The REAL Credit™ Program
Real Estate Agents

Would you let your friend walk away from $900? We didn't think so. But if you don't sign up for the REAL Credit Program, you are allowing your home buyers to pay hundreds of extra dollars at closing. For nothing. Nada. Zip.

Years ago Federal Title made a bold move by eschewing all Affiliated Business Arrangements (ABAs). We decided the money made from those arrangements should go to the home buyer, not the executives of large real estate firms.

Federal Title & Escrow Company, through its REAL Credit™ program, now offers home buyers working with REAL Credit Partners, up to a $900 credit against closing costs. Sign up now to be a REAL Credit Partner!

The following chart illustrates the how easily the benefits of the REAL Credit program are calculated:

EXAMPLE: If the purchase price of your home buyer's new home is $825K then they would receive a $900 REAL Credit. If the purchase price is $325k then they would receive a $500 REAL Credit. Yes, it is that simple!

Ready to be a REAL Credit Partner? Either sign-up online or contact us to get more information.

Popular rumors surrounding the Real Credit Program

1. To get the REAL Credit From Federal Title & Escrow Company, my home buyer has to use a particular lender.
   
   

   FALSE

   Your home buyer may choose to work with ANY lender and still receive a $250-$900 REAL Credit.
   
   
2. The Real Credit Program is ILLEGAL.
   
   

   FALSE

   Because Maryland and Virginia state laws prohibit the rebating of title insurance premiums, our program is designed such that none of the title insurance premium is shared, rebated, or credited to your home buyer. The REAL Credit program gives your home buyer a credit up to $900.00; a credit that is composed of the total fees collected by Federal Title that are separate and apart from the collected title insurance premiums.
   
   
3. Federal Title is inflating their fees to cover the credit.
   
   

   FALSE

   Federal Title & Escrow Company does NOT inflate fees to cover the REAL Credit. Take a minute to review our fee schedule. Furthermore, Federal Title gives your home buyer a clear choice between the enhanced (more expensive title policy) and the standard title insurance policy. Many of our competitors issue the enhanced coverage without giving your home buyer a choice.
   
   
4. Federal Title is getting a "kickback" from the real estate agent or lender.
   
   

   FALSE

   The only person getting a "kickback" from Federal Title is your home buyer!
   
   We are taking the fees that we collect and giving (kicking) them back to the home buyer. We pride ourselves on being consumer-friendly and this program ensures that we have the home buyer in our best interest.

How does Federal Title offer an INSTANT and GUARANTEED Settlement Quote?
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 home buyer.

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 proposed "Guaranteed Settlement Package" and "Bundled Services" requirements, the AQG allows any lender to instantly offer a bundled and guaranteed settlement/mortgage package to the home buyer.
• GOOD FAITH GUARANTEE.
  Since our fees are shown on a modified HUD, a lender's traditional Good Faith Estimate is now a Good Faith GUARANTEE. This helps prepare your home buyer for closing weeks in advance.

How is Federal Title able to offer such a large credit?
Like most settlement/title agents, Federal Title receives a substantial commission from the title insurance premiums paid by home buyers. Therefore, we, like our competitors, rely on these commissions as our primary source of revenue. In addition, Federal Title is now in its 12th year of business and has gained the largest market share in the District of Columbia. With this high volume of business and the efficiencies we have gained through our innovative technology, our profit margins have increased. This means that we are now able to offer homebuyers a very substantial closing costs credit in an effort to gain additional market share.

Is the REAL Credit Program legal?
YES. The REAL Credit gives your home buyer a credit up to $900.00; a credit that is composed of the total fees collected by Federal Title that are separate and apart from the collected title insurance premiums.

Why has Federal Title implemented this program?
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 home buyer substantial closing costs savings combined with a streamlined closing process. Under this program, Federal Title's net earnings will be substantially reduced with the view of attracting only a select group of agents as REAL Credit partners. The most professional and experienced agents lend greater credence to the REAL Credit program.

Will this alliance be an Affiliated Business Arrangement (i.e., a kickback)?
NO. You will not receive any financial benefits; ONLY your home buyers. Unlike many of your competitors, who profit from an ABA referral relationship at the expense of their home buyer, you will be putting the money back into your home buyer's pocket. In other words, Federal Title is giving your home buyer the financial benefit rather than giving it to you or your real estate company as a reward for the referral.

Is the REAL Credit a "true" credit?
The REAL Credit is an absolute TRUE credit to the home buyer. 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.

In addition to the REAL Credit, can my home buyer also receive a reissue rate discount on the owner's title insurance premium (assuming the seller provides a policy less than 10 yrs. old)?
No. 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 is a better deal than the REAL Credit, Federal Title will honor the reissue rate (in lieu of the REAL Credit).

Will my buyer receive the $100 online discount in addition to the REAL Credit?
No, the $100 online discount applies only to orders that do not qualify for the REAL Credit Program.

Are there any conditions to or restrictions for qualifying for the credit?
Read our FEW and SIMPLE conditions and restrictions - they are as follows:

• Home buyers must be a client of a qualified real estate agent (a.k.a., REAL Credit Partner)
• Home buyers 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, or Virginia.
• You or your home buyer must order settlement services online at www.FederalTitle.com
• No other Federal Title & Escrow Company programs may be combined with this offer for additional discounts.
• The home buyer must elect to purchase an Owner's Title Policy*. Please contact us if the home buyer would like to waive Owner's Title Insurance.
  *This applies to DC and MD transactions only.
• The home buyer, must agree to the REAL Credit program's Terms & Conditions.

Why must settlement services be ordered online to receive the credit?
Saving time is saving money. The more time that Federal Title can save in data retrieval/input, the more savings we can pass along to your home buyer. Therefore, we require you or your home buyer 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 home buyer to input data also eliminates a lot of potential errors. The approximate time to complete an online order is about 5-7 minutes.

What are the other advantages of ordering settlement services online? In addition to qualifying for the REAL Credit, there are other compelling reasons to order settlement services online:

• Home buyers 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) can order settlement services on behalf of their home buyer and, by providing the home buyer's email address, Federal Title will email the GUARANTEED quote to the home buyer along with the following compliment:

Dear Your Home buyer's Name,
Your Realtor, Your Name of Your Company Name, has saved you $900.00 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.

Can a seller receive the credit?
NO. Only home buyers can receive the credit. For example, if both a home buyer and a seller are working with a REAL Credit partner, then only the home buyer will benefit from the credit.

How do I become a REAL Credit Partner?
A licensed real estate agent may become a REAL Credit Partner by signing up here. Some examples of the criteria used by Federal Title to extend invitations are as follows:

• The real estate agent does not participate in an ABA relationship with another settlement company nor has an ownership interest in another settlement company. In other words, the real estate agent does not compete against Federal Title & Escrow Company for settlement business.
• The real estate agent is licensed in the District of Columbia, Maryland, or Virginia.
• The real estate agent is experienced and has demonstrated professionalism within the real estate community.