Travel Back To The ‘70s Title Insurance Industry With Chicago Title’s Nancy Castro

Imagine typing land registrations and checks by hand. Or sharing one copier with 30 people. Welcome to title insurance in the late '70s.

Nancy Castro, vice president and Chicago NCS escrow manager, remembers what it was like in the Chicago Title Insurance Co. offices in 1979, when technology had yet to revolutionize the title insurance process. In advance of Chicago Title’s 170-year anniversary, Bisnow travels back in time to see how title insurance has evolved.

Four decades ago, interest rates skyrocketed to 21%. “The only investment for funds available was a Treasury bill,” Castro said. Despite the impending 1981 recession, customers filled the office, seeking Chicago Title’s expertise across title, escrow, closing, post-closing, delivery and recording solutions. Rather than have a gap closing, deeds were immediately recorded and title searched. Escrow closings happened over a two- to four-week period. In other areas, the process was tedious. Transaction-specific escrow agreements were drafted for each local property transaction. Specific to Illinois, Cook County had a second, hand-typed system of land registration known as Torrens, adding to the complication of searching for a title. It has since been abolished.

A lack of technology further complicated the process. “We had no fax machine,” Castro said. “Appointments were kept in a large master book at the reception desk and then written into employee desk calendars.” The limited technology meant more employees were needed to complete closings. “We had separate employees to bill, to examine 'preliminary,' to type, to edit and to photograph policies,” Castro said.

In 2017, technology has both sped up the process and lowered the number of staff. Most closings happen in one to two days once the money is deposited. Checks are produced with laser printers and faxes have been replaced by email — although going paperless is not yet a reality. Speed and efficiency have also led to less available time. ”Lawyers can no longer afford to spend the extra time to sit down with an escrow agent to draft an escrow agreement for each transaction,” Castro said. People are also present for closings less often, as appointments online save time and provide both more information and flexibility. “Except for residential closings, fewer and fewer people come to closing. They just send packages.”

Castro credits the rise of the computer for how radically title insurance has changed, and she is keeping an eye on future innovation. “More revolution is on the horizon with e-recording and e-notarization,” she said. “Used along with social media such as Facetime and Skype, people in separate places can be linked together to close a deal which involves property anywhere in the country.”

Despite improvements, title insurance remains a complicated process with a great deal of variation nationwide. It requires a company that is both up to date with technology and these customs. “That is what makes this job so interesting,” Castro said. “There is always more to learn!”

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