New York Times – Borrowers don’t often pay much attention to the title insurance required by their mortgage lenders – until they see the sizable charge for it on their list of closing costs.

Read the full story

We are told that, while other title companies are discontinuing their online disclosure programs, Fidelity Title (our title company of choice) has their structured so as not to run afoul of the RESPA regulations. The real estate business has always been heavily regulated in limiting what companies can do for their clients or other real estate brokers in trying to make deals.

For example, our office has always had revolving title companies cater our breakfast at the weekly meeting. Now, with new rules, this is considered “payola” and can not be done beginning in 2009. As stupid as it sounds, and though no title company is given preference over another, the gift of food exceeds the dollar limit set forth by the powers that be.

So by the same tokem a title company providing online disclosures to Realtors who place their business with them is now considered a gift, at least in the way some companies are doing it. Apparently Fidelity has checked with their compliance department, and they believe they are exempt from this ruling.

The online disclosures provide a valuable service to clients and Realtors on both sides of the deal. There is immediate access to whomever wants to see the documents and no trees are harmed in the making of the electronic disclosures (unless one chooses to print them out). It is a GREAT service. The online mechanism also provides immediate feedback about who looked at the disclosures so that the listing agent may follow up and see if there is a deal to be made.

We are pleased that Fidelity has found a way to comply with the law and still provide the service. That is why they are our first choice in title companies.

- Mick Orton