Mortgage delinquencies have been on the rise and industry experts are predicting an increase in loan defaults over the coming months. Per Black Knight, the national delinquency rate in February rose for the first time in 9 months, largely driven by a 97,000 rise in early-stage delinquencies, The study also revealed the number of properties 30 or more days past due, or in foreclosure, reached approximately 1.95 million nationwide, while total new U.S. foreclosures hit 25,000, up 541% from the same time last year.
Why the surge? Mortgage delinquencies had nearly disappeared during the pandemic owing to multiple mortgage-relief provisions provided by the federal government. Many homeowners, who were struggling to pay their mortgage, got a free pass on their payments for a year, or longer. The issue at hand is homeowners now have to resume payments, with many unable to do so.
What this rise in defaults means for title agents?
When servicers initiate default and loss mitigation proceedings, managing the need for new title and tax searches not only falls on servicers, but also directly on title service providers. A title search will be needed to determine the existence any liens, verifying ownership and paid tax status.
The question is how many title agents and their service providers are ready to manage record high, title volume fluctuations with their current capacity? Will new, default title activity also negatively impact client service on new mortgage activity?
Why traditional solutions to deal with fluctuating volumes are not the answer.
Title agents, most often, try to manage volume fluctuations and related service issues by just using their existing staff. While the reasons are sound (no recruitment, no training, no additional costs, etc.) the end results are predictable (missing service expectations, errors, staff burnout, loss of clients).
Jumping to the extreme of scaling up staff has similar, and additional implications. Finding immediate staff with the title domain expertise is not easy when market demand rises. Added overhead costs and increased investments in technology infrastructure, continuous upgrades and advancements are all minimal requirements.
Doing the same thing, over and over again, and expecting a different outcome will be your only guaranteed result.
How can title agents handle high volume fluctuations?
The solution to this and similar problems has been evolving for decades. The pandemic help identify and accelerate its use. The results ensured its continued and increasing presence.
Partnering with efficient and experienced service providers solves the most identified problems with business volume fluctuations,
- 71% of financial service executives outsource or offshore some of their services
- 78% of businesses all over the world feel positive about their outsourcing partners
Title agents can use the same solution to plan and handle their business fluctuations. The use of efficient and experienced title service providers provides immediate relief to your business pain points:
- Scalability on demand
- Providing title domain expertise and experience
- Accessing cutting-edge, technology innovations as well as upgrades/maintenance to infrastructure
- Taking advantage of variable pricing to work volumes
- Eliminating fixed staffing and other overhead expenses
Why companies like PrivoCorp are your volume solution partners
PrivoCorp successfully provides title service solutions to easily manage fluctuating volumes, ensuring compliance and reducing title production costs over 30-40%.
With a deep understanding of the business challenges facing its title clients, PrivoCorp continuously interacts with clients to ensure satisfaction, meeting SLAs, managing cost, scalability and volume fluctuations.
Take advantage of market opportunities by using the decade proven solution of outsourcing…… Get in touch with PrivoCorp today!