Loretta and All abstractors on SOT :
We all need to remember that padding fees is a RESPA violation and is clearly covered in section 8 of their rules. No one is supposed to increase or add fees for a charge that they did not perform. In the case of lines 1102 and 1103 of the HUD-1,(title examination& abstract fees) the fees shown are the fees that are to be paid, and RESPA sets out the fines of about $7k-$10K for each violation.RESPA states clearly that fees are paid specifically for "core" title work, which means one has to do something with regards to actual title examination in order to be able to charge a fee, not just stamp a settlement company name on the file folder! This is finally being enforced by HUD on a much larger scale now also. This is where a lot of settlement companies are making big bucks too. I know of one large company in MD that shows $300 for the title and $300 for examination also, so they charge $600 to the customer for a title that they pay $125 for!!!- I also think the title companies promote this very kind of violation for their agents to get a bigger bang out of each settlement too. Since the settlement fees, title insurance agents fees(60-80%) of the premiums isn't enough of a cut! Another BIG aspect of the RESPA rules per section 8 is that if this is occurring then liability is also apportioned respectively between each as to how much each is paid. As in the case above-the total fees charged is $600 to the customer on the HUD-1 and the company that did the title was paid $125- so the settlement company is liable for about 79% of any claim and the company that did the title would be liable for only 21% of any claim. Liability is clearly defined by RESPA. I am sure the big insurance companies that are promoting this illegal activity are just now starting to realize the implications of this advise or "turning the other way" while their agents that are involved in this whole scheme. Especially with the recent HUD fines being levied against RESPA violators, the Fountainhead Title case reported here on SOT is a good example.
Just one more reason the fees we charge should be an honest and fair fee so we too are not led to this kind price gouging that seems to be rampant with the settlement companies, lenders and real estate firms.

I have another HUD-1 that reflects total title fees paid for the case were in excess of $925 - let us not be fooled, someone is making BIG bucks off our work!! (I have copies of these HUD-1's if anyone would like to "see" the proof)