Comments on: Realtors and mortgage brokers are warned that they will be prosecuted for RECEIVING title insurance company payola

By: Kary L. Krismer

Kary L. Krismer — Sat, 20 Dec 2008 16:04:48 +0000

Re comments 39 and 41, technically most listing agents have something to worry about, because getting a title company to bill you a cancellation fee is the PITA (as is keeping track of them yourself). Many of the title companies still have not learned regarding that part of the business.

By: Pedro Riojas

Pedro Riojas — Sat, 20 Dec 2008 05:57:32 +0000

For those that have a good working relatioship with title companies and do all business there with out taking enducements , I believe you have nothingb to worry about .

By: Pedro Riojas

Pedro Riojas — Sat, 20 Dec 2008 05:42:44 +0000

I sure that much thought, and work has gone into the consideration for the reason why this new law was needed . I also think that there were debates on the pos and cons,and one can argue one way or the other. But the issue is now a dead horse the new law is in effect . and state regulators will begin enforcesment soon!
I believe that the majority of people in question did not take inducements but, I also believe that some did . This enforcement will create uniformity and will eliminate misundersstandings . The law must be respected because as stated in the article , a law that is not enforced is like not having a law at all.

By: Luis Diaz

Luis Diaz — Thu, 18 Dec 2008 20:27:38 +0000

General speaking, Yes, this new bill will help somewhat to balance the competitive field withing the title insurance industry. Personally do not have experience receiving inducements or knowing of someone receiving them.
It is clear that if the rules of Law are taken for whom its intended, I will say that RESPA is taken a good role for Brokers/LO’s and Real State for the most part.
I consider that this bill is more related to those with dual interest on the title insurance industry and the rest of the Real State profesionals with such interest in title insurance companies. Personally, I belive on working with the title insurance company that delivers rather than its “extra benefits”.
Also, aparently, the commercail part of the real state was not covered in a previous bill and I hope that this one will take care of it. How effective its implementation will be?, let’s the time to point the true on that.

By: WA State Cracks Down on Title Insurance Company Inducements : National Association of Mortgage Fiduciaries

Wed, 18 Jun 2008 04:09:35 +0000

[...] like having no law at all. Most of the enforcement has been left up to state regulators. Read this blog post for more [...]

By: Roger Ingalls

Roger Ingalls — Mon, 16 Jun 2008 16:39:47 +0000

Here is a coherent argument in favor of the Iowa system, with it’s lower title insurance costs. Highly readable. I’m sure there are valid arguments against the position of adopting such a system in WA state, wouldn’t know if they would outweigh the benefits.

Certainly, there is no powerful lobby to promote that system, and a very powerful one to oppose it, which most likely means it is a non-starter.

http://www.iowabar.org/MiscDoc.nsf/2b85a4ea12f4bfac8625669d006e27ab/3260df54a8f7f5fa86256cb80070ee4f/$FILE/Title%20insurance%202.pdf

It’s gives a comparative figure of Iowa title costs vs national costs. I have not been able to find a recent comparative study of title costs by state.

For background on title insurance nationally, this wiki article is reasonably good.

http://en.wikipedia.org/wiki/Title_insurance

OK, I cannot devote any more time to this…back to renumerative work!

I am only an amatuer researcher, and my other hobbies are much more fun!

By: Roger Ingalls

Roger Ingalls — Mon, 16 Jun 2008 16:11:21 +0000

I also came across this tidbit from WA state commish, that aleady said it was illegal for title companies to pay inducements or kickbacks, date Nov 2006.

The only change, as I understand it, is to now punish the recipients of those kickbacks.

I thought there was already a RESPA law that punished someone for receiving those kickbacks.

While I might rant occasionally against excessive regulatory interference in the market place, title insurance cost regulations clearly benefit the consumer.

Look at the title insurance costs for the same product (title insurance only), in some states that lack the regulatory pressures of WA state.

Ouch.

By: Roger Ingalls

Roger Ingalls — Mon, 16 Jun 2008 15:33:22 +0000

I came across this little study recently, about title insurance issues nationally. It short enough, and worth the reading.

http://www.consumerfed.org/pdfs/title_insurance_testimony042606.pdf

It shows that title insurance is generally overpriced (and why it is overpriced), though it varies greatly by state. I will try and find a state to state comparison. WA state seems reasonable in comparison to some other state’s title insurance costs.

By: ARDELL

ARDELL — Wed, 11 Jun 2008 05:05:06 +0000

I lost my favorite Title Guy. Jesse James Draeger of Ticor. He was tops. I never wanted anything from him except his mind. He was always there for you when the chips were down. Did the Title Reviews and did them well. He moved down to Vancouver area…Fidelity Title, I think.

Anyone who runs into him, tell him we said Hi and he comes with our highest possible recommendation. I was hoping he would marry one of my daughters

By: Rebecca Levinson

Rebecca Levinson — Tue, 10 Jun 2008 20:49:54 +0000

Ardell,
I remember very well the free flowing goodies from title company reps (I am not an agent and this was pure observation). Relocation companies, real estate brokers/agents, and mortgage companies all had preferred title companies.

In the Midwest, at least in Illinois and Wisconsin, the Seller can chose their title company…little known fact among sellers, because traditionally their attorney chose the title company to get some of that payola you talk about.

But sometimes those dolla bills come to an end, and those title companies do to- Infamous stories are Attorney’s National Title Network.