I have run into two Illinois title agents competing in the Minnesota market, who appear to be charging a very low flat fee for title insurance, based on sample HUDs I've seen. My two underwriters have the lowest filed rates, yet on the particular transactions I reviewed, these Illinois companies' premiums were less that half of our most discounted rates, and the two agents are underwritten by insurers whose filed rates are on the higher end of the spectrum. Since Minnesota agents are required to charge their underwriters' filed rates, I don't see how these companies can legally charge as little as they are. I'm not unduly concerned about the competition per se, but the legal inability to compete bothers me.
In addition, near as I can tell, neither company has filed as a foreign corporation for doing business in Minnesota. Whether they have licensing and agency agreements for Minnesota is difficult to determine, since oftentimes, companies operate under individual agent licenses and agreements.
Is anybody else running into this?
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