To increase without adding cost, the outsourcing certain tasks can offer solution without adding a cost. The recent refinance boom over the past couple of the months has provided much needed business for the title insurance industry, many title agents were ill prepared to handle the spike in the orders after drastically cutting the payrolls in order to reduce the fixed expense. Some agents were forced to turn business away because they did not want to temporarily hire staff to handle business that may dissipate rapidly. To meet the order demand and maintain throughput while keeping the fixed cost to a minimum, the sporadic market has forced agents to re-evaluate the operations and it has made the outsourcing certain job functions a plausible solution to meet the order demand and maintain throughput while keeping fixed cost to a minimum.
The agency is very conservative old school but know they are having a different attitude. During the refi boom they rehired then they had to let go the people they hired two months ago because of a slow down. The agency is saying there are significant financial and the employee-morale costs associated with doing that. The agencies continue to perform the front office functions, but it send all the back office tasks to strings. Each of the agencies has no more than 50 orders per month, but it is still makes sense to send the back office jobs. It depends on how much they want to outsource. While the 50 percent is default and foreclosure and 10 percent is purchase or resale about 70 percent of the orders string receives pertains to refinances.
About the 70 percent of the orders the strings receives pertains to refinances while 20 percent is default and foreclosure and 10 percent is purchase or resale. The type of the job functions outsourced have evolved over the years such as the data entry for the title commitments and policy preparation and the tax preparation that have remained staples. It is conducting portions of the searches and the examinations are growing where the plants are online. The traditinal data entry are some escrow reconciliation and the HR tasks. The agents are having them to manage the abstractors. The titles agents do not want to hire the staff in the markets because they are not sure that the business forecast will be in the market.
REFERENCE:
www.thetitlereport.com
