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» VISIT US ONLINE @ DSNEWS.COM 59 expectations. "Unfortunately, you have the title companies who haven't had that same technology partner to let them get to that level of consumer expectations that we're seeing now," Gottsegen said. Ultimately, Robinson said technology touches everything we do, but can increase efficiencies. He added that title companies can improve their use of digital communication, especially with business-to-consumer communications. "To achieve that kind of consistency, individual consumer needs must be effectively communicated and addressed. at means digital communication has to become a priority. Moreover, as we improve communication, we reduce risk," Robinson said. "For example, wire fraud survives on the failure of service providers to timely and securely communicate to their customers. Technology has created that problem and can also be the means to solve it." Rubin, as a self-professed, "borderline millennial," says he has yet to see much of an impact from technology. He noted that there is a great deal of chatter and "a lot of people afraid of it," but he views things such as eNotorizations as the "next logical step." "I'm ready for it and I'm eager to see what it does to the business. ose who are afraid of it will fall behind," Rubin said. THE CHALLENGES AHEAD With 2019 quickly winding down and the calendar preparing to flip to 2020, what challenges lie ahead for the title industry? Stone said while the title industry is a necessary function of the real estate process, it will have to become more consolidated as technology allows "major players to operate more efficiently and expand in a more cost- effective manner." "e days of a closing office on every corner are coming to an end, and online functions will become more prevalent. e industry will slowly morph into a more traditional Insurance industry relationship with its agents, as those agents look to their underwriters for functional support, while they focus on sales, signings, and client interaction," Stone said. Gilbert noted that both Fannie Mae and Freddie Mac have launched initiatives for electronic closings. She said this is not so much a reform of the GSEs as it is "the direction of the lead loan underwriters in the country." "Evolve or don't evolve, at your peril," Gilbert said. "e industry is innovating to adapt to the new digital age by developing technologies that allow a seamless and secure transaction by the title industry, who of course will still need to issue title insurance policies." Robinson said many of the challenges facing the title industry—technology (and the abuse of it), consolidations, and regulations—have been fueled by changes in modern business practices. "As new technologies have emerged, business practices have evolved, in some cases spawning new threats like wire fraud. Service providers have had to adapt their business models, usually involving substantial investment in their own technology development," Robinson Jr. said. "Often the knowledge and capital required by that development has caused those service providers to consolidate. Finally, these changing business methods have required regulators to adapt as well by formulating new policies." Robinson Jr. said that while the path to facing these challenges will not be easy, two requirements are consistent: the willingness to adapt and the willingness to invest. For those willing to do both, Robinson Jr. said he believes "significant opportunities are and will remain available." Gottsegen said there are an increasing number of states passing legislation allowing electronic notarization, and it is a trend that is "certainly going to continue." He added, "As long as consumers are demanding these experiences, lawmakers will ultimately listen to these demands and turn that into law." He stressed that, for the title industry in 2020, it will be vital to remain on the lookout for not only consumer trends but also how lawmakers turn these trends into regulations and legislation. "We are in a highly regulated industry, Gottsegen said. Dean Kirchen, SVP of Title Operations and Manager of Default Services for WFG National Title Insurance Company, said he is looking for corporate debt to be a "driving force" in the next recession. Kirchen added, though, that the next recession likely won't result in another housing bust like in 2009, but stressed layoffs could impact defaults. "If there are layoffs, people will struggle to make their payments, increasing default rates," Kirchen said. "We're seeing numbers now that properties going to foreclosure auction are actually increasing on the West Coast, so there is some sort of lack of appetite for rising values." Robinson, looking ahead, said he believes transactions will decline, which will lead companies to cutdown operations. However, "All is not bleak," Robinson said, as he noted he expects the market to remain strong in 2020. " e days of a closing office on every corner are coming to an end, and online functions will become more prevalent." —Patrick Stone, Executive Chairman and Founder of WFG National Title Insurance Company

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