A Look Back--Part I Mortgage Industry

June was a big month in the housing industry this year. We celebrated National Home Ownership month, and we saw an end (an almost end) to the National Tax Credit for certain homebuyers. I started thinking about what the real estate market was like 30 years ago...how has it changed? For the better or worse?

We have seen a lot of change in the mortgage industry and how mortgage loans are processed. Fax machines were not a staple in offices and overnight mail was very expensive. Most items were ordered via courier or regular mail and business was done very locally. A credit report took 4 days to receive. The loan officer sent a check for about $65 to the local bureau and waited for the report to be ready for pick up. Appraisals took a full two weeks to complete and were hand delivered as well. Verification of Deposits, Verification of Mortgages, Verification of Rents, and Verification of Employment were all mailed out and the mortgage company waited for the originals to be completed and returned. The borrower did not submit underlying documents such as tax returns, bank statements, or paystubs. The only supporting documents were the "verifications"!

According to the US Census Bureau, the median sales price in 1980 was $93,400 for the United States. The rate of default was much lower back then, but that is understandable considering conventional loans required at least 20% down. There were no "Alt A" products in the 80's. The primary loan products were Conventional (20% down) and VA.

All in all, mortgages took 45-60 days to complete. Not at all unreasonable considering most escrows run well over 30 days. Have things really changed that much or are we just headed full circle?! Paula Hester--Escrow Admin DFW

Going Green

Precise Land Surveying started going green over 15 years ago when green was still only known as a color. When Gary Vike, President of Precise Land Surveying, opened Precise Land Surveying in 1992 he immediately realized that the land surveying industry needed to be updated. He observed that the surveying process was slow, inaccurate, and not customer friendly. So what did he do? He changed it! Gary hired IT Experts, Process Engineers, and Customer Service Advisors and together they created a new process that gave the speed and accuracy that their customers wanted. What was the common problem? Paper! Too much paper! The average file was jammed with paper making most telephone books jealous. Client’s files would get lost, misplaced, misfiled, and the common question of the day “Who has the Smith file?” So the Precise Team designed a software called S-Track that makes the process virtually paperless. S-Track is able to receive orders from a client by paperless fax, email, or online and immediately puts the job into a digital queue that allows multiple departments to work on one job at the same time. The Research Department, CAD, Field Department, and Surveyors could all work on a job without having to wait for one department to pass along the file. Gary also had scanners placed in his field trucks to allow work to be transferred to S-Track without having to drive back and forth to the office. This increased speed for his clients and reduced fuel consumption. Since a plat is required for every survey, Gary purchased digital plats that reduced drive and research time at County Court Houses. Throughout this whole process the client is kept up to date by emails and has access to a dedicated Customer Service Department to answer any questions. What was the end result from this new process? First of all, 11 tons of paper and thousands of gallons of fuel is eliminated per year. Secondly, and most importantly, the client has an easy way to order, the survey is usually delivered within 48 hours or sooner as needed, and constant electronic updates from Customer Service gives peace of mind until they have an accurate survey in hand. Precise Land Surveying has a 99% accuracy rate compared to the Industry at 70%. This process took time to evolve and it is still Gary’s number one goal to improve daily. The common question of the day now is “How can we make this better for our customers?” The Precise team recently implemented a new Green tool. They have placed printers and laptops at their larger client’s offices to be able to print surveys right at their desk without having to deliver them by courier to reduce time and fuel. Precise has also become more flexible growing beyond doing business in the DFW area. Precise now has the ability to do surveys in Austin, San Antonio, and Houston. So what can we learn from Precise? Going Green is Good for Customers. To learn more about precise land surveying visit www.preciselandsurveying.com or call at 877-581-7072.

Many of our local Fidelity National Title offices use Precise Land Surveying. Although the buyer does have the choice in survey companies, we commonly order the surveys as a courtesy to the real estate agent. We love Precise for several reasons: 1) Accuracy- they are unbelievably accurate- and 2) Marketing - they offer free customization of their products for real estate agents. If you're looking for a great surveying company, we highly recommend Precise Land Surveying.

Amy Torres
VP/ Director of Sales
Fidelity National Title- DFW

Leader or Victim?

Recently I read an article by Michael Feuer, co-founder of OfficeMax. In the article, Mr. Feuer stated, "Those who don't change will ultimately be the victims of change." It's been my experience that change has always been positive. Think about when you have made changes in your life and the result of those actions. Embrace change, you'll discover when you do, that you are much more positive and have a brighter outlook on the future. In these tough economic times, are you going to be a leader of change or a victim? Be a leader of change with your customers, employees, family and in your community. Constantly challenge and re-evaluate, don't be afraid to think out of the box and take a risk. Don't be afraid of failure, most successful people I know have failed at one time or another. Remember, the real leader holds the power, not just the position.

Darryl J. Tyson

President - DFW Division