San Francisco, Aaron, Amazon discussed on The Duncan Duo
So Aaron we were talking before the show started today about a new title operation that that is is kind of formed that is is really kind of blown up the title world and doing something drastically different than other title companies have done, and it remains to be seen, obviously, what kind of long term impact will have. But it's interesting out there for consumers that may potentially end up having back company, or or that that builder so to speak of of, you know, the process of buying home there in terms of how title will work. Yeah. There's you know, I think all of our industries lending mortgage title were all going through, you know, a technological revolution right now. Tons of innovation tons of disruption. And tons of new thinking, and quite frankly, it's pretty exciting. So there is a there's a very large venture capitalist company. They're called fifth wall and fifth wall owns a lot of real estate technology companies including open door, they own notarize. They own a lot of other hippo, which is a property and casualty insurance company online, you know, so very online focused. They they started a title insurance underwriter called states title, and it was a very small operation based out of San Francisco. They're all based out of San Francisco typically and these guys came up with a different model for title insurance. And they said, you know, what the traditional model? The the the problem is they searching of public records in going back for thirty years and examining chains of title. And and and, you know, not really not the old way has been done the same way for two hundred years. Right. And so all of. Of a sudden they developed a new model, it's basically it's almost a property and casualty based model of title insurance. So rather than searching and spending all that time and effort surface searching back chain of title. They're saying, you know, what the majority of the title defects can be cured. And it's, you know, it's a it's a brother or sister forgot to sign off on a deed, you know, ten years ago or there's a witness missing. But most of these results in very small claims. So they're saying, you know, what let's just build a different model title insurance. So instead of the the industry standard five to ten percent loss. Ratios lowest built in forty percent loss ratios, and let's instead of issuing title off of the back chain of title. Let's issue it based off the owners credit report, the credit reports gonna show leans judgements, and I didn't pay my visa prior prior owners yesterday the seller of the property. I'm going to run the credit on credit. That's a little scary hit it. Well, because that that, you know, but that's how we get. Judgements attach via right credit credit. So one thing that's interesting about that to me is that going to well, so for consumers is that going to result in higher fees to some consumers in some instances is going to at that specific underwriter? I would assume I think it's going to end up being awash to be honest with you because what's happening is now instead of the millions of dollars that has to be invested in title plant, assets and examiners that make a hundred thousand dollars examining title. They can change what they charge because that'll have all that extra. That's right. You just eliminated and thirty percent of your back office this way. Wow. Yes. Interesting. So th they're looking at click button get title. Yeah. So that's that's so funny because I talk about that to our team. I mean, that's what the consumer wants today. And it's why the technology that we look at the things that we change consumer wants push-button magic happen and everyone wants to make the real estate transaction easier smoother quicker, and ultimately, it's a it's a process that is never going to get as easy as ordering food for Mujber. Like, it's just not. But at the same time the more advances it makes in that direction. Happier. The consumer is essentially as what what they're doing to where tidal could be done. You could have a tidal policy paid for in a day or two similar to like a homeowner's insurance premium. Sure. So I mean, you think you think about what what what we've done and where where we've come as an industry. I mean, look how closely real estate title lending. We all work as a team, and we keep tightening our systems to get better and better and better. So that buyer can almost click button and get house within fifteen days. Yeah. Faster faster. Yeah. You wanna get almost like the car buying experience. Or or like, you said just ordering your groceries you hitting Amazon, you know, this is the expectation of our industry. So it's pretty exciting. These guys stepped up and bought the tent Lord like one of the top ten title insurance companies in the country. And so they're they're it's exciting. So much change our industry, you know, one of the changes, obviously, you've heard ads on people that will, you know, buy your house instantly for cash, and that's something that we rival we do as well. As kind of our response to you know, helping the consumer that wants to focus more on convenience. I think I think everyone understands that if you're going to go into a process, and you're going to sell your house to an investor for a cash deal, you may not get as good of a price if you market it to the audience, so we give that as an option. So so when you list with us or not necessarily list with us when you when you contact us to think about selling your house, we're gonna give you all those options..