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58 to William Robinson Jr., President of ATA National Title Group, is "the most perplexing" problem facing the title industry. He added that it is compounded by the fact that real estate transactions are not getting any easier, and digital communication has reduced the direct, personal points of contact between consumers and service providers. "Title companies cannot continue to rely upon passive outreach," Robinson said. "A willingness to answer questions when posed is not the same as a program to reach and inform customers. Title companies have the knowledge consumers need. ey need to use modern digital portals such as websites, social networks, and the like in order to reach and educate the next generation of customers." Michael Rubin, VP of Business Development for Alliant National Title Insurance Company, told DS News that the real question to be asking is whether the consumer cares to be educated about title insurance. "It's horrible that consumers maybe don't care enough about the product," Rubin said. "It means that you're in danger of one day not being a product." Rubin added that, for many, a home is only purchased a few times in their life, and so homebuyers may not see title insurance, or any related security or fraud risks, as a real concern. "We are the same kind of product to a consumer as a windshield replacement is when you're buying a new car," Rubin said. "It's a one- time purchase that they may never use, and that, frankly, may not hold a lot of value to them. Educating them as to the value that we provide is important, but I don't see much evidence that consumers want to be educated on it." Michelle Garcia Gilbert, Managing Partner of the Gilbert Garcia Group, P.A., said there were approximately 11,300 victims of real estate wire-fraud schemes, including title companies and buyers and sellers, according to the FBI Internet Crime Report from 2019. Gilbert, who is also managing partner of Sapphire Title, pointed to a fraud alert for wire transfers issued by the Consumer Financial Protection Bureau (CFPB) in July 2019. She recommended never using email-wiring instructions, because hackers can spoof emails. Patrick Stone, Executive Chairman and Founder of WFG National Title Insurance Company, said the reason cyber theft and fraud are increasing is because the frequency of real estate transactions occurring within non-secure emails is trending upwards. "e title industry is right at the nexus of the transaction and frequently is handling or involved in wire transfers, pay-offs, etc. Consequently the title company is frequently wrongly accused of being the source of the breach, and is almost always directly involved in trying to resolve the issue," Stone said. "Educating the participants in the transaction— mainly consumers and Realtors—as to the danger of cyber theft is the biggest challenge facing the industry at this point in time. While almost every title company prints large warnings on all documents, outreach to the consumer in a meaningful way is needed." THE TECHNOLOGICAL ADVANTAGE Of course, for every dangerous door technology opens, there are plenty of bridges it provides to new opportunities as well. Qualia Co-Founder Joel Gottsegen told MReport that advancements in technology— notably a little invention known as the smartphone—have provided most Americans with access to the internet almost anywhere in the world. While the real estate and lending industries have evolved over the past decade to meet expectations from a more tech-savvy clientele, Gottsegen suggests the title industry lags behind. "You have more digital loan applications, you have more purchase-and-sale agreements being signed on the internet rather than via a wet sign. Even within the closing part of the transaction itself, you have more and more digital interactions," Gottsegen said. "So it's not a surprise that we're seeing an uptake in demand for things like electronic signing and electronic notarization. e key is, technology companies and title companies use a partner to empower title companies to meet the consumer expectations when they demand it." Gottsegen added that, while most people may not want to complete the largest transaction they will ever make on a 4.7-inch touch screen, the market is changing, and the surge of millennial homebuyers is altering long-standing assumptions. "Title companies need to be able to provide both experiences," he said. "e in- person experience—sitting around the table, talking everything through—as well as that streamlined, mobile app, sign-everything-online experience." Gottsegen said the answer to being a successful title company in 2019 is to, " just be ready." "Be able to provide this experience when it's required, and you don't have to provide it when it's not required. at flexibility is key, which is a function of what technology title companies are working with," he said. Gilbert said the ability for millennials to do a digital transaction, from loan application, to contract submission, to electronic closings, will be "uniformly accepted in the future," but with security safeguards. "Add remote notarization to electronic closings … the traditional closing experience at the title company table may go the way of brick- and-mortar retail stores," she said. Stone said technology has also given title companies the ability to outsource non-client specific functions, such as the production of title reports, cybersecurity, human resources, and marketing. "Technology has allowed the industry to consolidate data acquisition and sharing, as well as making information more readily available to title companies, real estate agents, lenders, and consumers," Stone said. "Technology has facilitated eClosings, remote notary, and online processing, thereby taking time and cost out of the process for all concerned." Gottsegen observed that the current generation of buyers are accustomed to using technology on a daily basis, and using an antiquated process "is a surprise to them." He added that every part of the real estate industry over the past decade has caught up to those "I'm ready for [technology], and I'm eager to see what it does to the business. ose who are afraid of it will fall behind." —Michael Rubin, VP of Business Development, Alliant National Title Group

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