Affiliated Business Arrangements (AfBA's)

 

What are they?

  • A wholly owned subsidiary of a lender, builder or real estate company that provides a settlement service in conjunction with their other services.

  • A joint venture between a title agent and a lender, builder or real estate company or any combination thereof that forms a settlement service company.

How prevalent are they?

  • Many major lenders, builders, title agents and real estate organizations in the country are considering the development of AfBA's or already have an AfBA in one form or another.

What requirements must they meet?

  • AfBA's must comply with the requirements of the Real Estate Settlement Procedures Act, Regulation X, and HUD's Statement of Policies 1996-2 and 1996-4.

 

Let Old Republic National Title Insurance Company assist you in determining if an AfBA is right for you by...

 

Assisting you with a capitalization cost analysis.

  • Startup costs should include legal fees, licensing fees, bonds, insurance, equipment, premises requirements and initial operational funds.

Outlining compatibility factors.

  • Evaluation of synergies regarding business philosophies, goals and objectives.

Analyzing necessary service requirements.

  • The service needs of the customer should be the most important consideration when contemplating a possible AfBA.

Determining operational costs and profit potential.

  • A cost effective management plan supported by a sufficient volume of business and exemplary service are important factors in achieving success and profit.

With our help you can...

  • Make informed decisions.

  • Avoid costly pitfalls.

  • Take appropriate action.

Purpose of Program

  • Our program was created to assist potential partners in evaluating the feasibility of forming a successful AfBA.

  • We have already assisted a number of real estate professionals and Title Agents in forming AfBA's utilizing our considerable experience and expertise.

For more information contact your local Old Republic Title representative, or call the Southeast Regional Office at 1-800-342-5957.

 

The Old Republic National Title Insurance Company AfBA Program is offered as a business consultation service only. It is not intended to constitute legal advice or the solicitation of the purchase or sale of securities. It is recommended that parties considering an AfBA consult their legal and financial advisors.