DELCU Financial Services Partners to Launch Title Insurance Agency

NEW CASTLE, Del. -DELCU Financial Services, LLC, a CUSO owned by 15 Delaware credit unions and managed by the Delaware Credit Union League, is getting into the title insurance business. DELCU has partnered with Parsippany, New Jersey-based Amerititle Agency Inc. to form Members Title Agency, which will be equipped to handle everything from helping third party mortgage providers meet RESPA requirements to conducting first or second mortgage title searches. DELCU has made the initial capital investment as required by RESPA and has 49% ownership. Selected for its expertise and reputation Amerititle will be the managing partner with 51% ownership. Profits and expenses will be split 50-50 and Amerititle staffers will manage all back office and title insurance services. DELCU, as a limited partner, is primarily responsible for the marketing /business development side of it. “It is one of those opportunities that we have looked at for years and with the mortgage and refinancing boom, forming this agency is a way to help credit unions through that process,” said DCUL President/CEO Bob Walls. “This is just a natural outgrowth and lets credit unions recover some of their money which they couldn’t do for a long time.” Here is how it will work. Since Delaware is an “attorney state” where consumers have their choice of attorneys, members applying for mortgages or home equity loans who don’t have their own attorney will be provided a Members Title Agency disclosure form which basically informs them that the agency offers its own attorney services. Currently Amerititle is soliciting area attorneys to be part of the agency and so far some 30 are on board. “Attorneys like it because it increases their volume and they get more settlement work with us because that`s 15 credit unions sending business their way rather than waiting for the sporadic calls,” said Walls. “It is an exciting time for everyone involved.” Walls says he expects to have licenses approved by this week. Members Title Agency will serve those in Delaware, New Jersey, Pennsylvania and eventually Maryland-pending licensing approval. DELCU is also working closely with Amerititle to develop a logo and marketing brochures that include all RESPA and HUD required verbiage. “Business development opportunities are there. With the 15 CUs in the CUSO it is a ready book of business to get started,” said Walls. “As we grow we will consider offering a subsidiary share of stock to credit unions and consider expanding the business to the public within 12 months.” Regardless of the mortgage/ refinancing housing market status Walls says that this is a book of business that will sustain itself for the long term. [email protected]