Carnanco Updates

1. Carnanco will be closed Friday April 22, 2005 through Friday April 29, 2005. We will reopen Monday May 2, 2005. There will be limited servicing available for tax certification orders but not rushes. The Concourse will remain online and available.  All other services will be closed.

2. After much analysis of our clients concerns and requests, we will be implementing a new tax certification service. To further eliminate delays and reduce costs, we are opening our entire database of tax collectors and tax forms for unlimited use for one low monthly fee. Clients will now be able to contact tax collectors directly. Carnanco will assist with written instructions, forms, and tips to accompany the database access.  In addition, we will make unlimited updates, corrections and additions as provided by each client. As an added value this new service will be incorporated into our existing Concourse website. Tax certification clients will have complete access to our Concourse.  Existing Concourse clients will have the added benefit of expanded tax database access and information. Best of all the monthly subscription services will be just $25.  Equal to the service fee you are currently paying for just one certification.

Subscriptions can be begin immediately however enhancements to the service will be ongoing for the next several weeks.  Orders on the current tax certification system will end May 1, 2005.

3. A reminder to all those who have been receiving tax certifications via our CloingSite Online Transaction Management System, this system is available for your title company to brand with its own logo and manage full sale and refinance transactions.  Please let us know if you would like more information about this incredible opportunity.

What Goes Around, Comes Around

Since the article we ran last month about the investigations into Title Industry kickbacks all hell has broken loose.  HUD has tripled its investigative staff and active inquiries on the state and federal levels are ongoing in all 50 states. The only good news is that the title industry is not being singled out. The real estate agents, home builders and lenders who asked for and received these kickbacks in all their various forms are being penalized too.

Don’t think for one minute that they won’t come knocking on your door next.  If you haven’t yet, now is a real good time to take a close look at your business practices.  If any money in any form is flowing out of your title company to a real estate agent, builder or mortgage office, you may be in some big trouble.  Just because the company down the street is doing it does not mean it is legal!  Did you know a large number of title companies in Pennsylvania are a joint venture or ABA?  Did you know some of these ABA’s are sending as much as 50% or more of its profits to the referring source? What ever happened to earning a dollar for a dollar worth of work? We degrade ourselves as professionals by giving away our profits.  We are telling the world that title does not require skill, intelligence or experience. We are telling the world that we and our products are worth less when we give away our profits.

The government has heard us loud and clear.  The rumblings are beginning in California and we all know everything starts there and makes its way east.  The government’s view, if you have SO much money you are happy to give away half of it for referrals then you don’t need to be charging the consumer that much for your products. The bottom line: we are looking at rate cuts. And while I derive my income from title money, I still have to say we as an industry will get exactly what we asked for.  If we were not so willing to pay for our business, the government would not be so happy to take it away.  What ever happened to doing business with a company because they are a good business with good service and quality people?  Why do title companies think the only way to get customers is to bribe other professionals?  What ever happened to the concept of marketing?  Advertising?  You know the way every other business gets its business!  Why not put 50% of your profits into ads instead? If the industry as a whole began advertising, it would work.

Unfortunately the majority of people reading this article are now saying to themselves, what are you nuts?  Run a company without paying for business?  Advertise?  It will never work! I know that is what you are thinking because that is exactly what was said to my face when I started my title company.  And this wasn’t just said by one individual.  Everyone I talked to expected this company to fail. But I practice what I preach.  And I am telling you now- It Works!   I have also seen a title company in Ohio which primarily does business directly with consumers.

So now you know it is possible to run an honest and successful title company, the one down the street is doing it.

What goes around, comes around.  It is time to make a better future for ourselves.

Marketing Reflections

In light of these recent events and to encourage all of you to brush up on your marketing skills, below you will find links to all the articles we have ever run about advertising.

How to Obtain Free or Cheap Advertising-Part 1

How to Obtain Free or Cheap Advertising-Part 2

How to Obtain Free or Cheap Advertising-Part 3

How to Obtain Free or Cheap Advertising-Part 4

How to Obtain Free or Cheap Advertising-Part 5

How to Obtain Free or Cheap Advertising-Part 6

How to Obtain Free or Cheap Advertising-Part 7

Dispel those publicity Myths

Six Steps to Writing a Good Press Release

Top Ten Things to Do to Guarantee a Successful Speech

Story Selling

Why Entrepreneurs Don’t Sell and What to Do About It

Quote:

"Make no small plans for they have not the power to stir men's blood."

Niccolo Machiaveli
Italian Statesmen and
Political Philosopher,
1469-1527

Legislative Alert: Raising Transfer Taxes

From the PLTA

Legislation is currently pending before the Pennsylvania General Assembly which will negatively impact the real estate industry and, in particular, the title insurance industry.

Both House Bill 461 and Senate Bill 49 would increase the realty transfer tax one half percent and dedicate the revenue to funding mass transit.  Additionally, the Governor announced that he would propose legislation that would increase the tax by one third percent, again, dedicating the money to mass transit.

The title insurance industry needs to inform legislators and the Governor of the negative impact of this increase on our business.  The time to act is now. Within a few months this legislation could be considered for passage.

What Can You Do?

1. Make a copy of this message and share it with your employees, your business partners and your friends.  We need everyone’s help.

2. Send the attached letter or write your own letter expressing your opposition to the proposals and mail or fax it to your legislators and the Governor. If you have a personal relationship with your elected official, feel free to call him or her instead.

3. If you need assistance please call the PLTA office at (610) 265-5980.

You can find your legislator by going to www.legis.state.pa.us/index.cfm.  In the upper right hand corner of that web page you can search for your legislator by entering your zip code or county.

The Governor’s mailing address:

Honorable Edward G. Rendell
Governor of Pennsylvania
Commonwealth of Pennsylvania
225 Main Capitol Building
Harrisburg, PA 17120

Click Here for a sample letter- Word – Adobe

Recording Standards Update

As reported in the December 2004 issue of the Conveyor, Chester, Lancaster and Montgomery counties Recorder of Deeds offices adopted PRIA document standards. It is now being reported that Bucks, Centre, Allegheny, Lackawanna and Philadelphia are going to adopt the PRIA standards in the near future. Statewide adoption of the standards is on the agenda of the Pennsylvania Recorder of Deeds Association annual meeting scheduled in June. The Pennsylvania Recorders Large County Caucus is currently trying to schedule a meeting with the PLTA, Mortgage Bankers Association and Pennsylvania Bankers Association to discuss the adoption of these standards and what strategies can be used to bring documents into compliance.