Posted by Pamela on 7/24/06 2:06am
Msg #134944

Interesting Article

Thought that this industry-related article might be of interest:

Http://www.realtytimes.com/rtcpages/20060724_slashtitlefees.htm


Pamela

Reply by John_NorCal on 7/24/06 8:39am
Msg #134954

Let's hope there will be relief for the consumer. Garamendi has done a lot of good things since he's been insurance commissioner, I'd like to see him make some headway here too.

Reply by Pamela on 7/24/06 9:40am
Msg #134958

John re: Interesting Article

Good Morning John,

I too like Garamendi. As a consumer it is good to know that finally, some meaningful action may be taken to curtail California's real estate industry and it's inflated pricing.

However, as an (honest) independent contractor (in this field), my concern, is that this measure would ultimately have a negative repercussion as to my long-term earnings.

Pam

Reply by John_NorCal on 7/24/06 10:04am
Msg #134961

Re: John re: Interesting Article

**However, as an (honest) independent contractor (in this field), my concern, is that this measure would ultimately have a negative repercussion as to my long-term earnings.**

I don't think there is need for concern. Business will go on, some things people get away with now might just be a little harder to get away with in the future. Do an honest job, treat people fairly and you'll be successful.

Reply by Lynn Lowry on 7/24/06 10:48am
Msg #134972

I agree that it is wrong for title and escrow companies to receive “illegal kickbacks & gratuities and to form questionable partnerships where the lack of competition squeezes consumers” and that CA Insurance Commissioner John Garamendi is doing a good thing.

On the other hand, I find Garamendi’s comment as to the “illegal schemes that have dashed the hopes of consumers looking to realize the American Dream", a bit dramatic. I doubt that a person looking to buy a $600,000 house is going to “lose hope” in doing so by an additional $2,370 in closing costs.

Reply by Lynn Lowry on 7/24/06 10:51am
Msg #134973

I am LynnNC and I do not mean to post under two usernames .

. . . but I don't notice when the wrong name is checked before I make a post.

Reply by Life Saving Services - Doug on 7/24/06 11:24am
Msg #134978

Re: I am LynnNC and I do not mean to post under two usernames .

My only concern is the political posturing he is using on this issue. In a free society the market should set rates not the government. The governments job is to make sure it stays a level playing field. Maybe the fines should be increased 100 fold to punish the cheaters rather than punish an entire industry for something they as a whole may or may not have done.

Just my two cents.

Reply by Pamela on 7/24/06 11:43am
Msg #134984

Lynn Re: Interesting Article

Hello Lynn,

In Los Angeles County, even in the most "undesirable" parts of town,
there are properties listed in the $500,000 price range. Of course the
market is slowing down, yet $600,000 is the average for a working
class family to purchase a home in a "nicer" community.

As a Realtor, I've shown homes to working class families
(first-time home buyers) who can barely afford the down payment.
Closing costs are added expenditures for which many
do not have the funds. Yet, homeownership is still their "American Dream".

A major source of the problem, is the belief that everyone (in California)
should own a home (regardless if they can afford to or not). Lenders add to
the plight with all the "creative financing" options. Just about anyone
and everyone can purchase property, no matter the income and/or credit.

As a results, there are many homeowners who must refinance.
However, due to the current market, some have refinanced so much,
that they now owe more on the loan, than their property is worth
(at this time).

So yes, $2,370.00 can make a big difference.

Pam

Reply by LynnNC on 7/24/06 2:35pm
Msg #135025

Pamela - Point well made! n/m

Reply by Dorothy_MI on 7/24/06 11:41am
Msg #134982

My fear is

that TC will look to make up for some of that lost revenue by cutting NSA's fees even more!

Reply by Pamela on 7/24/06 11:46am
Msg #134985

Dorothy, those are my thoughts too! n/m

Reply by John_NorCal on 7/24/06 8:38pm
Msg #135078

Re: Dorothy, those are my thoughts too!

Dorothy_MI >>>>My fear is that TC will look to make up for some of that lost revenue by cutting NSA's fees even more!<<

That isn't a fear of mine. I figure that they may try, but as we have discussed so many times, there is a cost to doing business. If lower fees are offered then we all have to take a long hard look and determine if it's worthwhile to do this. Not too many of us want to run around for $50.00 signings. The first thing that needs to be cut out is the middleman, too many of the flaky signing services have ruined it for the few good ones. And down to the individual level, all SA have to dig in their feet and stop accepting the ridiculous low ball fees no matter who offers them.

Reply by TitleGalCA on 7/24/06 8:58pm
Msg #135080

Not really - rethink

John Garamendi is and has been the most un-educated Insurance Commissioner in the history of California. Unless you are privy to the efforts of the Real Estate Industry to educate him, you can't appreciate this post.

He has no "mission" other than this idea of fees for escrow and title.

The truth is...the industry is fined not because they overcharge, but because they UNDERcharge. Competitive title companies get annoyed when they know they've lost a sale because of undercutting...then report the competitor to the Insurance Commissioner.

Garamendi's mission is in regard to two things only:

1. Re-insurance, in regard to subdivisions. Builders participate in taking a financial responsiblity along with the title company for reduced fees. Every attorney around agrees its a very fair arrangement and results in lower costs to buyers. Win-win. Garamendi, being the uneducated dolt he is in real estate, latched on to that big time to make a statement. Go re-read the article with that in mind.

2. Garamendi DID find one thing...the fact that reconveyance fees were being paid by buyers in the closing of an escrow ($65), but lenders didn't actually issue reconveyances. Who's fault is that? Not the title companies, that is for sure. Yet, the Industry...everyone of them...Fatco, Chicago, LandAmerica, Fidelity all jumped in to smooth the ruffled feathers of Garamendi with a fix...a $20 to $40 dollar rebate for buyers that had insured in the last few years. Totally the responsibility of lenders, yet TC's took the hit. Status Quo for the lending industry.

Don't believe everything you read - Garamendi has lots of political pull in his mis-placed mission against escrow and title.

Escrow and Title fees have NOT BEEN RAISED in years in California. They have however, been lowered.