You said: “Remember yesterday I posted that settlement agents make most of their $$ on title fees, they are fixed based on the loan amount. I can't tell you how many people wrestle with this charge when they've refi'd numerous times and get this hit each and every time...they dubb it "highway robbery"...None the less, it is a legitimate charge.”
What is your definition of settlement agent? Are you referring to the escrow/title company or the individual agent that crunches number and prepares docs at the direction of buyer/owner/lender for the title/escrow company? The one creating the settlement statement, creating title/escrow docs, arranging for signing with buyer/owner/seller (whoever are the parties to the transaction) paying of liens, recording docs, disbursing funds? In Oregon, the individual agent is typically on salary plus bonus. Of course, title makes their money off the insurance. No one at title sells the lender/borrower on ALTA or other endorsements as those are lender requirements. (I can’t speak to cash purchase transactions and I have always worked for banks, credit unions, and mortgage lenders.)
You said: “ Also a lot of title/escrow companies also make money on such line items as: Flood Determination Report, Tax Report, Subescrow fee, yada yada...”
Would you please clarify? I know things can be done differently in other states but the HUD is the HUD no matter where you are and flood determination is in the Lender section. Are you seeing something in the title section for flood cert? Also, by tax report do you mean tax service? This too is a lender required fee. Title does not provide either of these services/reports and the lender does not make money on these as they are third party fees. Loan processor typically orders flood cert and tax service is engaged at closing at direction of lender. Both services are very much needed and don’t cost that much. Perhaps in your neck of the woods there is an additional tax report that I never see?
Regarding your request for views on the differences in escrow from the past. Yes, indeed, I do see differences. It’s pretty much the same as has been for years with local, in state title company fees-other than increases in insurance. The difference resulting in much higher fees to the borrower is the use of out-of-state title and settlement companies. Clearly, most loan officers are not informing the borrower that they have a choice for title/escrow services. Sure they sign a doc at closing to that effect but, duh, it’s a bit late for that—ya this is a pet peeve of mine. Even local bank branches are using national signing, title, and escrow services-costing the borrower more than is necessary. Most of the credit unions use local companies thus saving the borrower money over the banks. (Sure this is why we are all as busy as we are, but the customer service oriented LO in me still cringes.)
I also rarely see notary fee separated on the HUD but when I do it is way more than I am receiving most of the time.
PS. probably not new to you Cheryl, but for those that are interested in a description of tax service fees. http://www.investopedia.com/terms/t/tax-service-fee.asp#axzz29xZyy44L |
