Hiya Janis!

Yes, people out here care.  I finished reading that monstrosity some time last week.  And I still can't form an opinion either way on how the new HUD format will affect abstractors.  For instance, the title search/examination is already typically rolled into the premium in many areas of the country.  Where it is listed separately, it is often marked up with impunity. 

I think there will be great pressure on the VMs and title agents, and the brokers too, to lower fees.  The pressure will yet again make its way to the abstractors.  I don't think the abstractors will be able to give any more. 

The focus of HUD's reform is to encourage the borrower to shop for the lowest bottom line.  Thus the totals, rather than the previous focus on the cost breakdown.  Higher settlement fees, as an aggregate, will cause the shopper to shop around for a better deal (says HUD).  The price pressure will work its way from the originator on down.  They will insist on all third party providers' concessions before they give up any processing and handling fees.

The $6.00 automated title search may become more attractive unless the title underwriters decide that $300,000,000.00 is too much to pay each year in claims.  But the underwriters own those automated, off-shore title plants, don't they?  From where will the biggest hit come to the underwriters?  Higher yet claims, or the loss on offshore title plant investments?

Will a 10% tolerance on increase in the total third-party settlement costs inhibit an increased fee on a complex title search?  Chances are, the title agent will have to suck up the additional cost.  Maybe they will browbeat the abstractors to maintain a flat fee.  What about copy costs?  Wil they push the tolerance? 

I just don't know the answers.  It really would be great to hear from some of the brilliant minds on this board.  How will HUD's RESPA reform affect your business?  It's only 90 something eye-crossing pages.  Good readin'.