Real estate transactions are research and paper-use heavy, yet it seems the title industry always lags behind when it comes to technology. Although there are new apps and tech products hitting the market, many in the title industry are reluctant to embrace them. That might be because blockchain, the most disruptive new technology, provides real-time access to ownership information, which threatens the jobs of title agents and the survival of title companies. With a global registry, downloading the entire chain of a property’s ownership records becomes almost instant, reducing costs with discounts being passed on to the client. This blog will explain the new technology that could threaten many title agencies, and how System 2 Thinking helps streamline title industry technology rollouts.
Now that the real estate industry and banks are embracing e-closings, the technology can be leveraged and applied to all aspects of the closing process, using e-docs and e-notarization. According to National Mortgage Professional, many states are enacting legislation to do so with over 1,700 of about 3,000 counties already creating an e-recording platform. As digital signatures are also accepted, the whole process becomes fluid and highly simplified.
As digital disruption hits the real estate and title insurance industries, title companies and professionals have to prepare themselves for the fallout.
Faster and Cheaper
Startups like States Title, OneTitle, and Spruce have introduced technology primed to conduct searches without an agent. That puts traditional companies at risk as the process becomes far more affordable for homeowners and mortgage companies.
Automating the writing of title insurance has made the highly labor-intensive process efficient, lowering costs. Technology searches public records quickly without title agents. Automated services can manage policies, lien searches, escrow services, and recording services digitally. OneTitle in New York can provide their services at 25% less for premiums.
While OneTitle is going head to head against title companies, Spruce is taking a less combative approach. Their strategy is to integrate with lenders using software to provide title search services at reduced costs. Instead of posing a threat, they are offering partnership.
System 2 Thinking and Tech
The increased pace in changes over the past few years has forced title companies to look closely at their technological capabilities. Without technology, it is impossible for title companies to have any edge or advantage over the competition. This includes automation, artificial intelligence, and better task management systems. As they become available, more challenges arise surrounding increased data controls, privacy protection, dual authentication procedures, and safeguards to protect against wire fraud.
While fin-tech and blockchain, in general, might improve the record search and document transfer process, consumers still depend on title agents to navigate the complexities of finally declaring a property insurable. As well, multi-state agents are faced with the challenges posed by licensing and compliance with each state. The separate rules and regulations, in hand with title in each specific state, determine the insurability of the property.
System 2 Thinking helps title agencies stay competitive with consulting and technology rollout services. Although technology can enhance expansion for title insurance companies, agents still provide the hands-on, detailed services required in each state.
Title Industry Technology Rollouts from System 2 Thinking
Title companies understand that acquiring new technology is only a piece of the puzzle. System 2 Thinking supports companies in carefully planning and executing multi-phase technology rollout projects with customized services crafted to meet the unique needs of each individual client.
System 2 Thinking is trusted by real estate service providers, tech startups, and Fortune 1000 companies to consistently deliver transformational outcomes in competitive environments.
We drive innovation and fuel business acceleration with compliance consulting, licensing, innovation strategies, technology rollouts, and process optimization.
Visit our homepage to learn more.