The refinancing experience is only as fast as the slowest step, and securing title has traditionally been one of the least understood steps in the process – and therefore seen as one of the most unpredictable. But the right technologies make it possible to make immediate title decisions for qualified files, reducing cycle times, operational hurdles and, most importantly, borrower frustration.
When done right, instant title is a win for both lenders and borrowers: it moves clear-to-close files faster, helps teams focus on the transactions that need more attention, and provides early transparency into what’s holding up the process. It is a critical piece of the broader modernization puzzle and a fundamental step toward the seven-day refinance.
But here’s the caveat: not all instant title products are created equal. And remember that despite the discussion of title waivers as a way to reduce costs for borrowers, they come with risks, and often no real cost savings occur – and uneven application could introduce bias into the system.
What makes real-time titling possible? Data and discipline
Speed is only an advantage if it doesn’t come with risk, meaning instant title decisions are only as reliable as the data and the provider supporting it.
That is why lenders should not evaluate alone or a title partner offers direct decisions, but How which decisions are made, and the experience and capabilities of the provider itself. Specifically:
- What is the source and scope of their data? Best-in-class systems are based on decades of high-quality data with coverage across thousands of counties and property types.
- What is the provider’s claims history? A proven long-term track record of minimum claims indicates accuracy, thoughtful risk filtering and underwriting discipline behind the technology.
- How is complexity assessed? Lenders have the ability to quickly clean up files while forwarding higher-risk conditions for a more thorough review. Systems must make that decision in real time and base it on a real search and analysis of data, not a best guess.
How decisions are made also matters. When lenders receive title information as data rather than as PDF files, the potential for errors is drastically reduced. In workflows where each error can cause days of delay per file, this process change can result in extraordinary time savings.
In contrast, lenders that receive title information integrated directly into their workflows have automated this process and reduced error rates. This shift reduces risk, improves data integrity and provides significant time savings.
Move quickly without making turns
Borrowers, and therefore lenders, need speed and certainty. That’s why it’s worth asking tough questions about a title provider’s data sources, depth of historical data, loss ratios, fallback procedures, financial stability and track record.
When complexities are explored early and confident title decisions are made in seconds, lenders can focus their teams on the right files, reduce post-closing surprises and create a refinancing experience that fits the moment.
In a market where borrowers expect more and timelines are tighter, high-quality instant title isn’t just a technology upgrade. It is a competitive advantage.
Read Part I of this series here: Making the 7-Day Refi a Reality: Why Now is the Time to Modernize the Mortgage Process
Kiran Vattem is Chief Digital & Technology Officer at ServiceLink.
This column does not necessarily reflect the opinion of HousingWire’s editorial staff and its owners. To contact the editor responsible for this piece: [email protected].
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