Anti-Consumer Title Insurance Referrals in Colorado

Erin Toll, director of the Colorado Division of Real Estate, is investigating allegations that ReMax real estate brokers were given gifts or additional leads for pushing customers to use First American for title insurance. The allegation was brought by an anonymous source and ReMax is denying the claim. They contend that they it is a simple marketing agreement with First American and that it benefits consumers. Of course, the fact is that any marketing agreement that pushes consumers to an affiliated title company in a situation like this generally means the consumer will pay more.

Spin, Spin, Spin

ReMax is spinning the by stating that this type of marketing arrangement is beneficial to consumers by making it more convenient to them. This is just spin as I am sure most consumers would prefer to be given direction or at least a few options from which they could choose the best price. By steering them to one particular company they are not given any say in the matter and generally will be forced to pay more than they should. This is why myClosingSPACE.com encourages consumers to shop around and find the best price for title insurance.

Affiliated Business is not Marketing

Affiliated businesses and "marketing" relationships are not benefiting consumers and in many cases are having the opposite effect. When a consumer is pushed into choosing the affiliated title company they are not given the opportunity to make their own decision and may be paying much more than they should. I commend Erin Toll and look forward to the day when consumers are able to take control of the title insurance process.

More Title Insurance (Bad) Publicity

A recent article in the Boston Globe discusses more criticism being levied at the title insurance industry. It is a similar refrain. The main premise of the article is that title insurance in Mass is overpriced and that title companies are more concerned with lenders and brokers than the consumer. While this is generally true I do have one point of contention.

Towards the end of the article it states that there are no title companies who are marketing to consumers. There are plenty of title companies who do just that and I wish that writers would do some research online where they could easily find this information. If a little extra research was conducted they could highlight the problems in the industry as well as talk about the companies who are providing consumer focused service. This type of exposure could go a long way in helping to change the industry and letting consumers know they do have a choice when it comes to title insurance.

Titledge & myClosingSPACE.com

As some of you may have read in a recent press release or at Radical Title Talk, Titledge has purchased myClosingSPACE.com. Titledge is a title insurance underwriter that believes in the effort to bring title services to consumers. Titledge and myClosingSPACE.com feel that this merger will go a long way in empowering consumers and forcing change in the title industry.

The Titledge acquisition gives myClosingSPACE.com access to the extensive resources and an underwriter who believes in the transparency and consumer friendly pricing and service on which we have built our reputation. With the backing of Titledge myClosingSPACE.com will be able to bring our consumer friendly title services to more consumers across the US.

Junk Fees Redux

Here at the myClosingSPACE.com blog I have discussed the issue of Junk Fees being tacked on to title insurance & closing costs. Many consumers don't realize they are being charged extra for legitimate fees or even paying additional tacked on fees. The fact is that many do not see these fees until they actually sit down to close and in many cases they do not understand that they are being overcharged because they have not educated themselves.

That's why myClosingSPACE.com encourages consumers to learn about title insurance and shop for the company that suits their needs. One major issue to look out for is Junk Fees. It is important to make sure that you get a guaranteed quote and all fees and charges are disclosed.

Don't Let your Title Company Pile on the Junk Fees

Do your research and make sure the charges you will have to pay are legitimate and they are within the proper range based on the requirements for your state. Again, there are legitimate fees which cover the costs associated with the work done by your title company. These can be jacked up in order to extract money from unsuspecting consumers. In addition there are simply Junk Fees that get tacked on for no other reason than to extract as much from consumers as possible. Here are some examples of both.

The following are legitimate fees but make sure that you are being charged a reasonable amount of money and being overcharged.

• Insurance Premiums: Of course the premium is a legitimate fee. It is a fee to cover the title insurance premium. Some companies will pad this fee well above what the actual premium should cost. Most states set the rates but since many consumers are unaware of this they will overcharge. Look up your states guidelines and find out what the premium should be.
• Title Search Fees: The title search is a labor intensive process and is an important aspect of title insurance. It ensures that the house you are buying or refinancing does not have any liens or judgments against it. Look at the details when you get a quote or estimate and make sure you are being charged for the title search and there are not additional fees tacked on to this.
• Settlement Fees: This fee should be around $300-$400 and there may be discounts if the closing is held at the settlement company office or another select place. Again, there are fees that can be tacked on to this that are not necessary and would be considered Junk Fees.
  

The following are fees that can be tacked on simply to get as much money as possible. These can be avoided and in many cases are simply Junk fees. If any of these fees show up you should question the company who provided the estimate.

• Municipal Search Fees
• Wire Fees
• Copy Charges
• Travel Mileage for Closer
• Overnight Charges
  

We encourage consumers to shop around and get estimates from multiple title companies and make sure you get detailed breakdowns of all fees and charges. Also, make sure to find out if the estimate is guaranteed. Find the best price and choose the company you are most comfortable with. After all the final choice belongs to the consumer.