Most people don’t think about their title company when buying a house.However, title companies provide a vital role in real estate transactions. They investigate and examine title and make important investigative, examination and closing decisions. Selecting or recommending a title company should be free from even the appearance of impropriety, especially for fiduciaries like real estate and mortgage licensees.
The Consumer Finance Protection Bureau (CFPB) has filed enforcement actions where title companies and real estate companies engage in Marketing Service Agreements and other behaviors that result in higher fees to consumers. When any “thing of value” is given for the referral of business, it might be considered a kickback. Kickbacks do a lot of damage to both the marketplace and consumers. It creates a “pay to play” environment with one of the most important safeguard services in the entire real estate transaction.
When it comes to kickbacks, Richard Cordray, Director of the CFPB has said, “Kickbacks harm consumers by hampering fair market competition and by unnecessarily increasing the costs of getting a mortgage.” “The CFPB will continue to take action against schemes designed to let service providers profit through unscrupulous and illegal business practices.”
When buying your home, it’s important to be knowledgeable. Ask the right questions. Find out the fees associated with your title search and then contact us. We will be happy to give you a quote so you compare. Call us at 410-594-7474. Or email us at (please input the email you would like individuals to use.)