Posted by BrendaTX on 12/28/04 12:57pm
Msg #14610

Question about Hud 1

Say for instance you do a closing for TCT.

Does the HUD 1 usually reference a local (state local, I mean) Title company in addition to TCT?

Just curious.

Reply by Bobbi in CT on 12/28/04 2:02pm
Msg #14618

It depends ...

It depends on if TCT outsourced any of its work to another "company" and wants to disclose the additional fee as a separate line item charged to the borrower. For example:

Title company outsources the mortgage deed recording and title bring down to an Independent Contractor (more convenient and faster for this example, none of its own in the area or its own may charge it more),
Choice A: Title company "eats" the out-of-pocket expense and considers it part of the "title insurance premium" line item or "title exam" line item.
Choice B: Title company charges the borrower, line item "XYZ company title work $50" or "title exam" was done for TCT by another company. Additional fee charges are between the lender and the title company; i.e., contract for "all inclusive of costs" or "allowed to charge lender's borrower up to $X for additional expenses beyond the 'contract normal rate'."

There are other variables, but how the costs to borrower are broken out are determined by what the closer is keying in and what the closer considers "routine." For example, some law firms have a fixed-fee refinance refinance closing fee that includes all costs (1 FedEx for mortgage payoff included in that fee) and other firms have $X legal fee as one line item and $X costs as a separate line item (FedEx, long distance calls over $X, postage over $x, etd.)

Reply by Paul_IL on 12/28/04 2:04pm
Msg #14619

Usually not as Transcontinental Title is the Title Company. No local or state title company is required

Reply by BrendaTX on 12/28/04 2:16pm
Msg #14623

Thanks Paul_IL....TCT usually does have another Title company involved in my loans.

Reply by PAW Notary Services on 12/28/04 2:09pm
Msg #14620

Many title companies are licensed in many different states, although sometimes by different names. Therefore you probably won't see a different title company on the HUD unless it is for different services. Some title companies are not title insurance providers so they farm that out, thus a different title company may be listed on the HUD. Some title companies do "courtesy" closings for other title companies as well, but typically that closing company isn't listed on the HUD unless there are certain fees being assessed by the local title company. Also, you may see "recording" companies (not necessarily title companies) listed on the HUD as they provide the service to take the DOT/mortgage to get recorded, pay the necessary fees, and return the original, recorded docs.

Reply by BrendaTX on 12/28/04 2:14pm
Msg #14622

Thanks - Question about Hud 1

Thanks for all of your answers. I will digest them carefully.

I ask this question because I am trying to figure out why Texas fees are lower than other states. There is a gap. This came up when I have talked with other notaries in other states about fees...It's not just me. Other Texas notaries have noticed this as well.

BTW - most of my closings do have a Texas title company listed on the HUD in addition to the national companies.

Reply by DarleneAZ on 12/28/04 6:44pm
Msg #14661

Re: Thanks - Question about Hud 1

Brenda,

When I worked briefly in escrow (title department upstairs), I was told that by state law all the title/escrow fees have to be submitted to the state every year. For escrow, there is a purchase/sale fee, a refinance fee, investor fee, and so on. Title fees were determined by what was needed, ie, lenders alta, homeowners,standard and so on.

By the way, I have noticed that sometimes I have the company that is the settlement agent and sometimes the title insurance provider is different. Once I was contacted by a nationwide settlement provider to conduct a closing in a escrow/title/attorneys office as per the requirement of the lender but none of the escrow/title companies were willing to do it unless they provided the insurance. They knew I had contacts and that is why they contacted me. As for Texas, you might want to ask a local escrow/title company the reason why they do what they do.

Reply by BrendaTX on 12/28/04 7:27pm
Msg #14669

Re: Thanks - Question about Hud 1

I don't claim to understand all the workings of the way fees slide down hill, but I was wondering if Texas Nots have so much trouble getting fees up is because their share has been reduced by multiple title companies in the mix. This may be a really "dumb" question, but I am just trying to figure it out. Thanks for your insight.

BTW...it'll have to be a not-too-local title company be cause don't really enjoy the idea of NSAs doing refis locally. I understand it, but it makes it hard to get info from locals.

B

Reply by Sherri on 12/28/04 9:36pm
Msg #14702

Re: Thanks - Question about Hud 1

I have worked in the Title industry for 20 years and just recently decided to go solo. Understanding the way the fees work is like trying to figure out a childs logic. Each state is different in that some are regulated and required to post fees with the Insurance Commisioner and some state are not regulated. I have worked in both and can tell you that regulated states receive greater fees. Then you get into the fact that some states are escrow states and some are not. So some can charge escrow fees and some just charge a flat closing fee no matter what the sales and loan amount is. Then you have some states that are allowed to charge exam, endorsement, search and other fees.

One reason that you are not seeing a lot of fees split out to different companies is that a title company may out source the closing and be invoiced by that company on a monthly basis. The fee on the HUD will be to the Title company and then title will pay outside fees as a payable to them.

As you can see this is a complicated formula hope this helps a little.

Reply by Paul_IL on 12/29/04 1:59am
Msg #14800

Re: Thanks - Question about Hud 1

Most likely they may have done some of the actual title verification work which is usually always contracted to a local title company or abstractor.