5 Things Lenders Wish Title Companies Did Better

Lenders depend on title companies to protect their financial interest in every real estate transaction. When title work is delayed or inaccurate, lenders are forced to push back closing dates, redraw documents, extend rate locks, or risk compliance issues. That damages borrower trust and costs everyone time and money.

The most successful lending relationships are built on accuracy, transparency, and speed. The Title Guy understands exactly what lenders need and where traditional title companies fall short. This article breaks down the top five frustrations lenders experience with title companies and explains how The Title Guy resolves each issue with proactive communication, mobile closings, underwriting precision, and modern technology.

1. Faster and Clearer Communication Throughout the Closing Process

One of the biggest complaints lenders have about title companies is poor communication. Lenders want to know what is happening with title searches, payoff statements, insurance policies, and closing numbers without needing to chase updates.

Delays in communication cause:

• Last minute surprises on closing day
• Incorrect closing disclosures
• Missed funding deadlines
• Borrowers losing confidence in their lender

Lenders prefer title companies that provide status updates at every stage. The Title Guy delivers proactive communication, secure digital portals, and direct access to closing teams so lenders always know the status of title commitments, final closing figures, and recorded documents.

2. Cleaner Settlement Statements and Transparent Fees

Lenders must provide accurate closing disclosures to borrowers. When title companies include unexpected fees or make sudden changes to closing numbers, lenders are forced to redo loan documents and adjust disclosures. That leads to compliance risk and borrower frustration.

Common issues lenders face include:

• Incorrect lender fees or recording costs
• Unexplained courier, wire, or processing charges
• Late changes that require re-disclosure
• Poor communication about title premiums and endorsements

The Title Guy solves this by delivering preliminary settlement statements early and using transparent pricing with no hidden charges. Every number on the closing disclosure is verified against lender requirements to eliminate last minute revisions.

3. Fewer Title Errors, Payoff Mistakes, and Missed Liens

Lenders expect title companies to protect their lien position. When a title search misses a lien or incorrectly lists a payoff, the lender loses legal protection and risks major financial exposure.

Title errors that frustrate lenders include:

• Missed tax liens or judgment liens
• Incorrect seller payoffs
• Title commitments with missing endorsements
• Deeds recorded without lender position clearly listed
• Failure to release prior mortgages

The Title Guy uses experienced title examiners and underwriters who identify defects early while there is still time to resolve them. This ensures that lenders receive first lien priority and valid title insurance coverage at funding

4. More Problem Solving Before Issues Delay Closing

Lenders get frustrated when a title company waits until closing week to mention a problem. A proactive title partner solves issues as soon as they are discovered instead of passing them along at the last minute.

Examples of issues that require early resolution include:

• Unreleased prior mortgages
• Probate or estate ownership questions
• Missing marital releases or divorce decrees
• Judgments against sellers or heirs
• Incorrect vesting or entity ownership

The Title Guy takes a proactive approach by clearing title issues early and notifying lenders before problems affect loan approval. That keeps closing dates on schedule and protects interest rate locks and funding deadlines.

5. More Modern Closing Options: Mobile Closings and Remote Online Notary

Lenders want a title partner that makes closings convenient for borrowers. Many traditional title companies still require in-office signings and paper processes. Modern borrowers expect digital convenience.

Lenders wish more title companies offered:

• Mobile closings at the borrower’s home or office
• Remote Online Notary where permitted by state law
• Digital document delivery and secure e-signatures
• Faster wiring and disbursement processes
• Secure platforms for funding authorization

The Title Guy delivers flexible options including mobile closings, secure video notarization, and digital document transfer. This helps lenders close loans faster and improves borrower experience without sacrificing security or compliance.

Key Takeaways

• Lenders want title companies that communicate clearly, protect lien position, and prevent last minute surprises
• Clean settlement statements and accurate title insurance are essential for lender compliance
• Proactive issue resolution prevents funding delays and protects borrower relationships
• Mobile closings and remote notarization create faster, more convenient experiences for borrowers and lenders
• The Title Guy solves each of these pain points with technology, transparency, and speed

Frequently Asked Questions

Why do lenders rely so heavily on title companies
Lenders need title companies to verify ownership, clear liens, file legal documents, and issue lender’s title insurance to protect their financial interest.

What is the biggest complaint lenders have about title companies
Slow communication and last minute changes to closing numbers are two of the most common lender frustrations.

How does The Title Guy help lenders close loans faster
The Title Guy provides fast title searches, proactive issue resolution, early settlement statements, mobile closings, and full coordination with lenders.

Do lenders require title insurance on every financed loan
Yes. Lender’s title insurance is required for financed transactions to protect the mortgage holder from ownership disputes or unpaid liens.

Can The Title Guy handle both conventional and investor loans
Yes. The Title Guy works with traditional mortgages, hard money loans, seller financing, and investment property transactions.