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Industry News

The future of real estate transactions

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Industry News
Thursday, December 2, 2021
October Research, LLC’s latest “Evolving Realtor Relationships” complimentary webinar included two industry experts who discussed their experiences meeting new consumer demands successfully and the future role of the real estate agent in the transaction.

Jim O’Donnell, CEO of Equity National Title, and Veronica Figueroa, CEO of The Figueroa Team (brokered by eXp Realty), detailed ways consumer behavior and expectations are changing, the trend of real estate agent specialization and the latest changes to workflow and processes. The webinar was moderated by Jamie Kump, Qualia’s director of high growth accounts.

O’Donnell said he sees two major trends that deviate from the traditional business model in which the Realtor refers a consumer to the title-settlement provider.

One shift is the birth of “super agents” who are more full-time and engaged Realtors, he said.

“They’re more significant in what they’re going to represent in terms of referral business to a title company and less on the decentralized and highly fractured models,” O’Donnell said. “I think you’re going to see more of that – the big will get bigger.”

O’Donnell added real estate transactions are also becoming more and more digital.

“We have to understand that it’s not just a digital transaction – meaning a closing – but the digitization of all of our business that’s being applied in the mortgage lending process,” he said. “It’s being applied in the real estate transaction, and it’s being applied more and more in the title side. It’s less digital in the closing experience. The closing experience is still very traditional. Maybe there are hybrid closings where we’re electronically signing most of the documents and wet signing the notarized documents.

“But I think the tomorrow of our business is going to be almost completely digital. And if we as title agents don’t adapt to that reality, I think we’re at risk, frankly.”

Figueroa said successful real estate agents tend to view themselves more as experts in helping consumers navigate the home buying process vs. a traditional Realtor who would wear every single hat.

“I built out a business where I had someone who specializes in transaction management, someone who specializes in marketing and someone who specializes in data base management, while I focused on being the news source for my community and for my agents,” she said. “The agents that are winning in the industry today who have massive market share have figured out we are more than just real estate agents opening and closing doors.

“We are community pillars. We are the ones with the information, and how we deliver the message is what’s going to determine our success. We are giving consumers more options to sell a home and to buy a home than the traditional ways we were used to seeing in the past. A lot of the agents dominating in the marketplace have figured this out.”

Visit RESPA News to view “Evolving Realtor Relationships.”

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12 USC Section 2605 or Section 6 is titled Servicing of mortgage loans and administration of escrow accounts. It pertains to qualified written requests, notices of transfer of servicing and the administration of escrow accounts.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
An arrangement that involves a person who is in a position to refer business as part of a real estate settlement service and who has an interest in a settlement services provider.

In the arrangement, the person, who has either an affiliate relationship with or a direct or beneficial ownership interest of more than one percent in a settlement services provider, directly or indirectly refers business to that provider or influences a consumer to select that provider.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
A mortgage disclosure that lists all estimated charges and fees associated with your loan. In addition to fees and charges, it will list your loan amount, mortgage rate, loan term and estimated monthly payment. Your escrows due at closing for insurance and taxes will also be outlined. Mortgage lenders are legally required to provide a GFE within three days of receiving your application.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
Under RESPA Section 2605(e)(1)(B), a qualified written request is a written correspondence that includes: 1) the name and account of the borrower, or has enough information to allow the servicer identify that information; and 2) a statement of the reasons for the belief of the borrower that the account is in error or provides sufficient detail to the servicer regarding other information sought by the borrower.

A QWR cannot be written on a payment coupon or other payment medium supplied by the servicer.
12 USC Section 2609 or Section 10 is titled Limitation on requirement of advance deposits in escrow accounts. It governs escrow accounts including notifications and statements to borrowers. Section 10 also sets out penalties for those who violate the section.
RESPA Section 3 provides that a thing of value includes any payment, advance, funds, loan, service or other consideration

Regulation X says thing of value includes: monies, things, discounts, salaries, commissions, fees, duplicate payments of a charge, stock, dividends, distributions of partnership profits, franchise royalties, credits representing monies that may be paid at a future date, the opportunity to participate in a money-making program, retained or increased earnings, increased equity in a parent or subsidiary entity, special bank deposits or accounts, special or unusual banking terms, services of all types at special or free rates, sales or rentals at special prices or rates, lease or rental payments based in whole or in part on the amount of business referred, trips and payment of another person’s expenses or reduction in credit against an existing obligation.
A form used by a settlement or closing agent itemizing all charges imposed on a borrower and seller in a real estate transaction. This form represents the closing transaction and provides each party with a complete list of incoming and outgoing funds. RESPA requires the HUD-1 to be used as the standard real estate settlement form in all transactions in the U.S. involving federally related mortgage loans.
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