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Old 06-04-2018, 11:17 AM
 
Location: East Coast
2,770 posts, read 1,572,824 times
Reputation: 3993

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Quote:
Originally Posted by RoamingTX View Post
Right? Talk about a scam. Average loss ratios on actual title polices is UNDER 5%. It's the only line of business that has expense ratios (salaries and employment costs) that exceed losses - and has turned almost a BILLION dollar profit in the last years reported (2016).
I understand why lenders want it. Yeah, it's rare that issues come up, but man, when they do -- they are doozies. With most people having their home as by far their largest investment, if they lose that, they are screwed, and by extension, so is the mortgage holder.
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Old 06-04-2018, 11:39 AM
 
356 posts, read 241,650 times
Reputation: 343
Quote:
Originally Posted by TimtheGuy View Post
How is the credit report not a legitimate fee? It is 100% required and costs money. The joint reports I pull now are $52.75. The lender is supposed to eat that? Why wouldn't they just eat all the costs then?
Alright, so answer me this, why then does a lender (ex. Chase) charge for credit reports on a mortgage and not for their credit card products?

Same reports, same 3 credit bureaus. You're not pulling some "Secret" or exclusive credit report.

Why do mortgage lenders feel entitled to this when the loans they underwrite make far more in interest than the typical credit card or auto loan? I believe its because they know they can get away with it because you'll roll over and take that $14 or $50.

Also, you can get your credit pulled for free from any lender when you are getting pre approved. Clearly, pulling credit cost them a pittance.

This is literally indefensible.
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Old 06-04-2018, 11:45 AM
 
Location: Middle of the ocean
27,486 posts, read 17,629,902 times
Reputation: 39946
Quote:
Originally Posted by juggar View Post

This is literally indefensible.

But for the most part, only to you.


Wait until you SELL a house. You will lose your mind.
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Old 06-04-2018, 11:52 AM
 
1,512 posts, read 564,668 times
Reputation: 2944
Quote:
Originally Posted by juggar View Post
Alright, so answer me this, why then does a lender (ex. Chase) charge for credit reports on a mortgage and not for their credit card products?

Same reports, same 3 credit bureaus. You're not pulling some "Secret" or exclusive credit report.

Why do mortgage lenders feel entitled to this when the loans they underwrite make far more in interest than the typical credit card or auto loan? I believe its because they know they can get away with it because you'll roll over and take that $14 or $50.

Also, you can get your credit pulled for free from any lender when you are getting pre approved. Clearly, pulling credit cost them a pittance.

This is literally indefensible.
Actually, they're not pulling the same report, nor using the same credit scores. Often, they only pull one.

Also - it's for a few thousand... not hundreds. And they're making it up with double-digit interest rates... not 4.5

Keep making mountains out of molehills, I'm sure the $20 will save the day - but the amount of time you'll waste won't be worth it.
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Old 06-04-2018, 12:03 PM
 
Location: Raleigh NC
7,758 posts, read 6,114,541 times
Reputation: 6882
Quote:
Originally Posted by chicagoliz View Post
I understand why lenders want it. Yeah, it's rare that issues come up, but man, when they do -- they are doozies. With most people having their home as by far their largest investment, if they lose that, they are screwed, and by extension, so is the mortgage holder.
the point made is the profit margin - after losses incurred - on title insurance. I'd be surprised that claims are even 5%..... that's one out of 20 homes. and the attorney/title agent has researched that title, for the lender and for you, so what you're really covering is their being wrong.
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Old 06-04-2018, 12:10 PM
 
1,512 posts, read 564,668 times
Reputation: 2944
Quote:
Originally Posted by BoBromhal View Post
the point made is the profit margin - after losses incurred - on title insurance. I'd be surprised that claims are even 5%..... that's one out of 20 homes. and the attorney/title agent has researched that title, for the lender and for you, so what you're really covering is their being wrong.
Well. Itís 5% of premiums collected paid out in losses. Probably more like 1 in 200ish, since the losses would be bigger dollar amounts.
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Old 06-04-2018, 12:28 PM
 
298 posts, read 68,552 times
Reputation: 618
@juggar

Chill out. A home is not a purchase to nickle and dime yourself in. Yes they're taking 14 dollars from you. That 14 dollars will be 1/10 the cost of your biweekly trip to Home Depot. If you think this is too much, I'd suggest you stick with renting. I don't imagine you made much fuss about 1st last and security deposit your landlord charged you. Around where I live that's anywhere from 6-10k.
Leave it alone. There are battles you can win, there are battles you can't. This is a battle that shouldn't even be fought.
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Old 06-04-2018, 12:31 PM
 
10,265 posts, read 6,495,798 times
Reputation: 10837
Quote:
Originally Posted by kukumjacka View Post
@juggar

Chill out. A home is not a purchase to nickle and dime yourself in. Yes they're taking 14 dollars from you. That 14 dollars will be 1/10 the cost of your biweekly trip to Home Depot. If you think this is too much, I'd suggest you stick with renting. I don't imagine you made much fuss about 1st last and security deposit your landlord charged you. Around where I live that's anywhere from 6-10k.
Leave it alone. There are battles you can win, there are battles you can't. This is a battle that shouldn't even be fought.
$14 is what 2 people spend at McD on their way home from looking at houses. I've never even heard of such a low amount for credit scores, I guess it's because it's USDA, i think they usually charge $25 or more. I didn't really pay attention to how much I was charged because it's not an issue.
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Old 06-04-2018, 12:38 PM
 
10,265 posts, read 6,495,798 times
Reputation: 10837
Quote:
Originally Posted by juggar View Post
Why do mortgage lenders feel entitled to this when the loans they underwrite make far more in interest than the typical credit card or auto loan? .
Car lenders offer low rate or 0% loans to people qualified to sell new cars that instantly depreciate when you drive off the lot.

Credit card rates are usually around 10% the lowest with the average around 16% and many paying over 20%.


Mortgages are less than 5%.

How do mortgage lenders make more?

Did you attend Trump University?
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Old 06-04-2018, 12:44 PM
 
356 posts, read 241,650 times
Reputation: 343
Quote:
Originally Posted by kukumjacka View Post
@juggar

Chill out. A home is not a purchase to nickle and dime yourself in. Yes they're taking 14 dollars from you. That 14 dollars will be 1/10 the cost of your biweekly trip to Home Depot. If you think this is too much, I'd suggest you stick with renting. I don't imagine you made much fuss about 1st last and security deposit your landlord charged you. Around where I live that's anywhere from 6-10k.
Leave it alone. There are battles you can win, there are battles you can't. This is a battle that shouldn't even be fought.
Actually we did complain about an excessive deposit($3000) on our rental home. And, being a rural area, the home was vacant. The landlord played ball and halved the deposit after realizing we worked for a very reputable employer in the area.

I was also just approved through chase and their much more lucrative "dream maker" product. I will not be going with Quicken, they brought nothing to the table in terms of incentives an they were less professional.

I may let the credit report fee slide in lieu of the incentives that Chase offers. 50k, bonus points, $500 towards down payment and something else I forgot.
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