I have suggested this to some mortgage brokers and bankers, and they react as if I have 3 heads. Some years ago the appraisers banded together and refused to do work without guarantee of payment. They were being "stiffed" like we are if deals didn't close. As I see it, a lender needs 3 basic things for approving a loan: creditworthiness (credit report is POC from borrowers); to know how much the collateral is worth (appraisers POC); and to know whether they will have good title to the collateral (that's us). Why can't originators collect a little extra from the applicants to assure that our part of the required information gets paid for, regardless of whether the deal closes? It won't happen until abstractors and/or title companies join forces. When I insist on getting paid on a dead deal, the originator just moves on to the next available title rep. As long as people are waiting in line for the business, and will "cave in", there's not much hope.
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