Reply by JanetK_CA on 8/28/06 8:35pm
Msg #141649
Here's my letter to "plagiarize" from...
Feel free to use or change whatever portion you'd like. If you have a personal story to tell that you feel might tug at someone's heartstrings (if they have a heart...) there are brackets below where I put my personal two cents. I've sent this via both fax and email - copied right into the body of the email, not as an attachment. What or how you send your views isn't nearly as important as just sending something! Time is running out..... hth
******************************************************
Commissioner John Garamendi
c/o Bryant Henley, Staff Counsel
California Department of Insurance
45 Fremont Street, 21st Floor
San Francisco, CA 94105
Dear Mr. Garamendi:
I’m writing to encourage you to reconsider your proposals for a mandatory across-the-board reduction in fees for title and escrow companies and their sub-contractors. While there are certainly abuses in some parts of the industry, I don’t think it’s reasonable to lump in all escrow companies (many small, privately owned businesses) and their subs with large title companies. And why exclude lenders, whose fees are by far the largest percentage of closing costs in nearly every case? I feel your proposed approach is like pruning rose bushes with a chain saw!
If implemented, these new regulations would likely result in a significantly reduced level of service to borrowers without impacting on the real areas of abuse. As an independent notary loan signing agent, I am the one who is face-to-face with borrowers when they see their settlement statements for the first time. Invariably, if they are upset about closing costs, it is the origination fees, broker’s fee or title insurance fees - especially if they have refinanced the same property within the last year or two.
The escrow companies and their subcontractors are often small operations or independent contractors like myself, who work very hard for their small portion of the settlement charges. I routinely hear from borrowers how much they appreciate me coming to their home or place of business to make it more convenient for them to sign their loan documents, yet this convenience will be one of the first things to go if escrow companies are forced to slash their fees.
Mr. Garamendi, [ my story here ] Now, my self-employment may be in jeopardy because of what I feel are misdirected, if well intentioned, new regulations.
There are good companies and bad throughout this industry, like any other. But if you are genuinely interested in improving the lot of individuals struggling to be able to afford a loan for a home purchase, you’ll focus on those responsible for the abuse without stifling competition or hampering the ability of the honest operators to properly serve their clients. Please don’t throw the baby out with the bathwater!
Sincerely,
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