2022: The Year in Review

Here we are. The end of the year. A time to look back, reflect and remind you about all the events that transpired, and a time to gently put Father Time out to pasture and welcome that sweet, cuddly and fat newborn Baby New Year.

In short, 2022 felt a lot like coming back down to earth, didn’t it? This decade started with two  turbulent and unpredictable years thanks to depleted inventories, skyrocketing home prices, record-low mortgage rates and intense competition. Things were booming, even in a global pandemic. It was only a matter of time before things had to get back to normal.

So, let’s take a journey down memory lane and recognize three significant highlights for the Generes & Associates Squad this year (We’re trying out Squad right now. Feel free to let us know if that sucks), followed by three major industry updates we’ve got our eye on heading into 2023.

Hello, AtClose

If you’ve been paying attention at all this year, you already know we’re just a smidge excited about this. Over the summer, we announced our monumental new partnership with AtClose. We’d heard loud and clear from many of our customers who are increasingly seeking access to a 21st-century, streamlined title production system.

So far, this partnership has been a win-win for all involved! AtClose is accomplishing its goal of adapting its product to smaller and mid-size title companies while we’ve been able to apply our personal, one-to-one support to enhance this valuable, easy-to-use software. 

Making Waves at Conferences and Conventions

Who doesn’t love a good conference? It’s a chance to get out of the office, network with fellow industry professionals, deepen your education and hang out with your favorite title service professionals! The Generes Squad (you know what, screw it. We’re going with Squad) was on the road this year, taking part in some of the most significant and notable events in the land title space. 

We reconnected with some old friends (and made more than a few new ones) in Biloxi for the Land Title Association of Mississippi (LTAMS) Annual Conference last spring and hit the beach for ALMA’s Annual Agency Seminar in June.

Then, we let the good times roll with our agents and friends for the Florida Land Title Association (FLTA) Convention, where we had the opportunity to prepare 50,000 meals for hurricane relief on behalf of their Charitable Action Foundation! Of course, we also had a fantastic experience and some fun in the sun for ALTA ONE in San Diego. However, the sun was nowhere to be found even after we were all assured that San Diego is always warm and sunny and the weather is perfect. PERFECT, they said! Not so much.

Welcome, Brad!

Another significant milestone for the GAS (Generes & Associates Squad – you know what, you’re right. GAS is lame. We’ll stick with team) saw Brad Wagner join us as our new Business Development manager. Before coming on board, he spent 18 years in the financial software industry as a project manager. A native of New Orleans, Brad oversees the growth and development (hence his title) of all those fabulous G&A products and services you know and love.

Inflation and Interest Rates on the Rise, Oh My

The biggest industry shift this year? Inflation and interest rates. It’s no secret the real estate and housing markets are feeling the impact of today’s rising rates. In March, when the Federal Reserve began its aggressive policy moves to tame inflation, the housing market was one of the first segments to feel the hit. By November, the federal funds rate was set with a range of 3.75 percent to 4 percent. 

With the rate hikes, the average 30-year mortgage rate is up to 7% for the first time in more than 20 years. Which meant a giant ice bucket of cold water on the housing market and a decline in home prices. However, despite this, affordability remains an issue, thanks to the higher rates. 

You’ve all been dealing with lower order volumes across the board since then. While the last two years may have felt like drinking from a fire hose, the reality is we’re back to pre-pandemic 2019 levels now. Rather than keeping up with demand, the challenge now facing title and settlement agencies has shifted to generating new business.

Remote Online Notarization/Digital Closing Updates

With the digital landscape continuing to encompass every aspect of life, analog processes that have dominated the title and escrow industry have continued to undergo a digital transformation. Our old pal RON (Remote Online Notarization) and digital closings have continued to be a part of the discussion. 

In July, we looked like we might be moving towards federal minimum standards allowing notaries nationwide to perform them thanks to the SECURE (Securing and Enabling Commerce Using Remote and Electronic Notarization) Act passing the House of Representatives.

Yet, things have again stalled.

While 42 states have passed legislation enabling the use of RON, state-level regulations may have to be enough for now. While some in the industry are hopeful this will eventually pass in the Senate, it’s doubtful it will be any time soon.

We’ve made our feelings known on RON before. While its ease of use and cost-cutting benefits continue to drive its popularity and excitement for those in the industry, there are still a multitude of unanswered questions on the issue of digital security. It’s our hope that with this slowdown, it might prompt an industry-wide assessment of how to mitigate the security risks that come with an all-digital transaction.

We will continue to recommend thoroughly vetting the security protocols and being mindful of your potential vulnerabilities with whichever vendor you are working with to perform your RON transaction.

Or, you know, don’t. We’re not your parents.

Another hot topic? Real-Time Payments

Real-Time Payments (RTPs) rose to the top of the discussion this past spring when The Clearing House (TCH) raised the general transaction limit on the RTP network from $100,000 to $1,000,000. Now, Financial institutions can transmit payments for real estate closings on the RTP network 24/7, continuing the shift towards evolving consumer expectations.

The result? A continuing transformation of the consumer experience at the closing table, with consumers now able to initiate transactions for RFPs (request for payment) in real-time, rather than the lengthy manual process of obtaining a cashier’s check or initiating a wire fraud.

While there is a lot of enthusiasm toward the modernization of this process, it will require a behavior shift that may take a few years for all parties to get comfortable with. The increase in fraud protection through these types of transactions is promising, though. Multi-factor authentication, account validation services, and IP address verification will be critical in protecting customers from cybercriminals.

What do all these shifts and changes mean for the industry? Title professionals must dive deeper into analyzing and assessing their systems. Now that you have some time back and margin in your schedule, it’s the perfect opportunity to start ensuring everything is flowing the way that it should. No one welcomes lower volumes, but now is a great time to streamline your strategy and improve your operations so that you’re better positioned for the next market pivot. That’s why Generes & Associates will continue to provide exceptional products and services to help you adapt to whatever is needed. Our primary goal – as it’s always been – is to make you as successful as possible, no matter the market conditions.