Hey Steve,

    nice idea about charging an amount suitable to the size of the loan (that is what you meant, right?).  The only draw back I see is that abstractors would only get paid IF the loan closed.  Ouch. 
     I wish that we would get paid the appropriate amount for a search vs the risk, but with some abstractors willing to complete current owner searches for $15 to $20 and full searches for $40 it is difficult to get the desired fee.  
     The second difficulty is determining when or if the loan closed to be sure that the abstractor got paid.  This would involve numerous updates of the recorder's office for the recorded mortgage.
     I believe a more suitable pricing structure might be the time spent on the search.  If it took an hour to complete the search we should be paid more than if the same current owner search only took 15 minutes because they bought it 2 months ago.  Something with full searches, charge by the hour.  It is already done with most commercial searches why not residential.  Of course the client would want checks and balances (totally understandable), they should not be charged for 3 hours of work if the borrower just bought the property 3 months ago.  Most professions work this way, i.e. attorneys, doctors, contractors, almost any other service and/or professional industry does.  Will this be an almost impossible feat to accomplish, probably. 
      To make this so and to survive Title companies really need to charge for their service regardless of the loan closing or not.  They must pay for the search and then they complete the commitment which takes time and money as well.  They should charge a cancellation fee enough to cover their costs. 
     The LO should only order title when all other requirements are fulfilled and they know the loan will close.  Judgments and Federal and State Tax Liens already show on most credit reports, so they already have an idea if the loan is going to make it through the underwriter.  This will require the LO to be educated or become educated, instead of just anyone walking off the street and 10 minutes later they are a LO.
     A lot of what is going on in the title industry is self-inflicted by the title companies and the abstractors.  I know Robert wrote an article or post entitled "Are we our on worst enemy" or something very similar.  The title companies by bowing to the demands of the lenders, who know nothing about title, and the abstractors by lowering their prices and in turn their professionalism by reducing themselves to a necessary evil.
     It has been pointed out be others before, if we not consider ourselves professionals then who will?

jmho
Jay