Let’s Tell Our Story: Advocacy in a Changing Industry
When Bill Svoboda asked me to write an article, the first thing that came to mind was that the title industry is at a crossroads. We need to speak up and tell our stories. Programs like the title waiver/title acceptance program, new multifamily guidelines from Fannie Mae and Freddie Mac, and expanded FinCEN reporting requirements are all reshaping the way real estate transactions are conducted and impactful to the role of the title agent.
For too long, many agents have kept their heads down, focused on serving their local clients and closing deals. Arguably that approach has worked in the past but in today’s environment it does not. If agents don’t tell their stories, the future of the industry will be decided without them, leaving small and mid-sized agencies increasingly dependent on underwriters and less able to chart their own course. Advocacy is no longer optional; it is essential.
Why is it so hard for us to promote our value?
This summer we had to refinish a deck. It was not a fun project, but it needed to be done. I learned that to properly sand and stain our existing deck we were looking at a price tag of over $2,500. I thought the expense was a lot for maintenance, but I also understood the value of protecting the larger investment- the cabin that goes with the deck. We begrudgingly shelled out the money and I wondered how many years until we’ll be repeating the process.
This situation combined with other expensive home improvement/maintenance projects caused me to reflect on the value of title insurance when protecting the very same investment.
Title insurance is a one-time expense that in many cases cost less than the price of refinishing a deck. That makes me question…why is it so hard for us to convey the importance of what we do to protect the homeowner’s largest investment. Shouldn’t we be telling our story and promoting the exceptional value of our insurance after all it is a one-time fee (no regular maintenance) and we protect the property for as long as the owner is in title and the lender for the life of the loan.
That seems like a good deal to me when you compare it to all the other expenses a homeowner incurs regularly to protect their investment.
The Title Waiver/Acceptance Program- Our Value in Refinance Transactions
With the title waiver/ assurance pilot program, the value of title insurance for refinance transaction is being challenged. Is the story that much different?
When refinancing, to ensure that the new loan is in first lien position, there is a title search performed, and a policy issued to insure the new lender. Once again, I am equating this to home improvement and ongoing maintenance. If a homeowner decides to remodel…permits are pulled, inspections are done (sometimes requiring systems from the past to be brought up to code), work is performed and there is a price tag associated for every service. In a refinance situation, the loan that was in place is essentially “renovated” for whatever reason (rate reduction, cash out, home improvement) and the title company performs the work to provide insurance protection for the new loan.
Ideally the refinance benefits the borrower and we protect the investment. I see a lot of value here. Maybe we just need to talk about it in terms that resonate.
Fannie Mae & Freddie Mac: Shifting the Ground Beneath Title Agents
While the title waiver program affects the title side of single-family transactions, changes from Fannie Mae and Freddie Mac are redefining the rules in multifamily deals. Recent changes to multifamily lending guidelines have quietly but significantly limited the role of title agents in certain transactions. Under the new rules, title agents are no longer allowed to fund (essentially close) multifamily transactions backed by Fannie and Freddie. Instead, the responsibility has shifted to underwriters or to title agencies owned by an underwriter.
To some, this may not seem like a big deal as underwriters control most of this business anyway. But for independent title agents, it has greater potential consequences. By cutting agents out of the funding (closing) process, these guidelines limit the scope of services agencies can provide, reduce revenue and market share opportunities, and increase the reliance on underwriter partners. Over time, these changes may weaken the independence of title agents by placing control into the hands of only a few larger players.
Another concern with the new guidelines is the impact to the consumer as title agents bring local expertise and community-based knowledge to multifamily transactions. When agents are sidelined, decisions about closings and risk management are made farther away from the communities they affect and often these transactions include added costs to the consumer.
This is why advocacy matters- we need to speak up. Title agents must help regulators, and the GSEs understand that policies like these don’t just streamline processes…they reshape the competitive landscape and limit consumer choice.
FinCEN Requirements: Another Reason to Be Vocal
Expanded FinCEN requirements place title agents under heavier compliance obligations than ever before. While the intent is good…fighting money laundering and criminal activity, the practical impact is significant. Agents must now devote more time, staff, and resources to reporting, diverting attention away from clients and closings.
For large agencies, this may be manageable. But for small and mid-sized agencies, the costs to administer the new reporting requirements could become overwhelming. Without agent input to help shape how these rules are implemented, regulators risk creating a system that inadvertently favors the largest players.
Speaking Up to Protect the Future of the Title Profession
Taken together, these issues make one thing clear: the future of the title industry will be shaped by the voices that speak up.
The challenges facing the title industry are real, and the stakes are high. From regulatory requirements to structural changes in how transactions are funded and insured, these shifts threaten to erode the independence and value of title agents. But there is good news: the most powerful tool agents have is their voice- so let’s use it.
Advocacy means more than protecting business interests, it means ensuring consumers are safeguarded, communities are served, and the integrity of real estate transactions is preserved. The future of the industry depends on agents stepping up, telling their stories, and making sure decision-makers understand what’s at risk.