I think DataTrace is a major threat to Title searchers in NJ. If you are a credit checker or document retrieval type abstractor, your safe.

In NJ, we are not yet considered a "Title Plant" state.
What DataTrace is doing is compiling property databases which will encompass 20 years of property information.They are striking deals with the county clerks right now which enables them to photo copy all the records.

There was an article in the STAR LEDGER about this subject in Union county http//wawa.starledger.com/texis/search/+GOewkWYerdbnmewkWjeSmwwwS/story.html

Once they build their title plants in each county, they will then sell the service to Title companies in the form of online access .The title company will pay a flat fee for access plus a per minute charge to use the database.( Appraisers use this type of service through FARES....First American Real Estate Solutions)

Now what this does is effectivley eliminate the need for the searcher.Searching will be reduced to a clerical function performed in office by an $8 an hour employee.

I am also told that First American is in the process of trying to get the laws changed for the statuatory period of 60 years for a full search reduced to 20 years...see how that coincides with the 20 years of property information they will provide ?

I have been told by some people "In the know" that this IS happening and it WILL cause major downsizing in the searching community.

I was told flat out...in 2 years , we will no longer need you. To which I responded...."They suck, their searchers hardly know anything, and most have been searching for maybe a year or two" to which I was told..."It DOES NOT MATTER, our underwriters are factoring errors into the risk evaluation "

So now DATATRACE can hire low wage searchers, effectivly bring down the cost of searches and drive us out of business. It's the classic Wal-Mart, Home Depot type scenario happening in the Title Insurance Industry.

I know it's easier to say that it won't happen , or that's impossible....those are classic signs of denial.

It is happening , it sucks and I hope to make as many searchers aware of the situation as possible because it is serious.



to post a reply: login - or - register