Buyers & Sellers Articles FAQs Real Credit™ Program
The Real Credit™ Program
Would you let your friend walk away from $1,100? We didn't think so! Our Real Credit™ program is designed to save consumers time and money — as much as $1,100 on closing costs. Saving is easy. Simply order settlement services through our website. That's it!
Q. How is Federal Title able to offer such a large credit?
A. Years ago we made a bold move by shunning all Affiliated Business Arrangements (a.k.a., ABAs, joint ventures, or legal kickbacks). Since we no longer have to share our profits with referral sources (i.e., executives and brokers of large real estate firms), we decided the money made from those arrangements should go to the homebuyer.
Q. What's the catch?
A. You must order settlement services online from our website. THAT’S IT! By you entering the information online, you save us a lot of time and effort in tracking it all down, and we reward your efforts in the form of a Real Credit™ to your homebuyer.
Q. Can a homebuyer receive a reissue-rate discount on the owner's title insurance premium (assuming the seller provides a policy less than 10 years old) instead of the Real Credit™?
A. YES. Federal Title will provide the homebuyer with the reissue rate discount, when applicable, in addition to the REAL Credit™ for District of Columbia properties. However, for Maryland and Virginia properties, Federal Title will provide either the reissue rate or the REAL Credit™ (whichever of the two produce the higher savings). A reissue rate is applicable if the seller has owned the property for less than 10 years and the seller can produce evidence of an existing owner's title insurance policy.
Q. Is the Real Credit™Program legal?
A. Yes. Claims by some of our competitors that Real Credit™ violates anti-rebating laws is simply false. Our REAL Credit™ has been approved by the District of Columbia, Maryland, and Virginia insurance commissions and is compliant with Florida regulations. Most recently, the District of Columbia’s Department of Insurance, Securities and Banking issued a Bulletin that approves of the REAL Credit™ stating that a title insurance producer may offer a discount or credit "for actions that improve the efficiency of the settlement transaction, such as applying electronically."
Q. Do I have to work with a particular mortgage lender in order to receive the credit?
A. No. Homebuyers may work with ANY lender and still receive the Real Credit™.
Q. Does Federal Title inflate their fees to cover the credit?
A. No. We do NOT inflate fees to cover the Real Credit™. In fact, take a look at this fee comparison chart among DC Metro Area title companies, and see that Federal Title ranks among the lowest in settlement fees.
Q. How does Federal Title offer an INSTANT and GUARANTEED Settlement Quote?
A. Our web-enabled proprietary software, the Automated Quote Generator (AQG), produces the exact costs of closing once the user has entered the required information; purchase price, loan amounts, state/county, etc. In turn, the AQG delivers an instant, online, guaranteed cost quote to you and your homebuyer.
Other advantages:
Save time & Guesswork — Eliminate the phone calls and time involved in requesting costs/fees from the settlement company and lender.
RESPA Compliant — To satisfy HUD's recently released Real Estate Settlement Procedures Act requirements, the AQG allows any lender to instantly and accurately prepare a Good Faith Estimate.
Q. How is Federal Title able to offer such a large credit?
A. With your help entering data through the online order form, you save us a lot of time from tracking down information and we reward the efforts with our Real Credit™ to your homebuyer.
Q. Why has Federal Title implemented this program?
A. Federal Title is a forward-thinking company. We recognize consumer-driven market pressures, as exemplified by HUD's recent changes to the Real Estate Settlement Procedure Act (RESPA) that aim to bring more transparency to the title industry, and we seek to offer your homebuyer substantial closing costs savings combined with a streamlined closing process.
Q. Is the Real Credit™ a "true" credit?
A. The Real Credit™ is an absolute TRUE credit to the homebuyer. Unlike many of our competitors with similar credit incentive programs, we do not inflate our customary settlement fees and title insurance premiums to offset the credit.
Furthermore, Federal Title gives all homebuyers a clear choice between the standard (less expensive title policy) and the enhanced title insurance policy. Many of our competitors issue the enhanced coverage without giving homebuyers a choice.
Q. Are there any conditions to or restrictions for qualifying for the credit?
A. Read our FEW and SIMPLE conditions and restrictions. They are as follows:
You or your homebuyer must order settlement services online at www.federaltitle.com. Homebuyers will receive the benefit of the credit (or a portion thereof), subject to their lender's underwriting requirements.
The subject property must be located in the District of Columbia, Maryland, Virginia or Florida.
No other Federal Title & Escrow Company programs may be combined with this offer for additional discounts.
The homebuyer must agree to the Real Credit™ program's terms & conditions.
Q. Why must settlement services be ordered online to receive the credit?
A. Saving time is saving money. The more time that we save in data retrieval/input, the more savings we can pass along to your homebuyer. Therefore, we require you or your homebuyer to input the data (i.e., buyer/seller names, agent names/address, sales price/loan amount, property address, current address, lender info, email addresses, etc.). Requiring you or your homebuyer to input data also eliminates a lot of potential errors. The approximate time to complete an online order is about 5 to 7 minutes.
Q. What are the other advantages of ordering settlement services online?
A. In addition to qualifying for the Real Credit™, there are other compelling reasons to order settlement services online:
Dear [Homebuyer's Name], Your Realtor, [Your Name] of [Your Company Name], has saved you $1,100 by ordering settlement services online through the REAL Credit™ program. This email confirms that settlement services have been ordered for your upcoming closing. See the Guaranteed quote below.
Homebuyers will receive an instant, online, GUARANTEED quote for services that will reflect the REAL Credit™. The quote will include ALL title charges, government recording charges, and transfer/recordation taxes.
A Real Credit™ partner (agent or lender) can order settlement services on behalf of their homebuyer and, by providing the homebuyer's e-mail address, Federal Title will e-mail the GUARANTEED quote to the homebuyer along with the following compliment:
Q. Can a seller receive the credit?
A. NO. Only homebuyers can receive the credit.
Q. How do I become a Real Credit™ partner?
A. A licensed real estate agent or mortgage lender may become a Real Credit™ partner by signing up here. Homebuyers wanting to take advantage of the Real Credit™ program simply need to order services through our website. No registration is required.
