The Title Report’s Mark Lowery shares his thoughts on the impact of the coronavirus and the title industry.
Dear Readers,
About three months ago, at a hotel in Austin, Texas, WFG National Title Insurance Co. founder and Executive Chairman Pat Stone
speculated about the next recession, its likely cause, and the title industry companies likely to survive it. Stone was onstage at Qualia’s Future of Real Estate Summit being interviewed by Qualia co-founder and CEO Nate Baker. Stone said he believed the next recession would be caused by corporate debt and would happen within the next 12 to 18 months.
Although he had no way of knowing the coronavirus would trump corporate debt and slow the housing market to a crawl, Stone did offer incredible insight about the companies best positioned to survive a recession: technology enabled title companies. No one knows how this economic disruption will end or the extent of the damage it will cause. But already we are seeing companies which have embraced technology such as remote online closings (RON) and eClosings drawing distinctions between themselves and old-school operators.
At the same title, the American Land Title Association is pressing the flesh in Washington, trying to get Congress to approve federal
legislation authorizing RON. Such legislation is needed because many states have not passed laws authorizing RON or eClosings for that
matter. Prior to COVID-19, the oft-cited justification for embracing technology enhancements in the industry was either the preferences of
millennials or cybersecurity concerns.
For companies that survive this downturn, I suspect the justification going forward will be being able to operate in the best and worst of
times.
Share your thoughts,
Mark Lowery
Editor