As we speak, interest rates have been stabilizing or increasing slightly. Origination volumes for lenders and for new orders for Title Agents too, are starting to experience the shift.
Most people in the industry believe this may be a temporary phase and the refinancing trend in the market will continue for a while. This trend not only impacts the loan processing volumes but also affects the title search volumes. A slight breather in the market is a good time to introspect and evaluate options.
Its not uncommon for Title Agents and their service providers to record high volumes when the markets are on the rise, but are all players equipped to manage these volume fluctuations?
Most Title Agents try to manage these volumes in-house. In this scenario, it becomes difficult for Title Agents to manage volumes with their existing staff. Scalability of staff to handle peak volumes is not easy and if you overstaff, then you will end up running high fixed costs, when volumes are low. This can severely impact margins. Ramping up or ramping down of permanent staff is not an easy option, so variability becomes an issue.
For Title Agents, another challenge to deal with is finding resources with the right experience and skill. Getting people, on demand when you need them, is never easy. Most Title Agents in the US will operate, either on a single shift or, at best two shifts. Because of this, there is a limit to the amount of work that can get done in a single workday.
Doing all the work In-House can also mean added investments in Technology and Staffing Infrastructure. These costs will very quickly start eating into your margins. Also, most of these costs are not one-time costs and will need upgrades/advancements/maintenance from time to time.
What can Title Agents do?
Managing the variability is relatively easier when Title Agents are partnered with a capable service provider, who can offer:
- Flexibility to scale teams and ramp up or ramp down operating teams, on demand.
- Bring in resources with the right amount of title domain expertise.
- Offer flexibility with pricing based on work volumes, so no more fixed costs.
- Provide the possibilities of extended 24-hour day cycles with onshore/offshore delivery centers, so that work can go on uninterrupted.
- Who provide the best and latest Tech and Facilities Infrastructure, so that you don’t need to invest in it.
Choosing the right service provider for your Title Production Operations
Choosing the right service provider will take some effort, but it is worth it. You can use your existing staff to manage workloads efficiently with your service partner
- Whether you partner with only onshore partners or partners who have capacity at offshore locations?
- Doing the right due diligence on the capabilities of the partner, their earlier experience in the title domain
All of this will help narrow down on the right partner who can:
- Deliver faster with lesser chances of any errors
- Reduce cost of Title production
- Deliver higher accuracy while processing orders
- Offer a great customer experience
- Possess the right domain expertise and experience
All this can help you in managing volume fluctuations a lot better.
Fugo Services can be the right choice for your needs. With over 10+ years’ experience in the title and settlement industry, Fugo delivers immense value to Title Agents. Fugo also invests in innovative Technology platforms to help streamline your Title production. Talk to us today and we can help you with your Title production needs.