NewsLink Q&A: Dax Junker, CEO of Title Clearing & Escrow

Dax Junker is a real estate attorney who started in the title industry in 1991 after graduating from high school in Tulsa, Okla. He continued working in the title industry while he obtained his JD from the University of Oklahoma School of Law. He went into private practice with the law firm of Gable & Gotwals, where he focused on oil and gas litigation from 1999 to 2003.

In 2003, Junker became President of Oklahoma OneStop, a title company and joint venture with LandAmerican OneStop. In 2004, he became a Member and the President of Community Closing Services, an affiliated business arrangement with a real estate brokerage and builder. In 2009, he formed Main Street Title Company, a joint venture with a large regional builder, which he owned and managed from 2009 to 2018. In 2013, Dax created Title Clearing & Escrow, LLC (TC&E), a national title company. In 2019, Junker partnered with Fay Financial where he continues to serve as President of TC&E.

MBA NewsLink: What are the most common challenges in managing title insurance claims? What strategies have proven most effective for handling claims and mitigating risks?

Dax Junker: One of the most common challenges is the discovery of title defects during a transaction, which can range from simple clerical errors to more complex issues such as an undisclosed lien or a dispute over property boundaries. To manage these issues effectively, you need “research hounds” on staff – title experts with deep experience conducting thorough and meticulous searches to uncover and resolve defects before they become problems and delay the closing process.

Seller impersonation fraud is emerging as a growing issue. According to a recent survey by the American Land Title Association, 28% of title insurance providers last year encountered at least one case of someone trying to sell a property they do not own. While it’s not terribly common, this type of fraud can lead to a lengthy legal challenge if it isn’t caught early.

Overall, handling claims and managing risk like fraud effectively takes a blend of thorough, upfront due diligence, legal expertise, and advanced technology.

MBA NewsLink: What significant regulatory changes are affecting title insurers, and what regulatory trends do you see having an impact on the industry in the future?

Dax Junker: One of the most significant changes has been the re-introduction of title waiver pilot programs that permit certain loans to bypass traditional title insurance requirements. The Federal Housing Finance Agency is currently assessing the viability and risks of this approach. The goal is to streamline processes and reduce costs, but it also raises concerns about the level of protection for homeowners and lenders against title defects.

Title insurance not only assures property rights, but also protects against past discrepancies that might not be evident at closing. Without this safeguard, both consumers and lenders could face increased risks.

MBA NewsLink: What emerging technologies or innovations in title insurance will have the biggest impact on the industry in the next few years?

Dax Junker: One obvious trend is the shift towards automation, which has been driven by the need for greater efficiency and transparency in real estate transactions.

MBA NewsLink: Can you discuss the importance of collaboration between mortgage lenders, real estate agents, and title companies in enhancing the closing process?

Dax Junker: Collaboration is everything. The triad of lenders, real estate agents and title providers forms the backbone of every successful financed home sale. Each party must be aware of and understand the timelines, responsibilities, and challenges that others face.

However, title and escrow providers play a unique role in this collaboration by serving as the primary communication hub, facilitating the flow of information, and ensuring that all parties remain aligned throughout the process. This role is vital because it helps maintain the integrity of the transaction by making sure all legal and financial requirements are met before the property changes hands. Moreover, their oversight helps to prevent errors and delays that could derail the closing process.

(Views expressed in this article do not necessarily reflect policies of the Mortgage Bankers Association, nor do they connote an MBA endorsement of a specific company, product or service. MBA NewsLink welcomes submissions from member firms. Inquiries can be sent to Editor Michael Tucker or Editorial Manager Anneliese Mahoney.)