This article is part one of our series on transforming lender-title operations. In this series, we break down each part of the lender-title relationship from order opening through post-closing to demonstrate how the right technology solutions can systematize closing operations with any title partner. 

It’s a common misconception that mortgage lenders and title companies primarily work together at the very end of the transaction (the closing date). In reality, the lender-title relationship begins when a borrower submits a mortgage application and a lender begins taking steps to discern their ability to underwrite the loan. 

Lenders rely on title & escrow companies for essential information throughout the mortgage process. Without streamlined operations between these two parties, the mortgage underwriting process faces delays. For loan processors, submitting a title order is a relatively simple task; however, the speed at which the order is received and processed relies on forces outside of their control. With the right operations and technology in place, lenders can more seamlessly collaborate with their title partners. This ultimately speeds up the mortgage process for a more efficient process and a happier borrower. 

The title order opening process: a historically inefficient task 

Mortgage lenders typically use one of two processes to submit title orders: 1)The lender submits an order via email correspondence to their title partner or 2) the lender submits an order using an LOS integration.

For mortgage lenders that leverage email to submit a title order, the process is typically quite manual. The loan processor must extract details from the 1003 document, rekey them into an email, and send them to the title company.  The rekeying process opens up opportunities for errors which can impact the entire loan. This process differs depending on whether the transaction is a refinance or purchase which adds a small layer of complexity to the task. 

Some lenders use software integrations that are connected to their core LOS. This helps expedite the process and eliminate rekeying on the lender side; however, the title company often needs to log into a separate system to retrieve the order and then rekey the information into their own workflow system. The title company is often working with dozens of lenders who each have their own systems—this creates portal fatigue for the title company and overall inefficiencies in their workflows with lenders across the board. Ultimately, the process to receive a title commitment from a title partner is only partly expedited with most LOS integrations because the benefits of the technology stop at the lender’s doorway. 

How new technology solutions will change the title order opening process

The name of the game in lender-title collaboration and technology solutions is interoperability. This refers to the ability of systems or software to exchange and make use of information. In the case of real estate, interoperability allows a mortgage lender to remain in their system (LOS) to effectively exchange information with a title company while they also remain in their core workflow system. 

Interoperable solutions enable the following for lender-title collaboration during the order opening process:

  1. Efficiency. When email collaboration is removed from the equation, both the lender and the title company can remain in their core workflow systems and spend less time logging into email or other systems to submit and retrieve orders.
  2. Security & risk mitigation. Highly sensitive borrower information (data and documents) is transferred securely rather than over email where bad actors can intercept the information. Additionally, the risk of human error from rekeying information is reduced. 
  3. Quicker turnaround times. Instead of waiting for a title company to receive an order, enter that order into their system, and then assign that order to a processor, the order is instantly processed and assigned. 
  4. Standardization. An order is submitted the same way to every title company regardless of the order type and only the necessary information is extracted from the 1003 form to send to the title company. 

Qualia’s interoperable solution for lender-title collaboration 

Qualia, the system of record for thousands of title companies across the country, is making lender and title touchpoints easier. Our platform brings the many points of interaction between lenders and title companies (from order opening to post-closing) into one common system. 

To learn more about Qualia’s lender solutions, click below to schedule a time with one of our lender product specialists. 

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