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Will consumers shop for settlement services?

Posted in RESPA reform By Matt Carter, Tuesday, April 15, 2008.

Be interested to hear the group's thoughts on whether RESPA reform will spawn Web sites that allow consumers (and real estate and mortgage pros) to shop for settlement services.

See today's story on Fairclosingcosts.com's plan to launch next month. 

 

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Submitted by on April 15, 2008 - 3:18pm.

Title insurance and settlement services are way overpriced. Title insurance is almost like big oil on a much smaller scale. For instance, when I refi, I pay another title policy? What's that for? In case I scammed myself and obtained my title fraudulently? I would welcome any ability to shop for title policies. I know that they do work to earn the title policy premium, but in Texas rates are regulated and competition is hardly there to help consumers. The title company lobby also has been successful in passing legislation that makes it illegal for title companies to compete for business or induce folks to give them business by providing any ancillary services. I wish we had their lobby.

Joe
Austin Real Estate | Certified Residential Specialist

 
Submitted by Steve Loper on April 15, 2008 - 8:56pm.

For all services other than title insurance this will work.

If you say "Title Insurance" to an end consumer, you will get a quizzical "What the heck that?" Or try to explain what "re-issue credit" is. Title insurance is more of a b2b enterprise. There is a niche market for this, but it wouldn't be huge.

For the other industries, this can spawn a whole new marketing area. Appraisers, and home inspectors can begin to market directly to the end consumer.

Here is the idea that some smart company like zillow should implement: Marketed to the end consumer "Close your own home" web site. Where the end consumer can manage the process. With document management, communication tracking ...

Wait, hold on a second, let me get to building my own site that does this. :)

steveloper.com

 
Submitted by Diane Cipa on April 16, 2008 - 5:43am.

I saw the Fairclosingcosts.com site and registered for future participation when they get to my state.

I wish Zillow would add title insurance and settlement services.

I have always spent my marketing dollar on consumer facing advertising. Visit www.chooseandsave.com. Visit http://titleinsurancetalk.blogspot.com. These are consumer facing sites.

It's the future. The point of sale is in flux.