Nationwide Study Refutes Contention that Lawyers Cost More to Close Real Estate Loans5/6/2009CRA International (formerly known as Charles River Associates), an international Boston-based consulting firm, has released a study that contradicts the contention of the Federal Trade Commission (FTC) and Department of Justice (DOJ) that lawyers charge more to close residential real estate loans than non-lawyer closers. The study, which was based on a detailed survey of 1250 residential borrowers across the country, found no basis for this contention. The study found that closing costs were influenced by a wide range of factors and it was rare for regulatory considerations to be the primary influence on costs. This CRA study is consistent with previous research performed by HUD, the Veterans Administration and Peat, Marwick & Mitchell in 1980.
The study was commissioned by Real Estate Attorneys Coalition for Housing (REACH). The group’s members include The Real Estate Bar Association for Massachusetts (REBA); Attorneys’ Title Insurance Fund; CATIC®; North American Bar-Related® Title Insurers; Attorneys’ Title Guaranty Fund; the Illinois Real Estate Lawyers Association; Professional Title Network; and the General Practice Section of the American Bar Association (ABA).
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