A common conversation among title agents is about the dilemma of working with some lenders who order title work for which the title agent never gets paid.
This occurs when:
When the consumer applies for a mortgage, many things have to be checked out before the mortgage becomes a reality.
The credit check,appraisal of the property, a title exam and commitment to insure the title for the lender are some of those procedures that must be done.
A large segment of loan officers order title work BEFORE an appraisal is done and in today's market many homes do not meet the desired value and the mortgage applicant is "turned down".
The title agency is left with paying for title searches that are never used. This cost to the agent is $80 - $100+ and it comes straight out of the title agents pocket. Many lender title order forms state that the lender will not pay for canceled title searches.
Title fees are the least of the costs in obtaining a mortgage.
Most of these orders are never canceled they just "die" in our pipeline and we pay our examiners for those exams with money that should have been income in these trying times.
I think most lenders want the title agent to take good care of their customers and depend on us so the loans close and we all get paid. We take this responsibility very seriously.
I am asking those loan officers out there who order title work too early in the process, to be more diligent about when to start the title work.Your title agent's business will survive when they are not paying out to examiners large sums for exams that are ordered prematurely and never "close".
PS. The fall out rate for some LO's orders is as high as 60%-that money to pay examiners is coming straight out of your title agents pocket.
PS2 Be kind to your title agent.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment