Most professionals in the real estate industry understand the general role of the title company: to search and insure title to the property, function as an impartial third-party escrow officer for the handling and disbursement of funds, and to gather and process the transaction paperwork in order to conduct the closing and post-closing recordation.
What has become increasingly critical in each of those mandates is the underlying technology that ensures the integrity of the transaction, the safety of both data and funds, and the ultimate safeguard against identity theft.
None of this was part of the original mission or intent of a title insurance company. Prior to the digital age, information and funds were protected by locking them in a safe that was located in a locked room in a locked building.
Title companies soon recognized that while technology made processing information and exchanging funds easier to accomplish, it also made the process more susceptible to interference from tech savvy fraudsters. And so, the game was afoot to build a powerful and impenetrable shield around customer data and funds so that this most important investment of a person’s lifetime would be protected.
The title industry met this new challenge head on. It didn’t come cheap. And it didn’t arrive as “plug and play” software. And it’s definitely not one thing but an entire range of disciplines within the company that has evolved over the past few decades, including:
- Conceptualizing a cybersecurity strategy, encompassing every aspect of the agency
- Creating a data governance strategy, covering data usage, sharing and storage
- Instituting risk management protocols
- Implementing security tools such endpoint protection, network and email security
- Conducting regular staff training seminars on cybersecurity and safety procedures
- Establishing a formal Incident Response and Disaster Recovery plan
In addition to building out an effective infrastructure, for the protection of customer data, funds and property rights, title companies have also been tasked with protecting the integrity of the U.S. real estate market.
USA PATRIOT Act
The USA PATRIOT Act requires real estate professionals and financial institutions to implement anti-money laundering (AML) protocols, which include:
- Requiring the filing of Suspicious Activity Reports with the Treasury Department (FinCEN) to combat money laundering and terrorist financing
- Verifying the identities of clients and identifying the beneficial owners behind legal entities purchasing property.
- Screening parties against the Specially Designated Nationals (SDN) list maintained by the Office of Foreign Assets Control (OFAC), with potential penalties for violations including heavy fines and imprisonment.
- Real estate reporting rule, finalized in 2025, requires reporting for transfers of residential real estate and non-financed residential transactions.
Title agents have embraced the expansion of their role over the past few decades and have long been at the forefront of finding new and innovative ways to protect both consumers and the integrity of real estate ownership in the U.S.
At Premier Data Services (PDS), we provide solutions to support this important work, offering packaged business capabilities as building blocks to compose unique and differentiating digital initiatives to provide our title agents with agility, innovation and reduced time to market for all their initiatives. Contact us today to learn more!