You have a right, under Illinois law, to select any title agency you like. Simple as that. Boiled down: No firm which may make a loan secured by an interest in real estate with a single family residence shall require, either directly or indirectly that any borrower obtain title insurance through a particular insurer, agent, or broker. Here it is in its entirety:
(815 ILCS 505/2T) (from Ch. 121 1/2, par. 262T) Sec. 2T. No person, firm, corporation, partnership or association which may extend credit or make a loan secured by an interest in real estate which is or is to be improved with a single family residence or any residential condominium unit occupied or to be occupied as a principal residence by either the borrower as an individual or, if the borrower is the trustee of a trust, by a beneficiary of that trust, shall require, either directly or indirectly, as a condition precedent to making such loan or extending such credit (a) that any seller, borrower, mortgagor or debtor to whom such money or credit is extended negotiate, obtain or contract for title insurance through a particular insurer, agent or broker; or (b) that any seller, borrower, mortgagor or debtor pay for a title commitment or policy other than a title commitment or policy issued at the request of the seller, borrower, mortgagor or other debtor. Nothing contained in this Section shall be construed to prohibit the lender from requiring title insurance as a condition of making a loan secured by an interest in real estate. The lender may refuse to make the loan or may reject the title insurer or the proposed policy if the lender believes on reasonable grounds that the title insurance will afford insufficient financial protection to the lender or insufficient protection as defined under regulations administered by the Federal Home Loan Bank Board. Nothing contained in this Section shall be construed to affect any provision in a contract between a seller and buyer of real estate with respect to the selection of title insurance. (Source: P.A. 85‑1209; 85‑1351; 85‑1440.)
Certainly makes me wonder about lenders who, when faced with this statute, still refuse to let their borrowers select their own agent. What exactly do they have to hide? Are they receiving illegal kickbacks? Is their title agent a little "flexible" with the rules? Something even more nefarious? There are a few lenders in this area who have refused to allow borrowers to choose their own title agent. I wonder how much they will enjoy defending an Illinois Consumer Fraud and Deceptive Business Practices Act claim? Please call me if your lender has problems understanding this law. Or better yet, find a new lender.