In the business of selling and buying real estate, title insurance companies do not just process the transaction, they also work to safeguard the interests of both the borrowers as well as the lenders. Buyers want to move into their new home quickly, while mortgage lenders expect the transaction to be safe and regulation compliant. Title companies identify and rectify errors to the title and ensure the lien is enforceable via a process that meets the expectations of both parties. In many ways, the title industry is intricately linked to the fortunes of the real estate mortgage industry.
Title Volumes & Mortgage Volumes Intricately Linked
We all know that mortgage volumes vary based on a variety of factors like interest rates and other macroeconomic conditions. Whether it is the origination, refinance, or even default, mortgage companies continue to depend on title companies to help in closing the transaction. In many ways, the title volumes are dependent on the mortgage volumes.
The Challenges Title Companies Are Facing
For several title companies, managing costs and compliance across title production orders is an ongoing challenge. Getting access, on time, to the right skilled workforce, who understand state-specific regulations can be tough. Also, the volume fluctuations mean that they cannot commit to a large number of permanent resources. When the volumes go down, these permanent resources will mean significant additions to their fixed costs, and this will affect profitability.
Given these challenges, title companies must work on a plan to build scale and competency, without increasing fixed costs.
How Can a Variable Cost & Capacity Model Help Title Companies?
Title companies need to partner with capable vendor partners, who can scale their teams based on demand. These partners have the title domain expertise and with their flexible engagement models offer you the option to move to a variable cost and capacity model.
As a title company, you pay per order, and it is the partner’s responsibility to staff up or down based on your requirements. This way, when volumes go down, you don’t need to worry about fixed costs, as the partner would scale down teams and will bill for only what you consume.
Based on the partner’s capacities and skills, these title companies can accelerate turn times, mitigate risks, and control overheads. All of this helps them to deliver improved value to their lender clients.
Advantages of a Variable Cost & Capacity Model
- Save over 30% in the cost of operations
- Reduce turn time by over 40%
- Skilled capacity available, based on requirements
Take The Leap!
As a title insurance company, if you are looking to build scale with capable resources, then you should consider a partnership with Fugo Services. With 10+ years of experience in the title domain and a presence in Irving, TX, Fugo offers you unmatched value and can help you in a range of areas in title production. With its title domain expertise, Fugo also leverages a range of technology solutions to streamline your title operations. Several title companies have already taken advantage of our variable cost and capacity model, and we are sure that you will benefit too. Write to us at marketing@fugoservices.com to set up an exploratory discussion.
