For some reason, I seem to remember something about banks not being allowed to require title insurance from someone who is purchasing a foreclosed property that the bank currently holds (basically buying it from the bank itself). I have researched and cannot find anything on point. Does this ring a bell to anyone, or perhaps am I absolutely mistaken on this? Any help will be greatly appreciated!

Part 1024 — Real Estate Settlement Procedures Act (Regulation X)

§ 1024.16 Title companies.

No seller of property that will be purchased with the assistance of a federally related mortgage loan shall violate section 9 of RESPA (12 U.S.C. 2608). Section 1024.2 defines “required use” of a provider of a settlement service.

OP - You might want to consider checking state law, my state has some goofy laws on Title Insurance...

rl - isn't the keyword in RESPA "provider"? The way I've read that section is the seller can't require a specific settlement service company/person...

As a follow up question/scenario, we never let the customer choose the title insurance company, hence we do not have to provide a list of service providers for the borrower to choose. Could we just not require title work when we are selling ORE? Because we have already taken ownership of the property through foreclosure (and would have had a title opinion performed for our benefit just prior to foreclosure), so there would not be a need for the Bank to require it. I know that if RESPA applies, we would have to disclose the Owner's policy amount.

One other question, if the property is non-RESPA (raw land, etc.) is this a moot point?

"As a follow up question/scenario, we never let the customer choose the title insurance company, hence we do not have to provide a list of service providers for the borrower to choose."

Not for the purchase of an owner's policy?

How does that comply with RESPA?

(2) No person making a referral has required (as defined in §1024.2, “required use”) any person to use any particular provider of settlement services or business incident thereto, except if such person is a lender, for requiring a buyer, borrower or seller to pay for the services of an attorney, credit reporting agency, or real estate appraiser chosen by the lender to represent the lender's interest in a real estate transaction, or except if such person is an attorney or law firm for arranging for issuance of a title insurance policy for a client, directly as agent or through a separate corporate title insurance agency that may be operated as an adjunct to the law practice of the attorney or law firm, as part of representation of that client in a real estate transaction.

I'm a little confused. Are you just the seller? Or are you also financing the deal?
Is this a commercial transaction or consumer?

I must not be following the train of thought. The section you are listing:
"(2) No person making a referral has required ..."
is in the Affiliated Business Arrangements section (§ 3500.15 Affiliated business arrangements). We do not have an ownership interest in the required company or attorney, therefore, I must be missing how this section would apply. It appears to me that this is one of the criteria for ensuring that an Affiliated Business Arrangement is not a violation of Section 8 of RESPA
or § 3500.14 Prohibition against kickbacks and unearned fees.

Am I missing the applicability or point?

That section addresses "required use" regardless of any relationship.