I spoke with Brad Swanson from Chesapeake Insurance in Annapolis and also a title company this morning.
To do a closing in Maryland, not only do we have to have the bond, the Title Producers License and the notary commission, we must have E&O to cover our butts for the closing.
I tried to argue this point. Mr. Swanson's reply was that the title insurance companies i.e. Chicago Title, Lawyers Title are making us responsible and do not call us "notaries", we are settlement agents. We explain the HUD and we are liable. We will have to be appointed by each individual title insurance company in order to do their closings. I said, "I only explain their, HUD, Note, TIL, RTC, What do I have to do with the doc prep and how can I be accountable?" He said, "You are still explaining some part of the loan, you are responsible".
I said, "Endorse my policy and send me a bill".
Here we go again, another expense.
Now, even a title producer can be excluded from doing closings if they are not appointed by the insurance company. Look on the bright side, if the LTP does not follow through and get appointed, it will be more work for the rest of us.
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