Ohio has a similar fee.  In Ohio, title agents are required to offer Closing Protection Coverage. The cost is $35 for the lender, $50 for the seller, and $15 for the buyer/borrower. It is very awkward because you are basically telling them that they have to pay a fee to protect them from your malfeasance; e.g. "If you don't pay this fee and I steal your money, you are out of luck."

And, how you do you answer the first question they ask - "do I need this?"  Well, I would never steal from my escrow account, so "no."  However, would you believe that someone who would steal from their escrow account would say "yeah, I've been embezzling money from that account for years and it is only a matter of time 'til I get caught." 

The fee for the CPC is not split - it all goes to the underwriter.

Best,
Robert A. Franco
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