“Fidelity also closed 125 offices during the first month it owned Lawyers Title Insurance Co., Commonwealth Land Title Corp. and United Capital Title Insurance Co, according to an earnings report released today by the company….

LandAmerica, which last year was ranked on the Fortune 1000 list, has since announced plans to sell off its remaining subsidiaries, lay off 291 employees and close down by the end of the year.”

Date: January 12, 2009

Re: Fidelity National Financial Conference Call on January 13, 2009

Fidelity National Financial will be holding a conference call for any customers that would like information on or are confused about Fidelity National Financial’s purchase of Commonwealth Land Title and Lawyers Title. Fidelity National Financial will discuss the transaction, the financial condition of the underwriters, ratings and answer any questions that customers may have.

When: January 13, 2009 – 3 pm Eastern Time

Dial in # 1-800-762-7308

Participants are Al Stinson – CEO, Tony Park – CFO, Dan Murphy – Treasurer, Donald Cole – Chief Underwriting Counsel

I strongly suggest that you pass this information on to any client who may still have a problem accepting Lawyers or Commonwealth paper.

From our current rate chart for a $300,000.00 home sale
Owners policy $950.00; simultaneous lenders $385.00 and escrow fee of $725.00.

In addition to that there is a $15.00 to $50.00 Government Services fee charged to the Seller (it varies depending on which municipality is searched) There is a charge of $65.00 per side for all fees in association with handling papers. (wire fees, courier, overnight mail, postage, e-mailed docs etc etc.

Lastly there is a $120.00 release services fee for each loan paid off in the transaction.

So Seller would be:

title $950.00
1/2 escrow 362.50
Govt svc fee $35.00
Doc Services 65.00
Release services, if any

Buyer would be
Title 385.00
1/2 escrow 362.50
Doc Services 65.00
Recording (est) 126.00
endorsements, if any

My mantra has always been that competition is good. I’d love to here from folks in Iowa…the grass is always greener from the other side.

I had not seen title costs in Iowa previously.

Title policies in WA would be in the range of $500-$750 for that size of loan, with those 3 functions unified.

Escrow services would be separate

Last time I checked, in Florida it would cost about $2,000.

Do you think anyone still has a prohibition on using Landamerica?

“Title policy costs in Iowa are not that much less expensive than in WA, and seemed to be forced to lower costs from threat of competition.”

Some states, like Oregon, have very expensive title insurance but escrow is ala carte. It’s an escrow driven market (independent escrow companies have been pretty much driven out–if there are any there–I don’t know).

In Portland, there is one main plant that all the title companies invest in (kind of like you’ve talked about).

One thing struck me right off.

Title policy costs in Iowa are not that much less expensive than in WA, and seemed to be forced to lower costs from threat of competition.

I have seen title costs in other states and I was truly shocked at some of the outrageous fees.

The other thing is that they are only now going electronic. The bigger counties in WA already have.

“A pro-insurance lobby bloc comprising the title industry, bankers and
Realtors has been pushing the Legislature to drop the prohibition ever
since. Iowa’s influential bar association has stymied the push, and it
succeeds annually in striking down pro-insurance bills before they
make it out of the legislature’s commerce committee.
Iowa attorneys charge a fee to render an opinion on the work of an
abstractor before a guaranty is issued. Attorneys fees are unregulated
but hover between $150 and $250, making the program a staple
income source for local attorneys, including elected officials. Rural
attorneys are an influential lobby group and the Iowa Bar Association
(IBA) has been resolute in its fight to keep title insurance banned.”

And from what I understand, title companies may still insure properties there (should it be requested)….they just cannot sell title insurance in Iowa…folks cross the state lines!