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 1st 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!
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Team Newington- I feel for you. It really doesn't seem fair, does it??
That is just way too many useless junk fees. I agree, there should be a law or at least some required upfront disclosure.
Everyone has to get paid! That is a little excessive though.
Man that does not sound right.. I'd be furious!
Yup, I would hate it, however, I get several quotes. My favorite title co. will match the costs, if the competition is lower. :-)
Put the credit where the credit is due... The banks are the ones that screw the life (and profit) out of their own transactions... And of us living on commission are the ones who suffer. They want our services but they want them for free and unfortunately there are those out there who will do it for free... OK now I am done venting... It does feel good, doesn't it? LOL
That's a crazy amount of fees for a title company!
How do you think the buyers feel with fees such as Technology Fees . . . what the heck is that, your computer to input data?
We need to come up with our own fees like I need to pay my car payment fee. How about I've spent 3 months on this deal and 3.00 per hour is not enough fee.
Perhaps we need to get more creative with our own fees? Of course, there's always someone out there willing to do it for less. Let's not forget our friends with the limited service companies. I'd hate to see what happens to our business if the banks ever get into it. We'll all have $30,000/year jobs.
Thanks everyone for your comments! I got a big chuckle and it helped to laugh about it! I think I am going to add a "I am gonna need a cocktail" fee!
You're lucky the buyer wasn't charged for:
See, I can make up my own fees, too.
The bottom line is that we cannot service our clients on the investor loans under 100K. It is virtually impossible. If they put 25% down which is my recommendation there is a 1.75% HIT. This is at cost on the best ratesheet for a 30 year in the day of limited YSP. So do the math .5% discount, processing (695), underwriting (750), Appriasal (375) misc like tax service flood credit (150), then your favorite title which was 1100 on my 50K loan you have used the 2500 alotted max.
I think that I left out that I did not get to charge anything? I have no motivation to do these loans but the catch 22 is the partners that I work with in Real Estate and the past clients need someone they can trust to get it done??? What are we to do? Stay away from these loans.
Matt: Yep it is tough. Sometimes you have a do a loan for free. It is a real bummer because most of the time they are a real pain.