How lower title fees and improved service are beneficial to lenders when rates rise
August 12, 2013
Let’s face it, when interest rates rise, it makes lenders very unhappy because they know that they will be lending less money. Whereas everyone will be your best friend when rates are low, you need to work much harder to gain customers.
The question then exists, how do you turn a negative into a positive? The answer is, that everyone is in the same boat so you need to outsmart your competition. As a lender, the best way to develop a competitive advantage is to get your customers lower title fees and give them improved service.
There are a couple of tools that I recommend that can help you look good with your clients.
1. Title Hound: This tool will help you find the lowest title rates
TitleHound is a unique title insurance premium rate calculator. It allows you to get closing costs for accurate Good Faith Estimates (GFE) and estimated HUD statements. Agents quote their settlement fees through TitleHound to allow instant and accurate disclosures for mortgage refinance loans and real estate purchases.
Unlike other rate calculators, TitleHound provides a managed rate solution with a team of industry veterans that offer excellent customer service and expertise in the mortgage industry. They work with title agents to ensure the premiums, endorsements, settlement fees, and government recording fees, as well as mortgage taxes and transfer taxes, are disclosed accurately to avoid tolerance losses.
TitleHound is easy to use, highly configurable and flexible. Additionally, they keep every quote active in their system for 120 days. Archived quotes are retained indefinitely.
Check it out at: http://www.gotitlehound.com
2. “Change of Circumstance”: This tool can help you make changes in seconds rather than days.
Change of Circumstance is the ultimate in customer service. You can increase loan approvals by reducing the amount of time it takes to receive updated fees and documentation. Currently, Linear Title is the only one I know that offers this service.
“Change in circumstance” is a common request, more specifically a loan amount change is a perfect example of the value these integrations bring to the lender. When a lender changes a loan amount in its system, the change is pushed to Linear’s system via XML.
Linear Title’s system will then instantly update title fees and documents then push them directly to the lenders system. These documents will attach directly to the lender’s file in their platform. This one situation eliminates time consuming phone calls and e-mails therefore allowing lenders to gain a competitive advantage through increased production.
Check it out at: http://www.lineartitle.com/integration/change-of-circumstance
No one can predict what the Fed or interest rates will do. That is why it is so important to gain a competitive advantage any way you can. Lower title rates and better client service are to of the best ways to demonstrate the superiority of your services.