The decision to finance a property for a borrower is a critical judgement. It entails a lot of risks one of which is issues that may arise due to incorrect property titles. In such a case the buyer stands to lose their rights over the property and the lender stands to lose the money they invest.
Because of the huge investments and high risks involved, lenders and mortgage companies outsource these services to mortgage title services company. By outsourcing this task to professionals, lenders can eliminate the risks associated with property titles such as fraudulent title transfers or missing liens etc. Title companies help lenders and borrowers insulate themselves from legal disputes pertaining to the ownership of the property. Partnering with a title company helps absolves lenders of all risks such as liens, claims, encumbrances, deferred taxes or any other legal risks.
All said and done, the choice of any third-party support provider has a direct impact on the lenders’ profit which is why there is a need to strictly scrutinize all partners before on-boarding. When it comes to choosing a mortgage title support service, importance should be given to the propsect’s competency in issuing of title policy at the closing table, handling a 1031 exchange, modern technological integrations, handling closing documents, apart from the usual requirement of round the clock back-office support and right pricing.
A well-researched and informed decision always ensures that you end up trusting the right partner. Through this blog, let us understand the importance of a strong title partner for mortgage lenders and how we can choose the best amongst the lot through a simple enquiry and research.
Read Also Important Steps that Mortgage Lenders Must Keep in Mind During Title Search Process
9 Steps To Choose a Title Company For Your Business
A mortgage title support company can be trusted with their services if they qualify themselves on the following accounts:
1. A Service Provider of Reputation
Choosing a reliable mortgage title review service is very important, for numerous reasons. First of all, coordinating with huge deals requires proper paperwork. This can be best accomplished only if there is proper experience, right workforce and technological integration. As an experienced partner, a premium title service provider should bring in vast industry understanding, expert resources, transparent process, a great client portfolio and a concrete foundation for reliability. It is advised that the lenders should do a comparative analysis of mortgage title review service within their geographical requirements with parameters such as company’s history, number of business years, business collaborations, human resource, clients served etc. can help you settle for the best company.
2. A Well-Defined Title Research Process
A good title service company will understand the title process inside-out. They will have complete knowledge of where to look for the right information, so that they can successfully do a complete check on property ownership and other related details.
Your chosen mortgage title services company should bank on the following checklist to source information:
- Title plants (repository of property information)
- Public records including deeds, mortgage, wills, liens or tax records
- Legal judgements including divorce decrees, court rulings, bail bonds, encumbrances, etc.
How they go about to ferret information can give you great insights on the process they have in place.
3. Delivers Resource Based Cost Efficiency
Generally, lenders deploy in-house resources to study and analyze title validities. Since the quantum of time and money spent in this process is enormous with no assurance of zero error, professional mortgage title services can be of help. Their professional services guarantee the buyer and the lender the right outcomes and shields them against losses from any defects that may exist in the property ownership title.
While you outsource mortgage title services, ensure that the service provider has a good portfolio of clients and commands expert personnel from every specialization of the mortgage and legal domain. It is also important to ensure convenience of locality/ geographical presence to ensure they have a good grasp of the local market.
4. Ensures Responsiveness and Round the Clock Availability
In the era of digitalisation, consultative and personal approach is of great importance. The mortgage title support services company should always have a consultative and hands-on-professional approach with the lenders to address the unique requirements of clients. A title company worth its name will also have a customer-oriented 24*7 service helpline, prompt access to closing documents, responsive and dedicated expert panel for any last-minute redressal.
5. Complete Support for Closing and Settlement
When a lender partners with a trusted tile service provider, the most important part of the deal – ‘mortgage closing’ becomes hassle free. This stage is so critical, that the entire hard work might go in vain if the closing is not executed within the stipulated time frame and with extreme precision. Violations of any steps might invite sharp penalties and impact reputation.
Good title service providers ensure pre-closing audits, title search and re-examination, request to produce, settlement transactions along with post-closing follow-ups. Additionally, they should be able to deliver operational efficiency with reduced fixed costs, ensuring larger loan volume processing.
6. Guarantees Absolute Title Check
Since title transferring is a time, labour and cost consuming process, your partnered title service solution provider should be able to provide full guarantee about outcomes right from ordering to examining titles. Ensuring a title that is free of any issues and a track back of all the previous owners (also called ‘clean title’) is a critical but what is equally critical is to ensure there are no inconsistencies in the results.
7. Proper Understanding of Service Requirements
Lenders are under pressure to uncover potential issues before closing. Amidst the chaos and complexity, the ability to identify every possible issue and a identifying a legal solution to avoid closure delays, is the USP of any mortgage title service company. Issues in terms of probate law, family, criminal law or tax liens need proper analysis and communication to ensure the lender is able to extract transactional proofs and correct documentation. Partnering with a title company with such reputation would ensure smooth title processing.
8. Correct Understanding of Business Regulations
One very important factor which lenders generally neglect is the title companies understanding of business regulations. The mortgage industry is changing at a fast pace. New regulations tend to bind lenders to new commitments. A title company which understands the commitments will cooperate with you to adhere to these requirements. They will issue title commitment reports to adheres to every regulatory requirement and ensure lenders face no divergences on the closing day. This helps in developing good relationship with buyers.
9. Optimum Utilisation of Technology
Title service companies have been able to ramp up efficiency levels because of advanced technology. Today, a number of software and RPA-driven tools are available to develop an efficient workflow system between departments and ensure tasks are completed in a timely and accurate manner. Besides they help in improving process transparency. A good title service company will adopt the best technologies to stay ahead of the efficiency curve. When choosing a title service company, a lender must enquire into the kind of tools and software they use. This gives a fair understanding of their process.
About the Company:
Expert Mortgage Assistance an ISMS (ISO 27001) certified company has 10+ years of experience in assisting lenders with all the title services need for processing mortgage loans. Our role begins from assisting lenders in order and fetching title reports to preparing title commitment reports that have all the necessary information for commitment easement, tax status and restrictions, etc. Over the years, we have gained in-depth knowledge of title complex cases which positions us as a truly reliable title support service to support the diverse title need of lenders.
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