The dangers of affiliated businesses for loan officers:

System under affiliates:

• Loan officer directs business for cash or “return on investment.”
• Loan officer loses independence.
• Loan officer appears to have a conflict of interest.
• If Title company provides poor service loan officer risks commission for minor “return on investment."
• Loan officer cannot question prices.

Advantages of an independent title company:

• Title Company picked for quality of service and price.
• Title Company motivated to do a good job for loan officer in order to keep business.
• No chance of a class action law suit based on sham affiliates.