Agents Real Credit || Program Frequently asked questions
The Real Credit™ Program
Would you let your friend walk away from $900? We didn't think so! Our Real Credit™ program is designed to save consumers time and money — as much as $900 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.
Popular myths and rumors surrounding the Real Credit™ program
To qualify for the Real Credit™, a homebuyer has to use a particular lender.
FALSE - Homebuyers may work with ANY lender and still receive the Real Credit™.
Federal Title is inflating their fees to cover the credit.
FALSE - We do NOT inflate fees to cover the Real Credit™. Take a minute to review our fee schedule. We encourage you to compare our fee schedule with that of our area competition and see for yourself.
Federal Title receives a "kickback" from the real estate agent or lender.
FALSE - The only person getting a "kickback" from Federal Title is the homebuyer!
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. Is the Real Credit™Program legal?
A. Yes. Our Real Credit™ is compliant with the laws of Maryland, Florida, Virginia and the District of Columbia.
Q. Why has Federal Title implemented this program?
A. Federal Title is a forward-thinking company. We recognize the upcoming consumer-driven market pressures, as exemplified by HUD's recent proposed changes to RESPA, and seek to offer your homebuyer substantial closing costs savings combined with a streamlined closing process.
Q. Will this alliance be an Affiliated Business Arrangement?
A. NO. You will not receive any financial benefits; ONLY your homebuyers. Unlike many of your competitors, who profit from an ABA referral relationship at the expense of their homebuyer, you will be putting the money back into your homebuyer's pocket. In other words, Federal Title is giving your homebuyer the financial benefit rather than giving it to you or your real estate company as a reward for the referral.
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. Can a homebuyer receive a reissue-rate discount on the owner's title insurance premium (assuming the seller provides a policy less than 10 yrs. old) instead of the Real Credit™?
A. YES. However, the Real Credit™ exceeds, in MOST cases, the savings that would otherwise be received through a reissue rate for standard ALTA title insurance policies. Thus, you (the agent) are spared the time and frustration involved with requesting and tracking down the seller's title insurance policy. On the occasion that the reissue rate discount is a better deal than the Real Credit™, Federal Title will honor the reissue rate discount (in lieu of the Real Credit™).
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.
