The regulating body
for the escrow companies in California is the department of corporations
. I urge anyone who has been seriously mistreated by a Ca escrow company to file a complaint form
My current rant:
Escrow company Garbage Fees:
Specifically: Loan Tie-in fee for a purchase money 1st trust deed.
Scanning, Printing, Photocopying Fees,
Electronic Loan Document Fees.
The widespread imposition of these garbage fees is a recent development over the past year or two as banks became the main source of business for escrow companies.Â Garbage fees have been around for ages, but were rarely imposed.
In the old days, escrow companies provided courtesy signings at their branch offices, and services were bundled in the escrow fee. I rarely saw additional service fees, unless the additional services were unusual, and required a significant amount of additional work from the escrow company.
Nowadays escrow comanies will only sign the buyer up in the escrow officers own office within the basic fee. If you want to use a branch office in different city, you have to use a mobile notary and pay an extra $125 to $200 above the state regulated notary fee.
The un-bundling of the escrow services is a business plan by the escrow company to screw the public and win the favoritism of the banks with a lower basic escrow service while beefing up the revenue by charging individually for each service that traditionally was part of the bundle of services. Those charges are sprung upon the buyer in the closing week, not disclosed upfront by lender, seller, escrow agent, or real estate agents.
I highly disapprove of this trend in the escrow industry,Â it appears to be a change that has become widespread and entrenched over the past several months.Â Â I did not clearly foresee this method for the banks and escrow companies have perfected to abuse consumers.
Traditionally the loan tie in fees were charged only when the borrower was taking two loans or more at the same time. Title companies are now charging this extra fee whenever there is only one loan.
The loan tie-in fee being charged since Nov 22 2009 by Chicago Title for a first deed of trust is $150.
Scanning, photocopying, printing and opening emails and their attachments is a standard part of all business. Most business consider this to be part of their overhead and include the cost of their overhead when determining the prices of their main products and services.
Now buyers are being charged $100 or more for the escrow officer to open her email,Â and print out the loan documents.
So, now,Â Chicago Title, formerlyÂ with a good reputaton,Â now overcharges purchase loan consumers at leastÂ $250. This anti consumer practice is spreading rapidly from escrow company to escrow company. Confront the escrow companies that you do business with, and challenge them to not go over to the dark side.