As a hard money lender, I see a lot of closing statements (aka HUDs) from many title companies. I’ve noticed an annoying trend that is also disturbing.

When lending money to a real estate investor, I send the title company my very detailed and specific lender requirements – one of those being a basic Lender’s Title Insurance policy from a well-rated underwriting company. In most cases, I do not require additional Insurance endorsements, and I never require a closing protection letter.

In fact, part of my title order says: “Do not add endorsements unless specifically requested. Do not issue a closing protection letter.” Yet, several title companies still try to include them. Sometimes, many of them.

Like this one, from an actual preliminary HUD:

• Closing/Settlement Fee to [xxxxxxx]  Title & Escrow Co. $295.00
• Courier/Shipping & Handling to [xxxxxxx]  Title & Escrow Co., $25.00
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