Beware of lenders pushing other services
Letter to the Editor
By Inman News, Wednesday, September 9, 2009.Re: 'Lender policy key to mortgage shopping' (Aug. 31)
Dear Editor:
As an independent title agency owner, I wish more borrowers would pay attention to articles like this. It is an ongoing battle with lenders who try to force borrowers to use their title and settlement services so they can increase profits. The consumer needs the protection of a disinterested third party.
When a lender has a financial interest in the settlement service, the lender is anything but disinterested. The problem exists because the consumer is not aware. This article should be required reading before applying for a mortgage.
Rachel Torchia
President
Gateway Title
Brecksville, Ohio
***
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Submitted by Rob Aubrey on September 13, 2009 - 6:58am.
how about REOs they demand and coerce the buyer to use their title company. They even go as far as making it part of their contract.
RESPA section 9;
prohibits a seller from requiring the home buyer to use a particular title insurance company, either directly or indirectly, as a condition of sale. Buyers may sue a seller who violates this provision for an amount equal to three times all charges made for the title insurance.
This open and blatant violation of rule is disturbing to say the least. The local boards, owners, brokers and agents alike are aware and no one does a thing. It shows up in agent remarks in the MLS, it is so out there in writing.
It doesn't mention lenders, but I agree the consumer should know.
My office has relationships with a lender and an insurance agency. We have a full disclosure that all buyers must sign and very few actually use the in house services, most agents have a relationships with other services. The actual company profit is not very large and the amount of profit that could trickle down to the agent is not enough for the agent to care.
Submitted by Jen Max on September 23, 2009 - 10:34am.
I wouldn’t throw caution to the wind any time I hear the word “FREE”, especially if it is marketed to students! We all know nothing is free, if it’s not a mysterious charge you get later then be careful because it’s probably your soul they are after. I have been with Wells (as recommended from my parents) all through my college days and still find them on the cutting edge for TRUE student banking capabilities. So i hear your suggestion to beware of lenders offering their other services, but this service I have found very helpful with my financials. Here is the link. Enjoy. http://backstage.wellsfargo.com