Minnesota Commerce Dept. cracks down on title company steering
“Steering” is when real estate agents point home buyers to a title company, usually in a casual way. However, real estate agents also get referral fees much of the time, an illegal practice. The Minnesota Commerce Department has finally decided to come down on the practice, and is closing at least 35 title companies and charging them a $500,000 civil penalty.
For many, the choice of a title company means little. However, it could matter a lot of something goes wrong. Title companies usually handle closing, but also title insurance, both of which can be a major part of the fees at closing. Minnesota is, after all, one of the most costly states to close in, and cozy relationships between real estate agents and title companies isn’t helping.
Related: U.S. Chamber of Commerce fudges the issue on arbitration,New guidelines for nontraditional mortgage loans in Minnesota,Minnesota has less than half as many mortgage originators this year. Good.,
Do you have a source for the cost of closings by State. I was unaware that Minnesota is one of the highest. Thanks.
I’m not sure Minnesota is one of the highest. Here is a map with state-by-state data. Nevertheless, foreclosures are a huge problem in Minnesota, whatever the relative number compared to the rest of the nation.