If Title Companies aren’t motivated to reduce the risk they bring to the transaction, what can we as lenders do, other than ask for assurances in writing, that they assume liability for their own actions?

Well, I would hope that those title agents that don’t realize the seriousness of this are looking for alternate work, because obviously the lenders need to find people that understand the value in this.

I could tell you that all the good title companies that we run across have taken this serious for quite a number of years, and I think the lenders are going to search and seek those out and make sure that all the good ones are properly trained, have all the best practices, have the SOC 1 certifications, SOC 2, whatever it may be, vendor management to make sure that they’re identifying who they’re doing business with and what they’re doing to protect all the data and information that we have.

I think that’s something that’s going to weed itself out. If a title company doesn’t realize by now, and really if they haven’t started by now to realize how important all this is, I don’t that know the lenders can afford to do business with them, so that’s when the title companies got to step it up and make sure that they are being compliant.

Answered By: Brent Laliberte