Comments on: Title Insurance Affiliated Business Arrangements Under Scrutiny

By: Roger Ingalls

Roger Ingalls — Mon, 04 Aug 2008 22:31:42 +0000

Rhonda:

Not sure what the “green” means, unless it’s the color of money.

Waiting to hear the rest of the story. The savings were real.

By: Rhonda Porter

Rhonda Porter — Mon, 04 Aug 2008 19:25:03 +0000

It will be interesting to hear what their side of it is. I’m surprised the State allowed the rates to change so quickly.

By: Jillayne Schlicke

Jillayne Schlicke — Mon, 04 Aug 2008 19:20:56 +0000

There is more to the Northpoint story than what meets the eye.

By: Rhonda Porter

Rhonda Porter — Mon, 04 Aug 2008 19:18:42 +0000

Jillayne, re 76–apparently Northpoint is not “green” (or at least, not enough to justify the lower rate)…they just increased their rates back up 30% (after just having them at the lower rate for one month).

Apparently just a “sales” blitz…it’s over now.

By: mdstevens

mdstevens — Fri, 18 Jul 2008 01:32:18 +0000

Calling all state regulators and class action attorneys, here’s a slam dunk case. It appears to me that according to #3, that all Windermere, John L Scott and Coldwell Banker agents are dramatically overcharging their buyers and sellers by steering the title towards their own brokers title company. Correct me if I’m wrong, a title policy provides the same coverage no matter who issues it. How can these real estate owned title companies justify a fee that is hundreds and hundreds (per comment 82) more than the identital product issued from the same underwriter, Landamerica?

By: Rhonda Porter

Rhonda Porter — Fri, 27 Jun 2008 23:07:32 +0000

Jillayne, I’d leave Roger’s comments up so we can tease him later. Ya taught me something new about the ABAs. I’m still not for them as they squelch competition which is never good for the consumer.

By: Jillayne Schlicke

Jillayne Schlicke — Fri, 27 Jun 2008 23:03:49 +0000

Hi Rhonda,

It CAN benefit the agent….IF the agent owns a interest in the affiliated business.

Affiliated businesses (AfBAs) have many different forms of ownership.

Sometimes an owner of a real estate company owns 100% of the AfBA. Sometimes an owner is also the broker who owns 100%.

Sometimes a group of many agents pool their money to start the affiliated title, escrow, or mortgage company.

Sometimes it’s a group of broker/owners.

An AGENT who happens to work at one of those offices and does NOT own a business interest in the AfBA may not benefit in any way other than the “good service” provided by the AfBA. The profits go to the owners, whoever they are.

There is nothing in RESPA that says the AfBA must provide the lowest rates or fees for the consumer.

By: Roger Ingalls

Roger Ingalls — Fri, 27 Jun 2008 23:00:43 +0000

Jillayne:

My posts 51, 55 and 56 seem to be duplicates.

I’ve been accused of not remembering what I say sometimes, and repeating an old story, but I hate to see it in writing!

By: Rhonda Porter

Rhonda Porter — Fri, 27 Jun 2008 22:57:23 +0000

I’m looking at an addendum to a purchase and sale: Affiliated Business Arrangement Disclosure Statement. It states that

“through a subsidiary, it [the RE company] directly owns a minority interest in [a title and escrow company] and through common ownership, indirectly owns [interest in a mortgage company].

Because of these relationships, this referral may provide [the RE company] a financial or other benefit.”

Does not state it’s to the benefit of the buyer or they will receive a better rate for going thru the agent’s title/escrow/mortgage company.

Since this ABA relationship cannot benefit the agent in any way or it’s a kickback (if I’m understanding correctly); then do all the profits go to the broker?

By: Jillayne Schlicke

Jillayne Schlicke — Fri, 27 Jun 2008 20:40:01 +0000

Hey, everyone, did you read BCS’ comment 82? WHOA. That’s pretty cut throat but I guess it must be that kind of market in title.