I have taken the liberty of copying Kevin Ahern’s response to a previous post regarding NALTEA and E&O insurance.  The suggestions that Kevin offers for NALTEA present an excellent opportunity to clarify where NALTEA’s efforts have been focused – and what more is possible.  Not only have most of the ideas presented been contemplated, they are also works in progress.

Kevin’s suggestions are numbered.  The responses below his thoughts are my own opinions based on my personal experience as a NALTEA board member for the past two years.  Other members’ opinions may vary.

 <?xml:namespace prefix = o />

Says Kevin:  “In these troubled times there is much that needs to be done to improve the lot of the abstractors. Some things that NALTEA may or may not wish to consider...”

          1.   Expanding the function of the Education Committee to include
                education of the lenders and title companies as to the 
                shortcomings of outsourcing to third world abstractors with
                little or no credentials nor quality control. Many of these
                potential clients may be unaware that their abstracting is being
                outsourced or of the problems presented by outsourcing.

Response:  The Education committee has been very busy with the task of constructing a system of identifying the abstractors who have the ability to provide a product that meets the standards that the industry should reclaim.  If faced with a choice between a cheap, quick search performed in a foreign county and a more expensive search performed by a local, but inexperienced, person who has just graduated from an on-line course, I think many will choose the cheap and convenient option.

That said, the Public Relations Committee has been working on gaining access to mortgage bankers groups, Fannie Mae and other organizations.  With the new process of certification – and continuing education requirements to remain certified, I hope NALTEA can make it easier to identify the abstractors that will make the choice easy in favor of the local, experienced abstractor. 

          2.  Provided the funding can be obtained ...a protracted public 
               relations campaign to teach the virtues of using experienced,
               insured and licensed abstractors. Promote the virtues of using
               skilled as opposed to unskilled abstractors. Possibly some
               government grant could be obtained or possibly restructuring
               NALTEA to qualify for small business funding. Once some
               positive results can be shown it may be easier to attract new
               members willing to pay the membership fee.

Response:  A protracted public relations campaign takes more than money.  It takes manpower.  An organization trying to improve the lot of its members requires its members to work together to achieve its goals.  Simply paying dues adds to the coffers and membership rolls, but does not get the work done.  Each board member, officer and committee member now serving NALTEA is either a business owner or a full time employee.  All are making significant sacrifices in hopes that enough positive results can be achieved, thereby generating greater interest and volunteers to turn the spark into an explosion of success.

I personally think that the new certification will make it easier to promote the value of the experienced abstractors.  If they are easier to identify through a reliable stamp of approval, then high standards will be more readily attainable in this market that has become so far-reaching and so impersonal – meaning that it has become impractical for the multi-state customers to really get to know their vendors.  To illustrate this point, I will offer a personal experience on a much smaller level than I believe is experienced by people trying to find competent abstractors:

I have recently had some experience in trying to provide a customer with title searches in states that we do not normally cover.  While in many cases the clerks/recorders offered the information on-line, our company understands the value of local knowledge.  And so I set out several times to find competent abstractors in different parts of the country.  It has been an eye-opening experience.  Finding abstractors who answer their phones was the first challenge.  Then, finding somebody who could deal with a property with a metes and bounds legal description.  And once I found a company that could handle the search on a light-commercial property, I came to expect the need to contact the company for status after their promised delivery date (set by them, not demanded by me) had passed.  In one case out of a half-dozen, I took a look at the on-line records to compare the results, only to find a judgment that the company had failed to report.  I think I gained an appreciation for what the vendor managers experience routinely. 

Being able to find a competent local abstractor is only one part of the equation.  Finding abstracting companies that can provide the customer service demanded in today’s market is one that NALTEA’s certification process cannot adequately address.  Round table discussions at the conference can provide an opportunity for business owners to network with other business owners to gain new ideas for success.  All I can offer on this point is that several companies listed on this board have lost business because they did not answer their phone.

          3.  A lobbying effort of local and/or federal governments to end
               outsourcing. The current problems with identity theft present a
               real opportunity to limit or eradicate outsourcing. I would
               recommend recruiting Dave Bloys in this project. His excellent
               work in the field seems to be producing positive results.

Response:  The lobbying efforts undertaken by the proponents of outsourcing overseas is significant.  I have seen a small part of it first-hand.  NALTEA was there to contribute its efforts to the opposition, which eventually prevailed.  I do believe it was Mr. Bloys who alerted NALTEA to the opportunity to play a small part in blocking a ridiculous change in Michigan law that would have allowed a ceding of ownership of public records to overseas title plants – to use, and sell, the cheaply acquired records as they pleased.  You are right. David Bloys does excellent work.

To counter the lobbying efforts of the proponents of outsourcing overseas and automation will require numbers and money, and probably a separate organization set up as a political action committee.  Unfortunately, the numbers will have to come first. 

         4.   Exploring new fields in which the abstractors can market their
               search skills for information gathering. Possibly providing
               training for abstractors interested in venturing into these new
               fields.

Response:  There are indeed markets that many abstractors may have yet to explore.  There is an understandable reluctance on the part of successful companies to reveal their secrets on web message boards for all to see.  Most information on new business opportunities that I have seen offered has been nothing more than pyramid schemes, from what I can fathom.  Come down to the Big Easy in a couple of weeks and network with others in your field who may be able to share some ideas to increase your success.

Thanks for the thoughts, Kevin.  I think it’s helpful to hear from NALTEA members and nonmembers alike.  Happy New Year to all of you.