Title Agent Closing Costs Rise Due to Lenders' TRID Variations

A title agent's cost for closing a loan increased an average of $210 nationwide in the third quarter because lenders are using disparate processes after implementing the TILA/RESPA integrated disclosures, according to First American Financial Corp.

"The increases are not necessarily due to Know Before You Owe directly, but a result of the varied approaches to rule implementation taken by lending institutions. These variances, they say, are forcing title agents to create different closing procedures for each lender with which they work, contributing to increased costs for title agents," said First American chief economist Mark Fleming.

Those costs can vary widely by state. New York had the largest increase, at $539 per loan. Maryland was next at $459 and Connecticut at $343, the third-quarter First American Real Estate Sentiment Index found.

At the other end of the spectrum, Oklahoma had the smallest increase, at $25 per loan, followed by North Carolina at $53, Arizona at $62, Indiana at $63 and Utah at $67.

In the second quarter the nationwide average increase for a title agent to close a loan was $184 per transaction.

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