Who is required to notify the borrower of a loan?

Each servicer of any federally related mortgage loan shall notify the borrower in writing of any assignment, sale, or transfer of the servicing of the loan to any other person.

How are title fees included in a mortgage?

Title fees can cover a wide range of costs, so we’ve outlined a few of them below to help you know what to expect. Title fees are listed as part of your Loan Estimate (LE) — a legally required document that summarizes the features, costs, and risks associated with your mortgage.

What’s the difference between title insurance and loan title?

Also like you, your lender does not want to see your home undefended, and lost, in a valid title claim. The lender’s title policy is sometimes called a “loan title policy” and it functions in much the same way as your owner’s title policy.

What do title companies charge for a commitment?

(Title companies charge this fee to draft the document.) A Commitment is a document that discloses liens, defects, and burdens that affect the property and all the requirements that must be met before the title can be insured.

What does Section 9 of RESPA say about title insurance?

Section 9 of RESPA[4] states: (a) No seller of property that will be purchased with the assistance of a federally related mortgage loan shall require directly or indirectly, as a condition to selling the property, that title insurance covering the property be purchased by the buyer from any particular title company.

Can a seller condition the use of a title company?

Therefore, a seller may, in most situations, condition the sale of property on the use of a particular title insurance company if the seller purchases and pays for the entire cost of title insurance (owner’s and lender’s policies). [5]

Can a seller’s preferred title company violate Section 9?

The fact that the buyer may be rewarded by using seller’s preferred title company, or penalized for not using seller’s preferred title company should not, in and of itself, violate Section 9. [6] Several courts support this conclusion and have rejected certain arguments by buyers claiming “economic coercion.”

Can a title company be held liable for removing a lien?

To hold the Title Company liable for removing the lien, you must have a contractual relationship with them through which they owe a duty to protect you. Title information generally is issued in two forms: first, a Preliminary Title Report; and second, a Title Insurance Policy.