..in downtown San Francisco, I was taken by a group of well-dressed, primarily white folks (my racial group, BTW), gathered on the street holding attractive, blue type-set signs, reading "Stop John Garamendi." Well, at that time, I had no idea what the protest was about, but my first reaction was: "if there are some successful white professionals angry with our California Insurance Commissioner, he must have done something right on behalf of CA consumers."
What I learned when I hit the newspaper websites tonight was that they were preparing to attend a hearing on proposed rules to cap the fees charged by title and escrow companies when California citizens are buying a home. The San Jose Mercury News provides the details.
http://www.mercurynews.com/...
Having bought a number of homes in both California and Texas, I can tell you there is no competition in this industry. As a buyer, I can shop banks for the best rate, but when I am writing a contract to buy a house in the competitive CA market, I do NOT have the opportunity to call several title companies before I make my offer; generally I am referred by the listing or selling agent to a local escrow officer they have worked with for many years. The goal at that moment is to get an offer in quick and without issues: there is no time to shop and compare title fees. In fact, I have had contracts rejected because they waned me to use ANOTHER title company to close the deal. Evidence has been gathered by Garamendi that title companies have often given kickbacks for these referrals. You never even have contact with the escrow company preferred by an agent until the contract has been accepted.
Garamendi is attempting to ensure that California homebuyers who are already obligated to a title company are not taken advantage of. And given the fact that only the lender is protected by a title policy (not the buyer), these title companies offer little value to the buyer other than shuffling paperwork between the parties. So who is against it? Garamendi spokesman Gary Gartner said a Republican operative helped organize the demonstration and the participants had been scared into believing they would lose their jobs.
Yes, Garamendi is running for Lt. Governor, as he is term-limited in his current job (another stupid law for a separate diary). CA consumers would be better-served if he could stay in his current job.
The morale: When well-dressed professionals feel they are being persecuted, be sure to take a closer look. Odds are they are freaking out cuz they been found out.