On the record: Brad Salvage, CEO of Birmingham's Jefferson Title

By: Roy L. Williams

Brad Salvage saw the housing market change dramatically during his 23 years as a real estate agent between the 1970s and the 1990s.

The president and chief executive of Birmingham-based Jefferson Title Corp. says the business of title insurance has also gone through major upheaval since he entered the field nearly 20 years ago.

Salvage leads a team of 22 employees who help clients in the area of title search, mortgage closing services and providing title insurance. More than a year ago in the midst of the economic downturn, Salvage decided to retire after he had spent four years as president of TitleSouth, another Birmingham firm.

He and his wife celebrated by taking their 48-foot boat on a year-long "great loop" around the eastern United States. After traveling from Lake Guntersville down the Tennessee-Tombigbee River to the Gulf of Mexico, Bahamas and then up the East Coast, Salvage came back rejuvenated a few months later and ditched the retirement idea.

He returned in early 2010 to the helm of Jefferson Title, a company he previously led for 11 years. In an interview, Salvage talked about what led him to come back and how his business is adapting to the tough economy and changed housing industry.

He also discussed how the current housing market compares to the glory years and shared his view of the future of the industry.

Q. The housing market has been in a slump since before the recession that began in December 2007. What's your take on how the housing market is looking these days compared to a few years ago.

It most certainly is a struggling market, but on the flip side, I will say interest rates are better than ever and prices are very good for home and real-estate buyers. In other words, it is a buyer's market, but it's a tough one. Compare that to a few years ago when it was much easier on everyone involved.

Q. For those unfamiliar, explain what does the title and closing business have to do with the housing and real estate market?

For every sale, purchase or refinance on residential or commercial property, title insurance is required and a closing must happen. At the closing table you have Realtors, buyers, sellers, closing attorneys, mortgage lenders and oftentimes we make all this happen as smoothly as possible.

In fact, getting all these people together and making sure they have what they need is one of the services we pride ourselves on -- making the closing go smoothly. The market these days is so tense that hassle-free service is a strong selling point.

Despite the market slump, Jefferson Title's business is up 30 percent compared to this time last year and we attribute a lot of that to giving better service.

Q. What impact did the market slowdown have on the title industry?

I would say the slowdown has complicated the title industry because it flooded the market with more defaults and foreclosures. That makes the whole title search, insurance underwriting and all the closing services more complicated.

If there is no closing then everyone is out a huge amount of time and expense.

Q. Over a year ago you almost permanently retired. What made you come back to Jefferson Title and take over as president?

The Sanders family, who started this great company in 1967, asked me to come back and help guide the company during through these difficult times and I jumped at the chance. I love this company that I had worked for during so many years and the sheer challenge of steering this ship along was enough to convince me.

Plus, I know this business so well -- I've been in the real estate business for more than 40 years. It was a perfect fit for me and for the company.

Q. Alabama is one of the least expensive states for mortgage closing costs, according to a new survey from Bankrate Inc. The state ranked No. 48 in Bankrate's 2011 Closing Costs Survey, with an average fee of $3,501 in origination and title fees on a $200,000 mortgage. Why are closing costs so much lower here than other states?

The biggest difference is that our property taxes in Alabama are some of the lowest in the country, and the other thing is the title insurance premiums are really low here as well. In Florida, for example, title-insurance rates are three times what they are in Alabama.

Buyers are always happy to hear that Alabama's rates are way, way low.

Q. What is the key to success in your line of work?

I say it's hiring experts. I always say that is why I'm successful because I have the best people on my team.

Of course modern technology makes us easier for us to do our jobs, but expert service and advice is priceless. At Jefferson Title, we never forget the customer and we always give them our best advice.

Q. How much longer do you envision yourself doing this before you retire for good?

(Grinning) I'm only 67 and I have lot of good years left in me.

http://blog.al.com/businessnews/2011/09/on_the_record_brad_salvage_ceo.html