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WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 1
WE ARE A FINANCIAL
SERVICES PROVIDER
PATRICK STONE WFG NATIONAL TITLE INSURANCE CO.
WILLISTON FINANCIAL GROUP
SW AGENCY EXPO
HORSESHOE BAY - AUSTIN, TX
OCTOBER 8, 2014
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 2
WE ARE A FINANCIAL
SERVICES PROVIDER THE WORLD WE LIVE IN…
CFPB REGULATIONS
DOI CONCERNS
THE ECONOMICS OF THE MORTGAGE TRANSACTION
THE ECONOMY
OUR ROLE IN THE PROCESS
ENHANCING OUR VALUE PROPOSITION
2015 – WHAT TO EXPECT
IMPROVING ECONOMY – IMPROVING REAL ESTATE MARKET
“KNOW WHAT YOU OWE” 8/1/15
BEING AN APPROVED VENDOR
YOUR COMPANY AS A FINANCIAL SERVICES PROVIDER
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 3
THE WORLD WE LIVE IN…
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 4
PLEASE RATE YOUR LEVEL OF AGREEMENT/DISAGREEMENT
WITH THE FOLLOWING STATEMENTS:
Courtesy of October Research/The Title Report Mar 2014, Sponsored by NATIC
Agree Disagree
The title industry is in better shape
than when I entered the business 30.3% 41.3%
Once implemented, these
mortgage disclosures could be an
improvement 22.6% 35.3%
Our industry needs to do a better
job communicating with consumers 70.3% 8.5%
Lenders hold too much power over
us 68.8% 4.8%
Fraud gets too much hype as a
concern in the industry 25.4% 42.5%
We need more regional
underwriters 28.6% 19.3%
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 5
THE WORLD WE LIVE IN…
CFPB REGULATIONS
DOI CONCERNS
THE ECONOMICS OF THE MORTGAGE
TRANSACTION
THE ECONOMY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 6
CFPB REGULATIONS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 7
CFPB FISCAL 2014
FUNDING = $608 M
PENALTIES = $61.8 M
TITLE = 30 K
STAFF = 1624 FTE
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 8
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 9
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 10
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 11
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 12
MAJOR COMPLIANCE INITIATIVES AND ACTIVITIES
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 13
MAJOR COMPLIANCE INITIATIVES AND ACTIVITIES
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 14
MAJOR COMPLIANCE INITIATIVES AND ACTIVITIES
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 15
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 16
SPECIFIC APPLICATIONS TO
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 17
DOI CONCERNS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 18
HOW TITLE INSURANCE RATES
ARE REGULATED FILE & USE 17 STATES
USE & FILE 1 STATE
PRIOR APPROVAL 14 STATES
PROMULGATED 4 STATES
RATES NOT REGULATED 8 STATES
11 STATES REQUIRE FILINGS FOR FEES WHICH ARE
NOT INCLUDED IN TITLE RATES.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 19
RATE REGULATION STATUTORY
STANDARDS
39 STATES – RATES NOT EXCESSIVE,
INADEQUATE OR UNFAIRLY DISCRIMINATING.
10 STATES AUTHORIZED TO REGULATE
PERCENTAGE OF PREMIUM TITLE AGENTS
RETAIN
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 20
NAIC TITLE INSURANCE TASK FORCE 2010 SURVEY OF STATE INSURANCE LAWS
AUTHORIZED TO REQUIRE DATA REPORTING
INSURERS IN 43 STATES
AGENTS IN 34 STATES
ATTORNEYS IN 4 STATES
ABSTRACTERS IN 4 STATES
ESCROW/SETTLEMENT AGENTS IN 10 STATES
AUTHORIZED TO REQUIRE TITLE INSURERS TO OBTAIN TITLE AGENTS IN 31 STATES
ATTORNEYS IN 4 STATES
ABSTRACTERS IN 2 STATES
ESCROW/SETTLEMENT AGENTS IN 10 STATES
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 21
THE ECONOMICS OF THE MORTGAGE
TRANSACTION Q1 UNPROFITABLE FOR NON-FINANCIAL LENDERS
COST OF COMPLIANCE ADDED 15 TO 25% TO THE COST OF
MORTGAGE ORIGINATION IN THE LAST 12 MONTHS.
52 DAYS TO CLOSE 32% FALL OUT RATE
MUST CHANGE
INTEGRATION:
• ELIMINATES REKEYING DATA
• ELIMINATES ERRORS
• CUTS DOWN ON PHONE CALLS, FAXES, ETC.
• REAL TIME SIMULTANEOUS DATA ENTRY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 22
THE ECONOMY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 23
ECONOMIC PERSPECTIVES
THE ECONOMY: RECOVERY AND THE IMPACT OF POLITICAL
POLICY
CREDIT: THE GOOD, THE BAD AND THE UGLY
REAL ESTATE RECOVERY: WHAT’S MISSING AND NEEDED? FIRST TIME BUYER
MOVE UP MARKET
CONSUMER CONFIDENCE
MORTGAGE FINANCE CERTAINTY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 24
THE ECONOMY, RECOVERY AND
THE IMPACT OF POLITICAL
POLICY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 25
gdp = c + i + (e-i) + g
THE ECONOMY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 26
U.S. ECONOMY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 27
U.S. ECONOMY REAL GDP
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 28
U.S. ECONOMY GOVERNMENT
SPENDING
Source: NYT
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 29
U.S. ECONOMY REAL RESIDENTIAL CONSTRUCTION EXPENDITURES
Source: NYT
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 30
U.S. ECONOMY PRIVATE CONSTRUCTION SPENDING AS A SHARE OF
G.D.P.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 31
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 32
U.S. ECONOMY UNEMPLOYMENT SEPTEMBER 2014: 5.9%
Source: BLS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 33
Source: NYT
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 34
Source: NYT
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 35
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 36
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 37
U.S. ECONOMY “SHIFTING BALANCE” HOW THE COMPOSITION OF FEDERAL SPENDING HAS CHANGED
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 38
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 39
CREDIT:
THE GOOD
THE BAD
AND THE UGLY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 40
U.S. ECONOMY CREDIT MARKET DEBT AND GDP
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 41
Source: Seeking Alpha
ONGOING DELEVERAGING IN THE
HOUSEHOLD SECTOR
Household Debt as % of
Disposable Income
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 42
ONGOING DELEVERAGING IN THE
HOUSEHOLD SECTOR
Source: FRED
Q1 1980 10.7%
Q4 2007 13.2%
9.0
9.5
10.0
10.5
11.0
11.5
12.0
12.5
13.0
13.5
14.0
Jan
-80
Jan
-81
Jan
-82
Jan
-83
Jan
-84
Jan
-85
Jan
-86
Jan
-87
Jan
-88
Jan
-89
Jan
-90
Jan
-91
Jan
-92
Jan
-93
Jan
-94
Jan
-95
Jan
-96
Jan
-97
Jan
-98
Jan
-99
Jan
-00
Jan
-01
Jan
-02
Jan
-03
Jan
-04
Jan
-05
Jan
-06
Jan
-07
Jan
-08
Jan
-09
Jan
-10
Jan
-11
Jan
-12
Jan
-13
Jan
-14
Household Debt Service Payments as a Percent of Disposable Personal Income (TDSP), Percent, Quarterly, Seasonally Adjusted
2014 Q1
9.9%
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 43
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 44
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 45
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 46
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 47
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 48
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 49
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 50
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 51
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 52
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 53
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 54
Source: NY Times
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 55
Source: JP Morgan
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 56
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 57
Source: Goldman Sachs
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 58
Source: FRED
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 59
Source: Goldman Sachs
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 60
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 61 Source: FRED
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 62
REAL ESTATE RECOVERY
WHAT’S MISSING AND NEEDED?
FIRST TIME BUYER
MOVE UP MARKET
CONSUMER CONFIDENCE
MORTGAGE FINANCE CERTAINTY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 63
U.S. House Price Performance By State (June 2013 to June 2014)
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 64
U.S. House Price Performance By State (June 2006 to June 2014)
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 65
ARE HOUSING PRICES DONE RISING?
1. PRICE TO RENT RATIOS NEAR LONG-TERM
AVERAGE
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 66
Source: Fortune
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 67
ARE HOUSING PRICES DONE RISING?
1. PRICE TO RENT RATIOS NEAR LONG-TERM
AVERAGE
2. HOMEOWNERSHIP RATES NEAR LONG-TERM
AVERAGE
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 68
Source: Fortune
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 69
ARE HOUSING PRICES DONE RISING?
1. PRICE TO RENT RATIOS NEAR LONG-TERM
AVERAGE
2. HOMEOWNERSHIP RATES NEAR LONG-TERM
AVERAGE
3. RATIO OF HOUSING WEALTH TO GDP HAS
NORMALIZED
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 70
Source: Fortune
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 71
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 72
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 73
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 74 Source: WSJ
Multifamily 307K
Single-family 618K
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 75
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 76
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 77
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 78
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 79
FIRST TIME BUYER
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 80 Source: WSJ
Source: Realtor.org
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 81
MANY YOUNG INDIVIDUALS LIVE WITH THEIR PARENTS,
BUT THE DECISION APPEARS CYCLICAL
Source: Goldman Sachs
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 82 Source: Harvard Univ.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 83 Source: NYT
A Recovery in Borrowing Consumer loans outstanding are rising, and serious delinquencies are down. But
younger adults continue to shy away from buying homes.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 84
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 85 Source: NYT
Younger Turn for a Graying Nation Baby Boomers No Longer No. 1
From 1947 to 2010, the most-represented age in the United States population was
always a member of the baby boom generation. But that has now ended. Last year,
there were more 22-year-olds than any other age.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 86
Population by Single-Year of Age Rising population in prime household formation years
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 87
MOVE UP MARKET
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 88
Source: NAR, APA, CORE LOGIC
PERCENTAGE OF OWNER OCCUPIED
HOMES WITH NEGATIVE EQUITY - Q2 2014
17.0 % Q2 2014
_________________
18.8 % Q1 2014
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 89
Q2 2014
Las Vegas 24.7%
Atlanta 28.9%
Orlando,Fla 24.9%
Chicago 27.1%
Tampa, Fla 23.7%
U.S. rate 17.0%
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 90
CONSUMER CONFIDENCE
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 91
Source: The Conference Board & The University of Michigan
CONSUMER CONFIDENCE
WILL AFFECT PURCHASES OF HOUSES AND CARS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 92
Source: WSJ
September
86.0
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 93
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 94
Source: NYT
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 95
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 96
MORTGAGE FINANCE ISSUES
FINALIZE/ENACT CFPB RULES AND REGULATIONS
QM MODIFICATION/”CURE” TIMELINES
MSR SUPERVISION/TRANSFER RULES
DEVELOP “PRIVATIZED” SECURITIZATION MARKET - RMBS
GOVERNMENT ENTITY CLARIFICATION
FHA CREDIT LOOSENING/”G” FEES
ROLE OF FANNIE/FREDDIE
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 97
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 98
Source: WSJ/HUD
Q2 2014: 675
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 99
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 100
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 101
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 102
Source: WSJ
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 103
POSITIVE ECONOMIC OUTLOOK
Q2 4.6% (FINAL REVISION)
Q3 EST 3.0%
Q4 EST 3.0%
2015 EST 3.0%
RESULT • CONSUMER CONFIDENCE INCREASES PAST 95 EARLY 2015
• FIRST TIME HOMEBUYER REENGAGES SPRING 2015
• MOVE UP BUYERS EMERGE Q2 2015
• MARKET NORMALIZES 2016
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 104
OUR ROLE IN THE PROCESS
AND ENHANCING OUR VALUE
PROPOSITION
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 105
WHERE ARE WE AS AN INDUSTRY?
ESTABLISHED, BUT POORLY UNDERSTOOD
OF SECONDARY INTEREST TO REGULATORS
A NECESSARY PARTICIPANT TO LENDERS
VALUED BY REALTORS…FOR THE MOST PART
CONFUSING TO CUSTOMERS
AND ABSOLUTELY ESSENTIAL TO THE PROCESS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 106
WHAT IS OUR VALUE PROPOSITION?
VALIDATE ASSET
GUARANTEE STATUS
CONFIRM OWNERSHIP
TRUSTED THIRD PARTY (SETTLEMENT)
ABSOLUTELY ESSENTIAL TO THE PROCESS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 107
Privacy Limitations on the dissemination and use of information
Data Security Information regarding safeguarding and disposal requirements
NPPI IS THE #1 HOT ISSUE FOR LENDERS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 108
ALTA® SEVEN PILLARS OF BEST PRACTICES Version 2.0 includes Assessment Procedures and Certification Package
4. Real estate settlement procedures and policies
5. Written procedures related to title policy production, delivery, reporting and premium remittance
6. Liability insurance and fidelity coverage
7. Procedures for resolving consumer complaints
1. Maintain current license(s)
2. Written procedures and controls for Escrow Trust Accounts
3. Written privacy and information security program to protect Non-public Personal Information And this is not
new…GLB became
effective in 1999.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 109
Courtesy of October Research/The Title Report Mar 2014, Sponsored by NATIC
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 110
2015 WHAT TO EXPECT
…OR WHAT WILL IMPACT OUR FUTURE?
FAMOUS DUMB PREDICTIONS
IMPROVING ECONOMY
“KNOW WHAT YOU OWE” 8/1/15
BEING AN APPROVED VENDOR
THE ECONOMICS OF THE TRANSACTION
YOUR COMPANY AS A FINANCIAL SERVICES PROVIDER
WHAT GUARANTEES OUR FUTURE?
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 111
Courtesy of October Research/The Title Report Mar 2014, Sponsored by NATIC
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 112
*** FAMOUS DUMB PREDICTIONS ***
“THERE IS NO REASON ANYONE WOULD WANT A COMPUTER IN THEIR HOME …” Ken Olson – President and Founder of Digital Equipment
“DATA PROCESSING IS A FAD THAT WON’T OUTLAST THE YEAR …” Editor of Business Books for Prentice Hall – 1957
“I’M GLAD IT WILL BE CLARK GABLE FALLING ON HIS FACE …” Gary Cooper on his decision not to take the lead role in “Gone With the Wind”
“WE DON’T LIKE THEIR SOUND, AND GUITAR MUSIC IS ON THE WAY OUT …” Decca Recording Company rejecting “The Beatles” – 1962
"I THINK THERE IS A WORLD MARKET FOR MAYBE FIVE COMPUTERS." Thomas Watson, chairman of IBM, 1943
"WHO THE HELL WANTS TO HEAR ACTORS TALK?" H.M. Warner, Warner Brothers, 1927.
"EVERYTHING THAT CAN BE INVENTED HAS BEEN INVENTED." Charles H. Duell, Commissioner, U.S. Office of Patents, 1899
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 113
IMPROVING ECONOMY
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 114
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 115
Source: Fannie Mae
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 116
Source: Fannie Mae
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 117
Source: Fannie Mae
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 118
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 119
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 120
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 121
Source: US Energy Admin.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 122
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 123
“KNOW WHAT YOU OWE”
8/1/15
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 124
Courtesy of October Research/The Title Report Mar 2014, Sponsored by NATIC
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 125
Loan Estimate - 3 pages Replaces GFE and Preliminary TIL
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 126
Closing Disclosure - 5 pages Replaces Final TIL and HUD-1
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 127
BEING AN
APPROVED VENDOR
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 128
THE ECONOMIES OF THE
TRANSACTION
COST TO ORIGINATE HAS RISEN 15-25% IN THE
LAST 12 MONTHS DUE TO COMPLIANCE COSTS
REALTORS LOSING CONTROL OF POS DUE TO
AUTOMATION
TITLE COMPANIES FIXED COSTS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 129
YOU ARE A FINANCIAL SERVICES
PROVIDER
CONDUCT YOURSELF AS THE MOST PROFESSIONAL (THIRD) PARTY
TO THE TRANSACTION.
BE PRECISE ABOUT THE FINANCIAL ASPECTS OF THE TRANSACTION
AND ABOUT THE INFORMATION CONVEYED THROUGHOUT THE
TRANSACTION.
EMBRACE COMPLIANCE – IT GUARANTEES YOUR FUTURE.
OBSESS ABOUT PRIVACY
OBSESS ABOUT SECURE DATA
PRESENT AN ENVIRONMENT THAT REFLECTS ALL THE ABOVE.
BE REGARDED AS THE ADULT IN THE ROOM.
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 130
CONTINUED HOUSEHOLD FORMATIONS
EMBRACING COMPLIANCE ENTHUSIASTICALLY
DRIVING OPERATING COSTS DOWN!!!
BECOME A DYNAMIC PART OF THE TRANSACTIONAL PROCESS
INTEGRATE WITH LENDERS
o ELIMINATE OR MINIMIZE DATA REKEYING
o ELIMINATE OR MINIMIZE “CHECK-UP” CALLS
o FACILITATE “SALEABLE” MORTGAGE
o SHORTEN THE TIME TO CLOSE
o LESSEN THE “FALL OUT” RATE
PROVIDE CLEAR AND FREQUENT COMMUNICATION
CONDUCT YOUR BUSINESS AS A FINANCIAL SERVICES PROVIDER
WHAT GUARANTEES OUR FUTURE?
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 131
Don’t Have
Need or Care
Need or
Like to Have
E-recording capabilities 46.9 % 53.1 %
Escrow account security technology 34.0 % 66.0 %
My title production system 40.2 % 59.8 %
Cloud hosting 71.5 % 28.5 %
Integration with providers/customers 55.6 % 44.4 %
Auto-filling of forms 44.7 % 55.3 %
Lien release/document retrieval 57.0 % 43.0 %
E-Marketing solutions 64.6 % 35.4 %
Paperless storage 25.2 % 74.8 %
RATE YOUR ATTITUDE ABOUT THESE TITLE
TECHNOLOGY ATTRIBUTES/SOLUTIONS
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 132
Source: October Research
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 133
Gov’tOversight
ConsumerSearch Sites
eTransaction Platform (Data, Documents, eSigs) eClosing
eRecord
POS & LOS System
SMARTDocs
eDocCustodian
Closing Agent Title Company Attorney
County RecorderCourt House
Recorder | Assessor | Taxation
MortgageOrigination
SalesContract
REALTOR
Loan AppInitial
DisclosuresGFE, TIL
Loan AppLoan Quote
Rates & PricingLock
VOE, VOICredit
MI Appraisal
Title
Closing Documents
eNOTE
Deed
eFile
Title Search, Examination,
Curative, Underwriting
eVaulting
LOANSERVICERS
eDisclosures
SELLER BUYER
Archive
eRecording
PaperDocuments
eVault
eVault
Property Search | Analysis | ContractOrigination | Appraisal | Title Exam | Closing | Recording | Disbursements
MLS
PROPERTYDATA(RETS) Processing
PropertyListing
eSignatures
Electronic Audit & Compliance Trail
Real Property Transactions Mortgage & Title Transactions
Mortgage Backed
Securities(MBS)
FANNIEFREDDIE
WALL ST. INVESTORS
eDelivery· MIN· MOM Loans
Capital Markets Transactions
Securitization
Data Data
Data Warehouses:
Analytics
Appraisal
UMDP | UCDP
UAD | ULDD
BrokerageIDX
Search PortalSyndicators
© All Rights ReservedWright | STRATEGY | Advisors
T h e S u p p l y C h a i n o f R e a l P r o p e r t y T r a n s a c t i o n sConsumers
Lender’s Back Office System
Realtors LendersAppraisers Title & Closing
Attorneys Recorders Securitization RegulatorsInsurers InvestorsTechnologistsCredit Agencies
Notarization
eNotarization
MERS as Mortgagee
State Laws
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 134
Source: CNN Money
WE ARE A FINANCIAL SERVICES PROVIDER - PATRICK STONE 10.08.2014 135
THANK YOU