I purchased Preferred Title Co. in 2002 (from Ken Ashlock) and renamed (it) Preferred Title of Missouri. It was a small company with 2.5 employees, and they served Greene and Christian counties. Today, we have nine employees - which is a smaller staff than we've had, due to the economy - and we serve seven counties. We have an additional location in Nixa. We provide all real estate settlement needs, (including) title insurance, escrow closing services, construction disbursements and 1031 exchanges.
How has the recession hit your business?
We actually probably suffered a 25 (percent) to 40 percent reduction (in business) for nearly 18 months, from September 2007 to December 2008. During that time, we lost four employees, and we did not rehire. Business dropped quite a bit due to the lack of construction going on. There weren't refinances going on because interest rates were up.
How did Guaranty Title Co.'s collapse in 2007 affect the industry?
Trust is always an important factor, and (is) ultimately, extremely important, because (of) what we're going to do for (customers). They're spending a lot of money on a piece of property, for example, and we're going to be responsible for holding that money (and) making sure liens are paid off and things like that. There's been a lot of changes since Guaranty Title. ... Lots of things are out there now to protect the consumer. (Preferred Title of Missouri has) relied on keeping our reputation as spotless as possible. We do things in-house to be able to assure customers that their money is safe while it's with us.
What legislation exists to protect consumers, and what measures does your company take on that front?
Senate Bill 66 (took) effect in January 2008 (and) one of the very most important consumer items in that legislation is what's called a closing protection letter. The Missouri Department of Insurance said that the title insurers, or underwriters - mine are Stewart Title and First American Title Insurance Co. - must give the seller, lender and buyer the opportunity to have their money insured while it's (with) the title agent. (Because of SB 66), for a cost of $25, which goes directly to the title insurer, (the money is insured while with the title agent). They can waive that protection, but I don't recommend it. We balance our escrow account on a daily basis. If you were to close with me today, and then, next week, call me up and want to know how much (of it) is still (here), due to outstanding checks ... I'd be able to tell you.
Do you encounter home buyers who don't understand the need for title insurance, which ensures that no other parties have claims against a piece of property?
We do have people occasionally who will come in and pay cash for a house and not buy title insurance. They have to sign something ... declining it and making them aware of ... the fact that they have a certain window of time for purchasing it. ... People just don't realize that it's something that they pay for one time ... and it's good for as long as they own the property. ... If someone makes a claim ... the title insurance pays attorney costs and defends the title to a home.
What indications are you seeing for a real estate market turnaround?
In December, interest rates fell ... and we had lots of refinance transactions to take care of in January and February, but we had a smaller staff. We don't want to rehire anyone because of the uncertainty of the economy. ... I've seen sales increase in the last couple of months, more contracts come across, and those are good indications that our market is healthy and returning.
Tell us about your family.
I am married to Tracy Watkins. He works for Citizens National Bank. I have two children, a son, Haley, 25, and a daughter, Chelsea, 23. They're both married and still in the Springfield area. I have a grandson, Walker, 1, who's the sparkle in my eye. My daughter and her husband are still in school, so we help a lot with him. As soon as it's warm enough, (the lake is) where we are every weekend.[[In-content Ad]]
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