There ought to be a law! - Don't you hate it when the title company makes more than you! 

I may sound like I am whining but I am just so frustrated... so let me vent for a minute!

Many of our clients are picking up great investment deals (REO's) right now in the Sacramento Area.  The challenge has been most of these deals are under 100k.  I know for some folks around the country I must sound like a spoiled brat! 

Anyways ...I am working on one such deal and there was a discrepancy on the fees.  Even though Regulation Z says total fees to the borrower cannot exceed 7.99, the Lender has decided to cut this number to 5% total after they told me something else in the beginning of this transaction. So of course I am going to do the right thing and stick by my original quote to my client.

Well it just so happens this deal is a REO transaction.  When I calculated the fee, it hit me like a ton of bricks.... the title company was going to make more than me !

Here is the venting part...

What is with these discount title companies working with these REO companies?  First off I have to deal with incompetent folks who can't get me what I need in a timely fashion. They have so many transactions going on at once they refuse to answer the phone or return an email!  Now I find out today they will make more money than me on this transaction! You have got to be kidding!

You know who gets the discount from these "cattle herd" companies?... the REO Bank.  But the truth is you know who pays for it?   The Buyer!  Sure their fees are reduced in the Bank's column improving their already "in the red" bottom line, but what just ticks me off is it just gets passed to the Buyer.

These little junk fees slowly ate away at my commission:

•·         Document prep fee $25

•·         Messenger fee $100

•·         Endorsement fee $100

•·         Sub escrow fee $125 (sub escrow?... this is 1^st mortgage loan only!)

•·         Loan tie in fee $125 (again what are we tying into if there is only one mortgage)

•·         Email doc fee $100

•·         Technology Fee $100 (didn't you already charge me that?)

•·         Loan release fee $100

Just to name a few....

Are you kidding me? When I explained what happened to the title company do you think they cared?  NO I really did not expect them to budge but come on... they should be ashamed of themselves.  I tried to argue (calmly review) with them their fees.  If I was going to pay for them, I wanted to know what I was getting for my money! The sad part is they would not explain them to me.  Their response... "Those are our fees and we will not adjust them".

I don't expect others to pay for something that came from my end (from my lender I placed the loan with), but come on at least have a heart. It just does not seem right they can charge whatever they want.

OK, I am done venting, thanks for listening!

There ought to be a law... if there is one I would love to know!