OK, so, I have to rant, again. I spoke to an old friend (who is now in upper management in a title company that is not First American or Old Republic) about blockchain and the fact that title companies are hiring "no experience necessary" abstractors and not sending work to freelancers. As far as freelancers he said it's all about money. Pressure is being put on managers to increase profits.  A lot of companies have done this by laying off the longer/higher paid employees, combining jobs to create a new job title and then hiring younger lesser paid employees to do the job, which now includes doing the title search.  As far as claims due to inexperience or blockchain related issues, he said "That's what insurance is for.  We pay for it so why not use it". 

Don't underestimate the other guy's greed.  A movie quote, yes. But one that holds true today in any business. Some of us believe in doing a title search the way it should be done, meticulously. But the people who run the companies look for any and all ways to improve their profit. I mean come on, when you run a business, you’re looking to increase profit and decrease expenses. Well, they see blockchain as a way to run their company with less people. They think the money they gain by laying people off, hiring “newbies”, dropping freelancers and using blockchain is far greater than the money they’ll pay for E&O.

Do I think blockchain will affect use anytime soon? I think just the coming possibilities of blockchain has already started to chip away at our freelance jobs, and this announcement about First American and Old Republic is going to decrease freelance work even more. I also think, even if blockchain turns out to be a dud, freelance work will not increase, because as I’ve said, E&O and new young employees cost less then paying freelancers. Sure, we still get the complicated searches, but there’s only so much of that to go around. And on job websites now I’m seeing jobs for employees to perform “complicated searches, in our office”.

Is this the way everyone in the title industry runs their business? No.  But I think the industry as it relates to freelancers is downsizing, with profits being a determining factor. Do I like it? Nope. Do I have to face facts? Yup. Could I be completely wrong on all topics? Eh, maybe.