The Consumer Financial Protection Bureau (CFPB) in May launched a public inquiry into why mortgage closing costs are increasing, opining that “the escalating fees are draining down payments and pushing homeownership out of reach.”
What is actually putting homeownership out of reach is a complicated stew of low housing inventory that is driving up prices, lack of incentive to build low-cost housing, high mortgage rates, inflation, insufficient tax credits for low-income buyers, and an escalation of regulations for builders, lenders and title companies that make it more expensive to do business.
That aside, title, escrow and closing companies continue to have a bit of a public relations problem when it comes to customers understanding the intricacies of title and escrow. The only way to overcome that knowledge gap is to consistently educate your customers about what you do and the tremendous value you bring to the transaction.
Here are some advantages to making the effort.
Knowledge leads to smoother transactions
Real estate agents, loan officers, home buyers and sellers often do not understand the range of work handled by title, escrow and closing agents. By educating them on the many tasks you manage – and the significance of those responsibilities and how they protect the consumer – you will gain their support in providing you with the information you need to move the transaction forward.
When you are educating your customers, pay special attention to specific needs of their transaction. If there are unusual circumstances, for instance divorce, probate, bankruptcy, foreign ownership, short sale, or power of attorney, be prepared with special instructions that will pertain to that situation.
One of the most essential functions of your work is fraud prevention. In the process of educating your customers on how they can help prevent fraud in the transaction, you have an opportunity to share with them the range of protections you have already put into place to keep your clients funds and personal information safe, a confidence and loyalty builder that will ensure future business.
Updates make them feel valued
Your clients cannot see what is going on behind the curtain and that can be frustrating to them and discouraging to you because you know how hard you are working on their behalf. Educating your customer includes communicating with them throughout the transaction so they aren’t left guessing where things stand. Effective communication impresses upon your clients two points:
- All the steps that it takes to complete a transaction
- Their transaction is important and top of mind for you
Both of these things can be very reassuring to your clients, and this is where Alanna excels, with its automated updates feature that keeps you connected to your customers throughout the process and keeps them apprised of the progress being made.
Less work for you
When your clients know what information you need, why you need it, and how the process will progress, they will ask far fewer questions, leaving your staff available to tackle the demanding technical aspects of the title and closing work.
In communicating with your clients remember that everyone absorbs information in diverse ways, so transmit educational materials in a variety of ways including through YouTube videos, podcasts, website pages, flyers and when meeting in-person. Don’t worry about being repetitive, especially where fraud education is concerned. Homebuyers have to absorb a lot of information in a brief period of time over the course of the weeks from contract to closing and a little repetition can cement important information they need to remember.
Of course, you can’t communicate effectively unless you’re able to connect with your customers, first! (Our favorite AI-powered virtual assistant can help you reach them via SMS text.) In addition to walking your customers through the title process, Alanna offers a full complement of communications tools that your staff can employ to connect seamlessly with your customers to enhance the quality of the services you provide. Call us today to learn more.