Can a lawyer agree to be one of a lender's 'approved' attorneys who do all the title work on the lender's loan closings?

Plain-English summary

An out-of-state lender wanted to make home mortgage loans to North Carolina borrowers and to require each borrower to use one of three "approved" North Carolina attorneys for all the title work on closings. The inquiry asked whether a North Carolina attorney could agree to be one of those three approved attorneys.

The opinion concluded that an attorney may ethically request lenders and title insurance companies to place him on an approved-attorney list, citing CPR 104. It drew the line at payment: the attorney may not give any special remuneration to the lender in return for placing his name on the list. The opinion expressed no view on whether limiting the number of attorneys on the list was lawful.

Currency note

This opinion was issued in 1989, before the North Carolina State Bar's adoption of the 2003 revisions to the Rules of Professional Conduct. It rests on the North Carolina State Bar's earlier CPR opinion (CPR 104) rather than a numbered Rule of Professional Conduct. Subsequent rule amendments or later opinions may have changed the analysis. Treat this page as historical context, not current guidance. Verify against current rules before relying on any specific rule, deadline, or requirement mentioned here.

Common questions

Q: Can a lawyer ask to be placed on a lender's approved-attorney list?

A: Yes. The opinion concluded a lawyer may request lenders and title insurers to place him on an approved-attorney list, citing CPR 104.

Q: Can the lawyer pay the lender to be listed?

A: No. The opinion concluded the lawyer may not give the lender any special remuneration in return for the listing.

Q: Did the opinion address limiting how many attorneys are on the list?

A: No. The opinion expressly declined to opine on the legality of limiting the number of attorneys on the list.

Background and rules framework

The opinion did not cite a numbered Rule of Professional Conduct, resting instead on the North Carolina State Bar's earlier CPR 104. The analysis turned on the distinction between seeking a listing, which the opinion permitted, and paying the lender for the listing, which it prohibited as special remuneration for being recommended.

Citations and references

Other opinions cited:

• CPR 104 (North Carolina): a lawyer may request placement on a lender's or title insurer's approved-attorney list

See also

• NC Ethics Op. RPC 101: borrower's lawyer rendering opinion to lender
• NC Ethics Op. RPC 148: division of fees

Source

• Landing page: https://www.ncbar.gov/for-lawyers/ethics-and-governing-rules/ethics-opinions/opinions/rpc-57/

Original opinion text

Reproduced from the official source for research purposes. The linked source is authoritative.

Inquiry:

Out-of-state Lender wishes to make home mortgage loans available to North Carolina borrowers. Lender wishes to require borrowers to use one of three "approved" North Carolina attorneys to do all the title work on closings on Lender's loans. May a North Carolina attorney agree to be one of these three approved attorneys?

Opinion:

An attorney may ethically request lenders and title insurance companies to place him on an approved attorney list. See CPR 104. The attorney may not, however, give any special remuneration to the Lender in return for placing his name on the list. No opinion is expressed as to the legality of the limitation of the number of attorneys on the list.