Consumer complaint received 2021-07-20
Product: Mortgage — Conventional home mortgage
Issue: Closing on a mortgage — 
Company: OLD REPUBLIC TITLE HOLDING COMPANY, INC (CA)

Old Republic Title company automatically added an optional owner title insurance policy to our closing fees. I did not receive any information about the policy such as deductibles and liability limits, so it was difficult to make an informed decision about whether to purchase the policy. In the end, I had to do my own researched to attempt to find information about what Old Republic Title offers. The cost of the policy was over {$3600.00} and the coverage was worse than anticipated, so I decided against purchasing it. Over the course of the last couple of weeks before closing, I had several phone conversations with the Escrow Officer to inform her that I did not want the owner policy, and she kept insisting that I needed it, that it protects me, and that she needed to keep it on there. 

On XX/XX/21, we were getting close to closing and I called the Escrow Officer again and told her I absolutely want the policy removed. She replied that we would need to start the whole process all over again, and the bank would need to initiate new disclosures. I checked with my lending bank, and the bank responded with the following message : We can accept the removal of the owners title if escrow will remove it. However, we do not need to issue an updated final CD. Any changes will be done in post-closing. 


On XX/XX/21, I notified Old Republic Title Company in an e-mail that I am reiterating that I did not want the owner policy, and that they should remove it. I provided the message from the bank. Old Republic Title responded with threats of delaying the closing by not telling the bank to fund, and telling us that removing the owner policy will cause our lender title insurance policy price to double, and that we would be assessed additional escrow fees as outlined in the following email reply : Sorry! If you need to remove the homeowner title insurance, some of the escrow fees are different. You should inform me and disclose to the seller before you sign the closing documents. I will not request lender to fund the loan and record tomorrow since I have to re-disclose fees to lender. Here are the different charges : Prelim fee : {$500.00} Grant Deed : {$500.00} Lenders title fee : {$2800.00} instead of {$1400.00} I responded that the lender fee is a published non-discounted rate on their website, and also filed with the state of California, so she can not change it. Furthermore, she can not assess more fees either, just because I elected not to purchase her owner policy. She did not reply to this e-mail. 

After this, I replied in an e-mail that I object to the increase in fees, but I do not want her to cause unnecessary delays in closing, so if she intends to delay closing, I want to her proceed with the original disclosures and I would handle this complaint after the fact. Unfortunately, she did not remove the policy, so my only recourse is to file this complaint. 

I believe that Old Republic Title Company did everything that they could to prevent me from opting out of an insurance policy that I did not want, including ignoring phone requests, ignoring certain e-mails, threatening to delay closing, and attempting to illegally increase fees in retaliation. 

Thank you.