Pay-To-Work Program

We have all heard the term "pay-to-play." It is a program where schools that can no longer afford to support their extra curricular programs, usually sports, require the participants to pay a fee to play. It is sad that, in some school districts, participation in team sports is reserved for those who can afford the fee. But, when schools are struggling to provide a basic education, there has to be some cuts.

What is worse is when you have to "pay-to-work." Work used to indicate that you did a job in return for some form of compensation. It strikes me as odd that one company has turned work into a privilege that you have to pay for.

ValuAmerica has create ValuNet XSP, an online vendor management platform, that is provided to title clients free of charge. What better way to get them to rapidly adopt new technology than to give it away? The catch is... ValuAmerica requires the vendors to pay a fee for each order they receive from the client.

ValuNet XSP claims to automatically collect order, customer, and vendor data; and, automatically select and assigning vendors. Of course, the client is also permitted to select the vendor if they so choose.

Here are a few more features of ValuNet XSP:

Real-time vendor performance scoring and reporting

ValuTrak monitors work in progress

ValuScor rates on-time performance

ValuEx highlights delinquent status

So, what does it cost to get work from clients who use ValuNet XSP? Well, here is a portion of their ValuNet XSP Access Agreement:

Source of Title Blog ::

(a) ValuNet xsp is made available to Buyers without charge.

(b) Each Vendor shall be obligated to pay a technology transmission fee (a "Delivery Fee") to ValuAmerica for each order for Services that such Vendor receives and accepts using ValuNet xsp. The Delivery Fees are attached to this Agreement as Schedule A and are incorporated herein by reference. The Delivery Fees are subject to change and the Delivery Fees in effect at any particular time will be the Delivery Fees set forth on Schedule A, as the same may be amended from time to time by ValuAmerica without notice. Each Vendor shall be liable for payment of the applicable Delivery Fees to ValuAmerica as set forth on Schedule A at the time an order is received and accepted. Each Vendor must have an active valid method of payment with ValuAmerica at all times. A Vendor's method of payment will be charged upon its receipt and acceptance of an order for Services from a Buyer; provided, that ValuAmerica may provide alternative billing arrangements to a Vendor. All fees are nonrefundable and are due from Vendor regardless of whether Buyer pays Vendor for the Services. Vendors shall be responsible for all taxes arising out of the use of ValuNet xsp by them or their Buyers, other than taxes on ValuAmerica's net income.

The schedule "A" for abstractors:


TITLE PRODUCTS:                         FEE:

Bringdown/Update                        $0.60  

Mortgage Recording with Bringdown       $2.50  

Copies of Documents                     $0.60  

Judgment Search                         $0.60  

Tax Search/Certification                $0.60  

Recordation of Miscellaneous Documents  $0.60  

Deed Report                             $2.50  

Property Report/Current Owner           $2.50  

Full Title Search                       $6.00  

Plat Drawing                            $2.50

The last I heard, abstractors were required to type their reports into the ValuNet XSP portal, as well. So, they are asking their abstractors to do more work and pay for the privilege. There is no doubt that abstractors are "hard up" for work. However, this is not the solution - its part of the problem.

Abstractors have continually shown that they will reduce their fees, wait 60 or 90 days for payment, and accept the fact that some companies won't pay them at all. One client has even recently told their abstractors that they are "restructuring" and will not be able to pay their current obligations until 2009. Other clients have simply changed the name of the company and informed their abstractors that they are not responsible for paying the previous entity's debts. Given the abstractors' willingness to accept the absurd, it is really no surprise that ValuAmerica thought they could "sell" their technology to clients and get the abstractors to pay for it.

I find it difficult to fathom that abstractors seem to have no respect for themselves or their profession. Abstractors should be saying "my fees are based on the time required to complete a thorough title search and the liability I assume." They should be saying "I can't deliver an accurate search in 6 hours - it will take 24 hours." They should insist that "I require payment within 30 days of invoicing you." And, most definitely, "I will not pay fees to get more work for less money!"

Yet, we seem to have abstractors begging for work to the point that they are willing, not only to work for less, but pay to get the work! If you are that desperate for work, you can sign up to be a ValuNet XSP vendor here. But, if you have any self-respect at all... just say "NO! Enough is enough."

Robert A. Franco
SOURCE OF TITLE
rfranco@sourceoftitle.com

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Categories: Abstractors, Technology

1128 words | 1699 views | 7 comments | log in or register to post a comment

	Well said Robert. I know that you ...
	Well said Robert. I know that you and I have discussed this so many times. I will NEVER understand why so many abstractors have such a low opinion of themselves. It is like the "battered wife" syndrom. Certain clients in the industry keep beating abstractors over & over & the abstractor starts to believe that they deserve it ---I guess. Thanks for your comments---As always, I remain your #1 fan. Wanda Steudel AccuSearch Co
	by Wanda Steudel \| 2007/04/04 \| log in or register to post a reply

	Throw title agents in the same pool...
	Throw title agents in the same pool. Title agents are terrifed of charging consumers for work performed on transactions that don't close. They assume you are in the same boat and stiff the abstractor. When volume slows it's hard for title agents to pay within 30 days, especially if transactions take longer than that to close but there's not excuse for not paying at all. You should peruse the notary signing agent forums. They have no compunction about taking title agents to the magistrate.
	by Diane Cipa \| 2007/04/04 \| log in or register to post a reply

	I have been doing work for ValuAmer...
	I have been doing work for ValuAmerica for 2 1/2 years. They pay me every 30 days. I have NEVER typed anything into their ValuNet XPS portal. I don't even know what that is. THey let me use my own handwritten form. My prices have enough added in to offset their fees. They even offered me an opportunity to go UP on my fees if I wanted to. They always give me 24 hours turnaround. I didn't take on their work because I was hurting for busines. Been in the business for 10 years with a strong client base. I might be missing the "big picture" but I don't see anything wrong in doing a lot of work for a company that didn't ask me to reduce my fees and has paid me, without any hassles, for over 2 years. I still "respect" myself for working for them as I am not "paying them fees to get more work for less money." I just don't get it. Am I to feel that I am selling out my profession by working for this company? I'm wouldn't want to quit them...they are a GREAT customer.
	by Glenda Hodge \| 2007/04/04 \| log in or register to post a reply

	Glenda, are you paying them for eve...
	Glenda, are you paying them for every order your get? If not, you are probably not signed up with the ValuNet XSP system that they are asking others to use. They probably use regular abstractors and work in a more traditional method when they are not able to get ValuNet XSP vendors. Either way, what they have done to the industry with their ValuNet XSP product is outrageous and insulting. Personally, I wouldn't work for ValuAmerica under any circumstances, but that is just me.
	by Robert Franco \| 2007/04/05 \| log in or register to post a reply

	Robert, Your blog was ...
	Robert, Your blog was a fantastic idea. It has become much more interesting to me than the forum, although that is still a helpful place for the exchange of ideas and helping one another. On the topic of the day, have to say when I say one of my clients send me a notice of their new connection with ValuNet, I said "whatever." My biggest complaint in this industry, by far, even more so than slowwwwww payment, and I get in a lot of trouble for this, is the extreme and I mean extreme discourtesy of clients towards those who go to great lengths to help them work their business in a highly profitable manner. They look down on you in every way, speak down to you in every way when they call, rarely armed with facts, just assumptions, derived from stress on their end. Then you add factors like making our responsibilities more time consuming and demanding while suppressing price, ignoring copy costs, late payments or the wonderful no pay and it is unbelievable the discrepancy of power in our relationships. Any relationship, business or personal, where power is grossly tilted to one party, any party, is one that grows resentment and is surely doomed to failure. This is a great industry and abstractors are needed. Just wish many companies would remember you use money and love people, not love money and use people. Money, respect, title companies and abstractors can all be congruent. It doesn't have to be a free-for-all beat-down all the time. That said, there are some highly ethical, respectful, do-as-they-promise companies out there that are wonderful to work with and I'm blessed to be associated with them. People like that, leadership like that shows what this industry could be with the proper philosophy and commitment. Mike
	by John \| 2007/04/05 \| log in or register to post a reply

	Thank you, John. As you can tell, ...
	Thank you, John. As you can tell, I have a lot of opinions about this industry and I care very much about it. Not only because I'm an abstractor, but I have come to know and care about a lot of others through Source of Title. The blog came about because I didn't want my "opinions" to take over the news section on Source of Title with "editorials" and I didn't want to monopolize the forums. It has been a good medium for this and I do enjoy it.
	by Robert Franco \| 2007/04/05 \| log in or register to post a reply

	Yes, Robert, I am paying them for e...
	Yes, Robert, I am paying them for every order I get. Just like the list you posted, I'm paying $2.50 for a current owner search. I remember getting a thing about their ValuNet XSP a couple of years ago. I told them that I didn't have time and wouldn't key my info online. They've never asked me to again. I'd have to hire a full-time person just to sit here and key there info in and that wouldn't be feasible for me. But, I do get faxes from them occasionally saying that this or that company is going to use them exclusively and if I want to continue getting work from them to sign up. But, since I'm already signed up with ValuAmerica, I get more work. It has worked for me. But, it wouldn't if I had to key in information. I must not be a ValuNet vendor but I still pay the fees. Honestly, they are a really good client and my contact person there is very nice. I don't have to send an end of month statement either. They automatically send me a check each month and it has never been wrong. I guess everybody that is fussing about this company is be asked to do something different than they are asking of me??
	by Glenda Hodge \| 2007/04/05 \| log in or register to post a reply

Source of Title Blog

Robert A. Franco The focus of this blog will be on sharing my thoughts and concerns related to the small title agents and abstractors. The industry has changed dramatically over the past ten years and I believe that we are just seeing the beginning. As the evolution continues, what will become of the many small independent title professionals who have long been the cornerstone of the industry?

Robert A. Franco
SOURCE OF TITLE

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