Title Plant Coverage
Introducing part two in a 3-part series focusing on how the uptick in refinance activity offers the perfect opportunity to leverage automation.
Refinances were already making a comeback, and the recent half-percent rate cut from the Fed—the first after 11 consecutive increases—has fueled further refi activity. Early signs confirm that the refinance recovery has already begun. According to the MBA Refi Index, in mid-August, refinance applications increased 35% week over week, and the index also saw its strongest week since May 2022 with a 117% year-over-year jump. Whether it will be an actual refinance boom that blows the doors off or more of an uptick that delivers much desired new business depends on who you ask. But one thing is certain: there are millions of homeowners with interest rates above 6% who are possible refi candidates. The MBA estimates there are as many as 3.8 million borrowers, representing $650 billion in loans, who would be eligible to refinance if and when rates drop below 6%.
The question now is, are title companies ready to respond to this uptick, given the downsizing and the belt-tightening that the prolonged downturn in mortgage activity has caused? Moreover, will the industry respond by staffing up, as it has in past cycles, or will it rely more on automation and outsourcing to support its lender clients?
Based on the conversations we’ve been having with clients, there is general agreement that things can’t be managed the way they used to, and the key to handling this wave of refinance activity will be automation, driven by smart technology.
Saving Time and Money By Doing Old Things in a New Way
With refinances, speed and cost control are the name of the game, and automating title search functionality is a foundational component that can help achieve these goals. DataTrace TitleIQ Search, for instance, enables title companies to generate a complete title search package on a refinance or purchase deal in less than 10 minutes, automatically pulling the property and general name indexes, analyzing the chain of title and tagging the appropriate images based on customizable business rules. Without the benefit and efficiencies of automation, the same process would take much longer. In addition to speed, automation can minimize potential errors and maximize productivity in title search workflow, ensuring that valuable staff are working on tasks that leverage their expertise, rather than key stroking, clicking, dragging and dropping.
TitleIQ Enterprise further enhances workflow productivity by delivering more efficient, accurate report and commitment production through a single-source platform. This addresses the long-standing challenge title companies have faced with multiple data sources and difficult data transfers between systems. Instead, title companies can access a proprietary network of nationwide data sources combined with unified title search workflows, a robust examination workbench and end-to-end integrations with leading productions systems, all with enhanced automation efficiencies.
Advanced technology also now allows for data from disparate sources to be pulled into a single platform, further improving efficiencies and mitigating risk. For example, a search can be done on the TitleIQ platform and, if necessary, add additional information, documents and images from other DataTrace or external industry sources. TitleIQ can ingest these external documents and images, use Optical Character Recognition (OCR) to clean up any issues, auto-code it and normalize it into a standardized report, all within a single automated search functionality.
For companies that have downsized, meeting the demand of a refinance surge in the short-term can be solved not only by tapping automation to increase productivity among existing staff, but also by outsourcing title search and examination. DataTrace outsource solutions deliver nationwide property and title report production, including on-the-ground resources for more challenging counties. These local, state-based experts across the nation, combined with the most comprehensive data and title plants available and a consultative approach that maximizes flexibility and customization, solve for short-term staffing needs in a streamlined, cost-efficient way.
Being Pro-Active in Finding Refinance Business
Another way automation and data-informed technology can help lenders take advantage of potential refinance business is by identifying likely refinance prospects to develop highly targeted marketing and communications outreach. Unlike the old days when loan officers would play dialing for dollars with outbound calls to a broad group of borrowers, today’s technology allows them to highly target specific prospects based on income and other data unique to the borrower and property. Entire portfolios can be evaluated to identify likely refinance prospects. With the DataTrace TitleFlex solution, title companies can help their lender clients tap into data-based farm building, property profile generation and customer service in a single tool.
Having this valuable borrower and property data at the ready means lenders don’t have to wait for customers to come to them, and instead, can create customized communications that hit the mark with specific prospects. This approach saves time and money and, whatever the outcome with the borrower, shows them that their lender is looking out for them, deepening customer loyalty and appreciation.
While there’s currently a lot of buzz around refinances, decreasing interest rates will also spur other mortgage activity as sellers decide to make the move they’ve been contemplating, and new buyers decide to get off the sidelines and get in the game. As a result, leveraging automation and powerful data-informed technology to close loans faster, reduce cost-per-loan and stay one step ahead of the competition in tapping customers, will only continue to grow in popularity.
For more information on how automation can ensure you’re ready for the next wave of mortgage activity, schedule a consultation.
To view the first part in this series, please click here.
