Residential mortgage transactions are the bread-and-butter business of the title industry. However, when mortgage originations (sales) decline, it becomes increasingly difficult to achieve the right balance of cost, risk, customer service, product, and technology for title companies and other real estate service providers such as abstractors. Achieving this balance — and supporting a successful effort — requires a high degree of expertise, streamlined processes, and the right technology, all of which require significant capital. Therefore, leading title insurance companies, and major national agents outsource their servicing process. But what is the best title insurance outsourcing company and the benefits?
End-to-end outsourcing can help those major participants in this industry accomplish the following:
- Minimize income volatility and create earnings predictability
- Mitigate risk
- Lower fixed costs and required capital investment
- Stabilize staffing requirements
- Free up capital to focus on high-return projects
- Efficiently expand sales channels, resulting in incremental volume
A title agency considering outsourcing will select the best title insurance outsourcing companies with care. Entrants will consider companies with a track record of high customer service ratings, proven processes, and leading-edge technology when choosing an outsourcing partner. Additionally, the partner should be able to ensure scalability and integrated operations across multiple channels. Many companies that have chosen to outsource their operations have found that an end-to-end outsourcing business model minimizes margin volatility while at the same time helping to ensure the long-term profitability of their product or service offering.
The factors in choosing the best title insurance outsourcing companies.
Once a title company has decided to pursue an end-to-end outsourced operation, it is important that it finds an appropriate outsourcing partner.
Among the critical criteria for making this decision are:
- Responsiveness to customer needs.
The ability to respond to customer needs is the top priority for both the title company and the outsourcing partner. It is essential to monitor customer satisfaction with the outsourcing partner throughout the servicing experience.
- Ability to support a brand.
The entire customer experience should reflect the title company’s brand and be transparent to the customer. The firm must have a track record of tailoring the title process to meet customer needs and support the brand through all channels. Well-defined customer service levels must be established. Frequent reporting must be required, and service levels must be measured on an ongoing basis. And to further ensure that the outsourced experience reflects the brand, the partner’s standards must meet or exceed those of the title company’s own quality control standard.
- Advanced technology.
Title Companies will only consider leading-edge partners that are working to make the process simpler, faster, and more streamlined. They should be sure that the technology in place will provide a positive experience. Ideally, the operating platform should support the ability for title professionals to access information conveniently and seamlessly.
- Single-source solution.
Title companies may limit their search to outsourcers who can do everything from beginning to end.
- Dedication to the outsourced title industry.
Title companies will make sure that the prospective provider has ceaseless focus on title outsourcing; provides an adequate level of historic stability, in terms of customer service; has the ability to absorb new business or scale back if necessary; can handle enough volume to deliver the expected efficiencies; invests in technology and the development of better platforms and products.
Conclusion
If the current market volatility continues or interest rate fluctuations affect the mix of loan types, this problem will be highlighted even further — making it difficult for all but the highest volume participants to handle processing efficiently and profitably. Consequently, it makes sense for title companies to outsource to the best title insurance outsourcing companies. End-to-end outsourcing can protect them from volatility and risk, while increasing profitability and helping them maintain and enhance valuable long-term customer relationships.
While end-to-end outsourcing may not be the right decision for every organization, eventually, all will give it serious consideration as margins shrink. It is becoming more common, makes financial sense, and should be considered as part of a comprehensive and long-term growth and profitability strategy.