The FTI is based on a quarterly survey of title agents that do business with First American. More than 1,100 title agents from 49 states responded to the initial survey, which was conducted in the third quarter of 2015 and also measured title agent sentiment on the impact of the TILA-RESPA Integrated Disclosure (TRID) rule.

The inaugural First American FTI found that title agent sentiment at a state-by-state level for residential price increases is overwhelmingly positive. Sentiment among title agents is similarly positive for price increases over the next year for multi-family properties, but varies by state for commercial property types (retail, office, and industrial).

Title agents also expressed broad-based confidence across all property types in the outlook for growth in purchase transaction volumes over the next year. The FTI value for residential purchase transactions was the most positive at 56. Conversely, the outlook for refinance transaction volume among title agents is consistently negative across all property types.

Another key metric the FTI measures is title agent sentiment on reasons for title policy order cancellations. The FTI found that title agents expect property valuation issues to be the most likely cause of title order cancellation over the coming year, followed by a higher purchase offer being received and unresolved title issues. Currently, title agents ranked the inability of buyers to obtain a mortgage as the most frequent cause of a title policy cancellation, but title agents expect that to fall to the least frequent reason over the next year. Expectations for title policy order cancellations overall in the coming year are modestly positive with a FTI value of 11.