1. Modernizing The Real
Estate Transaction
Process
Reengineering
The Consumer Experience
Travis Wright

2. POSITIONING STATEMENT AND PURPOSE
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 MODERNIZED REAL 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 SECTOR CARES: $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 CONSUMER CARES
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 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.

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. REAL ESTATE 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 IN THIS 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 SHOULD HAVE CONNECTIONS

14. If You Believe In 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 is not 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 HELP MAKE IT HAPPEN?
Travis Wright
travis-wright@comcast.net
281-217-2789