It has to do with those states where there is a credit when both a Lender's and Owner's Policy are simultaneously issued. The way that the rules have the fees disclosed is not he actual fees that are charged.
The idea was to show the consumer how much extra they would pay if they did not get the two policies simultaneously. Instead, it tends to confuse both parties as to who is paying what.
Here is a basic example:
This is what is paid Full Owners: $1,900 Simul Loan: $200
This is the amount without the Owners for the loan Full Loan: $1,500
This is what is on the CD ([Full Owners + Simul Loan]-Full Loan)
Owners: $600 Loan: $1,500
The idea is to show the consumer that it is only costing them $600 more for the Owners Policy. |