Hi all, thank you for your insight. The matters which Shannon referenced are exactly what I have seen some of the largest title companies do. They pay $125.00 to an abstractor for a title search and charge a $275.00 search fee and and most of the time, a $90.00 exam fee (varies dependant upon state). Also, most large companies estimate the number of pages in a mortgage as 28 and charge for that on the hud. They then cut their own recording checks from a seperate ledger and pocket the difference. This also happens for deed preparation services and such. Usually, a title company will mark-up the cost of deed preparation $50.00. Unfortunately, this is not controlled or regulated by RESPA at this time as it is not a referral or kickback. I have seen the fine print of contracts which once signed by the lender or title company client, they give the title company the right to charge these "service fees". The term service fee again means that on the hud, if stated, "Deed Preparation Service Fee" or "Recording Service Fee", they can mark-up the cost to make a profit. I have spent time with the largst title companies and assure you, most of them do this on every transaction. Again, instances happen where the borrowers find out and once informing the lender, this is usually the first the lender knows of this. It puts the lender in an extremely compromising situation as I am sure you can imagine. I just wanted your opinions and insight and possible examples if you will. If anyone else has anything, please let me know!!!

Thanks again for the great comments!

Jason Sheppard
Business Development Manager
Financial Dimensions Inc.