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![WHAT IS SUPPLY CHAIN MANAGEMENT?
Supply Chain Management is management of a
network of interconnected businesses involved in the
provision of product and service packages required by
the end customers in a supply chain.[2]
Supply Chain Management spans all movement and
storage of raw materials, work-in-process inventory,
and finished goods from point of origin to point of
consumption.](https://image.slidesharecdn.com/modernizingtherealestatetransactionprocessabstract-130101173112-phpapp01/75/Modernizing-the-real-estate-transaction-process-abstract-7-2048.jpg)
Uploaded byWright Strategy Advisors
Modernizing the real estate transaction process abstract
The document discusses modernizing the real estate transaction process to improve the consumer experience. It argues that the current process involves many disconnected entities that add their own requirements, confusing consumers and providers. A group seeks to enhance the consumer experience by coordinating industry groups, standards bodies, regulators, and advocates to redesign the process. The goals are to increase transparency, simplify the process, and reduce costs for consumers, while improving efficiencies, compliance, and reducing risks for providers. No single group can modernize the entire process alone, so the document proposes a framework to coordinate these stakeholders.
Modernizing the real estate transaction process abstract
- 1. Modernizing The Real Estate Transaction Process Reengineering The Consumer Experience Travis Wright
- 2. POSITIONING STATEMENT ANDPURPOSE For years, the consumer experience in real estate transactions has been the consequence of a collage of disconnected service providers, product vendors and regulatory agencies. Each of these entities inserts their requirements and demands into the transaction process, often to the apprehension of the consumer and the other participating service providers. Individually, many service providers make efforts to improve their ‘slice’ of the consumer experience which falls within their control, but most often these improvements are uncoordinated with efforts made by service providers in other sectors. Now, a volunteer group of industry stakeholders seeks to enhance the consumer experience by approaching the issue from another perspective. We believe that by galvanizing industry trade groups, data standards bodies, private-sector industry market leaders, regulatory agencies and consumer advocate groups into a collaborative voice with shared interests, that together we can design and promote the Modernization of the Real Estate Transaction Process. By re-architecting the transaction process, we believe the consumer will benefit from increased transparency, process simplicity, and reduction of costs. Simultaneously, we envision transaction service providers benefitting from improved operating efficiencies, regulatory compliance and risk reduction while serving the consumer in the new process. Transparent property rights are an essential component for prosperity and economic growth in the United States. Given that, we acknowledge that there exists a number of standards organizations and trade associations working to improve the real estate transaction experience, but that no single organization has the scope or resources available to reengineer and modernize the entire real estate transaction process. What needs to come about is a framework and unifying structure to provide common linkage among leading standards organizations, trade organizations, and public and private sector leaders. This, then, becomes one of the chief goals of this Modernization group.
- 3. STAKEHOLDERS IN MODERNIZEDREAL ESTATE TRANSACTION PROCESS TE C TE R H C ME S N NAR MBA ALTA AI PRIA O VO U LO A D NS 1,000,000 3,600 300,000 150,000 24,000 G Realtors; O Practitioners Practitioners Appraisers County IS 900 MLS’s C Recorders TS A Trade Associations of Transaction Service Providers Data & Transport Property Listings RESO Standards for TRANSACTION TRADING PLATFORM Standards Bodies Regulatory Bodies § 5 Million Home Sales Consumer Protection § 8 Million Consumers Dodd-Frank CFPB § 2 Million Service Providers Document Standards Appraiser, Recorder Mortgage, Title, MISMO § $1 Trillion Gross Sales Value § $100+ Billion in Service Fees, Premiums, Commissions Private Sector Providers N IL O TR C TI U IZA PL NG A D REAL ESTATE TITLE PROPERTY MORTGAGE A PA C RN I MERS TF R N BROKERAGE INSURANCE INSURANCE E FUNDING O T D O R NE O M M R S © Wright | Strategy | Advisors
- 4. THE PRIVATE SECTORCARES: $100+ BILLION RESIDENTIAL REAL ESTATE INDUSTRY Realtor Commissions $50,000,000,000 Incremental Value of Loan Originations: 5% $40,000,000,000 Title Insurance $10,000,000,000 Appraisal Fees $2,000,000,000 MBS Trading Fees $3,000,000,000 Recording Fees $350,000,000 Transfer Taxes TOTAL ESTIMATED FEES $105,350,000,000
- 5. AND THE CONSUMERCARES THE 5 Million NEW HOMES AMERICAN Home & RESALES DREAM Sales $60B GROSS ANNUAL $1 Spent SALES VOLUME Trillion After Move-In $13B 77M 2 BILLION MINUTES: Spent for Monthly REAL ESTATE IS LIKE A CABLE TV CHANNEL! Online Internet Ads Viewers
- 6. Report Buyer Seller Sign Report Property Documents Information $$$ Reports Report Listing Disclosures Selling Agent Report Agent Buyer’s Additional Pest Seller’s $$$ Lawyer Attorney Inspections Inspector Inspector $$$ Appraiser Roof Copies Home Inspector Inspection of Loan Inspection Warranty Documents Plan Property Purchase &Sale Insurance House Contract Agent Inspector Other Disclosure Other Search, Exam Agent Packet Client Agent Hazard Copies of Prelim Contract Insurance $$$ Client Policy Disclosure ? Other Agent Title Search Title Packet Lender Recordable Commitment Property Client Documents Loan Title Information Documents Insurance County Title Recorder Policy Company © WRIGHT | STRATEGY | ADVISORS THE PROCESS NEEDS SUPPLY CHAIN TRADING PARTNERS
- 7. WHAT IS SUPPLYCHAIN MANAGEMENT? Supply Chain Management is management of a network of interconnected businesses involved in the provision of product and service packages required by the end customers in a supply chain.[2] Supply Chain Management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
- 8. SUPPLY CHAIN FUNDAMENTALS •Real time demand inputs from point of sale back upstream to suppliers • Suppliers can then gauge demand and throughput requirements • Today, real estate participants do not communicate demand, supply or logistics availability between one another • Result: ‘Hire Big, Fire Big’
- 9. SUPPLY CHAIN &DEMAND CHAIN Real Estate Transaction Process Supply Chain Demand Chain Products Marketing Analytics Consumer Sales Service
- 10. THE U.S. REALESTATE TRANSACTION PROCESS IS DISCONNECTED Transaction Providers Are Not True ‘Trading Partners’ • REALTORS …the inventory The Providers’ Who should • LENDERS …the financing individual own or • TITLE INSURERS …the guaranty supply chains are not linked manage the • SETTLEMENT AGENTS …close the transaction to a supply supply chain • RECORDERS …legal, public notice chain platform platform? • SERVICERS…mortgage & escrow payments • SECURITIZERS …new capital in the supply chain • REGULATORS …prevent financial abuse or fraud
- 11. WE’RE ALL INTHIS TOGETHER Realtors Appraisers Lenders Credit Attorneys Title & Notarization Insurers Recorders Technologists Securitization Investors Regulators Agencies Closing Consumers The Supply Chain of Real Property Transactions Real Property Transactions Mortgage & Title Transactions Capital Markets Transactions Origination | Appraisal | Title Exam | Securitization §FANNIE Property Search | Analysis | Contract Closing | Recording | Disbursements §FREDDIE eDelivery Appraisal Title Search, Mortgage Examination, § Closing Agent · MIN REALTOR SELLER BUYER Origination UMDP | UCDP Curative, § Title Company · MOM Loans WALL ST. § Attorney MERS as UAD | ULDD Underwriting INVESTORS Mortgagee PROPERTY DATA Mortgage (RETS) eTransaction Platform (Data, Documents, eSigs) Processing eClosing eVaulting Backed Securities Electronic Audit & Compliance Trail (MBS) eSignatures Closing Documents eDoc Custodian Gov’t Property Sales Oversight MLS Listing Contract eNotarization Loan App Loan App VOE, VOI eVault LOAN Initial Loan Quote SERVICERS Credit Disclosures Rates & SMARTDocs MI GFE, TIL Pricing Appraisal Lock Title eDisclosures eNOTE Archive Data Warehouses: Analytics Data Data eVault Lender’s Back Office System Deed POS & LOS System County Recorder Consumer Paper Brokerage Search Portal Court House Search Sites Documents IDX Syndicators Recorder | Assessor | Taxation State Laws © All Rights Reserved eRecording eFile eRecord Wright | STRATEGY | Advisors
- 12. SUPPLY CHAINS SHOULDHAVE CONNECTIONS
- 14. If You BelieveIn This Industry; If You Believe In Housing Opportunity For Our Kids And Our Grandkids; If You Believe That The American Dream Is Alive And Well; If You Believe Opportunity Should Not Be Limited To The 1 Percent; If You Believe That Housing Can Help Get This Economy Back On Track Again. Let’s Work Together. Stand Up And Be Counted As Part Of Mba, As We Rally Our Forces In Washington David Stevens President &CEO Mortgage Bankers Association Oct. 22, 2012
- 15. ON LEADERSHIP “It isnot up to the Government to decide the future of the real estate industry; It is up to the Leaders of the real estate industry to decide real estate’s future.” Ken Harney Keeping Current Matters® Speaking at the National Association of Realtors Conference, Orlando, FL 11-11-2012
- 16. WILL YOU HELPMAKE IT HAPPEN? Travis Wright travis-wright@comcast.net 281-217-2789