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Insights
For Agents of Fidelity National Title Group
Vol. 6, Issue 3, May 2015
The Latest News and Articles for Our Agency Network
GET PREPARED WITH OUR CFPB READINESS PROGRAM
by Erika Meinhardt,
President,
National Agency
Operations, FNTG
I
am excited to share with you
some of the most recent steps
we have taken with our CFPB
Readiness program. Our FNTG National
Agency team created this program to
ensure that our title agents and your
customers have the resources you need
to prepare for implementation of the
IN THIS ISSUE >
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Company Announces 1Q Results
TILA/RESPA Integrated Disclosure rule.
First, we have established CFPB
staff leaders throughout the country.
These leaders — along with experts
Don Partington, Lisa Tyler and Kevin
Gugenheim — are taking an active role in
training and educating our agents, as well
as large groups of your customers. If your
agency requires training, please reach
out to your agency manager so that we
can provide you with the tools you need.
As part of our customer outreach
strategy, we’re excited to unveil another
new resource — our CFPB Readiness web page: www.fntg.com/cfpb. This site was
created with agents’ customers in mind
and features easy-to-read materials, a
variety of videos, and the ability to download fliers and presentations. And for you,
our agents, we offer a more targeted level
of resources under the Training section of
our National Agency website. Click here to
connect. This password-protected section
provides detailed information, as well as a
five-step plan to prepare for the changes:
• Step 1: What to Do — Understanding
the Changes
• Step 2: How to Do It — Assessing the
Process
• Step 3: Know Your Lenders — Platform Information
• Step 4: Educating Your Staff —
Training Tools
• Step 5: Educating Your Customer —
Teaching Tools.
As your underwriter, we take seriously our role of offering support and
training to you and your customers.
We work in an environment where new
updates, expectations and procedures
unfold on a daily basis. We will continue to communicate with you about
these changes and provide you with the
resources you need to close transactions efficiently, on time and within the
CFPB’s new guidelines. Together, we
can meet the changes head on. ~
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Back to Basics: Powers of
Attorney
Shown are
agents who
attended a
May 8 CFPB
training
session in
Orlando,
Florida, led
by FNTG
Florida
Agency staff.
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Agency Spotlight
PAGE 5
Changing the World of Mobile
Tech and Marketing
PAGE 6
New Agent Link
Bright Ideas Page
Page 6
Is New for
Agents!
nationalagency.fntg.com
© 2015 Fidelity National Financial
Send your submissions to Linda Grahovec, NTP, VP, Marketing and Communications, at [email protected] or 630.222.0778.
AGENCY INSIGHTS I VOL. 6, ISSUE 3, MAY 2015
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COMPANY ANNOUNCES SOLID FIRST-QUARTER FINANCIAL RESULTS
Randy Quirk, CEO,
FNF and FNTG
F
idelity National Financial reported solid earnings
for its Title segment during the first quarter of
2015, generating $1.4 billion in total revenue.
TITLE PREMIUMS & ESCROW
First-quarter results — The Title segment’s total revenue
of $1.4 billion for the first quarter of 2015 is based on:
• title premiums for direct and agency operations of
$858 million;
• escrow, title-related and other fees of $472 million; and
• interest, investment income and realized gains of
$30 million.
AGENCY CONTRIBUTION
First-quarter results — Looking at our agency contribution for the first quarter, a total of 507,400 closing protection letters and 518,900 policy jackets were issued.
Additionally, agents were responsible for generating $441 million in title premiums, which represents 51 percent of the Title segment’s total direct and agency premiums earned in the first quarter of 2015. ~
FOR MORE
INFORMATION >
To learn more, visit
FNF’s website at
www.investor.fnf.com.
First-quarter
2015
First-quarter
2014
Title segment financial
information for the threemonth period ending
March 31, 2015:
Title segment financial
information for the threemonth period ending
March 31, 2014:
$1.4 billion
$1.2 billion
Total revenue
Total revenue
$140 million
$66 million
Adjusted
pre-tax earnings
Adjusted
pre-tax earnings
10.3%
5.5%
Adjusted
pre-tax title margin
Adjusted
pre-tax title margin
507,400
406,800
Agency:
Total closing protection
letters issued
Agency:
Total closing protection
letters issued
518,900
491,900
Agency:
Total policy
jackets issued
Agency:
Total policy
jackets issued
AGENCY INSIGHTS I VOL. 6, ISSUE 3, MAY 2015
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BACK TO BASICS: POWERS OF ATTORNEY
“Some parties do not understand that even
a durable POA will cease upon the death of
by Marjorie Ramseyer Bardwell, VP and
Director, Underwriting Services, Office
of the Chief Underwriting Counsel, FNTG
“Back to Basics” is an ongoing series of title tips. The information and directions are not exhaustive and should be read
in conjunction with all local company rules and guidelines.
LESSON 5: POWERS OF ATTORNEY — THE WHYS AND
THE WHEREFORES
s a Company, we’ve experienced a number of problems and claims based on the improper use of Powers
of Attorney. Let’s take a moment and review some of
the Company guidelines for the issuance of policies based on
instruments executed pursuant to a Power of Attorney (POA).
A
WHY
The first response we should have to the request to rely on
a POA should be why. Why is it being used in this transaction?
Depending on the response to this inquiry, we may need to do
further investigation. For example, if we are told that this is for
the convenience of the seller or borrower, such as a relocation
situation, we can verify that the underlying contract was properly executed by the principal(s) and satisfy ourselves as to the
knowledge and intent of the parties. If we are told it’s because
the seller is “in the nursing home,” we will need to determine
that the principal was competent to give the POA when it was
executed. A “durable” POA — that is, one which remains effective after the subsequent incapacitation of the principal — is
only good if the principal was competent when it was given.
We may need to get a statement from the attending physician to that effect. Remember, though, that a person may be
physically incapable of signing an instrument, but still mentally
competent to give a POA.
WHEREFORE
Once we have determined we are willing to entertain the
use of a POA, we must make sure that it is in the proper
form for our purposes. We want a properly recorded POA
that contains specific powers over specific property, and
that has not been revoked or terminated.
RECORDED
Today, the majority of states require that POAs be recorded.
We require it whenever we rely on a POA. The two main reasons are insurability and revocability. We insure marketability,
and a challenge to the extent of the authority of the attorney-infact can be the basis of an objection to title in many jurisdictions
when the POA does not appear in the chain of title. In addition,
many states have provisions that once a POA is recorded, it can
only be revoked — as far as third-party reliance upon it is concerned — by recorded revocation. This is great protection for us.
the principal. POAs are not that durable!”
SPECIFIC POWERS
The POA to be exercised must be expressly stated in precise terms. The power “to sell” may NOT include the power to
convey title, to mortgage or to gift, depending upon state law.
The power must include, clearly and without ambiguity, the
right to undertake those actions contemplated in the transaction. We are often presented with instruments that include
numerous specific kinds of financial and banking powers and
catch-all phrases such as “and any other thing that is necessary to handle my financial affairs,” which we then are asked
to rely upon for the sale of real estate. Giving a child a POA
to deposit someone else’s social security check does not give
him or her the authority to sell that person’s house! Make sure
there is no question as to the extent of the authority conferred.
SPECIFIC PROPERTY
The property must be identified sufficiently so as to comply
with the statute of frauds in your jurisdiction. That would normally mean a legal description, reference to a recorded instrument containing the legal description or a tax parcel number
must be included (whatever is necessary in your jurisdiction to
give constructive notice and get it recorded).
NOT REVOKED OR TERMINATED
As discussed above, the recording of a POA sometimes gives
us protection against the subsequent attempted revocation by
the principal. Obviously, you must check the record for any indication of revocation. In addition, you should inquire if the attorney-in-fact has been notified that the POA has been revoked
or if the principal is dead. Some parties do not understand that
even a durable POA will cease upon the death of the principal.
POAs are not that durable! In many areas, we routinely ask the
attorney-in-fact to sign an affidavit stating that he or she has no
knowledge of the revocation or termination of the POA.
AND SOME GENERALIZATIONS
The following are just a few more points to consider when
faced with a POA. Any request to deviate from them or any of
the other points raised in this article should be discussed with
your Company underwriting advisor.
• Attorneys-in-fact can’t convey to themselves.
• Attorneys-in-fact can’t further grant or convey their
authority under a POA to third parties unless the POA
specifically authorizes that action.
• Principals in a fiduciary relationship cannot give a POA in
regard to that relationship. For example, a partner in a
partnership cannot give a POA to a third party to act as a
partner. A trustee cannot give a POA to another to act as
AGENCY INSIGHTS I VOL. 6, ISSUE 3, MAY 2015
continued on page 4
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continued from page 3
trustee. The exception would be if the partnership
agreement or the trust — in the examples mentioned
previously — specifically gave the fiduciary the power to
grant a POA for that relationship.
• A party may not be able to convey homestead or marital
property rights with a POA under state law.
• The proper signature format for most states is:
Mary Smith
[Signature line]
John Jones
By: Mary Smith, his attorney-in-fact
The acknowledgment must be that of the attorney-in-fact
(Mary Smith, in the example). She must sign her name to
the instrument.
• The use of POAs in the secondary mortgage market still
needs to follow the recording requirements, although we
will often rely on a POA for an individual to sign assignments
and releases to be recorded just once in each county if that
will meet local marketability requirements. This is a different
issue than someone signing on behalf of a corporation
under a resolution.
Hopefully, this little refresher will allow us to reverse the
trend when it comes to problems with Powers of Attorney. ~
FOR MORE INFORMATION >
Questions on this topic? Contact Marjorie Ramseyer
Bardwell, VP and Director of Underwriting Services,
FNTG, at [email protected].
AGENCY SPOTLIGHT: CAPLINGER RECEIVES 2015 TRAVER SCHOLAR AWARD
Paula Caplinger, VP, Tidewater
Agency Manager and Counsel, CTIC/
FNTG, Newport News, Virginia,
recently received the 2015 Traver
Scholar Award for her contributions to
the cause of continuing legal education in Virginia.
With 28 years of experience in the
industry, Paula makes it her mission
to share her knowledge of real estate and title insurance
law with agents and attorneys and to guide them in making
daily underwriting decisions. In her role as agency counsel,
she regularly organizes and participates in Company continuing education programs for agents and attorneys. She’s
also been a guest lecturer at Virginia CLE programs and
the Marshall-Wythe School of Law and Regent University.
Paula began practicing law in 1986 and became in-house
counsel for Hampton Roads Title in 1988. She served as
manager and counsel for the Tidewater office of two national
underwriters before joining Chicago Title. Since 1998, she’s
been the Tidewater agency counsel and manager for CTIC.
She served as chair of the Real Property Section of the
Virginia State Bar (2003 – 2004) and currently serves as a
council member on the Virginia Bar Association Real Estate
Section Council. Paula is a member of the Newport News
Bar Association, the Greater Peninsula Women’s Bar Association, the American Bar Association and the Virginia Land
Title Association. ~
WE WANT TO HEAR FROM YOU >
Agency Insights is produced for our valued agents and
staff. We’d like to hear from you! We invite you to submit
write-ups of special events and activities, including:
• industry-related recognition for individual or
office accomplishments;
• involvement in industry-related events;
• participation in fundraising efforts; and
• involvement in community-focused activities.
CONNECT WITH US
• Agents can send submissions and
available photos to their agency reps.
• Agency staff can share submissions
with Linda Grahovec, NTP, VP,
Marketing and Communications, at
[email protected] or
630.222.0778.
AGENCY INSIGHTS I VOL. 6, ISSUE 3, MAY 2015
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MARKETING INSIGHT: THE BEST WAY TO BOOST RECOMMENDATIONS
by Alex Samant, Co-founder,
TitleCapture.com
et’s face it, nobody
is going to work with
a title company or
title agency unless they’ve
worked with them in the past
or they’ve been recommended
by a trusted colleague or friend.
So let’s cut through the veil of
marketing lingo and theories
and focus on what matters
most: recommendations.
In this article, we’ll focus
on how to drive recommendations without resorting to
begging clients for recommendations or offering financial incentives in exchange for
recommendations, as these
are two approaches that simply don’t work.
So, let’s start from the beginning ...
L
WHY DO PEOPLE
RECOMMEND?
Why would you recommend Apple’s iPhone or the
latest Samsung model to your
friends? The answer is simple. It says something about
YOU. It doesn’t necessarily
say anything about Apple
or Samsung, per se. When
you recommend a particular brand, you’re trying to let
your friends know how cool,
creative or trendy YOU are.
You are in essence “endorsing” that product because you
want to be identified with it.
You’re not recommending your phone’s easy-to-use
interface, or the fact that you
can transform it into a portable Wi-Fi hotspot or whatever
else it can magically do. No,
you’re simply trying to alert
your friends that you are an
“iPhone type of person.”
So now think about your real
estate agents, lenders, buyers
or sellers, and ask yourself
these questions: “Do they want
to be seen endorsing you?”
“Would they want people to
actually know they’ve been
closing with you?” “Are they the
XYZ Title type of agent?”
If you can’t answer these
questions in a split second,
you’ve got a problem. But
you’re not alone, so read on.
DETERMINE WHO YOU ARE
AND WHY YOU MATTER
The first step to creating
a brand that your clients will
believe in and endorse is to
figure out who you are and
why you matter to them.
You could be the title
agency that:
• has a great deal of experi ence, insight and high-
level connections; OR
• is forward-thinking and
masters technology to get things done as quickly as possible; OR
• is always friendly, with
outgoing and caring staff
members … The list of
possibilities goes on and on.
If your clients emotionally
resonate with who you are,
they will identify with you and
will want to promote that sense
of identity. They will be happy
to paint a great picture about
THEM by recommending YOU.
CREATE A CONSISTENT
CUSTOMER EXPERIENCE
Now that you’ve determined who you are, you need
to maintain that image and
mirror your customer experience accordingly. Let’s say
you chose to brand yourself
as a forward-thinking title
agency, using technology
to your clients’ advantage.
Your customer experience
has to reflect this new “forward-thinking” attitude at all
levels and at all times during
the customer lifecycle.
For example, one of your
real estate agents needs a title
quote for a property his client is
trying to sell. Or better yet, the
seller wants to know how much
he’s going to net after the sale.
Now, the old-school way of
doing things is to have the real
estate agent phone in, talk to
someone and, at some point in
the near or far future, receive
an email with a quote.
But if you want to be consistent with the forward-thinking
approach, you would definitely
need to have a title company
app that allows real estate
agents to generate their own estimates (buyer estimates or seller net sheets). It could also allow
lenders to generate a quote with
your settlement, recording and
transfer charges — something
they would use in their GFEs.
The app would need to
be easy to use, allow them
to quickly email estimates,
and be accessible from any
device, including computers,
iPhones, iPads or Androids.
TITLECAPTURE — YOUR
PERSONALIZED TITLE APP
One such app is TitleCapture (fidelity.titlecapture.com),
which can be branded with
your logo and company colors, and features your offices,
reps and specific settlement
fees.
Taking the forward-thinking
approach even further, let’s
think about the next step in
the customer experience:
ordering title. Forget about
PDF forms that clients have
to fill in, print and fax to you.
That’s old-school. The techsavvy approach is to use an
interactive order form on your
website that enables clients
to enter their information, hit a
button and it’s done: ordered.
Whether you want to expand
or just guard your current market position, branding is essential. The key to great branding
is figuring out who you are
and why you matter, and then
reflecting that brand consistently through the customer
experience you provide. ~
TitleCapture is an FNTG preferred service provider and is
your branded title company app that drives agent loyalty
and helps boost your business. Your real estate agents and
lenders will use this app every single day.
Visit fidelity.titlecapture.com to learn more.
Or contact Kethe Cicconi ([email protected] |
305.400.4305).
AGENCY INSIGHTS I VOL. 6, ISSUE 3, MAY 2015
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AGENT LINK
BRIGHT IDEAS
Linking agents and staff
to ideas that make sense!
WHAT’S NEW ON THE NATIONAL AGENCY WEBSITE
CFPB UPDATE
We’ve hand picked several sections of FNTG’s National
Agency website to highlight, which we think you’ll find
useful:
• New CFPB Web Page
FNTG’s new CFPB web page was created with agents’ customers in mind. It’s a tool agents can use for laptop presentations with their clients — linking directly to the site.
• Want to Learn? We Love to Teach (password protected)
Located under the Training tab, this section offers useful
training materials for your agency staff, including new videos
and recently updated escrow training standards.
• CFPB Updates for FNTG Agents (password protected)
This section provides detailed information for our agents, as
well as a five-step plan to prepare for the changes.
• Find Local & State Contacts
Need to find an agent in another state? We can connect you
directly to the state manager for a customized and targeted
referral that meets your customer’s needs.
• CFPB Infographic
A great visual display to use in your social media efforts or to
print for your presentations.
USEFUL DOCUMENT LINKS:
• Chase — CFPB Integrated Closing Disclosure FAQs
• Bank of America: CFPB Integrated Mortgage Disclosures
Borrower/Lender Selection of Title & Settlement Providers
• SunTrust Mortgage Shares TRID Plans; Requires ALTA
Best Practices Assessment
• SunTrust Mortgage: Letter to Settlement Agents —
RESPA/TILA Integrated Disclosure Rule
NEWSDESK
• NewsDesk
FNTG’s NewsDesk provides industry news from a variety
of resources. It’s a simple way to boost your social media
efforts. Post one or two articles to Facebook, Twitter or
LinkedIn. We’ve done the work for you!
PREFERRED SERVICE PROVIDER LISTING
• FNTG Preferred Service Provider Listing
This listing was created exclusively for our agents and
includes solutions that can streamline your business, provide
exceptional growth opportunities and, in some cases, help
your agency attain Best Practice compliance.
BEST PRACTICES WEB PAGE
• Inlanta Mortgage: Letter to Settlement Agents — TRID
Settlement Agent Questionnaire
FRAUD INSIGHTS
• FNF’s Fraud Insights: Vol. 10, Issue 4
Fraud Insights is produced for staff and agents of the company.
Click above to link to a recent issue. If you aren’t receiving the
newsletter and would like to, contact your agency representative.
EXTERNAL RESOURCES: ALTA
• American Land Title Association Website
ALTA INDUSTRY NEWS:
• Board Approves Model Settlement Statements
• FNTG Best Practices Web Page
Our Best Practices web page highlights the seven industry
Best Practices and explains which FNTG preferred service
provider can assist agents in attaining specific Best Practice
compliance.
• ALTA Survey Finds 92 Percent of Title Professionals
Will Be Ready for TRID Implementation
YOUR OPPORTUNITY TO GET INVOLVED:
• Title Action Network
AGENCY INSIGHTS I VOL. 6, ISSUE 3, MAY 2015