Through a post on the forums, I recently became aware of a new Ohio association for title agents who share a common belief - Affiliated Business Arrangements ("AfBA") are bad for our industry. It is the Ohio Association of Independent Title Agents ("OAITA"), and they seem to be stirring up a lot of interest. And... the OAITA blog has a post that is a must read for every independent title agent - even if you are not in Ohio.
Ohio has a strong land title association. The Ohio Land Title Association, in my opinion, has done a fine job of keeping its members informed of changes, up-to-date with continuing education credits, and they have been fairly effective with their lobbying efforts. However, our industry is becoming more and more divided and it's not really practical to try to represent everyone on some important issues. The debate about AfBAs is one striking example; some agents hate them with a passion, others see them as a key business strategy. So how can a ubiquitous association fairly represent its members in lobbying to change the laws - whether to make it easier to set them up, or to shut them down?
Perhaps when it comes to AfBAs, there is room for another association... or maybe even a need for one. Every time I go to a seminar, I find a discussion (or several) about how horrible AfBAs are and what they are doing to small agents around the state. I have clients that have nearly been driven out of their local markets by competitors soliciting their clients into exclusive AfBAs. The OAITA has made it very clear which side of the issue they represent.
OAITA members believe that kickbacks and referral schemes between title agents and their referral partners -- lenders, mortgage brokers, realtors and builders -- have undermined the value of title insurance in Ohio. Instead, OAITA members are those title insurance agents who have agreed not to engage in those business practices in order to obtain title insurance business.
The OAITA also has a blog, the OAITA - Independent Title Blog. The first post is one of the best I have ever read. It is from June 20, 2008 and the title is The Birth of Reform. Here is the opening paragraph... just to pique your interest.
Three years ago, I was listening to one of my mentors in the title insurance industry tell me how his business was ruined by the advent of affiliated business arrangements. He predicted the end of independent title agents across Ohio and the rest of the country.
Now, please go read the entire post.
If you are interested in joining the OAITA, a membership application is available on its Web site. The dues seem very reasonable at $25 for an employee of an agency or an independent title agent, and $75 for an independent title agency. Currently it appears that only those who are not involved in an AfBA are accepted for membership.
I agree that in the future if my company or the company that I am employed by becomes involved in an affiliated business arrangement I will notify OAITA and will cancel my membership in OAITA.
The OAITA is having its inaugural annual meeting in Columbus on September 8, 2008. The cost for attending will be $50 for non-members and free for members. After the meeting there will be a "RESPA Section 8 & Affiliated Business Arrangements" seminar sponsored by General Title. The seminar is good for 3 CE credit hours and 2.5 CLE credit hours.
The inaugural OAITA Annual Meeting will take place on Monday, September 8, 2008 at the Columbus Marriott Northwest in Dublin, Ohio. The meeting starts at 9:30am and runs until 12:00pm. On the agenda for the meeting: (1) OAITA fundraising; (2) title insurance public policy matters in Ohio; and (3) a roundtable discussion on the plight of the independent title agent in Ohio and what can be done to improve our way of business.
For more information see OAITA Annual Meeting + RESPA Section 8 Seminar: September 8, 2008 on the OAITA blog.
They certainly have my attention. I am looking forward to learning more about the OAITA.
Robert A. Franco
SOURCE OF TITLE