The American Land Title Association’s (ALTA) new president says he wants the organization to engage with more members, advocate for the title insurance profession and continue to serve as an educational resource for industry professionals.
David Townsend Esq., who was sworn in as ALTA’s president during the ALTA ONE conference in New York City in October, said, “I want to be a cheerleader for ALTA.”
He recently spoke with The Title Report about his plans for the upcoming year and discussed what he thinks the title insurance industry needs to do to sustain itself and thrive going forward.
‘Championing the title industry’
As he steps into this leadership role with ALTA, Townsend said he will shine a light on the work the organization does on behalf of the title insurance industry.
“With our advocacy work on Capitol Hill, policy forums, Best Practices, and educational tools, we provide a lot for the industry. I want everyone to understand the benefits of ALTA and title insurance and how integral we are to the real estate and mortgage process,” Townsend stated.
He said the ALTA board of directors met during the summer to define their priorities for the upcoming year.
“One of the ongoing (priorities) has been championing the title industry,” said Townsend, who is senior vice president, agency division manager for Fidelity National Financial.
He explained ALTA conducts research to learn how many curative actions are taken on each file, as well as the amount of back taxes and child support title insurance companies help identify and collect. The purpose of gathering the information, Townsend noted, is demonstrating the crucial role the title insurance profession plays in maintaining the integrity of the real estate marketplace.
“That’s a real focus because not a lot of people know what we do,” Townsend said. “We’re kind of … the unsung industry that really makes the real estate industry run efficiently.”
Focus on membership
Townsend said he believes ALTA can provide helpful guidance to title insurance agents as they navigate a challenging economic atmosphere.
“It’s not easy if you’re a title agent because we've been in this stagflation for real estate for a while where we’ve had a high rate environment,” Townsend said. “We’ve had high prices, which makes it very difficult for the average consumer to buy a home. I think that obviously has affected business across the board, and we need to make sure that all of our members are able to compete and make it through times like this.”
As a result, Townsend said he wants to concentrate on getting more members engaged in ALTA’s work and activities.
“I think that in every organization you’ve got an 80/20 rule, where 20 percent do a lot of the heavy lifting. Eighty percent are more silent,” he observed. “I think we have a silent majority that really benefits from a lot of what ALTA has to offer. I want to get them more engaged, and I think we can do that with our membership, our comms, our marketing. They’re going to be integral to building this up.”
Townsend noted he believes increased engagement with members will serve as a catalyst for growth.
While noting ALTA has a “phenomenal staff,” Townsend emphasized it’s the members’ responsibility to chart the course for the organization and one way they can do that is by communicating with ALTA’s board of directors.
“The board is really the voice of the membership, and the more engagement we get from (the members), the better informed decisions we can make as a board,” he said.
Calling small title agencies “the backbone of title insurance,” Townsend told The Title Report he wants to make sure those professionals receive support and feel like they’re an integral part of ALTA. The hosted agent program, internship program and mentorship program are examples of ALTA’s offerings that help smaller agents, and Townsend wants to make sure members know about these initiatives.
“I think the more we can educate our members on what we have to offer, I think the more engagement we’ll get. … We’re trying to protect homeowners from wire fraud and then also protect our businesses from burdensome compliance changes, and so building that together as a group, I think we’ll be stronger in the long run,” Townsend said.
Educating future employees, attracting them to the business
As more consolidation occurs with agencies and underwriters, as well as a “graying” of the industry, Townsend feels it’s even more important to focus on attracting a new crop of title employees through education, training and messaging.
He believes it’s “critical” for ALTA to continue doing its good work of explaining the title insurance business to prospective employees, especially young people who are poised to enter the workforce.
“Many don’t fully understand what we do, and when we go out to hire, it’s been difficult to explain what we do in the industry,” Townsend said. “The next generation of workers aren’t familiar with title and settlement.”
If a young person asks him what he does for a living, Townsend noted he’s inclined to say he works in the real estate data and finance industry. He’s confident that using such language would draw interest at a job fair attended by college students.
“We synthesize real estate data to provide commitments, closings and policies, and we move billions of dollars a day across multiple payment platforms and rails to provide consumers with secure closings and lenders with protection for their loans,” Townsend said. “I think we need to modernize the way we talk about what we do because we are a modern industry.”
As an example, he said the technology used to protect consumers from identity theft and wire fraud are “very advanced.”
He noted ALTA’s education committee continuously works to provide educational and training opportunities for the next generation of title professionals.
How will AI impact the title industry?
As he discussed attracting the next generation of workers, improving the knowledge of present-day employees and adopting new forms of technology, such as digital mortgages, Townsend shared his thoughts on how the use of artificial intelligence (AI) would affect the industry.
“I think we have to be very careful when we insert (AI) into the search and exam process, because just like any other employee, you have to train AI,” Townsend said. “It doesn’t come out of the box ready to go. You have to make sure that you’re developing it properly, (that) it has the right access to the information. It has to be properly overseen, and we’re just at the tip of the iceberg right now on how to unlock its potential in our industry.”
While he does not believe AI will replace examiners, Townsend said he thinks the technology will assist professionals with their work. For example, AI may help identify discrepancies in a legal description. With AI handling some of the more routine tasks, Townsend said examiners at title agencies will be able to spend additional time reviewing and processing more complicated transactions.
“Ultimately, it’s going to take a trained professional to examine a title and know exactly how to protect the consumer and the lender, but I do think, just like any tool, (AI is) something that we need to embrace and make sure that we understand so that we can make this title and settlement the most efficient and safe way of closing a real estate transaction,” Townsend said.
Due to the complexity of many real estate transactions, Townsend noted it will take time for AI to learn the details and nuances so that it can review and process documents.
“Think of how many real estate transactions are going to have to be fed into an AI engine to really understand (issues like), do you have a right of first refusal? Is there a mechanic’s lien on this property? There’s going to be a lot of work that has to be done before we’re going to be able to rely on AI to do a lot of core tasks.”
Townsend said he wants to make sure ALTA is “staying vigilant” on fighting fraud and cyber scams.
“We always have to stay one step ahead of the criminals and really protecting consumers and being more advanced in our protections,” he said.
With a nod to the theme of championing the title industry, Townsend said he wants ALTA to continue fighting unregulated, less-protective alternatives to title insurance.
“We believe that state-regulated title insurance products, utilized through licensed title insurance agents, are the best protection for consumers and lenders in the industry, and that is what we are going to push for,” he explained. “Whether it be a waiver, elimination of title insurance on certain transactions or an attorney opinion letter, those do not protect the stakeholders, and we really want to make sure that we’re addressing that.”
Looking ahead
As leaders face a rapidly changing landscape, ALTA’s advocacy efforts will continue to carry a lot of weight, Townsend emphasized.
“We have to be at the table through our efforts, with Congress, with the (government-sponsored enterprises), with the NAIC (National Association of Insurance Commissioners) at the state level, and to do that, we have to have great membership, great education, great marketing, great comms,” Townsend said. “It’s truly a team effort to get all of our goals across the finish line.”
He added he enjoys the work he does and is excited to help the title insurance industry evolve and prosper.
“I’m very proud to be a title professional,” Townsend said. “This industry has provided a lot for me and my family, and I’m just thrilled to be able to give back to it as ALTA president. If I can help tell our story better so people can understand what we do, then I will have succeeded in giving back in a small way.”