We occasionally collect HUD-1 Settlement Statements as proof of the sale of a residence to clear lender conditions. The following cost comparison is based on HUD-1 Settlement Statements prepared by three different title insurance agents for closings that took place in 2006. The fourth title agency quoted is The Closing Specialists® using our standard fee schedule. All quotes have been adjusted to show a premium based on $100,000. All of the actual transactions were close to that price level so I am presuming the underlying non-regulated fees would remain the same.
Set of facts: The sale price is $100,000 in a purchase transaction with a mortgage and the property was sold within the last ten years for consideration.
The fees used in the following comparison are those solely controlled by the title insurance agents:
#1 title insurance premium 858.75
loan policy endorsements 150.00
closing services letter 35.00
settlement or closing fee 285.00
lien letters 75.00
document preparation 0.00
courier fee 55.00
wire fee 20.00
notary fee 0.00
#2 title insurance premium 772.88
loan policy endorsements 150.00
closing services letter 35.00
settlement or closing fee 250.00
lien letters 15.00
document preparation 0.00
courier fee 15.00
wire fee 17.00
notary fee 35.00
#3 title insurance premium 772.88
loan policy endorsements 150.00
closing services letter 35.00
settlement or closing fee 250.00
lien letters 15.00
document preparation 0.00
courier fee 15.50
wire fee 10.00
notary fee 0.00
#4 title insurance premium 772.88 The Closing Specialists®
loan policy endorsements 150.00
closing services letter 35.00
settlement or closing fee 0.00
lien letters 15.00
document preparation 175.00
courier fee 25.00
wire fee 0.00
notary fee 0.00
#1 $1478.75
#2 $1289.88
#3 $1248.38
#4 $1172.88
Example #1 is from a title insurance agent who has overcharged the buyer by failing to give the reissue rate and adding $50 to the cost of lien letters. Both overcharges are unlawful. The remaining examples, including TCS, show routine differences in non-regulated fees. All four examples demonstrate that even in a regulated state there is good reason to shop around before placing an order for title insurance and closing services.
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