STATE OF THE COMPANY REPORT 2014

STATE OF THE COMPANY REPORT 2014
This report is divided into five sections:
ORGANIZATION: Includes information
about our business plan, organizational
structure, operating footprint and the
biographies of our executive
management team.
FINANCIAL STABILITY: Background of
our majority shareholder; financial trends;
insurance underwriter and a high-level
view of our balance sheet and ratings
information.
The purpose of this report is to introduce you to Williston Financial Group; its title
insurance underwriter and operating companies. We have included a comprehensive
overview of our operations including financial stability, risk management and
compliance. Our goal is to help you feel secure with the financial backing of our
title policies and to engage your interest. We want to collaborate with you to better
serve your customers in a mutually beneficial way.
COMPLIANCE AND CORPORATE
GOVERNANCE: Detail on our agent
certification process, trust accounting
controls, corporate governances, HR
and risk management policies.
Cooperational structure, financial strength and regulatory compliance is the first step toward building
trust with you. We believe that providing this level of transparency will lead to a spirit of collaboration
allowing us to work closely with your staff to give your customers an exceptional service experience.
UNDERWRITING AND CLAIMS: An
overview of our claims and underwriting
operations as well as an introduction to
our management team and contact list.
INFORMATION TECHNOLOGY:
Includes a comprehensive overview
of our IT operations, progress and
future goals.
Ultimately, you should know that our success is dependent on being an integral part of your value
proposition.
Thank you for your consideration. We are eager to work with you.
Sincerely,
PATRICK F. STONE, President & CEO
MICHAEL T. GALLAHER, CFO
JOSEPH V. MCCABE, General Counsel
1
MISSION STATEMENT
-EXIST
WFG is built upon the directive to communicate, collaborate and co-exist represented in its
is dependent entirely upon the success of its partners and customers. Client focus manifests
itself through constant communication and an unconditional willingness to collaborate at every
opportunity. By exercising communication and collaboration, WFG integrates with its client
processes and co-
OUR MISSION
Take time and cost out of real estate transactions.
The Williston Financial Group family of businesses (WFG) are dedicated to taking time and cost out
of real estate transactions. By focusing on the client and their processes, WFG will help compress
the time required to close a loan and/or transfer real property ownership. By empowering industry
professionals with integrated technologies, WFG will provide efficient high quality products and
services. By enabling client processes, WFG will increase closing rates. By minimizing corporate
infrastructure, WFG will avoid operating a costly hierarchical organization.
2
ORGANIZATION
ORGANIZATION
Company Overview
Williston Financial Group (WFG) is a holding company that operates a national title insurer and multiple complementary operating
companies. WFG began operations in late 2010. Golden Gate Capital is its largest shareholder. WFG Title Insurance Company is currently
licensed and operating in 46 states. WFG operates three distinct business divisions: Company-Owned Title Operations (Direct Operations);
Agency Operations; and Enterprise Solutions.
WFG has direct operations in Washington,
all vendors of WFG title policies are certified and
Oregon, Arizona, Nevada, Texas and California.
dependable. Prior to approving an agent, WFG
Administration, Legal, Finance, Marketing
With our fully implemented business plan,
runs credit, criminal and background checks
Information Technology, Human Resources,
WFG will own operations in seven western
and reviews operating processes and financial
Purchasing and Real Estate. Our ability to
states, and utilize independently owned title
results. Unlike any competitor, WFG maintains a
centralize these functions enables us to
agents to fulfill a national platform. Our direct
firewall between agency operations and agency
minimize costs by operating with a flat
operations subscribe to automated title indexes
approval, ensuring there are no internal conflicts
management structure. The executive
and employ technologically enabled production
leadership of WFG has extensive experience
systems. Management is metric driven with
composed of Lender Services, Default Services,
and is available to clients to provide rapid and
client service and satisfaction as the primary
Equity Title Services, National Title Production
effective problem resolution.
goal.
Services and National Appraisal Management
Services. This group deals principally with
Currently, WFG has over 1000 independent title
institutionally controlled businesses looking
insurance agents issuing WFG title policies in
for a centralized provider who is capable of
46 states. This agency network is connected by
providing and coordinating title and closing
The WFG culture is defined by our mission
Communicate, Collaborate, Co-exist
services nationally. Because of the centralized
As you will note on the following pages, we
Electronic Partner Network (EPN) that allows
and automated nature of these products,
clearly understand that we have no purpose
our clients to electronically order and receive
WFG is able to offer highly competitive pricing,
other than to enable your success.
title information and products in the top 75
unparalleled service and rigorous quality
SMSAs. Agency approval and on-boarding is
control and follow through.
an extensive and detailed process ensuring that
Please let us know how and when we can
be of assistance.
4
ORGANIZATION
Insurance Underwriter States of Operation
5
ORGANIZATION
Office Locations
6
ORGANIZATION
Management Team
PATRICK F. STONE, President and CEO
positions with three public companies and as a director on two Fortune 500 Boards. The senior
title insurance company, and Chairman and Co-CEO of a real estate related data and information
company.
Pat also served as Vice-Chairman of Metrocities Mortgage, a 2005 top twenty mortgage lender
and as Chairman of The Stone Group, an Austin, Texas based tenant-rep brokerage company.
Additionally, Pat served on the boards of World Minerals, DigitalMap, Homegain, RedVision,
and as a Director of the Portland Art Museum. Currently, he is the Chairman of the Oregon State
University Foundation, and Co-Chair of its Billion Dollar Capital Campaign. Patrick resides in
Portland, Oregon with wife Vicki, and youngest daughter, Samantha.
MICHAEL T. GALLAHER, Chief Financial Officer
Mike is Chief Financial Officer for Williston Financial Group (WFG). Mike has nearly 20 years of
experience in the title insurance industry, having served prior to WFG in a range of financial
management positions within Fidelity National Financial, and most recently with United General
Title Insurance Company and the First American Corporation. Prior to Fidelity, Mike was with
KPMG as an Audit Manager in its financial services sector.
Mike is a graduate of California State Polytechnic University, Pomona; and is a member of the
American Institute of Certified Public Accountants and California Society of Certified Public
Accountants.
7
ORGANIZATION
Management Team
JOSEPH V. MCCABE JR., Executive Vice President and General Counsel
Joe began his career in the title insurance industry more than 20 years ago with Fidelity National Title
Insurance Company. While at Fidelity, Joe gained experience in a number of areas including claims
and litigation management, mergers and acquisitions, and corporate and regulatory compliance.
Since leaving Fidelity in 1996, Joe has held the positions of General Counsel and President of other
title insurance underwriters, most recently TransUnion National Title Insurance Company.
Joe is a graduate of the University of the Pacific, McGeorge School of Law in Sacramento, CA.
JOE DRUM, Executive Vice President, Agency Operations
Joe has over 35 years experience in the title insurance industry. He was President of United General
Title Insurance Company and EVP at First American Title Insurance Company and Fidelity National
Title Insurance Company where he was in charge of all agency operations and strategic initiatives
for several brands.
In 1971, Joe received his undergraduate degree from Hiram Scott College/University in Nebraska,
Advisory Committee on the Student Riots of Kent State. He received his Juris Doctorates from
University of Bridgeport and The Quinnipiac College of Law, New Haven, CT and successfully
completed the executive postJoe currently resides in Santa Barbara, California, where he is one of California's twenty-eight
Fellows of the American College of Mortgage Attorneys ("ACMA"), a national honorary organization
that recognizes outstanding lawyers who specialize in the field of real estate mortgage lending and
related activities.
8
ORGANIZATION
Management Team
, Executive VP Institutional Services Chief Compliance Officer
Executive Management Committee.
Prior to joining WFG, Don served as Chief Operating Officer and Associate General Counsel for
Solutions. Previously, Don was Group President and CEO for Stewart Title Company - one of the
Don is licensed to practice law in Utah and Washington State and is a member of the United
States Supreme Court Bar Washington D.C. He received his Juris Doctorate and MBA from
Gonzaga University.
LANCE C. MELBER, Chief Executive Officer of Valutrust
Lance Melber has been an innovator and executive in the real estate technology space for the
entirety of his career. In 2001, Lance founded eSmartloan.com. In 2005, after building it to over
$1.5 billion in loan volume, Lance sold the company to Capital One, where he served as Mortgage
Chief until 2007, and as Senior VP until 2008. Lance served as an investor and active board
member of Archer Technologies from 2008 until 2010. In 2010, Lance founded Valutrust Solutions,
an appraisal management company, as well as a highly integrated transaction-management portal
for the settlement services industry. Valutrust became part of the Williston Financial Group
family of companies in the spring of 2013.
Lance majored in Information Systems at Kansas State University and has an extensive background
as a technology innovator and financial services expert. His passion is building IT infrastructures and
automated processes for various Fortune 500 companies including Aon Corp, First Horizon National
Corp and Seaboard Corp, in Kansas City.
9
UNDERWRITING AND CLAIMS
Management Team
MARK ADAMS, Chief Information Officer
Mark currently serves as EVP and Chief Information officer (CIO) of Williston Financial Group, a
Golden Gate Capital backed company. Previously, Mr. Adams was CIO and VP of Engineering
for HireRight where he was responsible for leading global software development, information
technology, information security, and business intelligence. Mark brings more than 19 years of
enterprise technology strategy and innovation to the Golden Gate team. From 2008 to 2010,
he was Group Manager of Enterprise Delivery Services for Auto Club of Southern California (AAA)
where he led teams focused on the engineering of highly scalable, real-time, transactional systems.
His duties included overseeing software and infrastructure engineering projects as related to
improving the customer experience; especially in the areas of contact centers and highly
transactional self-service applications. From 2006 to 2008, Mr. Adams led technology teams for
Red 5 Studios; a global massively multi-player online game (MMOG) development studio. Prior to
that, from 2002 to 2006 at Lending Tree Loans, Mr. Adams held leadership positions including
serving as its Vice President of Information Technology. His prior experience includes software
development and IT leadership roles for a variety of technology integration firms and universities.
Mr. Adams holds a Bachelor of Science degree in Computer Science from California State
University, Fullerton.
10
ORGANIZATION
Operations Hierarchy
ORGANIZATION
Enterprise Structure
12
ORGANIZATION
Company History
December 1925 Northern Counties
Title Insurance Company commences
business, domiciled in the State of California.
November 1974 South Carolina Title
Insurance Company commences business,
domiciled in the State of South Carolina.
January 2010 Williston Financial Group
commences operations, and acquires New
Millennium Title Group, now known as
WFG Lender Services.
February 2010 WFG acquires Transunion
National Title Insurance Company, formerly
known as South Carolina Title Insurance
Company and now named WFG National
Title Insurance Company; the Company is
licensed in 31 states.
November 2010 WFG National Title
Insurance Company is licensed in New York.
January 2011 WFG National Title Insurance
Company is licensed in Rhode Island.
March 2011 WFG National Title Insurance
Company is licensed in Wisconsin.
May 2011 WFG Title Insurance Company
establishes Default Services operation.
July 2011 WFG acquires Seattle,
Washington based Northpoint Escrow and
Title, now named WFG National Title
Company of Washington. WFG National
Title Insurance Company is licensed in
New Jersey.
November 2011
March 2010 WFG acquires Transunion
Title Insurance Company, formerly known
as Northern Counties Title Insurance
Company and now named WFG Title
Insurance Company; the Company is
licensed in the state of California.
WFG launches TitleNet.
March 2012 WFG Title Insurance Company
opens Southern California direct branch.
April 2012 WFG National Title Insurance
Company is licensed in Pennsylvania.
May 2010 WFG National Title Insurance
Company is licensed in Oregon and launches
its Portland tri-county direct operations.
August 2012 WFG Title Insurance
Company launches Santa Clara County,
California operation.
August 2010 WFG National Title Insurance
Company is licensed in Washington and
Missouri.
November 2012 WFG acquires
California- based Investors Title Company.
April 2013 WFG acquires Valutrust Solutions,
a national appraisal and vendor management
company.
May 2013 WFG acquires Nevada-based
Community Title Services.
June 2013 WFG National Title Insurance
Company is licensed in Wyoming.
September 2013 WFG launches Central
Coast, California operation. WFG National
Title Insurance Company is licensed in
California. WFG National Title Insurance
Company is licensed in Connecticut.
October 2013 WFG launches Phoenix,
Arizona operations.
January 2014 WFG acquires Texas-based
Universal Land Title of Texas.
April 2014 California based WFG Title
Insurance Company merges into WFG
National Title Insurance Company.
October 2014 WFG National Title Insurance
Company is licensed in Alaska and Hawaii.
ORGANIZATION
Office Locations
CORPORATE HEADQUARTERS
Williston Financial Group
12909 SW 68th Parkway, Suite 350
Portland, OR 97223
ARIZONA
Peoria
Phoenix
CALIFORNIA
Aliso Viejo
Glendale
Irvine
La Mirada
Palm Springs
San Bernardino
San Jose
Santa Barbara
Santa Clara
Temecula
Westlake Village
KANSAS
Overland Park
OHIO
Cincinnati
LOUISIANA
Metairie
OREGON
Beaverton
Clackamas
Lake Oswego
Lloyd Center
NW Portland
Tigard
MASSACHUSETTS
Boston
MINNESOTA
Bloomington
Minneapolis
NORTH CAROLINA
Charlotte
Greensboro
FLORIDA
Coral Springs
Lake Mary
Panama City
Vero Beach
NEW MEXICO
Albuquerque
GEORGIA
Atlanta
NEW YORK
Freeport
Valley Stream
NEVADA
Las Vegas
PENNSYLVANIA
Mohnton
Pittsburgh
SOUTH
CAROLINA
Columbia
TEXAS
Bedford
Dallas
Fort Worth
Grand Prairie
Houston
Katy
Plano
San Antonio
Southlake
Sugarland
VIRGINIA
Richmond
WASHINGTON
Bellevue
Everett
Gig Harbor
Kent
Puyallup
Seattle
Tacoma
WISCONSIN
Green Bay
FINANCIAL STABILITY
FINANCIAL STABILITY
Golden Gate Capital
Majority shareholder Golden Gate Capital brings significant financial resources and
multi-faceted experience to Williston Financial Group.
Golden Gate Capital is a leading private equity firm with $12 billion in committed capital under
management. They generate superior returns for their investors through buyout and growth equity
investments across a wide variety of industries, partnering with world-class management teams
to make equity investments in situations where there is a demonstrable opportunity to significantly
16
FINANCIAL STABILITY
Financial Stability Ratings
DEMOTECH
WFG National Title Insurance Company has earned a Financial Stability Rating ®
Prime
Unsurpassed) from Demotech, Inc.
of the severity of a general economic downturn or deterioration in the insurance cycle, insurers
an earning Financial Stability Rating® of A' (A prime) possess Unsurpassed financial stability
KROLL
Kroll Bond Rating Agency, a Nationally Recognized Statistical Rating Organization (NRSRO)
and a Credit Rating Provider (CRP), was established by Jules Kroll to restore trust in credit
ratings by establishing new standards for assessing risk and by offering accurate, clear and
transparent ratings.
The Kroll name is synonymous with integrity. They are accountable directly to investors because
Kroll Bond Ratings is 40% owned by pension funds and foundations, providing a built-in safeguard
against conflicts of interest.
17
FINANCIAL STABILITY
Q4 2014 Insurance Underwriter Trends
18
FINANCIAL STABILITY
Q4 2014 Insurance Underwriter Trends
19
FINANCIAL STABILITY
Q4 2014 Statutory Balance Sheets
20
FINANCIAL STABILITY
Underwriter Comparison
WFG NATIONAL TITLE
INSURANCE COMPANY
FIDELITY
NTIC
CHICAGO
NTIC
FIRST
AMERICAN
TIC
OLD
REPUBLIC
NTIC
STEWART
TGC
Demotech Financial Stability Rating
(A' Prime Unsurpassed or Higher)
YES
YES
YES
YES
YES
YES
KROLL Financial Stability Rating
B-
B
B+
B
A
B+
Premiums Written to
Policyholders' Surplus (2)
11.3
2.8
1.9
3.1
4.1
2.4
Policyholders' Surplus to
Admitted Assets (1)
30%
38%
51%
44%
46%
49%
Cash & Invested Assets to
Total Liabilities (1)
123%
144%
182%
153%
165%
181%
Parent Institutional Debt (1)
as a % of Equity
NONE
0%
$3.343 Billion
52%
$3.343 Billion
52%
$454 million
18%
$566 million
14%
$93 million
14%
Claim Reserve Coverage (2)
(Total Claim Reserves / Payments)
148 months
74 months
83 months
53 months
108 months
73 months
Excess Statutory Reserves (3)
(Statutory Actual above
Actuary Reserves)
9.1%
13.4%
28.3%
10.4%
4.8%
13.7%
(1)
As of June 30, 2014
(2)
YTD June 30, 2014
(3)
As of December 31, 2013
21
FINANCIAL STABILITY
Insurance Coverages
GENERAL, E&O AND BOND INSURANCE SYNOPSIS
POLICY TYPE
LIMIT OF LIABILITY
POLICY PERIOD
INSURING COMPANY
General Liability
$1M
Mar 2014 Mar 2015
Great Northern/Chubb
Umbrella
$10M
Mar 2014 Mar 2015
Federal Insurance/Chubb
Financial Institution Bond
$5M
Mar 2014 Mar 2015
Underwriters at Lloyds
Privacy/Cyber Protection
$3M
Jun 2013 Dec 2014
Hiscox
Errors & Omissions
$5M
Mar 2014 Mar 2015
Maxum Specialty
REINSURANCE PARTNERS
Stewart Title Guaranty Company
Under this agreement, WFG retains the first $3 million of any single risk, and automatically reinsures
from $3 million to $5 million. This agreement also reinsures from $5 million to $10 million with written consent. Stewart will reinsure larger
risks upon request and review on a case by case basis.
22
FINANCIAL STABILITY
Accounting and Finance Oversight
FINANCE AND ACCOUNTING TEAM
centralized
processes, systems and management oversight: financial accounting; trust accounting;
statutory and regulatory accounting; banking and investment management and financial
planning and analysis.
Our team includes Certified Public Accountants, industry experienced personnel and other
credentialed professionals.
INDEPENDENT AUDITS
annual audits, multi-year domiciliary Department of Insurance audits and periodic limited financial
and controls peer audits.
of Insurance.
of WFG underwriter and other affiliates since 2010.
23
COMPLIANCE
COMPLIANCE
Overview
The WFG group of companies takes compliance very seriously. Whether federal, state or
WFG maintains a Compliance Department headed by General Counsel located at its corporate office
in Portland, Oregon. The Compliance Department consists of at least one dedicated professional
from each of the following departments: Information Technology; Human Resources; Legal/Claims;
Direct Operations; Institutional Services; National Underwriting; and Agency. Senior level managers
within their given departments are responsible for ensuring communication, implementation, and
requisite training of all compliance policies and procedures.
In addition to and in support of the Compliance Department, the company maintains a standing
Compliance Committee. Currently there are twelve state or regional legal counsels serving on the
Compliance Committee, each maintaining his or her own unique areas of expertise and experience.
This committee serves to advise, inform and educate the Compliance Department and WFG staff as
a whole with regards to current regulatory activity as well as current market trends that may give rise
to compliance issues or concerns. The efforts of both the Compliance Department and the
Compliance Committee are supported by a dedicated compliance paralegal also located at the
In light of recent developments in connection with the Consumer Financial Protection Bureau
(CFPB), the most significant areas of focus for the Compliance Department include (I) Title Agency
Management; and (II) Direct Operations Trust Accounting controls.
25
COMPLIANCE
Independent Title Insurance and Closing Agent Certification
WFG agency appointment and management processes include the agent application; on-boarding if approved; periodic audits;
continual monitoring; and recertification or termination should issues arise. WFG is committed to strengthening each of these
processes in establishing a compliant agent-certification program.
AGENT APPLICATION
The WFG agent approval/appointment guidelines include
requests for and review of the following information:

Review agency financials

General information regarding the agency

E&O, Fidelity and Surety bond coverage

Agency history

Agency qualifications

Personal information

Review criminal/credit background checks

Description of mix of business

Description of accounting and escrow processes

Business and bank references

Agency organizational documents

Trust account reconciliations
AUDITING
Agency Audit Services Division conducts audits of each agent
as scheduled on a regular basis or in accordance with state statutory
guidelines where applicable.
procedures in order to ensure the accuracy and reliability of escrow
trust accounts, reconciliations, files and general closing procedures. In
addition, the review is designed to assist in the protection of WFG and
WFG customers from potential fraud, potential losses and to ensure
the integrity of the agents operations.
ON-BOARDING
Once approved, all agents go through a detailed on
boarding process that starts with the review and execution
of an Agency Agreement. The Agency Agreement contains
and restrictions.
26
MONITORING
WFG continually monitors and reports certain key indicators based
upon agent trends, including but not limited to correlations between
issuance of closing protection letters and policy remittance; non or low
remitters; timing of remittances compared to policy effective dates;
other unusual remittance trends and claims-to-premium ratios.
WFG firmly believes the best approach to maintaining a
quality agency network and minimizing risk is by having
first-hand knowledge of each specific agent, as well as
maintaining ongoing relationships with the agents, including
their principals and key personnel. Because of these
important relationships, WFG strives to maintain appropriate
agent-to-agency representative ratios.
COMPLIANCE
Trust Accounting Controls
Daily Trust Account reconciliations are a key control covering the safety of client fiduciary
funds.
bank transaction data to its title and escrow production systems, for identification of unmatched
or unauthorized transactions. Any discrepancy is researched and accounted for promptly.
Month-
-
bank, book and escrow trial balances, ensuring funds have been accounted for properly at an
individual client file level. Outstanding check listings and trial balances are reviewed regularly by
escrow administration personnel for timely research and resolution of reconciling items, stale
checks and dormant funds. These reconciliations are reviewed and approved by a management
level individual other than the preparer.
WFG utilizes positive pay systems for added valid transaction protection.
27
COMPLIANCE
Corporate Governance
The WFG Board of Directors is elected by the shareholders to oversee management and to ensure that the long-term interests of the
shareholders are being served. In consideration of the long-term interests of shareholders, the Board recognizes the importance of
considering and addressing the interests of the company's practices, goals and objectives, including policyholders, employees and
the marketplace in which the company conducts its business.
The Board holds four or more regularly scheduled meetings during the year, at which it reviews and discusses reports by management
on the performance of the company, its plans and prospects, as well as immediate issues facing the company. In addition to its general
oversight of management, the Board or its committees also perform a number of specific functions, including:

Reviewing, advising, approving and monitoring fundamental financial and business strategies and major corporate actions;

Assessing major risks facing the company, and reviewing options for their mitigation;

Selecting, evaluating and compensating the CEO and overseeing CEO succession planning;

Providing advice and counsel to the CEO and senior management;

Providing counsel and oversight on the selection, evaluation, development and compensation of senior management; and

Ensuring processes are in place to maintain the integrity of the Company, including the integrity of the financial statements, regulatory
compliance and reporting.
The Board assesses the company's risk management processes and procedures, and coordinates and integrates committee responsibilities
relating to risk oversight. The Board periodically discusses the company's risk management and oversight, and receives and reviews reports
on risk management, compliance and oversight from its committees and management at each Board meeting.
28
COMPLIANCE
Corporate Governance
BOARD OF DIRECTORS
KEN DIEKROEGER, Managing Director
Golden Gate Capital
JAKE MIZRAHI, Managing Director
Golden Gate Capital
JIM RAUH, Principal
Golden Gate Capital
PATRICK STONE, President and Chief Executive Officer
Williston Financial Group
STEVE OZONIAN, Chief Real Estate Officer
Carrington Capital
29
COMPLIANCE
Conflicts of Interest
In accordance with Department of Insurance guidelines, all WFG officers, directors and key
management personnel are required to submit
Board of Directors in order to report any potential conflicts of interest.
30
COMPLIANCE
Enterprise Risk Management (ERM)
TOP 5 RISKS TARGETED BY
MANAGEMENT
Agent defalcation. Audits of agent trust
accounts and financial data.
Borrower and forgery fraud. Training of
agents and requiring review of certain
transactions such as titles that appear
to have no mortgage, mortgage releases
without any connection to another
transaction, and significant cash
out transactions.
authority, and management reporting relationships for risk managers. The WFG Board
regularly receives, discusses, and understands reports on risk positions and the company's
risk-management programs.
Risk-management policies and procedures are clearly stated and broadly communicated internally
and externally to company management, employees and stakeholders.
Agent escrow errors. Training of agents
and aggressively seeking recoupment.
Market forces in the overall real estate
market. Making use of metrics-driven
data to closely monitor and control
costs in an effort to withstand market
fluctuations.
Competitor predatory actions to gain
market share at the expense of sound
business practices and assuming unwise
risks. Making sound financial decisions
to maintain policyholder protection and
sound underwriting.
31
COMPLIANCE
Fraud Prevention and Reporting
AGENCY
As outlined earlier in this report, WFG has a strict application process for agents who wish to
become WFG agents. All applicants must submit a five page application that requires information
personnel. The application requires a list of all bank accounts used by the agent. The applicant must
submit three references and their contact information.
ON-SITE AUDIT
WFG requires an onand claims practices, policy inventory, security arrangements and files.
BULLETINS TO AGENTS/EDUCATION OF WFG EMPLOYEES
WFG employs experienced auditors who recognize fraudulent practices by title agents. WFG
managers and counsel regularly review newsletters and articles relating to escrow practices and title
insurance published by American Land Title Association, October Research and others. Whenever
reports of fraudulent schemes appear in these publications, WFG sends a bulletin via email to all
WFG agents and instructs them to be mindful of such fraudulent practices.
FRAUD INVESTIGATION/REPORTING
If WFG receives a report of a suspected fraudulent act, an auditor is assigned to investigate the matter
the appropriate law enforcement and other regulatory authorities engaged in the investigation and
prosecution of insurance fraud.
RESTITUTION
WFG will pursue restitution for financial loss caused by insurance fraud when appropriate if there is
a realistic expectation of recovery from the person or entity that caused the loss.
32
COMPLIANCE
Human Resources
At WFG, we understand that the importance of being a good employer starts with an
How we bring a potential new employee into
our company.
WFG is an equal opportunity employer and adheres to EEOC guidelines. The company complies
with applicable state and local laws governing nondiscrimination in every location in which the
company has facilities. This is made evident by our uniform hiring practices, careful recruiting
and application process and standardized application forms. Managers are schooled in proper
interviewing techniques. They are trained to avoid asking discriminatory questions and advised
on how to gather required documentation (such as those required by I9 forms). Additionally,
as required by the Fair Credit Reporting Act.
WFG utilizes the ADP Workforce Now platform for its Human Resource Information System
(HRIS). This platform makes available numerous virtual training sessions that employees and
managers can attend. Easy access to training programs allows WFG to support the growth
of our staff and prioritize our corporate commitment to compliance.
33
COMPLIANCE
Security and Sensitive Information

WFG restricts access to confidential information to only authorized individuals

WFG maintains physical, electronic, and procedural safeguards that protect confidential
information.

WFG does not disclose information about its current or former customers to anyone, except
as permitted or required by law.

WFG ensures the privacy of communications between its customers and WFG servers
via encryption.
Because of the potential risk to WFG, its employees and customers, data loss and identity theft
is of significant concern. WFG has adopted a sensitive information policy to help protect the
Company, its employees, customers and vendors from damages related to loss or misuse of
sensitive information. WFG makes every effort to comply with federal and state guidelines to
protect personal employee, customer and vendor information. WFG further provides it employees
with a mandatory identity theft training program regarding the various forms of identity theft to help
reduce the risk of such security breaches and identity theft.
34
COMPLIANCE
Suspicious Activity Reporting (SAR)
Although title insurance companies are not subject to the Financial Crimes Enforcement Network
(FinCen) provisions or Bank Secrecy Act, WFG recognizes that real estate, title and escrow
companies are not immune to unscrupulous actors who seize opportunities to commit fraud.
WFG maintains a policy of voluntary compliance by filing a SAR with FinCen to report
fraudulent or suspicious activity.
35
COMPLIANCE
Enterprise Risk Management (ERM)
UNDERWRITING
AND CLAIMS
UNDERWRITING AND CLAIMS
UNDERWRITING AND CLAIMS
Overview
WFG is available coast to coast to serve your title insurance underwriting and claims needs.
WFG has experienced legal staff throughout the nation available to aid in the resolution
of any title problems that may arise.
At a time when large companies are automating, off-shoring and depersonalizing their systems,
WFG is committed to building a company founded on personal attention provided by experienced
title experts that is unparalleled in the title industry.
Our underwriting staff averages over 25 years of experience in the title insurance business. With
experienced underwriters from California to Massachusetts, there is always someone available
to respond to any underwriting issues.
Our claims division is able to personally, cooperatively, competently and quickly respond to
any pressing title claim concerns. WFG does not forget you when the insured transaction is
completed. WFG is there when needed, long after the closing when the most difficult problems
often arise.
37
UNDERWRITING AND CLAIMS
Management Team
STEVEN H. WINKLER, Chief Underwriting Counsel/Secretary
With over 40 years in the title insurance business, Steve was most recently the Corporate
Underwriting Counsel for United General Title Insurance Company. He has previously held a
variety of legal and management positions with national underwriters, including Fidelity National
Steve is a graduate of Union College, Schenectady, N.Y. (B.A.) and the University of Michigan Law
School (J.D.). He is a member of the American Bar Association, the Connecticut Bar Association
where he serves as an Emeritus Member of the Executive Committee of the Real Property Section,
and is a Member of the Committee on Unauthorized Practice of Law. In addition to various county
Bar Associations, Steven is also a member of the Association of Corporate Counsel and a member
of the ALTA form committee. In 1992, he was elected a Fellow of the College of Real Estate
Lawyers and, in 1998, a Fellow of the American College of Mortgage Attorneys.
ROGER BLAUVELT, National Agency Counsel
Roger Blauvelt is Vice President and Counsel for WFG National Title Insurance Company. He
began his career in the title insurance industry in 1971 and has held a variety of positions including
Sr. VP and Regional Counsel for LandAmerica in 23 states in the Northeast and Southeast. He
also practiced law in New Jersey and prior to joining WFG was counsel at FDIC.
Roger is a graduate of Boston College and received a J.D. degree from Fordham University School
of Law. He is a member of the bar in New York, New Jersey and Florida. He is a member of the
Real Property and Probate Section of the Florida Bar and the American Bar Association as well as
a member of the American Bankruptcy Institute. He formerly served on the ALTA Forms Committee,
the NY TIRSA Rate Committee, the NJ Title Insurance Rating Bureau, and two terms as President
of the NJ Land Title Association.
38
UNDERWRITING AND CLAIMS
Management Team
JEFFREY DONDANVILLE, National Claims Manager
Jeffrey Dondanville is the National Claims Manager for Williston Financial Group. He has managed
regional claims operations for the major title insurance companies for many years and has been a
Jeff is a graduate of California State University, Northridge (B.A.) and California State University,
Fullerton, (M.S.). He received a J.D. degree from Western State University College of Law, Fullerton.
He is a member of the California Bar Association US District Court Central District of CA, 9th Circuit
Court of Appeals, and The Forms and Practices Committee of the California Land Title Association.
39
UNDERWRITING AND CLAIMS
Contact List
Authority Issues, Corp., LLC, Etc.
Joe McCabe
(503) 387-3636
jmccabe@willistonfinancial.com
Bankruptcy
Ward Graham
(781) 587-0172
wgraham@willistonfinancial.com
Commercial Finance
Steve Winkler
(203) 314-4614
swinkler@willistonfinancial.com
Condominiums and HOAs
Steve Winkler
(203) 314-4614
swinkler@willistonfinancial.com
Easements (Common Law)
Ward Graham
(781) 587-0172
wgraham@willistonfinancial.com
Federal Tax Liens
Steve Winkler
(203) 314-4614
swinkler@willistonfinancial.com
Fraud & Escrow Issues
Jeff Dondanville
(714) 452-1308
jdondanville@willistonfinancial.com
Indian Land Claims
Joe Drum
(617) 899-4717
jdrum@willistonfinancial.com
Mechanics Liens
Tom Klein
(804) 467-1648
tklein@wfgnationaltitle.com
NW Regional Underwriting
Mary Thuemmel
(503) 387-3636
mthuemmel@willistonfinancial.com
RESPA
Chuck Cain
(513) 543-4545
ccain@willistonfinancial.com
Agency Operations
Joe Drum
(617) 899-4717
jdrum@willistonfinancial.com
SE Agency Operations
Tom Klein
(804) 467-1648
tklein@wfgnationaltitle.com
SE Regional Underwriting
Roger Blauvelt
(407) 562-1946
rblauvelt@wfgnationaltitle.com
Tidelands-Western
Jeff Dondanville
(714) 452-1308
jdondanville@willistonfinancial.com
Torrens
Chuck Cain
(513) 543-4545
ccain@willistonfinancial.com
Torrens MA
Ward Graham
(781) 587-0172
wgraham@willistonfinancial.com
Truth in Lending
Chuck Cain
(513) 543-4545
ccain@willistonfinancial.com
Water Rights
Jeff Dondanville
(714) 452-1308
jdondanville@willistonfinancial.com
40
INFORMATION TECHNOLOGY
INFORMATION TECHNOLOGY
Overview
WFG, being a relatively new and agile player
in the title and settlement services, has the
ability and capacity to make significant
strategic investments in its IT platform that
drive client value. We have already taken robust
steps towards our goal of a secure, flexible and
scalable transactional platform that allows for low
friction integrations between WFG, its clients and
its partners.
CoIT platform has been built. We have invested in
transaction, retrieval and reporting systems
that either natively allow for a wide range of
integration between WFG and its partners
and clients, or we have chosen those that are
readily extensible to provide similar capabilities.
Through automation, we strive to decrease
the cost of a real estate transaction by allowing
for the removal of manual, high expense processes
through automation and provide for a seamless
end-to-end order submission and delivery
experience. As every transaction is different, we
relentlessly aim to improve any and all processes
that can be successfully automated, allowing our
experienced operations staff to focus on
the tough outliers that need a deft touch.
In the last calendar year, we launched a brand
new title and settlement services transaction
platform for our direct operations in Oregon and
California, and standardized our Lender Services
division on a scalable, cloud-based system
specifically designed to handle high volume lender
transactions. The two systems have been
integrated to allow for a single point of contact for
our clients and a wide variety of options for the
production of the order and its delivery.
deliver the ultimate target of lowering the cost
of a real estate transaction by allowing effective
communication via secure access to current and
of choice. WFG has a broad range of third party
data and service providers for ancillary products
such as document retrieval and property profiles
whose services are integrated to its own
transactional systems and client facing delivery
portals.
In 2013, we launched our Lender Dashboard,
which allows for loan officers and processors
to track every loan as it moves through our
title and settlement service platform. It will be
shortly followed by a Funder Dashboard which
42
allows for electronic funding of loans and provides
a workflow streamlining opportunity for our lender
clients. We have also integrated with a number
of Loan Origination Systems to allow for
electronic order placement and retrieval to
provide a consistent experience.
WFG anticipates new opportunities with changes
in the industry brought about by the Dodd-Frank
legislation and the Consumer Financial Protection
Bureau. One of the most substantial and opportune
aspects of these changes will be to utilize
technology to tie lenders ever closer with title
and settlement services providers and WFG is
ready to offer solutions to its clients that take
advantage of this increased proximity. Certified
agents and closing, document vaults and
secondary market integrations, which, taken
together, will allow for the validation of the
provenance of a refinance transaction from the
origination to the sale to the investor, lowering
lender risk due to potential fraud and noncompliance, thus reducing incidents of repurchase.
We are excited and eager to work with you to help
you expand your market share in what promises to
be a very different lending landscape.
INFORMATION TECHNOLOGY
Disaster Recovery and Business Continuity
act to
its clients, should adverse events impact its normal business operations.
Adverse events are classified into the following
categories based primarily upon anticipated
duration and potential monetary loss:
The company hosts its mission-critical
operational software and data in the
following environments:
Adverse events impacting these technology



Single server outage

Loss of network connectivity

Loss of data storage

Loss of power

Loss of availability zone

Loss of data center

Total loss of software services

Total loss of data at data center location



Low impact
Medium impact
High impact
Highest impact

facilities and workflow are addressed in
a progressive manner, by shifting critical
functions to alternate company production
facilities.

Collocated data center, including N+1
network and power redundancy, strong
access controls, and off-site replication
to a geographically separated partner
Amazon Web Services (AWS) cloud,
including multiple redundancies, near
real-time failover, and Service Level
Agreement for uptime of 99.95%
per year
Hosting providers
continuity plan in order of increasing severity:
WFG recognizes the importance of communication and has included in its business continuity plan a communication strategy that is tailored to the
impact level classification.
43