For the last two years, our industry has experienced breakneck activity. 2022 brought with it a challenging rate environment, decreasing affordability, limited inventory, inflation and the Ukrainian conflict. During market
title agents control expenses, focus on profitability, and play the long game.
According to WFG Founder and Executive Chairman Patrick Stone, a critical objective must be converting fixed business costs to variable costs. This objective is at the core of WFG Agency’s Blocks program.
“When business is significantly down like it is currently, how can title agents ensure their survival if their cost structure prohibits profitability?” Stone asks. “Through WFG’s Blocks program, our title agents can selectively move fixed costs to variable costs. Instead of having a predetermined cost structure regardless of how much business they are doing, they can align costs with the amount of business coming in the door. Doing this enables them to increase profitability when the market is strong and, perhaps more importantly, ensure their survival when business drops off.”
WFG launched its Blocks program in 2017 to enable title agents to smartly reduce operational expenses by leveraging WFG’s knowledge, resources and the simple concept of economies of scale. The six program offerings or “Blocks” are:
- Title & Settlement Solutions: tailored, risk-reducing, integrated products
- Expense Management: staffing and group purchasing organization model
- Marketing & Sales: products and services to grow the Agent’s business
- Information Security: economical cybersecurity and related programs
- HR Management: staff recruiting, hiring, training and regulatory compliance
- Compliance Solutions: policies and procedures, training and audit support
WFG’s Title & Settlement Solutions Block provides support for back-office production tasks (search and commitment services, CD and settlement statement prep, closing, policy typing and recording) based on the individual client’s needs. WFG has centralized these functions, resulting in faster processes and less expensive products and services to pass along to title agents. Such a model significantly reduces employee-related production costs, making title agents more profitable and competitive in a challenging market.
Similarly, since staffing and operational support requirements are challenging, WFG offers assistance with staffing and outsourcing through three of the Blocks programs. In addition to the Title & Settlement Services Block, personnel services are available in the Expense Management Block, and discounted industry-specific employee recruitment, payroll and HR services are available through the HR Management Block. These broad-based support and employment resources enable title agents to adjust quickly to a fluid market.
WFG’s Expense Management Block is an excellent resource for cost reduction. The program provides title agents with deeply discounted business services, saving them anywhere from 10 to 50 percent off direct costs such as shredding services, office equipment and supplies, printing services, refreshment services, car rentals, gifts, and flower delivery.
Vice President of WEST Purchasing Group, a Division of WEST, a Williston Financial Group company, Marty Davis, says the program provides dramatic savings to WFG’s title agents.
“We are the first Group Purchasing Organization (GPO) that will review an agent’s current invoices to verify savings to them via our national programs,” he continued. “Also, this is the first GPO that will cross-check invoices to contract pricing to ensure the new pricing is correct. We also validate and quantify your annual savings at no additional cost and make it available for viewing via an easy to interpret dashboard.”
The savings through WFG’s Expense Management Block can be significant. One regional title agency saved more than $50,000 a year on shredding services and office equipment alone through the program.
“We have 23 contracts with national providers, extending these offers to friends and family of WFG employees and our agents,” Marty Davis said. “Best of all, a membership in the Blocks Expense Management program is free of charge, with no minimum purchasing requirements or volume limitations, making it easy for agents to sign on and start saving.”
Earlier this month Patrick Stone addressed a group of WFG’s title agents during a regional Spark event in Long Island, New York, sharing with them why he believes this is a time of tremendous opportunity for the title industry.
“There's a lot of anxiety in the market right now, but the reality is that it’s a very interesting point in time,” Stone shared. “I actually think this market presents one of the biggest opportunities you will have in your career if you choose to act upon it. Instead of focusing on things you can’t control and don't make you any money, take action. Control expenses by converting fixed costs to variable costs wherever possible, and implement operational metrics so you can adjust quickly to fluctuations in business rather than responding emotionally. And, perhaps most importantly, take this opportunity to step up both your sales and marketing activities, as many organizations will pull back instead.”
“By focusing on your clients and bringing something to the table that nobody else is bringing, you have an opportunity to differentiate yourself. This is really an extraordinary opportunity since finding ways to differentiate ourselves is one of the biggest problems we face in this industry. By focusing on your clients, improving communications with them, and increasing your sales and marketing activity levels, you will be able to grow your business even during a market downturn like this one. This could honestly be the best thing that's happened in a long time for those who take the steps necessary to differentiate themselves and create value for their customers, as they will come out of this stronger than ever,” Stone concluded.
For more information about WFG Blocks, download our white paper here or visit https://wfgblocks.com/. For more information about WFG’s Agency network, visit https://wfgtitle.com/agency.
About WFG National Title Insurance Company
WFG National Title Insurance Company, a Williston Financial Group company, is a new breed of national real estate settlement service providers. A national underwriter with a Financial Stability Rating of A’ (A prime) Unsurpassed as assigned by Demotech, Inc., WFG NTIC leverages innovation and collaboration to create and deliver comprehensive services and technology solutions that take time and cost out of the real estate transaction, creating a better experience for all transaction participants. WFG’s Agency network includes more than 1,700 independent title insurance agents in 49 states.
For more information visit www.wfgtitle.com.