Economic Conditions Increasing ABA Title Insurance Company Growth

BrokerIPTV: Today we are talking with Mark Eibner from Metro Brokers Realty Oasis and we are talking about affiliated business relationships and so forth. How are you?

Mark Eibner: Great Dan.

BrokerIPTV: Now, of course you are the owner of Meridian Escrow and Title and Escrow, LLC. talk a little bit about how that all came about.

Mark Eibner: Well, I am one of many owners over at Meridian Escrow and Title. I think this was probably seven years ago we first started Meridian Escrow and Title and initially the company was owned as the top fundamental partners only with no broker ownership.

BrokerIPTV: Right.

Mark Eibner: Just a couple of years ago, we opened it up to get more broker participation within our own organization and brokers participating from outside real estate companies as well as mortgage brokers too.

BrokerIPTV: And how has that gone? How has that developed? I mean initially were some other Realtors® kind of reticent to join?

Mark Eibner: Well, I think it is just depends on the mindset you come from. What I am seeing is the economy is really making things happen. The AfBAs are really growing because people are... they are analyzing everything. Commissions are down. Transactions are down, but what I have seen is most of the brokers are more concerned about their being pushed to this by their clients because clients are becoming more aware that there are big differences in title insurance costs.

BrokerIPTV: Well, you mentioned the economy. What we are starting to see is contraction obviously. There are not as many title companies in business that used to be, they have laid off staff, whatever it may be, is that a problem with Meridian Title and Escrow and how have you been able to kind of survive these times?

Mark Eibner: Well, I think that's the magic of an affiliated business arrangement is the fact that the overhead is so much lower. The bricks and mortar part just isn't there. There is no lower, middle, and upper layer management. You don't have sales reps. I mean it's just the personnel and human power alone, the difference between say an ABA and a traditional title company is huge in what it costs. We also do a lot of on-site closings, at office closings, at people's homes closings, so the ability to maintain 20, 30, 40 locations and pay leases, it's just not there. We can hire staff up and staff down in a day.

BrokerIPTV: Yeah. I did the at home closing by the way and I liked it a lot.

Mark Eibner: Yeah?

BrokerIPTV: Yeah, incredibly convenient. Came to my house, signed the papers, they left, it's done.

Mark Eibner: That's very nice.

BrokerIPTV: All over. Profit - so obviously, it's more profitable because obviously you have got people bringing clients and business and you don't have an outside sales rep. Talk a little bit about how the profits are going.

Mark Eibner: We have been profitable from day #1. In fact, it's one of the few ventures that has been in the black for seven years. So, the ability to remain profitable also has another little caveat in the fact that we broke down our rate structure and where we get our premium from, over 80% of our premium dollars is from re-issue rate. So, literally, we are profitable even though we are doing title insurance premiums at 50% rates over say the traditional companies. So, we are still profitable even doing half rates. That's what we find amazing.

BrokerIPTV: Finally, if a realtor wanted to become involved in Meridian Title and Escrow, how would they do that?

Mark Eibner: I think the easiest thing to do is just go to the website, meridiante.com, just like Meridian Title and Escrow, and there is a e-mail contact us form on there, just fill it out or there are some phone numbers. You can call myself or John Clikeman, who is our attorney partner and we would be glad to talk to you and see if you qualify and if you want to become part of our organization.

BrokerIPTV: Mark, thanks. Great information. Appreciate it.

Mark Eibner: You bet, thanks Dan.

Posted on March 04, 2009 05:59:23 by Blog Author