| Interview by Tom
Healy in the Maryland Land Title Association Summer
2006 Newsletter, Vol. 2, Issue 2 |
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Opening a new file and finding an unreleased deed of trust is an old problem for the title industry in our state. Over the last decade, as low interest rates and appreciation in home values drove a high volume of transactions, the frequency with which an unreleased lien burdens a new file seems to have increased. General speculation attributes this rise to lax regulatory compliance by some lenders, understaffed land records departments at courthouses throughout the state, and the business routine for low priority post-closing issues at title companies. In discussions with Virginia colleagues, several recommended the use of reQuire, a Virginia Beach-based company, as a cost-effective service for lien release and tracking. The following is an interview conducted in several conversations, by e-mail and telephone, with Robert Pleasants, reQuire’s President, and members of his sales staff. The purpose of the following interview is to explain what reQuire is and how it works.
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Q: What is reQuire?
A: reQuire is a lien release tracking and reporting service. It is Internet-based (http://www.titletracking.com), and is available at no cost to entities disbursing payoff funds to satisfy lien requirements.
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Q: What is the cost and who pays it?
A: The cost is $35 per release. The seller pays in a sale, and the borrower pays in a refinance
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Q: Why should anyone use reQuire?
A: reQuire is an efficient, cost effective alternative to the old laborious, time consuming, costly, and stressful practice of lien release management. We do the job that nobody wants to do, and we do it at no cost to the agent.
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Q: Specifically, why should my title company use reQuire?
A: Title company owners and managers get a great sense of relief from using reQuire. This arises from the four clear benefits that reQuire gives to title agents. One, your title company will immediately enjoy quicker remittance on policies. Two, you be able to close your files faster than ever before. Three, when you have used reQuire on every open file in your office, you will be free from calls from former customers, other title companies, or attorneys seeking a release. The cost-saving from this benefit can be large. You can eliminate your budget line for follow-up work on closed files. Since this work is often outsourced, you'll never have to spend that money again. reQuire will track and report the status of every file entered into the system. If you get a call asking for a release on one of your files that used reQuire, the liber and folio reference you need is easily available through our portal. Or, you can just have them call us directly about the release and we’ll take care of it for you. Fourth, we have a title curative service to track down the proper signatory for old liens that appear on your title reports from prior closings. Your settlement agents can use this complementary service to move files along when legacy issues slow down the closing process.
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Q: What is the most important feature of reQuire, and why should it matter to me?
A: The extensive activity reporting system is the most important feature of reQuire. This feature allows the settlement agent to close pending files and then send them to storage. Our Disbursement History Report shows, in real time, each and every action performed by the reQuire staff, from file creation to final indexing and/or receipt of the release.
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Q: What sparked the idea for reQuire?
A: The epidemic problem in the industry related to unreleased deeds of trusts results from a lack of the lenders statutory compliance and the inconsistencies in lien release-reconveyance methods among states and courthouses. As a result of the re-fi boom, there are also a number of overburdened courthouse county land record departments. Because of these issues, the settlement agents are burdened with the task of file cleanup many months after a transaction has been closed. reQuire is a way to relieve this burden and to ensure that the lenders comply with statutory requirements.
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Q: Who else benefits when a title company uses reQuire?
A: Pretty much everyone in the industry does better. That’s what comes from doing the job right. Sellers have the added assurance that the General Warranty conveyance is truly lien free, and that the underlying note is properly closed and satisfied. Borrowers (in a refinance) benefit by knowing that the former lien will be properly released, or, in the case of open lines of credit, that the line remains open and must be closed before the lien can be released. Homebuyers can be assured that all liens against the property they are purchasing will be released 100 percent of the time. Title underwriters should see a reduction in claims arising from unreleased deeds of trusts and mortgages, a reduction in defalcation, and some measurable reduction in mortgage fraud. This benefit will be a result of reQuire's efforts to insure that each and every paid lien is: first, fully paid by the obligor and, second, released in a proper and timely manner. Lenders who use the reQuire system for their closings enjoy the same benefits as the title company or settlement agent. Those payoff lenders who wish to participate have the ability to use the present system to facilitate instant releases (within days of the closing).
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Q: Can you tell me more about reQuire's service to clean up unreleased trusts on other company's files?
A: Yes, we have a special link on the reQuire website called “Title Defect Clearing Services.” People interested in this service fill out and provide as much information as they can on the file they are trying to close. In every case, we can identify the authorized person to sign a release within three hours. We offer a money back guarantee with this service.
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Q: Do you have customers in Maryland?
A: Our single largest market is the District of Columbia Metro market, and many of the clients there do closings in Virginia, D.C., and Maryland. So, we track hundreds of Maryland files every day. As of today, we have less than 100 percent participation from all of the settlement agencies based in Maryland. Our goal is to obtain 100 percent participation in this state.
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Q: In what other states do you operate?
A: We are in Virginia, West Virginia, Delaware, Pennsylvania, Florida, North Carolina, and Michigan.
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Q: Suppose I want to use reQuire for a case that has already settled?
A: reQuire works with potential and existing customers on a case-by-case basis to insure that they have no issues related to releases. We can clean up old files that the settlement agent has closed himself (Archives), as well as assist with Title Curative Issues (Defect files) that the agent is trying to close in the future.
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Q: When did reQuire start operating?
A: reQuire started in Virginia Beach, Va., as a stand alone system for a few settlement agencies in 2000. In 2002, we built our web-based system, incorporating new security and integrity measures to ensure accuracy and speed in the tracking and reporting methods.
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Q: How has reQuire changed since it debuted?
A: When we began reQuire, I think we knew we were on to something that would be a benefit to all of the parties involved in tracking releases. How well our service has been received over the past four years has certainly proven this. The biggest change is how we've grown is in our ability to, not only track current files, but to also clean up defective files. We have engaged many lenders who are actually fond of working with us to resolve issues related to releases, and through these efforts, we've become expert in clearing up clouds on title.
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Q: Is reQuire planning to introduce any new features?
A: We are currently beta testing judgment lien release tracking in Virginia, and if all goes as planned, we will target a roll out to additional states by year end.
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Q: Does reQuire sync up with settlement software? If so, which ones? What's the cost for that service feature?
A: reQuire currently uses an activeX mail merge interface that “syncs” the data in TSS, Landtech, Softpro, and AIM for Windows with our system. Several other settlement software interfaces are in progress, and we do not charge for any of these features.
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Q: How do you see reQuire evolving?
A: Our goal at reQuire has always been to become the industry standard “Trusted Source” for release tracking and reporting. We want to be the conduit of communication between the settlement agent and the payoff lender. We will continue to use technology and our superior customer service to help with efficiencies that benefit all parties to the transaction. Our goal is to continue to find ways to reduce the amount of time from loan payoff to lien release recording.
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Q: What is the risk to me of using reQuire?
A: There is no risk. There are no contracts to sign or long-term obligations. reQuire is a pay-as-you-go service that the agent can start and stop at any time. If you do your part - which is checking to be sure that we have done what you paid us to do - then, unreleased deeds of trust will never be a problem for your clients.
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Q: Thanks, Robert. Final question: how does a title company contact reQuire for Maryland service?
A: Contact Jared Uthe at 443-871-1641, or by e-mail: juthe@titletracking.com.
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Tom Healy is the President of Abonar Title. He is also an adjunct professor of Business at Weber University and Trinity University in Washington, DC where he teaches business strategy, financial management, and business law.
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[Healy, Tom. “Clearing Clouds On Title: What’s reQuire (D) in Maryland?” Maryland Land Title Association 2.2 (2006): 3-4.]
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