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Title Insurance Question -FBG's Loan Help? (1 Viewer)

skycriesmary

skycriesmary

Climbing up the Walls
I'm shopping for a refi loan (400k), and I'm getting two different title loan fees ($1200 vs 2,055-including a $455 closing fee). I'm told by the company with the higher fee that it's regulated in Oregon, and that the lower quote has to be wrong as everyone uses the same table based on amount borrowed. 

Any input here? Much appreciated.

 
In my state, the rates have to be posted with the secretary of state up to $1,000,000 of coverage.  You could check there, or ask the two companies to show their math in their calculations.

 
Thorn said:
In my state, the rates have to be posted with the secretary of state up to $1,000,000 of coverage.  You could check there, or ask the two companies to show their math in their calculations.
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Thanks, I've looked for a table online for Oregon, but have yet to be successful. There is no detail in the fee summary, just a total for each, although the higher fee included a closing fee, whereas the other from a credit union did not. 

 
If it’s a refi you should ask about a credit for title insurance from your original loan.

If it’s an owners policy and you already have one from the original loan you shouldn’t need to purchase another. 

I’m just a FBG not a real estate lawyer so don’t quote me. GL. 

 
Are you getting these quotes from your lender or directly from title companies? Lenders won't have control over what the title company charges for their services. 

The cost for the lender's policy is generally tied to the loan amount. It should be fairly consistent across companies. I would expect to see more fluctuation in the other title costs. If the lower quote isn't including endorsements, settlement/closing, closing protection letter, etc it would add quite a bit to the end cost.

 
Johnny Rock said:
If it’s a refi you should ask about a credit for title insurance from your original loan.

If it’s an owners policy and you already have one from the original loan you shouldn’t need to purchase another. 

I’m just a FBG not a real estate lawyer so don’t quote me. GL. 
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It's a refi on my primary residence, which is paid in full. I'm pulling out $ for a rental property. I'm not sure I know the difference between a refi and owners policy (Google....) I should look into the credit you mentioned.

The lower quote is from a local credit union, the higher is from a local company that my girlfriend's sister in law works for. I'd like to give her the business, but not if they can't even match the closing fees.

 
sports_fan said:
Are you getting these quotes from your lender or directly from title companies? Lenders won't have control over what the title company charges for their services. 

The cost for the lender's policy is generally tied to the loan amount. It should be fairly consistent across companies. I would expect to see more fluctuation in the other title costs. If the lower quote isn't including endorsements, settlement/closing, closing protection letter, etc it would add quite a bit to the end cost.
Click to expand...
I'm getting these quotes from the two lenders, one being a credit union. I was told this amount is regulated by the state, so I'm not sure why there's such a big difference in fees.

 
skycriesmary said:
It's a refi on my primary residence, which is paid in full. I'm pulling out $ for a rental property. I'm not sure I know the difference between a refi and owners policy (Google....) I should look into the credit you mentioned.

The lower quote is from a local credit union, the higher is from a local company that my girlfriend's sister in law works for. I'd like to give her the business, but not if they can't even match the closing fees.
Click to expand...
wouldn't trust him.  The title company told him he would have to pay $2055.  He said he would pay $965.85 and not a penny more.  They said it would be $1740.59, take it or leave it.

 
Can't speak to Oregon, but in PA, title insurance fees are based on state rates filed with the state, meaning they're standard.  However, there are two different rates.  Title Insurance Agents (who actually do the title search and issue policies) have an "all-inclusive" rate, which covers both the title insurance and the closing fee.  "Approved Attorneys" (who do the title search and certify the title to an Agent who will issue the policy) use a Title Insurance fee which covers the policy only (i.e., the amount they will have to pay to the Agent who issues the policy) and are free to charge whatever closing fee they want.  As a practical matter, that closing fee is usually the same as the difference between the two rates, because if you try to charge more, the client would be better off going through the agent directly.  It could be the credit union gives members a bargain by passing along the policy only fee and not charging for closing services.

 
apalmer said:
Can't speak to Oregon, but in PA, title insurance fees are based on state rates filed with the state, meaning they're standard.  However, there are two different rates.  Title Insurance Agents (who actually do the title search and issue policies) have an "all-inclusive" rate, which covers both the title insurance and the closing fee.  "Approved Attorneys" (who do the title search and certify the title to an Agent who will issue the policy) use a Title Insurance fee which covers the policy only (i.e., the amount they will have to pay to the Agent who issues the policy) and are free to charge whatever closing fee they want.  As a practical matter, that closing fee is usually the same as the difference between the two rates, because if you try to charge more, the client would be better off going through the agent directly.  It could be the credit union gives members a bargain by passing along the policy only fee and not charging for closing services.
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Thanks for your input, that makes sense. I still need to check out a credit for title insurance from my original loan, if that's possible. 

 
skycriesmary said:
I'm getting these quotes from the two lenders, one being a credit union. I was told this amount is regulated by the state, so I'm not sure why there's such a big difference in fees.
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I'd be more concerned with the benefits to your current loan terms either of the lenders can provide and any applicable origination costs. You should have some input over what title company is used after you have chosen which lender to go with. Once you have a loan estimate from the lender and fee statement from the title company you should have a good overall sense of total loan costs.

 
sports_fan said:
I'd be more concerned with the benefits to your current loan terms either of the lenders can provide and any applicable origination costs. You should have some input over what title company is used after you have chosen which lender to go with. Once you have a loan estimate from the lender and fee statement from the title company you should have a good overall sense of total loan costs.
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Eh, $5,190 closing costs on a 400k refi, I'm sure I could have done much worse, and probably a bit better.

 
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