Posted by immanuel6_CA on 12/29/05 3:58pm
Msg #85094

Stewart Title Question regarding fees

I spoke to a rep for Stewart Title and was told that if the loan doesn't fund, it wasn't their problem regarding my fees. So, if I perform a loan signing and the loan doesn't fund, how would I handle this situation? Go back and get the fees from the borrower or get fees upfront when I make contact with the borrower?

Reply by ReneeK_MI on 12/30/05 5:28am
Msg #85239

no funding, no payment policies

If you search, you'll find plenty of opinions on this aspect of our business. My own take isn't necessarily the most popular one, either - but that's the great thing about opinions, everyone gets to have their own.

The way I see it - if I am to remain a viable business AND be a 'value added' service, then I need to do just that - ADD value, and not SUBTRACT value or add risk. If a loan does not fund, T/A and Lender do not get paid. If they use MY service, which is what I WANT them to do - and I charge them even if loan doesn't fund, then I pose a negative risk. The image that I wish to BE is as an extension of the T/A's own right arm.

What I know from experience is that the risk to ME is pretty small - rarely do I have to eat a trip. I also know that the tendancy for a 'repeat offender' lies FIRST with particular loan officers, and 2nd with particular mtg. brokers - NOT Title Agents.

So - I have a T/A I work a lot with, and a particular mtg broker THEY work with falls in the "repeat offender" category. This is where a business decision gets made - thus far, I have made no policy changes but during EOM, for THAT particular mtg broker, I enforce a 'drop dead' time constraint and am always 'aware' that those time slots may suddenly be open. It's a balancing act.

I suppose there is a separate place in this game for SS's - and I can easily imagine that particular SS's could be 'repeat offenders'. If you do a large quantity of work for SS's, and you see a pattern ... take your cues, but make sure you analyze the pattern correctly.