quote:
Your lender won't give you a lower interest rate unless they can get an insurance policy that covers them if you do not properly own the home, and that's a scam?

Yes. The title insurance should be held by the buyer not the lender. On a refinance, the homeowner should be able to change the additional insured to the new lender. That solves the problem. Of course the few that make money on title insurance don't want anything to change.

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Posted by meansonny

ATL

Member since Sep 2012

25999 posts

Posted on 10/6/23 at 7:45 am to tigeralum06

quote:
Yes. The title insurance should be held by the buyer not the lender. On a refinance, the homeowner should be able to change the additional insured to the new lender. That solves the problem. Of course the few that make money on title insurance don't want anything to change.

I don't think you understand insurance.

The lender gets title insurance on the purchase.
The new lender gets title insurance on the refinance.
If you want money, the lender gets title insurance. It is a simple, obvious requirement.

An insurance policy only covers those with an insurable interest.
What makes you think the first lender's policy would ever cover the 2nd lender?

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Posted by bricksandstones

Member since Nov 2015

1610 posts

Posted on 10/6/23 at 9:50 am to tigeralum06

It's almost like something that affects the ownership could have happened between your first mortgage and the re-fi, and that a title company has to do its due diligence and close on an entirely new mortgage. I guess you think they should work for free though.

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