This is a great subject that we all can benefit from. I have been waiting for a chance to comment on this.Let us consider the fact that almost every service provided in a settlement is linked to or a percentage factor of the selling price/loan amount. The RE commission, the Brokers commission, the title insurance commission. The settlement fees are pretty much set, but those that settle are usually linked to the title insurance anyway, as the prices of the houses go up, the loan amounts go up they all have a pay check that goes "up" ....EXCEPT those of us that are not linked in that fashion-I know here in Virginia ,title examination fees were a factor of the selling price a long time ago, back when the atty's were doing the searches them selves- they nixed that when abstractors took over and then the title insurance commission fees were taking the place of the money they gave up in that deal. It sure would be nice to go back to that. Would help us keep pace with everything without having to worry about the $25 CO searches. Lets say that the avg selling price is $250 K ( which is way low, but for these purposes-) and the title fee was $150.00- that would work out to a title fee of  0.0006 % (which just happens to be 1/100 of the prevailing RE commissions being charged in this part of the country -         $15000.00-) a small price to pay for what they are getting. Let me hear some feedback on this. Will be hard to implement it , I am sure, but at least it would be in line with everything else in the settlement process.

Now on to the fees that are being paid/charged for the title work. Please take some time to read section 8 of RESPA. It clearly defines who should be paid what- If you charge $150.00 for a search- that is what should show up on lines 1102 or 1103 of the HUD. If it is different, then that company that charged the extra amount is supposed to have performed what is preferred to as "core title" work, which is what we do, not a vendor.Here is where the other additional facts comes into play, if they are charging more for what you did, then they are required to carry liability insurance for the difference and are liable for that same percentage of any claim that might arise. There are a number of complications that enter into the situation as a result of the extra charges at this point. First, it is a violation of section 8 and there are sizable fines for doing this..I have contacted HUD and inquired about this practice and they have concurred that these are violations. It seems like most of the title companies just prefer to "look the other way" when doing their audits of the agents and they even do the same thing on in-house settlements. Of course their employees are not able to make any claims like this, but those of us that are independent can do so. I have seen HUD's from some companies that I know only pay $75 per search show $350.00 on both lines 1102 & 1103- that is $700.00 for something they pay $75 for- but, they are then liable for about 90% of any claim that might occur, but I am quite sure they do not know this aspect of this price gouging that is occurring right now.(this company is now on notice that they should stop this practice I would hope-as they solicit companies here on SOT)Oh, and according to HUD , these violations are each subject to $10,000 fines which is another thing they expose themselves to also.

We read on here almost every month about some company or title agent being fined by HUD for RESPA violations-kickbacks, etc. This is just another form of what they are looking into.