar FSB | CEO

Cenlar FSB, the second-largest mortgage servicer and largest sub-servicer in the U.S., appointed D. James ‘Jim’ Daras as its CEO and president in January. Daras’ professional career spans more than four decades in the banking and mortgage banking industry. He has specializations in risk management, banking and corporate finance functions, bank restructuring, company start-ups and venture capital investing. Daras has been with Cenlar FSB since 1985 when he initially joined the company.

Nicole Booth | QC Ally | CEO

QC Ally appointed Nicole Booth as its CEO. Booth previously served as the company’s chief marketing officer. Prior to QC Ally, Booth held several leadership positions in regulatory affairs, business strategy and the mortgage industry. She has served as the executive vice president of public affairs at Notarize; vice president of public policy and state government affairs at Rocket Mortgage’s Rocket Central; and vice president of public policy at Quicken Loans, which changed its name to Rocket Mortgage in 2021.

Aaron Drago | Deephaven Mortgage | Chief Operating Officer

Deephaven Mortgage appointed Aaron Drago as its chief operating officer. In his new role, Drago will continue the optimization and performance of the company’s daily operations, its long-term growth and ensure the satisfaction of its customers and correspondent partners. He aims to empower brokers and correspondents to serve more non-QM borrowers. Previously he was the chief operations officer for the Southeast and Mountain West divisions of Guaranteed Rate.

Dan Mugge | Calque | Chief Operating Officer

Calque, a company that partners with lenders to offer non-contingent mortgages to homebuyers, appointed Dan Mugge as its chief operating officer in January. Mugge is a mortgage industry veteran with more than two decades in technology and business management. He will lead the company’s push to secure high-profile mortgage lending partners to offer Calque’s products. Prior to joining Calque, Mugge held several leadership positions, including vice president of default technology at CoreLogic.

Kim Dybvad | PrimeLending | Vice President, Mid-America Area Manager

PrimeLending promoted Kim Dybvad to lead its Mid-America division in February. She will be responsible for loan origination production in the Ohio, Indiana, Illinois, Michigan, Wisconsin and Kentucky markets. Dybvad’s professional career began in 1988 as a mortgage originator at Savings of America. She also worked at PNC/National City Mortgage as a mortgage originator, after which she was promoted to sales manager in Ohio and finally, to branch manager in 2009.

Pamela Hughes Patenaude | National Housing Conference | Board of Governors

Pamela Hughes Patenaude, former deputy secretary of Housing and Urban Development, joined the National Housing Conference board of governors. She is also the co-chair of NHC’s National Advisory Council. Patenaude also serves on the board of directors at loanDepot, Habitat for Humanity International, the Bipartisan Policy Center and the Federal Deposit Insurance Corporation (FDIC). She was recognized as one of HousingWire’s Women of Influence in 2013.

Neena Vlamis

Owner and CEO, A and N Mortgage

Neena Vlamis is the CEO, president and founder of A and N Mortgage. Headquartered in Chicago, she has expanded the company into 17 states and continues to expand profitably. Vlamis’ razor-sharp focus has led A and N Mortgage to an A+ rating with the Better Business Bureau. Vlamis is an inveterate problem solver with a passion for home mortgages. She thrives on finding the perfect mortgage product for each client's financial and home-buying circumstances, and she helps her team of lending consultants do the same.

Below, Vlamis answers five questions that give an inside look at her life.

1. In high school, I was... already working in the mortgage industry. I would go with my father to help manage rental properties and collect rent.

2. People would be surprised to know I... am part Irish, Swedish and New Dehli Indian.

3. My signature phrase is... "Don't just aspire to make a living, but aim to make a difference." And, "Always ask questions and learn."

4. I can't live without my... music! I love to have music playing. It even plays from my fridge!

5. After I am finished with my career, I hope people remember... how I made them feel. I always want to leave someone with a positive, happy impression.

Realtor Broker Summit

Date: April 17-18, 2023

Cost to attend: $449

Presented by National Association of Realtors

LOCATION: KANSAS CITY, MO

The National Association of Realtors (NAR) presents the REALTOR Broker Summit. This event is intended for broker owners and senior leaders, and the conference’s agenda is packed with speakers, panelists and events. The agenda includes important updates from NAR, including an opening presentation by current president Kenny Parcell, sessions like “What Keeps Brokers up at Night,” and keynote speakers. The 2022 Broker Summit featured speakers like Fathom Realty founder Josh Harley and NAR chief economist Lawrence Yun. Set in the Loews Kansas City Hotel in the heart of downtown Kansas City, attendees will have the chance to explore the rich culture and history of Kansas City while enhancing their careers.

Manufactured Housing Institute Congress and Expo

Date: April 18-21, 2023

Cost to attend: Member $739 | Nonmember $839

Presented by Manufactured Housing Institute

LOCATION: LAS VEGAS, NV

The Manufactured Housing Institute (MHI) presents its annual Congress and Expo. This event for all professionals working in manufactured housing will feature networking opportunities, educational workshops and a chance to interact with new exhibits. This year, the conference has allotted time specifically for newcomers to meet and connect at the event. And, when you work hard you can play hard, the MHI Congress and Expo also features social events like the clay shoot and a golf tournament, both held on Tuesday, April 18. Winners of the MHI awards will also be honored at the conference, giving attendees time to celebrate their accomplishments and take the stage alongside their peers.

Event TIP

LISTEN NOW

BY ELISSA BRANCH

Recently, HousingWire hosted a virtual economic summit which we dubbed the Housing Market Update. We brought together industry leaders and analysts to share some of the most relevant and thoughtful data and insights we should all be looking at as we head into 2023. This episode brings you the most important points from the session by housing folks you probably recognize, including First American Deputy Chief Economist Odeta Kushi.

Clayton Collins: Our next speaker is Odeta Kushi. Odeta is helping us build a full market view. She has a really challenging job of talking about mortgage rates and affordability.

Odeta Kushi: Looking at the full history of the 30-year fixed rate mortgage, that more than 40-year tailwind has allowed for housing market turnover and cash-out refinancing. Obviously, you're able to buy a house and refinance a couple of years later, and that's been the case up until the most recent year. We've seen a pretty quick uptick in mortgage rates still below the historical average, but very, very high relative to what it was in 2022 and 2021. That change has kept existing homeowners' rates locked in. It's obviously reduced affordability significantly for potential buyers.

Just in the last couple of months, we have seen mortgage rates start to come down as we start to see improvements in inflation. It's notoriously difficult to forecast mortgage rates because they're tied to the wider economy and global geopolitical conditions. We might end the year at 6%. The baseline case is that inflation will continue to come down toward the Fed's 2% target.

And with that goal will come some normalization in the bond market as well. You'll start to see mortgage rates come down and stabilize, the industry average really is about ending the year at 6%.

Scan here to listen.

"At conferences, being with friends and leaders always gets my heart moving. This is especially true when we are all in the throes of the same tough market conditions. Listening to how other leaders are navigating these tough times, sharing ideas and just enjoying being together in person."

Steve Murray, senior advisor of RealTrends

“Housing market update: slowdance or great resetting?”

Tim Allen

Tim Allen Properties Tim@TimAllenProperties.com

$18.9 million

6 bedrooms; 3.5 bathrooms

TIM ALLEN IS APPROACHING 40 YEARS of selling and investing in luxury properties around the Monterey Peninsula and regionally. Together, he and his team have sold more than $5 billion in real estate.

Allen believes that trust is key when working with clients. “Getting to know our clients and helping them as their fiduciary is the single most important aspect of being a real estate agent,” he said. “Know your market, stay positive and engage with people every chance you get.”

The Bixby Creek Ranch property has about 380 acres of private land overlooking the iconic Bixby Bridge. The property, which is a 15-minute drive to Carmel and Pebble Beach, includes four completed living structures and has approved permits for several additions, including an infinity edge pool. The property’s website, BixbyCreekRanch.com, has received more than 14,700 unique visitors. Allen’s company even hosted an “Oktoberfest” event at the property for clients and top agents, which featured live music and the ability to explore the land.

Allen said the market in his area is experiencing a cooldown in buyer activity similar to the rest of the country, albeit at a less severe rate.

“The Monterey Peninsula tends to follow a less severe trajectory due to our year-round idyllic weather, fresh air and easy access to the Bay Area,” he said.

4847 Bixby Creek Road

Carmel, California, 93940

By Brooklee Han

It has been quite a while since the Nutmeg State’s capital city has had a happening housing market. “When we went through the Great Recession, we lost a lot of our insurance industry, so we didn’t have as many people moving in from out of town for those jobs,” Katie French, a local Coldwell Banker agent, said. “Now that the market has slowed, we are still seeing a lot of people moving here because they are moving home. They somehow ended up in New York or the West Coast, but they decided to come back to an environment they felt was safe, and where their kids could have the life they had as children.” These out-of-state and boomerang buyers have caused Hartford’s housing market to heat up. As of February 2023, Hartford County’s Altos Market Action Index reading was 62, compared to a national reading of 40. Altos considers an index reading of 30 to be a balanced market — and anything above that to be a seller’s market.

Austin, Texas

Hartford, Conn. Lake Calif.

In 2021, Austin had one of the hottest housing markets in the country. But, in 2022, as prices in the metro rose to never-before-seen levels, things started to change. In early 2023, however, as inventory in Austin has become more and more constrained, buyers have become accustomed to the higher mortgage rates and demand has ticked up. “It is keeping the pressure on buyers to shop wisely,” Kent Redding, a local Berkshire Hathaway Home Services agent, said. “Closings are still down year over year, but in January they were down just 21% compared to 36% in October.” Tight inventory, which was down to just 1,697 homes as of late February according to data from Altos Research, and the relatively strong level of demand has kept home prices stable. The 90-day average median list price as of mid-February comes in at $699,187, down a little over $100,000 from the record high set in mid-March 2021. For agents and sellers looking to succeed in Austin’s current market, Redding says pricing is key. “We are still seeing properties going under contract quickly, so long as they are priced properly,” he said.

Rockingham County, N.H.

Less than an hour’s commute to Boston and a short drive to beaches, mountains and lakes, Rockingham County is a popular destination for many homebuyers. “The communities are so bucolic,” Todd Alperin, of Better Homes and Gardens Real Estate The Masiello Group, said. This popularity has resulted in constrained inventory. There were just 169 homes on the market as of late February 2023. It is a solid seller’s market with an Altos Market Action index score of 54. “We have about a month’s worth of inventory on the market right now and in some of the smaller towns like Plaistow, Atkinson and Hampstead, there are only one or two houses,” Alperin said. The cooldown in buyer demand has meant that homebuyers have the freedom to be a bit choosier. “If a house comes on the market and it is priced accurately, is in decent condition and is in a good area, it will sell pretty quickly, but if there are issues with the house, then it will stay on the market longer,” Alperin said.

Lake Tahoe, Calif.

Nestled in the Sierra Nevada Mountains, straddling the border of California and Nevada, Lake Tahoe is the epitome of picturesque. With pristine beaches, world-renowned ski resorts and breathtaking views it is no wonder why the area attracts scores of second-home and vacation property buyers. According to Alison Elder, a top-performing Berkshire Hathaway Home Services Drysdale Properties agent, Lake Tahoe’s status as primarily a second home market, to some extent, helps insulate it from major market swings. “About 80% of transactions are second home purchases,” Elder said. “The vast majority are lifestyle purchases, so that means that there is not a lot of variabilities.” This can be seen in the relative stability of the Altos Market Action Index score in El Dorado County, which has hovered between a reading of 43 and 36 since early July 2022.

Miami

Although housing markets across the country have slowed, including the market in Miami, local Compass agent Mike Martirena says prices are holding steady. “In the last 30 days or so inventory levels are down, but the selling price remains pretty stable,” he said. And the data supports Martirena’s assertion. According to data from Altos Research, since mid-August, the 90-day average median list price has only dropped roughly $20,000. In mid-February, the 90-day average median list price was $717,591. Martirena attributed the steady home prices to the low level of inventory compared to the number of buyers in the market. “I had one listing for a few months and then all of a sudden we got three offers within a week,” Martirena said. “The buyers have started coming back.”

Social media is inseparable from doing business in the housing industry today. HousingWire has collected some of the most-liked, most informative and must-read posts on all your favorite platforms, below. Follow your colleagues across the industry, and keep up with HW Media on Facebook, Instagram, Twitter, TikTok and Linkedin. Have a trending post you want us to feature? Reach out to us @HousingWire

Facebook: HousingWire

Instagram: @housingwire

LinkedIn: HousingWire

Twitter: @HousingWire

Tweets From The Streets

Keep it simple: you don't sell your house to be homeless; listings are primarily a net demand story, because that seller usually buys another home. Except for 2006-2011, forced credit sellers who couldn't buy. Looking at housing this way, it explains 1982-2023 perfectly 10 3

by @LoganMohtashami

Liked by miabliss miabliss and others Edit this description with your own text. #instag m #template #vec r #set olsendrake

olsend rake Geneva, Swiss

starl Your story miabliss onthemoon markfit

housingwire

housingwire On #HousingWireDaily editor-in-chief Sarah Wheeler talks with Courtenay Dunn.

housingclayton logan_mohtashami brena

What an incredible honor to speak at ICE Mortgage Technology's #EXP23. Everything about this conference was first class!

Dale Vermillion

Conor

"*checks the Sunday night @AltosResearch data update* Inventory of homes for sale dropped another 2.6% this week, now at the lowest level since June 17th...still no bottom in inventory and it's March. Just a broken Market."

Clayton Collins Founder and CEO HW Media

We've been helping connect professionals from the HW community with open roles in the industry over the last month. Big challenge is 50% of pros that have shared their info come from an underwriting, processing, operations or compliance background. And – which won't come as a surprise – there aren't a lot of open roles for folks looking to continue this career path.

Getting creative, what types of in-demand roles value underwriting and operations expertise? How should these industry professionals leverage their backgrounds to be successful in today's market?

Would love to hear your ideas and advice for candidates in market that suddenly need to reposition or reinvent themselves to meet the hiring needs of lenders, real estate firms and fintechs in housing.

Or better yet... who's hiring underwriters and operations or compliance experts?

@Katiesweeney_aime

Something tells me our 6th year will be our best one yet. Happy birthday, AIME!

Sen @conorsen

"The housing market is like a HotPocket taken out of the microwave too early. It's somewhat hot, but sort of frozen too."

Ryan Lundquist @SacAppraiser

Welcome to title and escrow 101

W hat you need to know for a successful real estate transaction

By Rachel Luna

Real estate transactions can be complicated, especially when it comes to titles and escrow. The home-buying process involves numerous steps, documents and parties that you have to work with.

As a professional in the industry with over twenty years of experience, I know that two of the most crucial aspects of any real estate transaction are title and escrow. So why are title and escrow so important?

Well, for starters, they protect everyone involved in the transaction.

Buyers, sellers and lenders all have a stake in the sale, and title and escrow ensure that everyone’s interests are protected. They also help to prevent fraud and ensure that the sale is conducted legally and ethically.

Another benefit of title and escrow is that they streamline the real estate transaction process. By having a neutral third party manage the transfer of funds and documents, the sale can be completed quickly and efficiently.

This is especially important in today’s fastpaced real estate market, where time is of the essence.

WHAT IS A TITLE IN THE CONTEXT OF REAL ESTATE?

In real estate, a title is a legal document that establishes ownership of a property or asset. It serves as physical evidence of your ownership rights to the property.

You can obtain a title through purchase, inheritance or other legal means. A title can take various forms and can be transferable.

WHAT IS THE ROLE OF AN ESCROW COMPANY?

The escrow company plays a critical role in any real estate transaction. They manage and oversee the entire process from the time a seller accepts an offer to the time the buyer takes possession of the property.

They are responsible for securing and managing all funds, instructions, documents, down payments and insurance policies involved in the transaction.

They ensure that all conditions of the sale have been met and manage the disbursement of funds at closing.

WHAT ARE THE TYPICAL STEPS INVOLVED IN THE TITLE AND ESCROW PROCESS?

Once an offer is made and the purchase agreement is completed, the escrow is opened.

Then, deposits and any other payments can be made.

The buyer must wait for bank approval, secure financing, complete inspections and perform last-minute walk-throughs to ensure all necessary documents and requirements are being processed.

The title process begins, including the preparation of title commitments or preliminary reports, other documents needed at closing and the clearing of any liens or encumbrances.

Once the title process results in a clear-to-close status, the escrow company creates a schedule of fees.

All the relevant documents must be signed and notarized, funds are disbursed and the documents are recorded both in the county and local recording offices.

Finally, the buyer takes possession of the property and the transaction is completed.

“Home equity is also the primary source of wealth for most Americans. Wealth can be used to start a business or educate children. According to the Federal Reserve, the median net worth for a homeowner is $254,900 compared to $6,270 for a renter.”

HOW DOES A TITLE SEARCH ENSURE THE PROPERTY IS BEING SOLD WITHOUT ANY LIENS OR ENCUMBRANCES?

It involves checking all public records and the history of the property to pull all relevant information and legal documents that can help find issues, defects, liens or encumbrances.

A clear title is crucial to ensure a seamless transaction, and a title search helps to address any potential issues before closing.

WHAT ARE SOME OF THE COMMON CHALLENGES THAT CAN ARISE DURING THE TITLE AND ESCROW PROCESS?

One of the most common issues that can arise during the title and escrow process is the discovery of unknown liens on the property. Escrow companies can address these issues by running a title search and pulling all relevant records.

In most cases, these issues can be resolved before closing, ensuring a successful transaction.

HOW HAS TECHNOLOGY IMPACTED THE TITLE AND ESCROW INDUSTRY?

Technology has disrupted the title and escrow industry in a positive way, making the process smoother and quicker.

Compared to the old-fashioned way of doing things, technology has allowed companies to educate clients and make them more aware of how technology can help them through the process.

WHY IS A CLEAR TITLE TRANSFER IMPORTANT FOR BOTH THE BUYER AND SELLER IN A REAL ESTATE TRANSACTION?

Having a clear title is essential in a real estate transaction. It means that the title does not have any issues or liens and is free of ownership.

It can make the entire process seamless and ensures that both the buyer and the seller have peace of mind.

In summary, title and escrow are vital components of any real estate transaction. As a real estate and title expert, it is essential to work with a reputable and experienced title and escrow company. Doing so can help ensure a smooth and successful closing process and can protect all parties involved in the transaction. Whether you are a buyer, seller or lender, the importance of title and escrow cannot be overstated.

So, when it comes to your next real estate transaction, make sure you have a trusted team of title and escrow experts by your side. Your investment depends on it.

Rachel Luna is the agency development manager of Patriot Title.

“Title and escrow are vital components of any real estate transaction. As a real estate and title expert, it is essential to work with a reputable and experienced title and escrow company.”

H ow will you spend the housing market postseason?

Invest in the right e-closing solution for your team

By Brandon Weiss

The first few weeks of the NFL postseason are one of my favorite times of the year in sports. The stats are all in, agents are making the case for their clients and teams are trying to determine whether coaching or player changes are needed to improve next season.

2023 is the equivalent of the postseason for the mortgage and title industries. Owners and managers are determining if they have the right leaders, employees and technology in place to run at a higher EBITDA once volume returns. And in a market that’s down 20-30% from 2008, the question is, how long can I operate with less overhead so I can recoup more of my losses?

ADDING ECLOSINGS TO YOUR ROSTER

As an eClosing technology vendor, our engagement with lenders and title companies has indicated that most are using this time wisely to reassess whether they’ve executed their technology strategy as planned. What we see most often is that if a company already has an eClosing strategy, they’re looking to fill the gaps rather than ditch tools they’ve already implemented. This approach of filling the gaps allows them to enhance their existing closing workflow to complete the strategy.

To me, it’s the equivalent of adding a blocking tight end with good hands to your roster when you already have a great quarterback and a wide receiver. As long as all three players mesh

the team will earn multiples on their investment.

Within the eClosing space, lenders and title companies are also considering how to make the best trifecta. They need a combination that provides their teams and consumers with the flexible choices they need for the closing. Statistics show over 81% of borrowers want to close in person, which can’t be solved with only one option.

Instead, having hybrid (electronically signing ancillary documents ahead of closing), remote online notarization (RON) and in-person electronic notarization (IPEN) solutions available are key to obtaining all the benefits of eClosings while providing consumers what they want — paperless choice. The good news is that with the right partner(s), it can be achieved seamlessly.

Seven years ago, eClosings were at an all-time low. eNotes were limited to a handful of lenders, and unique options like hybrids, remote online notarization (RON) and in-person electronic notarization (IPEN) were not part of everyday nomenclature within the community.

However, we saw a material uptick in eClosings once additional custodians, investors, Ginnie Mae and the Federal Home Loan Banks came to the table from 2017 to 2019. This resulted in some of the progressive lenders jumping in and testing different solutions. Consequently, more lenders and title companies have implemented new solutions for the electronic signing and notarization of loan documents. Today, those companies have 18-24 months of

“They need a combination that provides their teams and consumers with the flexible choices they need for the closing. Statistics show over 81% of borrowers want to close in person, which can’t be solved with only one option.”

“Accomplishing higher adoption numbers with the right fit of vendors is relatively easy. And if at any time, as a lender or title company, you feel like you need to have a separate eClosing team, question your roster of vendors because that shouldn’t be the case.”

statistics to analyze if the technology helped them fulfill their vision and strategy, including cost efficiency.

THE NUMBERS DON’T LIE

A peek into the results shows that lenders who focused on hybrid closings (signing of ancillary documents ahead of the closing day) have had varying degrees of success.

Those who make it part of their process and properly communicate with signors can hit numbers as high as 70% of their portfolio. Those who don’t make hybrid eClosing part of their process often get frustrated and either suffer from low adoption rates or drop the feature entirely.

For title and notarized documents, lenders who have worked with title companies and loan officers to use RON solutions have also had varying degrees of success. They reach numbers as high as 7% of their portfolio.

That leaves 93% of the portfolio with some aspects still wet-signed, unless the lender also allows for IPEN.

In cases where IPEN is used, adoption has reached as high as 80% of the lender’s portfolio, the remainder of which is still a paper-based process due to a private investor or state requirement.

What this shows is that having options is important, and finding eClosing solutions that can provide all three options (hybrid, IPEN and RON) is what lenders and title companies will need to address consumer demands.

Accomplishing higher adoption numbers with the right fit of vendors is relatively easy. And if at any time, as a lender or title company, you feel like you need to have a separate eClosing team, question your roster of vendors because that shouldn’t be the case. Equally important is the ease of separation, should the engagement not work out as planned.

Finally, if a vendor tells you connecting to another willing vendor can’t happen, take warning, because the goal for our company and other vendors is a seamless transition between options that is hands-off for lenders and title companies.

Whether you’re managing an entire company or a small team, use the off-season to your advantage and ensure that you can capture higher margins when the market returns. Technology designed to remove the last analog piece of the loan process is here to stay — now it is just about making sure you have the right team in place to win.

Brandon Weiss is the CEO and co-founder of EscrowTab.

hy we all have a stake in closing the minority homeownership gap

The homeownership rate for Black Americans stands at only 45.9%

By Gary Acosta

Most Americans believe that homeownership is the cornerstone of the American dream. Studies have shown the emotional and psychological benefits that homeownership has on a person’s health and self-esteem, and that children of homeowners do better in school and have fewer behavior problems.

Home equity is also the primary source of wealth for most Americans.

Wealth can be used to start a business or educate children. According to the Federal Reserve, the median net worth for a homeowner is $254,900 compared to $6,270 for a renter.

Homeowners also tend to be more active in their local communities and schools and are far more likely to vote than renters.

In January, the U.S. Census Bureau released the homeownership rates for 2022.

The overall U.S. homeownership rate stood at 65.8%, but broken down by race, whites have a 74.4% homeownership rate, Blacks are at 45.9% and Hispanics come in at 48.6%.

Despite efforts by some in the housing industry, the minority homeownership gap has barely improved in the last 30 years.

WHY IS THERE SUCH A LARGE GAP?

Before we can solve the problem, it is important to understand how we got here. Parts of the gap can be attributed to past discriminatory practices.

Other parts are due to the youth and financial status of minority families. After the 1930s, President Franklin D. Roosevelt enacted the. Federal Housing Administration (FHA) as part of the New Deal to provide small down payment home loans for working-class Americans.

The program helped a generation of Americans purchase their first home, however, due to a government policy known as “red-lining,” banks were effectively prohibited from issuing FHA-insured loans in neighborhoods that were predominantly Black or Hispanic.

In addition, some white neighborhoods had zoning laws that legally banned non-white buyers from owning homes in those neighborhoods. Between the launch of FHA in 1934 and when President Lyndon B. Johnson signed the Fair Housing Act in 1968, millions of mostly white families were able to take advantage of government programs to purchase homes and build wealth, while most minority families were legally excluded from having the same opportunities.

Today, white families have on average six to ten times more wealth than minority families. Much of this disparity can be traced to red-lining policies.

Age and income also account for part of the minority homeownership gap. The median age for Hispanic Americans is 30 years; a full 13 years younger than white Americans.

Blacks and Asians are also much younger than their white counterparts. Younger people earn less money and have less wealth, making homeownership more difficult. The relationship between age and homeownership is illustrated by the fact that the minority homeownership gap narrows when you control for age. For example, the homeownership rate for minorities over the age of 50 is still less than the homeownership rate for white Americans over 50, but the gap is smaller by 5 percentage points.

“Home equity is also the primary source of wealth for most Americans. Wealth can be used to start a business or educate children. According to the Federal Reserve, the median net worth for a homeowner is $254,900 compared to $6,270 for a renter.”

BECOMING A NATION OF STAKEHOLDERS

Anyone who has driven through a neighborhood made up of predominantly homeowners has probably recognized that there is a difference in the look and feel of that neighborhood compared to a predominantly renter neighborhood.

When families own their homes, they have roots in their neighborhood and have a financial and societal investment in the well-being of their community.

President George W. Bush spoke of the benefits of homeownership, noting the virtues of homeownership and homeowners’ inherent investment in the well-being of their community and the nation.

That is why the Bush administration endeavored to create 5.5 million new minority homeowners when the president launched the Blueprint for the American Dream in 2002.

The Blueprint was successful in creating more awareness about the challenges in minority homeownership, and it rallied the industry around its goals, but it didn’t have any money behind it. The outcome was mixed at best.

DEMOGRAPHIC SHIFTS WILL DRIVE HOMEOWNERSHIP

Americans are getting older. Every year a more significant percentage of the U.S. population advances to retirement age. Many soon-to-be retirees are planning on selling their homes to fund their retirement and move into something smaller for their later years.

They are counting on someone to buy their home at a fair price when they retire. Demographers estimate that by 2050, the U.S. population will become majority-minority.

The Urban Institute projects that over the next 20 years, homeownership growth in America will rely almost exclusively on Hispanic and Asian homebuyers. This means that the most likely buyer for many of these new retirees will be a minority family. However, if minority homeownership rates do not increase, the overall homeownership rate in America will plummet.

Lower homeownership rates mean there will be fewer buyers. Less demand for homes will cause home values to drop in many neighborhoods.

Falling home prices will not only make it more difficult for retirees but will impact existing homeowners that may want to purchase something larger or in a more desirable neighborhood.

THE RELATIONSHIP BETWEEN DIVERSITY, ECONOMIC GROWTH, HOUSING AND GDP

The housing market is large and varied. New construction, resales, refinances and home improvements account for approximately 16% of the U.S. GDP, roughly $3 trillion. When the housing market crashed in 2008, it almost took the entire global economy down with it. Conversely, while the country was shut down during the COVID-19 pandemic, it was the strength of the housing market that prevented the country from falling into a massive recession.

For decades, the U.S. commitment to homeownership has been the envy of the world, but today’s access to homeownership is more challenging. Decades ago, U.S. Policymakers correctly recognized homeownership as the gateway to the middle class.

As the country and workforce become even more ethnically diverse, economic growth and the overall prosperity of our nation will be fundamentally connected to our continued ability to facilitate homeownership opportunities for future generations of working-class Americans.

Gary Acosta is the co-founder and CEO of National Association of Hispanic Real Estate Professionals.

he future of digital workflows combines flexibility with personalization

Technology adoption for the sake of modernization is not the answer

By Angel Hernandez

For those in the mortgage space, there are a myriad of technology solutions claiming to help streamline lending operations and improve efficiency.

These workflows help title and settlement companies track how data and decisions flow from initiation to outcome. Yet, somewhere along the steady stream of tasks, we’ve lost the personalized touch.

When investing in a technology that someone else designed to automate workflows, it’s important to ask — how do I make this workflow work for me?

Workflows are slightly different for most title and settlement companies since each has underlying processes and specific needs. That’s why the key is in implementing a platform that’s flexible enough to handle each unique need so you can maximize your offerings — your flow. After all, technology should serve the experts and work for them, not force the experts to change their processes to fit a predetermined workflow.

stage in the process is as unique as the people who run it, their skill sets and the customers they serve. Although they are working toward the same goal, there are differences between the services they provide and the resources they use.

“Title and settlement companies have

manage multiple systems across two industries

lenders’ closing portals and title underwriters’ title production systems. The technology they use should complement their processes and optimize what they do, not replace the expertise they have spent decades building and developing.”

Title and settlement companies have to manage multiple systems across two industries — lenders’ closing portals and title underwriters’ title production systems. The technology they use should complement their processes and optimize what they do, not replace the expertise they have spent decades building and developing.

When title and settlement providers leverage a workflow that supplements their expertise, they strengthen their existing domain knowledge in things like assessing risk, answering customers’ questions, addressing title policy creation and complying with complex regulations.

DIGITAL WORKFLOWS SHOULD SUPPLEMENT EXPERTISE, NOT REPLACE IT

This obsession with workflows revolves so much around what the technology can do, that we forget the real reason why the technology was built and who it was designed to serve in the first place.

Lenders and title and settlement providers are trying to reach the same outcome — a frictionless mortgage closing process. Each

IMPROVING RELATIONSHIPS, NOT JUST PROCESSES, FOR A BETTER OVERALL LENDING EXPERIENCE

Workflow optimization should translate to “making my day better” or “making my work better,” and yet, it does not always make personal relationships or business relationships stronger.

For the technology to improve relationships with referral partners and consumers alike, the tech design must be superior to analog or manual processes in every way possible.

In the mortgage space, the adoption of new technologies can

to

—

have a significant impact with several benefits, such as faster processing, increased accuracy, improved security and cost savings.

By leveraging these benefits, title and settlement providers can offer a better experience for borrowers, which ultimately leads to more satisfied customer relationships and increased business success.

For title and settlement providers, the COVID-19 pandemic showed us how remote tools can enable business continuity. It wasn’t just about how to tackle the process remotely but how the technology can create a remote session that’s frictionless, easy and enables the end consumer to walk away with that personal touch.

This is where “workflows” come into play in a meaningful way. The problem is not “the process” the way many vendors imply — the problem is prescriptive technology. If the tech is easy to use, it will be adopted.

Even if only a few in the office are adopting a new way of getting things done, that means more flexibility and additional reach to more consumers. Ensuring that the use of technology in workflows is available, intuitive and smooth for all users will lead to a better overall lending experience.

THE FUTURE OF DIGITAL MORTGAGE IS DELEGATION

Title and settlement agents are in the business of people. Adopting a digital solution that’s amendable to an existing process and is easy to use makes experts more effective.

In short, title and settlement companies can serve their customers in newer, better ways. Delegate to technology to unlock the freedom

to do more of what title and settlement professionals do best.

That flexibility allows different teams to tailor their workflows to their unique needs and preferences, improving collaboration and productivity.

It can also integrate with other systems and applications, which helps the business improve efficiency, boost collaboration, reduce delays and achieve better results overall.

The technology used to enhance a workflow should be one that provides flexibility. It should allow the consumer to accentuate the opportunities in their operations and not simply be a solution that offers rigid business processes just for the sake of technology adoption.

The promise of technology is that it should adapt to you and enhance your way of doing things. When mortgage professionals choose a customizable digital solution, it creates a frictionless mortgage closing process for all.

It helps title and settlement companies drive digital transformation, not just for the sake of adopting a more modern solution, but for creating better operational efficiency and deal capacity. Deliver a seamless customer experience in a workflow that works for you, so you can get back to what matters most: people.

Angel Hernandez, head of industry and regulatory affairs at Stavvy.

“The problem is not ‘the process’ the way many vendors imply — the problem is prescriptive technology..”

2023 HW TECH100 winners

It’s all about the data

By Sarah Wheeler and Tracey Velt

Mortgage

Today’s HW TECH100 Mortgage winners are creating technology solutions to increase efficiencies in the mortgage lending process and reduce costs for both businesses and consumers.

By Sarah Wheeler

The 2023 HW TECH100 awards recognize the outstanding technology companies serving businesses in real estate and mortgage as they grappled with the fallout of a volatile mortgage rate environment over the last year.

In January 2022, mortgage rates for 30-year fixed loans were at 3.22%; by October they had run all the way up to 7.08%. That incredible velocity shut off refinance demand and squeezed homebuyers, forcing companies to adjust rapidly. It also made technology more important than ever.

This year’s Tech100 winners rose to the occasion, providing everything the housing industry needed to do more with less.

The Tech100 Mortgage Award recognizes the companies and solutions that are revolutionizing the mortgage process — from origination to closing and servicing to secondary markets.

The Tech100 winners are a mix of industry stalwarts like DocMagic or Freddie Mac and newer players like Denim Social and Househappy that are ready to grow their market share. Artificial intelligence and machine learning continue to drive innovations throughout the housing ecosystem and raise expectations for what’s next.

A common theme amongst these companies is their all-in-one platform solution. Previous years have given mortgage professionals dozens of options when it comes to their company’s technology adoptions.

But now, the need for technology solutions that work seamlessly together — or for all-in-one solutions like the platform from ARIVE — is driving tech innovation in mortgage. Technology should be about increasing convenience and disparate systems have proved to be anything but.

Whether it was generating digital floor plans or providing a seamless upload process to investors, mortgage companies relied on the expertise of tech providers and their solutions to survive this difficult housing cycle. These first-class organizations prioritized technology solutions both for consumers and for companies as well.

After all, a seamless mortgage application and management process is just as important for the homebuyer as it is for the rest of the team working with them, like title and real estate professionals.

Companies like FICS provide an inhouse mortgage origination software, NotaryCam offers fully online closings and Qualia’s platform is automating manual tasks so mortgage professionals can spend more time on the things that matter most.

We are so proud to celebrate these companies and the dozens more on the Tech100 list for the critical part they play across the housing industry spectrum.

Real Estate

Today’s HW TECH100 Real Estate winners heavily rely on providing insights and information to allow real estate professionals and brokers to better communicate with consumers.

By Tracey Velt

Many of this year’s HW TECH100 Real Estate winners have this in common: mounds of data and the ability to present that data in a way to help real estate brokers and agents be more efficient, recruit more effectively and highlight their local market expertise.

Years ago, when Zillow and Realtor.com hit the industry, real estate professionals worried that the consumer would no longer have a need for the agent, as all the information they need is now accessible. Of course, that didn’t happen, because the real estate agent doesn’t just show properties. They are connectors, negotiators, hand holders and market experts.

And, the technology that is available helps them more than ever before. Local market statistics, climate data, neighborhood data, public records and more are available through such TECH100 winners as Altos Research, ATTOM, TRIBUS, Bright MLS, CAPE Analytics, CoreLogic, DataTrace, First American Data & Analytics, Redfin and Voxtur Analytics, to name just a few.

But, these companies are putting this data into digestible, presentable graphics and presentations to make the job of the real estate agent easier.

No longer is data a nebulous concept that agents are forced to figure out. Now, it’s packaged for consumer consumption in ways that are clear, concise and uncomplicated.

In addition to the data companies, the tried and true stalwarts of CRM, back office, transaction management and lead generation continue to innovate to offer real estate agents and brokers efficiencies.

Constellation1, Lone Wolf Technologies, Percy, Chime Technologies, Zillow Premier Agent, ShowingTime+, Wise Agent and Inside Real Estate are just a few of the HousingWire TECH100 Real Estate winners that continue to evolve their products and services to meet the ever-changing needs of the real estate industry.

And, while the primary business of real estate brokerage is home sales, most have built robust technology platforms that help retain agents in this highly competitive market.

Anywhere, Compass, eXp Realty, @Properties, Keller Williams Realty International, The Real Brokerage and The Corcoran Group and others have spent billions of dollars combined into building out technology platforms to boost their value proposition and attract new real estate agents.

One thing is certain when looking at this list of notables; real estate technology is still in its infancy and markets like today will only provide the impetus to continue to innovate and offer new products and services.

2023

MORTGAGE

a360inc

ACES Quality Management

ActiveComply

Agile Trading Technologies

ARIVE

Ascent Software Group

Aspen Grove Solutions

Asurity

Avanze Tech Labs

BeSmartee

Black Knight

Blend

Blue Sage Solutions

Candor Technology

Canopy Mortgage

Celink

Clarifire

Clear Capital

Cloudvirga

Cogent QC Systems

Constellation Mortgage Solutions

CoreLogic

Covius

CreditXpert

Denim Social

DocMagic

Docutech

EarnUp

Evocalize

Evolve Mortgage Services

Fairway Independent

Mortgage Corp.

FICS

First American Data & Analytics

FirstClose

Flueid

FormFree

Freddie Mac

Guaranteed Rate

Haven Servicing

Homebot

Househappy

ICE Mortgage Technology

Incenter

Indecomm

Insellerate

Land Gorilla

LauraMac

Lender Price

LenderLogix

LERETA

LoanCare

LoanLogics

LoanNEX

Matic Insurance

MAXEX

Maxwell

MeridianLink

MISMO

MMI

MonitorBase

Mortgage Capital Trading

Mr. Cooper

MyHome

NotoryCam

OpenClose

Opteon

OptiFunder

Optimal Blue, a division of Black Knight

Paradatec

Pennymac

Polly

QC Ally

Qualia

RealKey

Reggora

RiskSpan

Rook Capital

Roostify

Sagent

TrustEngine

ServiceLink

SimpleNexus

SitusAMC

Snapdocs

Stavvy

Sun West Mortgage Inc

Tavant

Total Expert

Truework

TRUE

United Wholesale Mortgage

Usherpa

Valon

ValueLink Software

Verisk Marketing Solutions

Veros Real Estate Solutions

Willow Servicing

Wolters Kluwer

Xactus

ZigSig

@properties

Agent Image

Altos Research

Amrock

Anywhere

Arx City

ATTOM

Avenue One

Back At You

BatchService

Beekin

BidMyListing

Bilt Rewards

BoomTown

Bright MLS

Brivo

Buffini & Company

CAPE Analytics

Cecilian Partners

CertifID

Chime Technologies

Cinc

Compass

Constellation1

CoreLogic

REAL ESTATE 100 TEC

2023

CubiCasa

Curbio

DataTrace

Doma

Earnnest

Endpoint

Equator

Evocalize

eXp Realty

First American Data & Analytics

Florida Realtors

FormSimplicity

FoxyAI

FundingShield

Happy Grasshopper

Homebot

homegenius

HomeLight

Hometap

HouseCanary

Househappy

Hubzu

ImagineX

Inside Real Estate

Keeping Current Matters

Keller Williams Realty

International

Kiavi

London Computer Systems

Lone Wolf Technologies

Luxury Presence

Market Leader

Milestones

MoxiWorks

Mynd

Notarize

Obie

OJO

Orchard

PayProp

Percy

Plunk

PropertyBase

PropStream

PunchListUSA

Qualia

Quantarium

Real Estate Webmasters

REAL Messenger

Redfin

Rently

RentSpree

Revive

Rocket Homes

Roof

Roofstock

Sailbridge

ShowingTime+

SmartRent

Spruce

Tavant

Tech Helpline

The Corcoran Group

The Real Brokerage

Tongo

TRIBUS

True Footage

TurboTenant

USHERPA

VirtualStagingAI

Voxtur Analytics

William Raveis

Wise Agent

Xome

Zillow Premier Agent

Zoodealio

Zurple

An inside look at the latest trends in title and escrow, featuring the 2023 TECH100 winners

Data Trace, Qualia, ServiceLink and Stavvy leaders share their insights

By Audrey Lee

The theme of the April/May issue of HousingWire magazine is “title and escrow.” In this issue, we are celebrating and illuminating the work that goes into the title industry. Clear and fair property rights are often taken for granted by U.S. homebuyers and sellers. In reality, there is hard work going on behind the scenes to ensure property rights are maintained. That work is tirelessly done by title companies.

There are many changes coming to the title industry. From the new opportunities in remote closings to an aging workforce, change is on the horizon. The HW TECH100 winners we spoke to below can feel these changes acutely. These leaders are excited for the future of title, and they continue to be passionate about their work in protecting homeowners’ rights.

Nate Baker, CEO, Qualia

HousingWire: As a 2023 HW TECH100 winner, what are you most proud of Qualia for achieving?

Nate Baker: Qualia has addressed the problem of each transaction party’s individualized, siloed and disconnected software systems by building a set of modern, cloud-based title, escrow and closing solutions for each transaction party.

Our team has worked tirelessly to develop a technology infrastructure that streamlines the closing process while providing a differentiated level of connectivity between everyone involved. This shared technology infrastructure enables each of these parties to not only complete their unique tasks required for the closing, but also exchange common transaction information in real-time, standardize and automate back-and-forth workflows, and collaborate with one another in a way that was not possible before.

I’m proud of the progress we’ve made toward making the real estate transaction a simple, secure and enjoyable experience, and I look forward to continuing on that journey alongside our customers and partners.

HW: Which trends in the title industry are you most excited about?

NB: I’m excited about the future of what we’ve identified as the “connected transaction.” It’s in large part why we started Qualia almost a decade ago.

Despite all the new technology that has come to market in the last 10-20 years, transaction costs continue to rise, and consumers still find the closing process to be one of the most challenging parts of their home-buying experience. They are increasingly demanding some form of digital closing that takes them from contract signing all the way through their final settlement. Homebuyers hold their lenders and real estate agents accountable for poor transaction experiences, causing those professionals to seek reliable, tech-forward closing partners.

As a result, over the last few years, companies have worked to further integrate title solutions into their offerings. What companies are learning as they go down the path of working more closely with title, however, is that pulling together an end-to-end closing experience is a lot more challenging than they thought it would be.

I look forward to further supporting the industry in moving toward the goal of standardizing how we operate together and automating many of the complex workflows that previously stood in the way of a seamless end-to-end transaction.

HW: What are the biggest challenges facing the title industry today?

NB: To remain competitive in today’s market, title companies must balance improving the efficiency of their operations, while still providing exceptional customer service. Achieving this balance is not easy, especially when faced with increased pressure on margins.

At the end of the day, closings can only be as efficient as information can be securely and accurately exchanged and acted upon between a title and escrow company and its partners. It’s historically been challenging for transaction parties to communicate efficiently because each party generally works in its own siloed systems that require a high degree of manual effort to work together. These workflow silos slow down the transaction process and increase the risk of making mistakes. The time spent by each party in a real estate transaction waiting for information from another party, then inputting it, parsing

it or validating it creates detrimental workflow downtime.

HW: What advice would you give to the next generation of title professionals?

NB: Find ways to simplify your processes. Many companies we talk with share some form of the same sentiment that the complexity they’ve built into their systems is their competitive differentiator. That was true historically. The transaction is certainly complex.

While that traditional way of operating may have met a title and escrow operation’s needs for a period, over time maintaining, updating and optimizing such a schema of tasks, workflows and automations can become rather untenable. Such an accumulation of workflow debt can hinder agents from scaling their operations to cater to new markets, process novel transaction types or cater to a diverse client set.

Additionally, it also makes it challenging for the title agent’s transaction partners to easily interact and build workflows in coordination with them in a consistent and scalable way. As title professionals focus on driving toward a more streamlined, automated and connected transaction, we are starting to see simplicity becoming a competitive differentiator.

HW: In your opinion, what is the next frontier in technology for the title industry?

NB: I see the industry heading toward a much more connected transaction. A connected transaction is one that can be structured and delivered end-to-end, taking into account the work of all parties that orchestrate the closing for the consumer. This means not only automating many complex workflows for title and escrow companies but also automating the dependent workflows of their transaction partners so they experience the benefits as well. This is actually the path we’ve been on. It’s exciting to be at this inflection point in the journey as these pieces now all come together.

“At the end of the day, closings can only be as efficient as information can be securely and accurately exchanged and acted upon.”

- Nate Baker

“I look forward to further supporting the industry in moving toward the goal of standardizing how we operate together and automating many of the complex workflows.”

- Nate Baker

Barry Coffin, managing director of origination, title and close, ServiceLink

HousingWire: As a 2023 HW TECH100 winner, what are you most proud of Servicelink for achieving?

Barry Coffin: I am most proud of ServiceLink’s commitm ent to innovation and the efficiencies we have been able to create via our EXOS® Technologies product line. With the decrease in refinance volume, lenders have had the opportunity to re-group and work through how they can create efficiencies in their origination process, with improved turn times and cost reduction top-of-mind.

That’s where we come in. We have been able to reduce the turn times for lenders leveraging our EXOS® Valuations scheduling feature by an average of 50% when compared to traditional methods. This feature empowers borrowers to self-schedule the exact date and time of their appraisal appointment, increasing transparency and satisfaction in the process. Self-scheduling also extends to the closing process with EXOS® Close, giving consumers the option to schedule their closing appointment. Lenders utilizing the consumer scheduling feature within the EXOS Close platform have reported a three-day reduction in their closing timeline. Lastly, EXOS® Title and notouch CD has been a game changer for our lender clients from a pipeline prioritization standpoint. By analyzing multiple data points, EXOS Title can determine expected title completion and clear-to-close readiness within five seconds on 100% of all title orders. With EXOS no-

touch CD incorporated into the title workflow, additional manual processes in the loan closing lifecycle are now automated, reducing the time and effort required for data preparation, reducing cycle times and improving quality. I am proud of all we’ve accomplished, but we never rest on our laurels.

HW: Which trends in the title industry are you most excited about?

BC: I am most excited about the title industry’s focus on improving speed and accuracy via automated title solutions and expanding access to new data sources. I am encouraged by the concerted effort of the title industry to automate the title process. For title providers working with lenders, our goal is to never be a stumbling block in their process. That’s why so many providers are committed to growing their tech offerings and digitizing the process so lenders can get to the closing table faster and pass on those efficiencies to their borrowers. It’s great to see this commitment to innovation and speed across the board. Additionally, improving data quality and striving for title grade data is another way we can all improve upon quality while still meeting underwriting requirements for each of the different types of title products being offered.

HW: What are the biggest challenges facing the title industry today?

BC: Combatting fraud and ensuring customer information is secure are two challenges that the industry is laser-focused on — and rightfully so. As someone who has been in the industry for almost three decades, I’ve seen it all — from fraudsters trying to sell abandoned properties or take out a mortgage on properties they don’t own, to wire fraud and phishing scams.

“Combatting fraud and ensuring customer information is secure are two challenges that the industry is laser-focused on.”

- Barry Coffin

Everyone must be on high alert and do their due diligence to combat these issues from both an internal and external standpoint. In addition, we are seeing an increase in system hacking that has impacted multiple players in the title space.

A lender’s best defense to combatting fraud is to make sure they partner with title providers who have the proper controls and data security measures in place so that fraudsters don’t stand a chance.

HW: What advice would you give to the next generation of title professionals?

BC: Continue to think outside of the box and consider how you can improve upon legacy systems and processes. With the title industry’s focus on digitization, the next generation can influence a lot of positive change and continue to build upon modernization efforts. I’d tell them don’t be afraid to speak up and strategize new ways of doing old things.

For example, the title insurance perspective hasn’t really changed over the years, but the way it’s fulfilled can always be improved upon.

The title industry is ripe with opportunity, but the onus also lies with current industry professionals to promote the profession to the next generation and get it on their radar in the first place.

HW: In your opinion, what is the next frontier in technology for the title industry?

BC: The title industry will continue to digitize and automate its processes to reduce the time and cost of producing a loan while improving the borrower experience. Automated title is going to remain top-of-mind.

Speeding up title delivery to a matter of seconds and minutes as opposed to hours or days will be the gold standard everyone will continue to strive for, particularly in the home equity space where cost-cutting measures are crucial as lenders shoulder a good portion of the fees.

Additional innovations will focus on eliminating or reducing lenders’ title review processes through automated curative practices and improving closing document quality through automated pre- and post-close reviews. Automating pre-close reviews will create a smoother closing through early detection of potential issues, while postclose reviews will allow for faster recording, funding and sale of loans.

This will all be industry table stakes in the near future and those who are preparing now will be the ones who win.

Kosta Ligris, CEO, Stavvy

HousingWire: As a 2023 HW TECH100 winner, what are you most proud of Stavvy for achieving?

Kosta Ligris: Home loan transactions are notoriously complex and arduous. With a multitude of parties involved, including lenders, title agents, borrowers, buyers, notaries and more, navigating the necessary paperwork and legal issues can be a daunting task.

I am proud that Stavvy is at the forefront of innovation in the mortgage industry and offers solutions that can conform to existing loan and origination workflows while elevating the customer experience.

“The title industry will continue to digitize and automate its processes to reduce the time and cost of producing a loan while improving the borrower experience.”

- Barry Coffin

With Stavvy, tasks that used to take several hours can now be completed in minutes.

HW: Which trends in the title industry are you most excited about?

KL: The title industry is undergoing an exciting transformation. One trend that we are particularly excited about is the rapid adoption of remote online notarization (RON). When RON and eSign are available everywhere, we can expect a dramatic increase in digital adoption, streamlining the closing process and enhancing the customer experience.

In addition to RON, we are also seeing a surge in eNote adoption and hybrid eClosing. Hybrid eClosing offers time and cost savings, and it paves the way for full eClosing with RON or in-person electronic notarization (IPEN), making future implementation easier to tackle.

Title and settlement companies, facing a competitive market and smaller transaction pool, are seeking ways to increase efficiency and profitability.

RON/eClosing tools offer a solution for them by enabling wider jurisdictional coverage, faster transaction closure and increased unit profitability and flexibility. We are excited to be at the forefront of this transformation and look forward to continuing to innovate and lead the industry forward.

HW: What are the biggest challenges facing the title industry today?

KL: Increased complexity of the regulatory environment in compliance with state and federal regulations. Title and settlement organizations keeping pace and adopting new processes to keep up with consumer digital closing preferences.

And, digitization bringing new security and privacy concerns, such as protecting against cyber attacks, title fraud

and data breaches and ensuring compliance with data protection laws.

HW: What advice would you give to the next generation of title professionals?

KL: Focus on optimizing operations to succeed, no matter the economic climate. This means embracing new eClosing features such as RON to increase efficiency, cover larger jurisdictional areas and benefit from higher profitability and flexibility.

The title industry is rapidly evolving, and it’s essential for professionals to stay up to date with the latest trends and technologies. This includes investing in ongoing education and training to develop expertise in RON, eClosing and other digital tools. With a focus on optimization, title professionals can provide exceptional service, build customer relationships and ultimately set themselves apart from competitors.

Success in the title industry requires a balance of technical skills and customer-centric values. Whether there is an uptick or a downturn in the market, having the technology to help you manage workflows and focus on customer experience will set you and your business up for success.

HW: In your opinion, what is the next frontier in technology for the title industry?

KL: As with most industries, the use of artificial intelligence (AI) and machine learning (ML) can potentially make a big splash in the title industry. It can be used to improve the efficiency and accuracy of title search, underwriting and document management processes.

Additionally, it automates many routine tasks such as data entry, freeing title professionals to focus on high-value work. However, any new technology has challenges and risks to consider. For example, ensuring the accuracy and quality of data used can seriously impact errors and efficiency.

Overall, there is great potential for AI and ML to integrate into the digitization of the title industry to speed up turnaround times, reduce costs, and improve customer satisfaction.

Robert Karraa, President, DataTrace

HousingWire: As a 2023 HW TECH100 winner, what are you most proud of DataTrace for achieving?

Robert Karraa: I’m most proud of DataTrace’s support of digital transformations in the title and settlement industry and our sustained industry leadership in the breadth and depth of our title plant information.

DataTrace continues to be at the forefront of automation and digitization with our TitleIQTM Search Automation and TitleIQTM enterprise products. These solutions allow our customers to automate a significant portion of their title search and exam work.

We continue to innovate and have now complemented our product line of new tax products, market share data and customer acquisition products.

“Digitization is bringing new security and privacy concerns, such as protecting aginst cyber attacks, title fraud and data breaches.”

- Kosta Ligris

HousingWire: What trends in the title industry are you most excited about?

RK: I’m excited about the convergence of big data and technology — and how that will benefit our customers — as well as how that combination will help accelerate the real estate transaction process. As the industry rapidly adopts automation, our leadership in title plant data, information and proprietary technologies can help our customers make real estate transactions faster and more convenient. I’m excited to see where we take this.

HW: What are the biggest challenges facing the title industry today?

RK: We’re in a difficult market. Title companies must be inventive and agile to compete successfully for new business and manage their day-to-day operations. It is important to focus on managing staffing levels, while maintaining domain expertise. That can be a critical differentiator in this market, but that expertise must be balanced with actively sourcing new business and streams of revenue for the most success. With our long history and deep industry expertise, we understand those key drivers and we design our products and services to help our customers succeed with those imperatives.

HW: What advice would you give to the next generation of title professionals?

RK: The industry has really made a concerted effort to enhance its use of data, technology and automation. The

opportunities to build on this foundation are exciting, and the next generation of professionals can further accelerate this innovation so that title, ultimately, becomes a truly digital industry.

At DataTrace, we have helped our customers find simple solutions to quickly adopt new technologies and tap the benefits of our industry-leading data assets. I would charge the next generation to continue helping our customers realize a more digital future and, in turn, a more digital real estate transaction.

HW: In your opinion, what is the next frontier in technology for the title industry?

RK: Well, I’ve already asked my head of product where my ChatGPT title search is.

Jokes aside, we will continue to aggressively leverage and further enhance our industry-leading data and automation technologies to help title and settlement companies streamline their processes, gain competitive intelligence and drive growth.

“Title companies must be inventive and agile to compete successfully for new business and manage their day-to-day operations.”

-Robert Karraa

Todd Carpenter on how CoStar and Move, Inc. deal impacts the larger real estate industry

By Audrey Lee, Clayton Collins and Todd Carpenter

This conversation was originally recorded as a part of the HousingNews podcast series. To listen to the full conversation, scan the QR code below.

Clayton Collins: Hey, folks, this is Clayton Collins, CEO at HW Media. I’ve been asking several of my team members, “Hey, who should I talk to about X?” “Who should I talk to about Y?” “Who’s knowledgeable about this potential CoStar and Move, Inc. acquisition?”

Multiple people pointed me to Todd Carpenter. I’m thrilled today to welcome Todd Carpenter as many of you might follow his blog: Todd.re. He has a storied and successful career in real estate technology. Previously, he was a wholesale mortgage account executive. Todd understands mortgage tech in the trends and adoption and the investment cycle better than almost anybody I have ever spoken with.

In today’s episode, we talk about artificial intelligence (AI) and ChatGPT. We also talk about this potential — and rumored — deal that NewsCorp may sell Move, Inc. to CoStar, and how that impacts real estate agents in the brokerage industry. We talk about some of Todd’s writing on technology trends that he’s seen over the years in proptech and in real estate.

I hope you enjoy today’s episode with Todd Carpenter.

Clayton Collins: Todd, thank you for joining me for an episode of Housing News.

Todd Carpenter: Happy to be here.

CC: I was talking with Mike Simonson, president of Altos Research at HW, and I asked, “Who do you think will be able to answer this question for me,” or “Who knows a lot about this?” Your name just kept coming up. So, I’m thrilled to finally get the chance to make introductions and dive into some relevant news topics with you. I also feel like I still need to learn why Mike [Simonsen] has recommended that I meet you and that you’re the expert.

So, I know that most recently you were the director of strategic investments at NAR, and I know you have a long, successful career in the housing mortgage, real estate and tech ecosystem. Can you tell me what you were doing most recently — leading investments — and then we can go into your career path and how you built this level of expertise?

TC: I worked in three different positions while I worked for the National Association of Realtors (NAR). The most recent position was when Bob Gilbert took over as CEO. He established a whole new role, now it’s an entire division, that specializes in building relationships with other businesses. So, the group manages the Realtor benefits program and their relationship with Hewlett Packard and other fortune 500 companies. It also includes their store. And then Second-Century Ventures (SCV), which is a wholly-owned subsidiary of NAR that they started during their second century — that’s why it’s called Second Century Ventures. In particular, this division created an accelerator program called Reach.

It started over 10 years ago, there were about eight companies a year for several years. We grew it out to have a special commercial class, a class in Canada, in Australia and in the U.K. So now, there have been hundreds of proptech companies that have now gone through this program. It’s a pretty cool network. And over that time, I helped introduce these proptech founders to mentors, strategic brokerages and association executives. These contacts helped give the founders strategic advice about the politics of NAR. They provided context to these things that don’t necessarily make sense to an outsider, and they explained how to navigate through that. I’m very proud of that work. It was really good.

CC: I feel like there’s a lot about the politics that I still don’t understand, so I am excited to better understand that. Tell me more about SCV. When did that venture arm start? And, what was the mission or the mandate out of the gate?

TC: I believe SCV started around 2008. I had first come to NAR to help them with their social media strategy. Today that sounds sort of silly, right? But in 2009, the idea that members could talk online and voice their displeasure was very foreign to this organization that was used to being the

voice of real estate. So a lot of it was more about strategy — how to respond, what to say and when to say it — rather than posting online or something like that. At the same time, NAR had created this venture capital firm. It was led by Constance Friedman, who now runs Modern Ventures. We connected because I was really paying a lot of attention to the different technology companies that were emerging, along with social media. For the first year, she would ask me for introductions to someone. By the second year, everyone kind of figured out what SCV was, and then all these other people were asking me for introductions to Constance. So it was fun to watch SCV rise up.

One of the earliest investments was DocuSign. That was a huge deal. It took over a decade for that company to finally IPO. But man, what a great relationship that turned into. DocuSign became a benefits partner, they built stuff specifically for real estate, all because of that investment. And now, members have a really great tool. SCV made a really awesome investment in them that helped fund all their growth.

CC: So would you consider it a dual mandate strategy that combines profitability with investments — like buying in on the right deals — with bringing benefit to the NAR members by supporting the right technology in getting off the ground?

TC: Yes. When we would go in and evaluate companies, there were a couple of things that we would look at that would be different than a pure venture capital firm, one that had no relation to NAR. The first would be, is this product something that will be a net benefit to real estate agents? The second would be, partnering with technology companies as opposed to competing with them or being adversaries of them.

Think about all the drama with Zillow and Trulia and all these early risers. It almost felt like NAR was at odds with companies like Redfin and Zillow. Whereas today, I think the CEO really wants NAR to be aligned with them. If you’re helping this proptech company that’s just starting out, or just getting traction, to do things in a way that is both beneficial to them and to the real estate industry, then you are all in the same tent. I think that’s the other really important part.

CC: The narrative of technology disrupting the agent or disrupting the loan originator has been a long narrative throughout the use of technology in our ecosystem. To date, investors would have been much more successful betting on the technologies that aid the frontline folks — agents and loan originators — versus the technologies that disrupt the job category. Do you think that’s a theme that plays out in the next run of innovation in our ecosystem?

TC: Yes. If you think about it, 30 years ago there was this famous speech by the NAR president, BIll Chee, it was called, “The Lions Over the Hill.” I think you can still Google it.

The idea was that there was a big, bad monster— at the time they thought it was Microsoft — over the hill. It was a ‘lion over the hill’ about to destroy us all. They thought that some company was going to come along and do to real estate what Travelocity and Expedia did to travel agents. The difference is, booking a flight is a whole lot easier than selling a house. The speech was this call to action to start putting listings online, which was very controversial at the time. People wanted to guard all the listings and have agents be the gatekeepers of those listings instead of like the shepherds of those listings. But they did it and they started getting online listings off the ground. That’s sort of how Realtor.com eventually evolved. According to NAR surveys today, far more people will credit the internet for the place where they found their home, as opposed to crediting the real estate agent. But more people are using real estate agents today than before the internet. They still need that real estate agent for expert advice, negotiation and all those other things. Often it’s the real estate agents providing all this cool tech to the buyers and sellers, to help them find that home. Maybe Microsoft was going to come along and build something to compete in real estate, but with real estate agents working together and embracing the tech field, they’ve built something good enough to stave all that off.

CC: So you’re unique in that you’ve represented Realtors as being part of NAR, but you’ve also spent time at what was once perceived as a potential disruptor, Trulia. How does that background of working both for technology companies, and your other experience — like you’ve originated loans before and worked on the mortgage side — influence the way that you lead your career, social media and investment work with NAR and SCV?

TC: It’s funny because I’ve never actually been a real estate agent. I’ve always been basically selling to real estate agents or networking with real estate agents. So in some ways, being a loan officer isn’t that much different than what I do today. You’re still trying to get deals from real estate agents one way or another. When I was in the mortgage industry, I transitioned to wholesale mortgage pretty quickly after joining, and I started really young. I actually originated my first loan when I was 20. In Colorado, you didn’t have to be licensed at the time. So crazy times. I refinanced someone’s mortgage down to 9%. I was working for a company called Washtenaw Mortgage out of Ann Arbor, Michigan. The company had this new tool, this brand-new technology called ‘Desktop Underwriter.’ It sounds so silly now, but at the time, the way that I differentiated myself was to go out and train mortgage brokers and their people on using a desktop underwriter. That’s how I got my business. I developed a tech angle from there. It was the only thing I had. I hadn’t really thought of myself as a technology person. I eventually went to work for a company called Meyer’s Internet in San Jose. That company built websites and sold leads through

BestRate.com and LoanApp.com. Warren Meyer swore he was the very first person to ever originate a loan online. He’s probably right. So that experience gave me that technology base.

When I went back into wholesale, I thought that having a blog would be a cool way to talk to the 30 different clients that I had. So, I created it. Suddenly thousands of people were reading this blog. Only a mortgage broker would ever know what content loan officers need. It’s not exactly exciting to the rest of the world. And suddenly, I became a social media expert, because I started this blog early on.

CC: What was the blog called at the time?

TC: It was called Lenderama.com. Someone bought it and then someone else bought it. It sat there for like 15 years not doing anything, so it kind of depresses me if I go to the site now because it’s just like a placeholder.

CC: That’s a similar timeframe to when the HousingWire founder, Paul Jackson, started blogging back in 2006 or 2007.

TC: I started in 2005. So, it was very early on. I watched what happened in the election between Kerry and Bush. When these bloggers took down CBS News. I’m not very political, but it was interesting to me that this new technology had come along to shift who could publish.

When I moved to Trulia, it was a similar situation. You’re just trying to build relationships within this industry. I worked on a team that focused on having the best possible relationship with MLS associations and large brokers so that we could get listings. The listings were so important to the site. We had to make sure that we had as many of them as possible without making everyone mad.

CC: Alright, so in 2005 the “hot tech” was a blog. Now the hot tech is artificial intelligence. It seems like ChatGPT has everybody’s attention across different industries. We’re certainly playing with it and finding ways to create frameworks for content and generating ideas for event names and podcast names. It’s a fun tool to play with. I believe CNN published an article that real estate agents don’t think they can do their jobs without it, which I think was a massive overstatement. But, I’m interested in your take on how — or if — ChatGPT is being used in the real estate profession.

TC: This is the beginning of something that we’ve all been talking about for like 10 years. When I went back to NAR and built the debt data analytics team and hired data scientists, artificial intelligence was just another term for machine learning. Really, it was something that wasn’t nearly as advanced as it is now. So it’s cool to see new technology and figure out ways to use it, just like we did with social media. Sometimes it’s not very groundbreaking. For instance, Blockchain hasn’t exactly changed the world. It’s cool. But most people don’t realize whether Blockchain is in their lives or not.

This particular technology is interesting to me because there are only a few things that a real estate agent does that are protected by copyright. One of them is the listing description.

So this guy is basically writing this piece that claims he

can’t get along without this machine to create the listing description. But if you didn’t create that content, then is it truly copyrightable? You could argue that if you’re the one that writes the query into ChatGPT, then the output is something that’s copyrightable. That also means that anyone else could write the same query.

If someone wanted to steal a bunch of listings and put them up online, the number of bedrooms and square footage is all facts. You can’t stop them. The way that NAR and the MLS have defended these actions in the past is by claiming intellectual property rights. One of them is listing descriptions, the other is pictures. So you have AI that can create listing descriptions and pictures — the only thing that was ever copyrightable by the brokers.

I think that playing fast and loose with this stuff could bite people in the butt. Someone’s going to come along and figure out how to steal that information on a massive scale. Maybe not through chatGPT specifically, but the tech is certainly evolving. It’s something that should be on the radar for most brokerages.

CC: Right now, in the residential real estate world, is the only use case for ChatGPT to be found in listing description creation?

TC: There are a lot of uses. For example, the most basic form of a listing agent is the person who works at an apartment complex and shows those properties for rent, right? Maybe there are six unit layouts on different floors. There are only about 500 questions that those people ever have to answer. And that could be pretty easily documented so that a robot could figure out how to replace them. But, negotiating a skyscraper or even a single-family home is far more difficult. There are more emotions and niche questions. But, the tech just keeps growing. We’ve always thought that robots are only going to replace the factory worker building fenders for a truck. The reality is, technology is evolving to the point where it could take over a lot of the functions of a real estate agent. I don’t think it would totally replace real estate agents, but it certainly means that one really good agent could probably do tenfold the business using robots instead of teammates.

On the flip side — especially if you think about this tool as a robot — it could definitely do a lot of the searching that a buyer does now.

“In 2005 the ‘hot tech’ was a blog. Now, the hot tech is artificial intelligence. It seems like ChatGPT has everybody’s attention across different industries.”

It could go off to Craigslist, Zillow and Homes.com and look everywhere all the time. You would trust it because it’s all in here and not off in the cloud somewhere. So when robots this small can start doing that kind of work, they could be more disruptive to companies like Zillow and Realtor.com than anything has yet. Homeowners could just say, “Hey, Siri, find me a home.” And it would be able to do that. My Siri just came up.

CC: It seems like the AI tools coming out are essentially open-source and accessible. There’s a need for current incumbents to adopt as quickly as possible. If the MLS is enabling AI and creating listing descriptions direct from the platform, then that’s a feature. If home search tools are enabling searchers to get specific and search only for homes with modern kitchens and rectangular pools with salt water, then that’s a capability that I think incumbents should adopt. Are you seeing incumbents in the real estate tech ecosystem be early adopters of this technology as it controls the headlines right now?

TC: I think that it depends on how you define AI. When I worked at Trulia, they were already working on software that looks at photos. When a consumer was on the site — and they were looking for homes in a certain area — if they kept pausing on pictures that showed a vaulted ceiling or stainless steel appliances, the software could realize that they were spending more time on those pictures. And then what it would do is the software would serve up the same pictures in listings over on the sidebar. “Properties you may also be interested in that were like outside the search parameters?” would all have those kinds of pictures. It wouldn’t even show the picture of the house from the street or anything like that, it would be the picture of the stainless steel refrigerator. That type of AI has existed for a decade, and it has been used by Trulia and Zillow. As a consumer or even just someone surfing the web, either on Facebook or Zillow, it’s because they’ve spent so much time feeding you the things that they think you’re going to keep clicking on, and it’s very much already fully in place.

CC: That’s interesting. My team has definitely been testing some use cases for our websites, ecosystem and a few products. What we’ve learned initially is that the technology’s training only goes so far. If you start to ask ChatGPT basic questions like, “How’s the housing market?” Or “What’s going on in the mortgage industry?” the answers

quickly reveal how far these algorithms have been trained. ChatGPT will answer by saying the market is recovering from the effects of COVID-19 low inventory and low rates have created a high-demand market with lots of bidding wars. That was a true answer at a time. It is not necessarily the answer for today. So there has to be caution in how the tools are leveraged.

TC: Yeah, ChatGPT is really good at reciting facts. It’s not able to add perception. When you ask, “How’s the housing market?” what you mean is, how’s it going to be if I sell my house tomorrow. You aren’t interested in what happened six months ago. Everything on the internet is history. All machine learning can only look at history. It can predict the future based on that history, but it just doesn’t have that same ability yet.

CC: It rings true to what technology has been — and should be: it’s a enabler for humans to operate at their highest and best. That is where human judgment comes into play, which technology has not necessarily gotten there yet.

TC: I recently watched Sam DeBord speak about ChatGPT. He’s the CEO of the real estate standards organization. He had a really great point, that if you fed this robot all of the regulations — all of the things that you ethically and legally can and can’t say as a real estate agent — then you could write something and the robot could review it. The technology would be able to determine whether or not it was legal. It could say if there could be some sort of Fair Housing violation, or it could be more small-scale and point out that you shouldn’t say master bedroom anymore. So it could help the real estate agent be better and steer clear of problems pretty easily if you set all those problems into it. I think that would be an interesting way to use the technology.

CC: It operates well in black and white. Alright, so — changing gears, Todd. I was just in New York for the Inman event. All the buzz of the event was on a story that Reuters broke, an exclusive, that News Corp was in talks to sell it’s stake in Move, Inc. to CoStar. It’s a potential deal that has everybody’s attention.

CoStar has made huge waves and developed a market dominant position in the commercial side of the industry over the last several years. It has deployed several billion dollars to build out its residential product suite and capabilities for the business.

“ChatGPT is really good at reciting facts. It’s not able to add perception.”

Maybe they lacked a crown jewel asset which might be Move Inc. Tell us a little more about what you’ve heard and how you’re digesting this potential transaction.

TC: I don’t think it’s going to affect the everyday real estate broker or agent all that much. It may mean that CoStar finally creates something that competes with Zillow or maybe even eclipses Zillow. But, Zillow is in the marketplace now and real estate agents and brokers are doing just fine. If there were two players like that, then it probably would be ok.

One of the great things NAR did was they made a deal with Move, Inc. to guarantee that every member could list their homes online for free. Of course, that often meant that it was being subsidized by a buyer’s agent, but the idea that you can do that in the U.S. is completely taken for granted. If you’re in Australia, the U.K. or anywhere else in the world, you may pay thousands to list your home on the most popular real estate portal.

In the U.S., Realtor.com was the dominant player for almost 20 years. Everyone else that came along — like Zillow — they couldn’t do anything but at least offer the same service, because no one would do it if everyone already expected that this basic thing is free. That part is not going to change that much.

CC: Should we assume that NAR has some type of veto power or some mechanism that could prevent or augment a sale process?

TC: Maybe not right away. I’ve never seen this particular document from when they sold to News Corp. I don’t think it changed. But yes, there’s a veto power in there that allows them to stop licensing it to that company. Certainly, there would be other people interested in licensing it. I’m sure the guys that just created Nespoli would rather have Realtor.com as a URL. Or, the broker public portal would much rather have Realtor.com as their URL.

There are other suitors for the ability to use that trademark. So then is Move worth as much if they can’t secure the trademark? On the other hand, I don’t know why NAR wouldn’t work with CoStar, because they’re just another powerful media company. It’s all worked out before, I think it’ll work out again.

CC: Part of me wonders why News Corp is venturing into this deal. It seems like Move, Inc. is a performing asset, and like it has the legs to continue on inside of the News Corp family. How should we speculate on what Murdock is thinking? Or, can we have any insight into that yet?

TC: I have zero insight except to say that having worked at a portal, it’s very hard. The work is much more difficult. A lot of brokers, a lot of agents resent you.

One of my first jobs in high school was selling brakes and tires for Sears Auto Center. It was the kind of environment where no one was happy to be there. No one wanted to

buy the product. The customer feels like they have to buy your product. If you think about News Corp buying Move, Inc., what are they doing with it? They use all of their other assets to promote it and it’s still nowhere close to the traffic that Zillow is getting.

Maybe Rupert is thinking that it isn’t worth it. It might be worth more to sell it when it isn’t worth keeping because it’s just not performing at the high level that they want it to. It’s performing well, but maybe not quite as well as it could. Think about how many people have gone in and out of the building at Realtor.com and Move, Inc. in the last couple of years. It doesn’t seem like they’ve been 100% happy, right? So maybe that’s part of it. The valuation to buy Move, Inc. might be $3 billion, but the licensing from NAR to get that name is a couple of million dollars per year. The other organizations that want it, they wouldn’t necessarily have to buy Move, Inc. in order to acquire that name.

CC: The devil’s in the details of those contracts. Murdoch’s not exactly an inexperienced deal maker. I’m sure there are some teeth in that majority ownership deal.

TC: It’s hard to see how CoStar would buy, or and even how News Corp would expect to sell, Move, Inc. without the buying of NAR.

CC: CoStar has an incredible track record for building market dominance. Their reputation in the commercial real estate space is tethered to the fact that they have the control position. The prospect of building another market dominant player in residential might not be the worst partner for NAR.

TC: I still think the huge difference between commercial and residential in the U.S. is the MLS system. It basically guarantees that if I’m a listing agent, and I want everyone in the world to know that I have this listing, then everyone in the world can find out. It is going to go to every other broker who has a website, it’s going to go to every portal, it’s going to go anywhere I need it. It’s all going to be there. So when you’re paying for CoStar it’s because there is no other awesome access to all of that data. You can’t find the properties for sale. It’s just a far different place right now. That’s why Zillow never became a monopoly or why Realtor. com never became a monopoly. I don’t think anything that CoStar could do would ever really change that.

CC: The residential industry also operates under a different microscope. Where the commercial real estate industry is incredibly important to our national and global economy, the owners and operators don’t vote, like homeowners do. There’s always going to be a microscope on the residential market as it impacts every American voter. Monopolistic dynamics aren’t exactly favorable for the homeownership market, housing affordability or the profession. There are two million real estate agents who have a pretty loud voice here.

TC: That’s the most underrated part of people who pay their membership dues to NAR, they don’t really understand just how powerful that organization is in its ability to work with the government. Not only does NAR have tremendous legal skills in defending what they feel is a good business model, but they have tremendous lobbying power as well. People think of lobbyists as like someone who calls on congressmen and senators, but much of the lobbying that NAR does is to the executive branch. They communicate with the Federal Trade Commission and all these other organizations.

They discuss patent trolls and all kinds of things almost unrelated real estate. But, it’s important to real estate agents. That lobbying power is tremendous. There are countless times when you just don’t even notice that it’s happening because NAR is quietly doing these things. When that DOJ case came down, you didn’t see a big press release from NAR about winning, right? They just went about their business because that’s what they do. There’s no need to tug on Superman’s cape. It’s too bad that real estate agents don’t take note of that because those guys are ninjas, they really get stuff done. It’s been awesome working at NAR and seeing that behind-thescenes work.There’s a quiet confidence about getting that stuff done for their members and they always seem to get it done.

CC: Yeah, I mean, the big story is there’s some thankless jobs out there. Sometimes things just have to get done without a pat on the back. I respect that. That quiet confidence.

So Todd, you talked about your initial blog, in the 2000s. Today, you’re writing under the Todd.re URL, and one of your posts really caught my attention that ties together this conversation about artificial intelligence and M&A. The title was, “The long, slow, beautiful grind of real estate evolution.” I can’t count how many founders I’ve talked to over the last six or seven years who started their real estate tech company because they tried to buy a house and the process was archaic and slow and didn’t work the way it should. So they’re gonna raise venture money and solve the issue. You have a different outlook on that. Tell us about how you think about the real estate tech ecosystem. And the misperception that founders and investors operate under.

TC: I’ve literally interviewed all kinds of companies like that and found the process laborious. And the reality is that if you can’t afford to pay cash, you can still buy a house in America, it’s just hard. It’s just complicated, right? There are a lot of different organizations that have to get involved, including a mortgage company. The mortgage company wants to make sure that there’s no one else on the title. So you have to get a title company involved. The title company has to provide insurance and there’s someone backing up that insurance, and there’s a secondary market to pay for all this.

It’s not hailing a cab or booking the flight. This is a very complicated process. It’s usually the biggest financial deal that any one buyer or seller is going through at that time. They might have a more expensive house in 10 years if they’re buying or selling, but right now, it’s a really big deal.

If you’re living in in the Bay Area and a condo costs a million dollars, then suddenly those small percentages that pay almost nothing, and in Dayton, Ohio, seem astronomically high. There are times when a real estate agent working in a market like that is not really doing very much to make a lot of money. And I’m not saying that if you can go out and find a better deal as a buyer you should. But, too often people think this is an easy business. It certainly isn’t and at the same time I was 20 when I got into the business and it was in the 90s. The market has changed drastically over that time and things like desktop underwriting or DocuSign didn’t used to be there.

Now, it’s a couple of algorithms deciding that you can buy a house now, when you couldn’t before. It has opened the door to millions, millions of people that can now buy a house as a first-time homebuyer. It also led to a bubble, but there’s still been growth well past that bubble.

Over the last 15 years, there’s been tremendous change. It’s just that at any one given second, it doesn’t really feel like change is happening. Its easy to say the real estate industry is slow. And if you meet a 60-year-old Realtor in the suburbs of Chicago who doesn’t know what Dropbox is, then that’s not going to be a surprise, right?

But they still are really good at selling real estate. The technology pieces are being used all around, even if they don’t realize it’s happening. You have to be really careful about what you think you’re going to disrupt. And a lot of times, it might be better to do what Bob Goldberg’s trying to do. Get aligned between real estate and technology, not necessarily opposed to it. Because even when Zillow launched, Rich Barton was quoted about how Zillow was going to provide all this additional information. It was going to take part of the advisory role out of a real estate agent’s toolbox.

Because of that solution, that were going to drive down the price of what a real estate agent could charge and save consumers money. Today, you would never hear him say that, because he’s promoting real estate agents that can pay for the services that Zillow provides. You need real estate agents like the foundation of their businesses to refer businesses to real estate agents. Even the biggest disruptors have often pivoted to align themselves and be more successful within the industry. Real estate has done way more to disrupt proptech than proptech has done to disrupt real estate.

CC: Todd, I can’t thank you enough for joining me for this episode of HousingNews, talking about innovation and some of the trends we’ve seen in the housing ecosystem.

TC: Thank you so much.

Title and escrow product guide

Closings can only move as quickly as information is able to be exchanged and acted upon between a title and escrow company and its partners. True automation of a closing process end-to-end — whereby not only a title and escrow company’s workflows are automated, but their partners’ resulting workflows as well — is only possible once all parties operate on a shared system.

The Qualia platform featured in this product guide enables an unparalleled level of team connectivity, making it simpler for stakeholders to collaborate on closings. As a result, orders can be completed with speed and accuracy.

TABLE OF CONTENTS:

Qualia...........................................48

QUALIA, QUALIA.COM

Qualia’s platform allows title companies to automate their internal workflows for more efficiency

THE QUALIA PLATFORM INCLUDES modern, cloud-based products that provide the transaction infrastructure for title and escrow organizations of all sizes, from smaller agencies and real estate law firms to multi-state operations operating at scale.

QUICK FACTS:

• Used by 1 million title and escrow agents, lenders and Realtors to complete millions of transactions every year.

• Eliminates workflow debt. Qualia’s workflows enable an advanced degree of configurability to simplify workflows.

• Efficiently gather information from clients and partners. With Qualia’s infrastructure, you can also dynamically trigger your internal workflows and your partners’ dependent workflows.

• Built in vendor management tools to automatically order services from hundreds of local and national 5-star vendors for title search, release tracking, notary services and more.

What makes Qualia’s title and escrow products unique is the ability to achieve an unparalleled level of internal team connectivity, as well as connectivity with other transaction parties — such as lenders, brokerages, vendors, underwriters, banks and consumers — by bringing everyone together via a shared system. This is one where common transaction information is standardized, and transaction updates can be made available to all parties in real-time.

As a result, title companies are able to automate their internal workflows in a highly efficient way, as new tasks and additional automations can be triggered the moment information is received from transaction partners. In addition, other parties such as lenders or real estate agents can now plug into the settlement ecosystem to automate their dependent workflows with title as well, decreasing their workflow downtime to unlock true end-to-end automation for a real estate closing.

Qualia Core is Qualia’s title production system for title and escrow companies and real estate law firms at large. Core combines title production, accounting, reporting and vendor management capabilities into one secure, integrated system that is easy to configure and manage as well as simple and intuitive to use.

With features to eliminate manual data entry and facilitate internal collaboration, processors can more efficiently work together to complete orders with speed and accuracy, delivering the high quality of work their clients expect.

PRODUCT SUMMARY:

Other products, such as Qualia Connect, enable transaction parties to eliminate the communication silos that arise from implementation of a variety of disconnected point solutions. Connect orchestrates the entire mortgage, title and escrow, and real estate closing team’s workflows, communications and signings on one secure digital transaction platform.

Qualia also has product offerings designed specifically for enterprise title and escrow organizations operating at scale. These organizations are typically multi-state operations, have multiple sources of business and can be completing thousands of orders a month with large internal processing teams.

As such, they are navigating a great amount of complexity across transaction types, regional nuances, and partner service requirements all while looking for ways to drive efficiency with collaboration tools, automation and reporting.

The Qualia platform supports the highest degree of transaction complexity, regional nuances and partner service requirements these organizations face, all while keeping operations efficient and workflows manageable.

The Qualia platform provides the connected technology infrastructure for title, escrow and closing teams to collectively deliver hybrid and fully digital closing experiences.

“The Qualia platform supports the highest degree of transaction complexity, regional nuances and partner service requirements.”

HOUSINGWIRE Dail y

with Sarah Wheeler

HousingWire Daily examines the most compelling mortgage, real estate, and fintech articles reported across HW Media

listen wherever you get your podcasts

Trade associations from across the housing industry are on the front lines of issues that lenders, real estate agents and everyone in between face every day. In these letters, they give their members an inside look at what they are working on, and the most important issues facing each industry today.

Katie

AIME members, There is a singular concept, no matter which industry you work in, that is universal to ensuring success: knowledge. You’ve heard it before, and you’ll hear it again — knowledge is power. But very few people ever discuss exactly how they came to achieve true knowledge. Do you remember the exact moment that you became a subject matter expert? Or when you made the transition from a mentee to a mentor?

Few of us are able to recall such pivotal moments, mostly because we are already in search of the next nugget of wisdom that we can learn.

But these moments can act as a leap forward in our business — and for loan originators and broker owners, it can be a make-or-break moment between failure or success in their bottom lines.

Over the past year, our association has focused on closing the knowledge gap within the broker channel because we believe that education is our gateway to future success. One of the cornerstones of AIME’s community is sharing advice and knowledge to help our peers hone their skills and sharpen their mortgage knowledge.

Now, with the AIME Academy, there are a variety of structured training programs and certification courses specifically designed to help brokers and wholesale mortgage professionals succeed through education.

Homebuyers are in need of mortgage experts right at this very moment, and they are seeking knowledgeable, local loan originators to guide them through the home-buying process. Are you prepared to answer their call?

Association of Independent Mortgage Experts

MBA members, MBA plays an integral role in providing the real estate finance industry with a sense of how current economic factors could impact the industry and prospective homebuyers.

After a marked slowdown in 2022 thanks to a surge in mortgage rates, there are many signs that point to a mild economic downturn coupled with a continued slow decline in mortgage rates in 2023.

MBA is forecasting a mild recession in the first half of this year, with the unemployment rate increasing from 3.4% as of January 2023 to about 5% by the end of the year.

We anticipate that the Federal Reserve will continue to increase short-term rates to fight inflation, and will ultimately be successful, but it will be early 2024 before inflation reaches its 2% target.

Although short-term rates will continue to in -

Mortgage Bankers Association

crease as the Fed pushes them up, we are forecasting that long-term rates have already peaked.

So far this year, the industry has welcomed a significant decline in mortgage rates, which has slowly brought more buyers back into the market.

We expect the 30-year fixed mortgage to end the year at around 5.2%. That’s good news for those trying to achieve homeownership.

The path for national home prices is generally flat, but with some yearover-year declines, most pronounced in markets in the West and Mountain regions.

Our industry is always changing and never boring. 2023 will be no different!

Robert Broeksmit President and CEO Mortgage Bankers Association

Sweeney President Association of Independent Mortgage Experts

Alicia Huey

and CEO

National Association of Home Builders

NAHB members, Spring has sprung in much of the nation. And with it, the National Association of Home Builders (NAHB) is springing into action. We are celebrating New Homes Month by spotlighting the many benefits of newly constructed homes throughout the month of April.

New Homes Month typically kicks off the spring home touring — and home buying — season. It’s also a chance to remind potential homebuyers of the quality construction and exciting amenities that can only be found in a new home. NAHB research gives its builder members a competitive edge in the market with critical information about consumer preferences.

Our members better understand what buyers want, from fixtures to flooring and finishes, flexible floor plans or the latest technology. And the NAHB International Builders’ Show (IBS) in February showcased even more new design trends, energy-efficient and innovative building

NAMMBA members, DIVERSIFi is the road map for lending and agents in 2023. When I was working in the real estate finance industry, putting together sales teams, setting goals and working with borrowers, I needed a tool that could show me if I was wasting my time, or even headed in the right direction.

It would have taken the sting out of so many closed doors and lost afternoons, trying to sell the wrong lending product to the wrong demographic. While I haven’t yet found a wand, crystal ball or magic mirror that can tell me if I have the right target market, I’ve been working on something that is so close — and a bit less woo-woo.

It’s data. So much data. Data is the key to success! Fortunately for you, this data has been organized to tell a story. You won’t have to dig through dozens of graphs, spreadsheets or company memos to find the answers you’re looking for.

All of the data is organized on a map that can show you where your CRA mortgage opportunities are; where more education around lending and selling might be needed; what the best products to market would be,

products and materials.

A recent NAHB survey indicates an increased desire among homebuyers for bigger homes and more outdoor amenities, two trends that are driving new home designs. Millennials and Gen X homebuyers say that in addition to wanting more space and more bedrooms, they are looking for homes with modern interiors designed for multiple generations and the latest in energy efficiency and resiliency.

These homebuyers may be looking for larger square footage, but they are also concerned with a smaller environmental footprint. Our members can meet the needs and desires of these generations through the choices that only come from building a new home.

No matter which generation you’re building for, our members are prepared to deliver homes to meet any lifestyle.

Building homes, enriching communities and changing lives. That’s what we do at NAHB.

based on census data; and who your best partners in real estate and lending will be for the market you cover.

NAMMBA and iEmergent have been working to create a tool, DIVERSIFi, that will allow anyone in the real estate finance business to better understand the market they serve, reach more of that market and create connections and relationships with them.

Instead of blanketing your market segment with everything you offer, or missing areas of town with low competition but high-profit margins, DIVERSIFi allows you to more accurately pinpoint which areas will respond to different lending products. We designed DIVERSIFi for teams just like yours to use in creating actionable strategies. It’s a data tool that you can actually use, no magic wand is necessary.

National Association of Minority Mortgage Bankers

Tony Thompson President National Association of Minority Mortgage Bankers

President

National Association of Homebuilders

NAR members,

Few misdeeds of America’s past reverberate throughout our culture more than housing discrimination does today.

Decades of policies and practices designed to keep neighborhoods, schools and communities segregated created numerous societal issues which persist in 2023. This is perhaps the best explanation of why racial equity can still feel so elusive, even a half-century after civil rights laws swept through the nation in the 1960s.

No figure more properly illustrates this divide than the 45% and 49% homeownership rates for Black and Hispanic Americans, respectively.

Each of these percentages significantly lags the national average percentage of homeownership, which is 66%. Compare those numbers to the rate of specifically white Americans who own homes, 75%, and the contrast is even starker.

NAR continues our study of the past to dismantle the systemic barriers to a more prosperous future.

As the individuals perhaps most closely associated with the transfer of property in America, Realtors® play a critical role in improving homeownership circumstances for consumers of all backgrounds.

As such, NAR is advocating for alternative credit scoring models, increased down payment assistance programs and

counseling initiatives for renters and mortgage-ready millennials and Generation Z.

Of course, no engagement could prove more beneficial to Americans everywhere than our ongoing work to address nationwide housing affordability and supply constraints.

Having recently established diversity, equity, and inclusion as our newest executive commitment, NAR is focused on these issues internally, as well. NAR leadership will complete a series of DEI-related learning sessions designed to combat bias, while every NAR employee is now being asked to prioritize DEI in their work.

NAR has a tremendously powerful voice as the nation’s largest trade association. We must continue to leverage that influence not only to ensure property ownership is accessible to everyone in this country but also to secure lasting, meaningful changes throughout our society.

Kenny Parcell President National Association of Realtors

National Association of Realtors

NRMLA members,

Last fall, the Transamerica Center for Retirement Research published a study that highlighted the challenges faced by women to save for retirement. They face these challenges because of competing priorities, such as caring for children or an aging parent or relative.

More recently, a survey published by Allianz Life Insurance Company of North America found that 55% of American workers stopped or reduced their retirement contributions, and another 45% dipped into their 401(k)s and IRAs, due to rising inflation.

These trends are troubling, but the mortgage industry can be part of the solution. We all need to recognize that a large percentage of pre-retirees and retirees own a valuable asset: their home.

AARP published the results of a survey in November 2022 that showed 77% of adults 50 and older want to remain in their homes for the long term — a statistic that has been consistent for more than a decade.

In some cases, selling the home and downsizing to something smaller may be the ideal solution. For others, it might

be a home equity line of credit. But for homeowners who don’t want to be burdened by a monthly mortgage payment, or who don’t want to risk having their HELOC frozen, an FHA-insured Home Equity Conversion Mortgage (HECM) or a private-label reverse mortgage, might be something for your older clientele to consider.

Once upon a time, reverse mortgages were viewed by the public as a loan of last resort.

Today, financial planners and other trusted advisors have recognized the value of home equity as a strategic asset to help enhance retirement security.

A reverse mortgage isn’t a solution for everyone. But for the 1.3 million people who have obtained one over the past three decades, it has made a positive impact on their lives and provided financial security.

National Reverse Mortgage Lenders Association

Steve Irwin President and CEO National Reverse Mortgage Lenders Association

How in-between tech can save the title industry

BY ARGUN KILIC

LLeaders discover the real capabilities of the companies they have built during industry downturns.

It’s easy to show a profit when sales are high, but when the tide rolls out is when the dangerous rocks appear.

In the title industry, like the rest of the home finance industry, the real dangers are high operating costs that come from inefficiency.

As the market contracts, experienced title agency executives can feel the shift, and they know exactly what it means. They’ve seen this before and know what it will take to succeed as the business changes around them.

In most cases, they will seek to increase automation so they can accomplish more with fewer FTEs.

But unlike downcycles of the past, now there are new opportunities for streamlining operations and cutting costs through technology that didn’t exist before.

TTitle company automation is a mature technology offering and it has been in existence for at least the last two industry downturns.

What’s different is the new tools that are providing incremental automation within the title company’s existing systems.

These new tools and techniques are allowing title company executives to deal with lower volumes and maintain profitability.

Efficiency is a step function and each step along the path to a more efficient process brings with it advantages, some that are unexpected.

For years now, executives seeking efficiency were steered to new automation.

“In the title industry, like the rest of the home finance industry, the real dangers are high operating costs that come from inefficiency.”

Companies invested millions in big platforms that promised to take the manual labor out of the process. No platform was completely successful in achieving this goal.

The industry is at the point now where title company work is managed through the use of one of a number of large platforms that together handle the bulk of all transactions in the industry.

Despite this, the mortgage and title industries employ thousands of individuals who simply review, process and approve complex packages, which can consist of 500 or more pages of documents.

As a result, when volume rises, title companies deal with capacity issues by hiring more people.

When loan volume falls, they reduce capacity by laying off staff. This has resulted in a workforce that never fully commits to the company because they know when the cycle turns, they’ll be gone.

Getting employees to work at a higher level is an ardent desire of most of the companies we have interacted with in this space.

But as long as people are hired to fill automation gaps when volume rises, they will surely be let go when volume falls.

Title company executives need a better solution that will give them the efficiency lift they expect from automation by filling in the gaps left by their core transaction management platforms, but in a way that is easy and affordable to implement.

This is an even bigger ask for smaller companies who actually need this solution even more than their larger competitors.

Larger firms have the time and resources to implement solutions and wait for a return on investment.

Smaller firms have fewer resources and end-of-month processing is a recurring crush that keeps them focused on the present and makes it more difficult to plan for future needs.

They are rooted in the ongoing needs of their companies and in the past.

Larger firms tend to be more comfortable with the longer time frames required to implement new technologies. They also have the internal IT resources to make sure those implementations go as smoothly as possible.

Even so, executives running these businesses have no interest in long, expensive or difficult integrations.

And so we see title companies continuing to struggle with inefficient workflows that put too many people on

in

platforms."

the line, take too long to complete and cost the company too much money.

BBut I am not suggesting that title companies just throw off their legacy software investments and rush to market to buy something new. That can be a big mistake.

Even when the title executive finds a solution they like, they must steer clear of three critical errors that will quickly remove all the benefits of the new implementation, while maintaining the costs.

These are the deal killers that prevent a title company from moving forward.

Deal killer 1: rip and replace

When a major technology platform isn’t living up to the promises made during the implementation process, it can be tempting to throw it away in favor of a newer platform that makes better promises.

While there are certainly times when a

“Title company executives need a better solution that will give them the efficiency lift they expect from automation by filling

the gaps left by their core transaction management

company must consider ripping out and replacing mission-critical software, the beginning of a downturn is not the best time.

Deal killer 2: difficult to configure

Working in a mature industry, we expect to see software that is mature and has been dialed in to provide maximum efficacy for users.

Much of the software we see made available to title companies fits this description.

Unfortunately, the needs of smaller agencies are different. If the software requires the developer to configure it for use, it opens the door to problems, including cost overruns and long implementation times.

Deal killer 3: no AI built-in

Any product that doesn’t make the best use of the newest technologies should not be considered a solution for today’s challenges, to say nothing of the future hurdles title companies will be called upon to overcome.

AI is now reliable and customizable and should be part of every agency’s next technology investment.

Title companies cannot count on their primary technology vendors to provide a solution that will help them become more

efficient during a downturn. What the industry needs is a collection of tools that can fill the gaps in a company’s larger platforms and tools that can be implemented quickly, without months of analysis. Fortunately, these tools are available today.

Successful title companies will seek them out and implement them to gain the efficiencies they will need to survive in 2023.

“What the industry needs is a collection of tools that can fill the gaps in a company's larger platforms and tools that can be implemented quickly, without months of analysis."

Real Estate

The LGBTQ+ community's home-buying habits are changing

BY RYAN WEYANDT

At some point, you’ve likely heard a reference to The Castro in San Francisco or Greenwich Village in New York City. These are two of the most prominent LGBTQ+ communities in the country.

But many more, including Boystown in Chicago, West Hollywood and Montrose in Houston, draw a large population of the LGBTQ+ community.

These urban nests have been home to the LGBTQ+ community since before the movement itself — but times continue to change.

As the LGBTQ+ population grows exponentially, so does the desire and necessity to spread our wings.

OOur numbers are increasing because we are becoming more comfortable living as our authentic selves and that isn’t by accident.

I’ve said it a dozen times, the more society understands and embraces our community, the better it is for both the fabric of society and the economy. Make no mistake about it — the real estate industry will benefit.

It’s important to recognize that the LGBTQ+ population has risen to 8% of the total U.S. population, according to HRC. Greater numbers bring greater desire and longing for inclusion in the American dream.

At the top of the list are homeownership and long-term financial stability.

But owning a property in an urban setting can still be prohibitively expensive, so the LGBTQ+ community is increasingly considering suburban living. I wouldn’t call it another “Great Migration”

A“As the LGBTQ+ population grows exponentially, so does the desire and necessity to spread our wings.”

just yet, but we’re certainly seeing the community push geographic boundaries to suburbs in most major metro areas.

Asbury Park on the New Jersey shore is a great example. Sure, Bruce Springsteen made it well-known.

But did you know its recent redevelopment has been led by the same LGBTQ+ community that always had a presence there?

City historian Kathy Kelly said that because Asbury Park had fallen on hard times, LGBTQ+ people went because “Nobody was paying attention. The gay community would go where they wouldn’t get beat up, and so you could go to Asbury Park because nobody you knew was going to Asbury Park. So if you were closeted or you might be out to your family but closeted to the world, you would go to Asbury Park because its devastation protected you.”

Today it is thriving.

Our community played a major role in its beautification. While it has a downtown, it’s a beach town and not an urban setting. It has welcomed LGBTQ+ people, providing a safe haven filled with love and support from peers and residents, allowing LGBTQ+ people to live as true authentic selves.

TThat brings us to almost surreal findings from AARP that shed light on a “leaving the nest” phenomenon.

Its Home and Communities Preferences Survey found 28% of LGBTQ+ adults prefer to live in a suburban, small town with a walkable community.

In comparison, only 18% of LGBTQ+ adults prefer to live in an urban area. This news follows a 2019 report from the Movement Advancement Project that showed that up to 20% of the LGBTQ+ community lives in rural areas.

LGBTQ+ folks want the “white-picketfence” life just as much as heterosexual people do.

But wait, there’s more (as they say). The AARP report found that the LGBTQ+ community is ready to move! It found that 43% of LGBTQ+ adults were more likely to move to a different community in the future, while only 28% of non-LGBTQ+ adults were likely to do so.

TThere are some continuing challenges for LGBTQ+ people. The first is obviously discrimination and the fear of it.

But if LGBTQ+ folks are surrounded by like-minded and welcoming people outside of urban centers or the 71% of Americans who support same-sex marriage, according to Gallup, we may not have to keep our guard up as much. Additionally, as AARP also reports, leaving the “nest” can result in a lack of companionship leading to feeling isolated from others. Moving is uncomfortable for anyone.

For LGBTQ+ people, it is likely even more complicated as we leave a built-in support group and amenities that cater to us.

It is no wonder why the AARP report found three main areas that most LGBTQ+ adults look for when choosing a community — social participation, affordable housing and environment and equity.

Essentially, LGBTQ+ people want easy access to restaurants and shops along with a wide array of cultural activities to participate in.

Naturally, we are searching for affordable housing options in close proximity to key services too. Finally, we value a community where all are treated well, no matter a person’s race, gender, age, ethnicity, identity or sexual orientation.

“28% of LGBTQ+ adults prefer to live in a suburban, small town with a walkable community. In comparison, only 18% of LGBTQ+ adults prefer to live in an urban area."

AArmed with such information and recognizing that your sphere of influence and potential clients will likely include more LGBTQ+ representation — if it hasn’t happened already — I encourage you to ask yourself if you, as a real estate professional, are ready for this shift.

Many of you reading this are not ready, as highlighted in the LGBTQ+ Real Estate Alliance’s second annual report. You may recall that 20.7% of members felt real estate agents were the primary culprits in how housing discrimination showed itself.

While there is some blatant discrimination in our industry, most of it is caused by unconscious bias or preconceived notions.

This is where we come in.

The Alliance is committed to working within our industry to educate and bring about change. Without welcoming real estate professionals, the Alliance’s desire to grow the LGBTQ+ homeownership rate from its current — and really low — 49.8% likely won’t happen.

That is one of the reasons we created our Alliance Certified Ally Course.

We also want to keep sharing important information. Simply by reading this article, you’ve likely learned and hopefully improved.

You have a greater understanding of how challenging it may be for members of the LGBTQ+ community to “leave the nest.”

You recognize we want what so many others already have. And you can see the types of communities that we would be interested in.

As members of the LGBTQ+ community continue to leave their known, safe havens, they will need welcoming, caring and educated real estate professionals to guide them home.

“The Alliance is committed to working within our industry to educate and bring about change. Without welcoming real estate professionals, the Alliance's desire to grow the LGBTQ+ homeownership rate from it's current... 49.8% likely won't happen."

Appraisal

Progress now or perfect later: improving appraisal bias

BY KENON CHEN

HHave you heard this phrase before — “perfect is the enemy of good”?

Or, “perfect is the enemy of done”?

I hear these phrases quite often when it comes to product and software development.

But, I think they apply very well to solving complex problems too, like transforming the property appraisal process to work better for every stakeholder.

The recent Appraisal Subcommittee (ASC) hearing and the premiere of “Our America: Lowballed” hosted by the Brookings Institution, delved deep into the numerous concerns, history and opinions on the necessary improvements within the appraisal industry.

In particular, the events zeroed in on patterns of discrimination and bias for minority borrowers and homeowners.

Each event made plain the current open questions that need answers and hopefully convinced most people that appraisal bias is a problem worth fixing.

The chief question of them all is whether there is a solution. It might take a long time to find the perfect solution(s), but perhaps there are ways to make immediate progress on addressing concerns now.

LLike any good product exercise, we need to define the pain points before we talk about solutions.

The pain points have been well-documented by the PAVE Action Plan and supported by numerous research papers, so I won’t spend a ton of time here except to marvel at the range and complexity of

“Perhaps this can all be summed up as a growing demand for an appraisal process that is more equitable, efficient, accurate and objective.”

pain points.

Concerns of racial bias, a lack of standardization for consumers in the reconsideration of the value process and unclear authority in the governance structures are all present amidst increased requests from lenders for a more efficient process that provides value certainty sooner.

Perhaps this can all be summed up as a growing demand for an appraisal process that is more equitable, efficient, accurate and objective.

It is obvious that language being used like “eradicate” or “eliminate” in reference to appraisal bias is chosen to convey the importance of not compromising on the process being equitable for all. And we absolutely should not compromise on that end result.

However, it will take many, many iterative steps to reach that end goal. The use of absolute words can sometimes be discouraging to finding iterative solutions. Is “better” good enough as a starting point?

For instance, in the conversation at the ASC hearing on using automated valuation models (AVMs) as a viable, nonsubjective tool for understanding value accuracy during underwriting, concerns were brought up about bias being present in the data itself.

Extracting all bias from real estate sales data that the entire industry uses to value properties (be it appraisers, AVMs, lenders or investors) is an overwhelming multi-year effort.

But if accurate AVMs help remove forms of bias right now, then that seems like a worthwhile evolution.

SSometimes the best way to keep the goal of perfection from stopping short-term

progress is to find the common areas that everyone agrees on and get to work attacking those areas first.

For instance, I have never heard anyone say that they don’t want more complete, authoritative property data.

But the slow adoption of GSE desktop appraisals that require digitized property data and floor plans to be generated before the loan application has been surprising.

Perhaps more promising is the work that is being done by both agencies to create a property data gathering standard and what Fannie Mae has hinted at on their new Valuation Modernization website. The idea of value acceptance (no more pins and needles for borrowers waiting for the appraisal) should be enough to get lenders interested.

And it is great to know that lender adoption will drive the use of mobile tech that creates a more complete picture of the home through consistent data gathering. No more clipboards.

AAnother common theme is reducing the amount of subjectivity within the appraisal forms and data standards. While commentary can provide helpful context to a person at their desk that didn’t see the property firsthand, an improved data standard would reduce the need for commentary and provide more structure to ensure analysis supports the value. The new Uniform Appraisal Dataset (UAD) and forms redesign initiative is underway, and the UAD specification is expected to be published this year. That means development can start this year, so the industry is ready to roll out the new forms in 2024. And as a bonus, the spec provides a

“Lender adoption will drive the use of mobile tech that creates a more complete picture of the home through consistent data gathering. No more clipboards."

home for digital captures of properties to be included.

Why not bring the whole home to each stakeholder virtually and use AI to mask any items that should not figure into the appraisal, like family photos.

I was not able to travel to attend the ASC hearing in person, so I attended the hearing online, which gave me access to the live public comments.

It was evident in the comments that not everyone agreed with the problems the hearing witnesses identified, let alone the proposed solutions. Some of the comments rightly pointed out that the task of eliminating racial bias from U.S. housing cannot be accomplished with a focus on appraisal alone.

Regardless of our ability to find the perfect agreement or perfect solutions, there are multiple opportunities to make the appraisal process work better now for the benefit of everyone that relies on efficient, accurate home values.

Today’s homeowners and homebuyers deserve continuous, iterative improvements and a consistent march toward the goal of equity for all.

So let’s embrace the progress in front of us, and not hold up the good for the perfect.

“Some of the comments rightly pointed out that the tasks of eliminating racial bias from U.S. housing cannot be accomplished with a focus on appraisal alone."

Homes for Heroes is making a difference in the lives of Minneapolis firefighters

By Audrey Lee

Homes for Heroes wants to find a home for every public service worker in Minneapolis, Minnesota. Their efforts to lower housing costs and cover the fees associated with buying a home are available for first responders, teachers, healthcare workers and military personnel. In the 20 years since the organization’s founding, Homes for Heroes has helped thousands of families save millions of dollars on their home-buying journey, and now Homes for Heroes is taking on a new challenge. The organization is helping to open the first transition center for firefighters burned on the job.

Below, Bob Stanke, vice president of marketing and business intelligence at Homes for Heroes, sat down with HousingWire to answer a few questions about the new Center.

HOUSINGWIRE: WHY DID HOMES FOR HEROES (HFH) DECIDE TO CONTRIBUTE TO THE CONSTRUCTION OF THE TRANSITIONAL HEALING CENTER FOR FIREFIGHTERS IN MINNEAPOLIS?

BOB STANKE: Our mission for over 20 years has been to thank heroes for all they do in serving our community.

While most of those “thank you’s” come in the form of a ‘Hero Reward’ check after the completion of a real estate transaction, our foundation extends the thank you beyond that.

Through a grant from our Homes for Heroes Foundation, we wanted to help support the firefighters who are recovering from injuries suffered in the line of duty. This is just our small way of saying thank you in a different way.

HW: WHAT DO YOU ENVISION AS THE FUTURE OF HFH AS IT RELATES TO THE TRANSITIONAL HEALING CENTER?

BS: We are proud to have been able to be a part of the Center’s construction and grand opening event.

Moving forward, we hope to be involved with the Center’s evolution and volunteer opportunities, supporting the Healing Center’s longterm mission of helping firefighters and their families heal.

HW: WHAT HFH ACCOMPLISHMENT ARE YOU MOST PROUD OF?

BS: As it relates to the Healing Center, we are proud of being able to have our foundation assist in the financial costs of building this very important piece of our healthcare options for firefighters in the Twin Cities area. Many great organizations rallied around the cause and helped bring this project to life. We are proud to be aligned with so many great organizations that understand how important it is to help heroes in need.

HW: HOW CAN OTHER HOUSING INDUSTRY PROFESSIONALS GET INVOLVED?

BS: At Homes for Heroes, our mission is to thank every hero in the nation. With over 60 million heroes in our country, that is no small task! It is going to take all of us to express our thanks to all heroes.

We would ask everyone to take the time to thank a hero today. That will help us achieve our mission.

Also, where opportunities pop up — like the Transitional Healing Center did for us — get involved, even in a small way, because everything helps.

kudos

Top 5 fair housing best practices

April is Fair Housing Month, and as recent as this year, redlining and undervalued appraisals are still occurring. We cannot take it for granted that because we have fair housing laws that fair housing violations will magically stop. As professionals, it is our job to know what unfair housing looks like and be quick to report it. Lee Davenport, founder of Learn with Dr. Lee, shares her best practices for upholding fair housing standards and helping homeowners find their dream home regardless of their protected status.

✔ Fair housing laws don't stop discrimination, but they may impose penalties if someone is caught. Document and report all unfair practices that you encounter.

✔ Undervalued appraisals are often revealed when comparing the experiences of a white buyer compared with a minority buyer, so keep the receipts and know the area's comparative listings and sales.

✔ Sellers may unconsciously think, “We want the home to be enjoyed by a family like ours.” In this case, advise your clients to strip protected-class identifying information from their offers wherever possible; this includes names, email addresses, pictures or letters to the seller.

✔ Never assume the loan terms are in your buyer's favor. Encourage your clients to obtain three quotes from a variety of lenders.

✔ Know that your buyer may be judged for their loan type, like FHA loans for example, and find reputable grants and programs that help you go conventional.

If you suspect a fair housing violation, call the Appraisal Complaint National Hotline (877)-739-0096 and contact the Department of Housing and Urban Development.

Lee Davenport is the founder of Learn with Dr. Lee.

History of Housing

• Average home price: $18,080.26 (that’s $202,356 in today’s dollars)

• Mortgage rate: 4.75%

• Average income of homeowner: $4,200

• Average monthly mortgage payment: $93/month

• Average square footage: 983 square feet

1953 kicked off a time of increased housing starts and housing availability. A policy of credit easing, which began in May of 1953, allowed more homebuyers to take action in the market. Other demographic and income changes urged on these excited homebuyers. However, not all was golden in this era of history. During the 1950s, redlining — a term referring to the colorcoded maps of urban areas that dictated where insurers and appraisers could insure mortgages — was a prevalent practice in many U.S. cities. A long history of systemic racism prohibited Black families from owning homes in many U.S. cities. For example, the FHA only backed certain housing developments that were guaranteed for white families. Homebuilders adhered to racial restrictions to restrict the type of buyer who could purchase the property. Urban planners even arranged highways in cities as a way to physically segregate Black neighborhoods. The aftermath of these policies from the 1950s and earlier are still evident in neighborhoods today.

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❱ THE HW HOUSING MARKET UPDATE

Thanks to all the HW fans who joined us for the Housing Market Update webinar. We had a blast exploring mortgage rates, inventory and pricing with so many knowledgeable guests and attendees. Together we answered the all-important question, “How’s the market?” We armed ourselves with the tools and data to stay on top of the most important statistics in housing. A special thanks to Salesforce for sponsoring February’s event and bringing even more knowledge and experience to the table.

If you can’t get enough of market forecasting, check out the online articles published prior to the webinar for the perspective of experts across the industry.

We look forward to coming together at our next in-person and online event.

Photo includes (from top left to right): Odeta Kushi, Mike Simonsen, Geoff Green, Logan Mohtashami, Diego Sanchez and Lisa Sturtevant.