May marks National Small Business Month in the US, an opportunity to recognize and promote the work of small businesses and their contributions to the economy. Although often overlooked, small businesses are the economic backbone of this country, creating jobs and generating income throughout the United States. half of American employees They are employees of small businesses, and 99.9 percent of all businesses nationwide qualify as small businesses.
As an industry made up of small businesses, the title industry Not only does it provide insurance to protect most Americans’ largest investment: their homes, but its local businesses also generate economic growth and give back to their communities. Although the Biden Administration has stated that it is “fighting to grow the small business boom” I would encourage the Administration to consider small title insurance companies, which represent 90% of the title industry.
Title insurance provides protection and peace of mind for homeowners and lenders – both before and after Closing Day. Issues such as tax liens, forged signatures, registration errors, or other risks such as fraud, have the potential to interfere with the transfer of ownership of a property. Title professionals work to resolve issues prior to purchase. The objective is to avoid any claim. If a problem arises after closing, for a one-time fee, title insurance provides protection for as long as the owner owns the property. property.
With only 70% of public records At the digitized county level, title insurance professionals spend a lot of time troubleshooting title issues. In fact, a recent study found that title professionals spend approximately 22 hours closing a standard transaction and 45 hours on more difficult transactions, which account for 36% of all transactions.
But beyond the benefits it provides, the title industry also supports small businesses, jobs, and America. economy like an everything. A recent Quantitative Economics and Statistics (QUEST) report by Ernst & Young measured the direct and broader economic impact of the securities industry in the United States. According to the report, the title insurance and settlement services industry directly generated $30 billion in GDP to the U.S. economy and 155,000 jobs in 2022, illustrating the industry’s impact on local communities. Annually, title agencies also collect $3 billion in federal income taxes, property taxes, and unpaid child support.
Recently, title insurance professionals have seen the fate of their small businesses threatened by the new Biden administration. pilot program, which would eliminate the requirement for lender title insurance in certain refinance transactions. The program would essentially turn Fannie Mae and Freddie Mac into federal title insurance companies, replacing the work of family-owned title insurance companies across the country.
Members of Congress in both sides of the aisle and industrial groups have criticized the Biden Administration and the Federal Housing Finance Agency (FHFA) for their misguided messages of reducing closing costs for Americans. In a recent letter to President Biden Signed by 18 members of Congress, members wrote: “While well-intentioned, this pilot program will not address the real problem of housing affordability in our communities and puts homebuyers at risk.”
During National Small Business Month (and every month) we should all find ways to support small businesses in our communities and advocate for policies that boost them, not destroy them.
In the face of economic instability in recent years, the title industry has continued to generate jobs and economic growth across the country while protecting the property rights of Americans. The federal government should protect this vital small business industry.
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