Can the bank force a buyer to use their title company?

[Greg Jeanfreau]

I have a client that is working with a local New Orleans bank to purchase a piece of land. The seller's agent instructed us that a particular title company (that is reputable) would be able to give the buyer a good deal because they had already begun title work on a previous sale for this property that fell through. So. we elected to use this title company and sent them the contact to proceed toward the closing. The lender called and said that we must use their title company or they will not close the loan. Is this any sort of a RESPA violation? The choosing of the title company is in the (Louisiana) contract between the buyer and seller - not the bank. This seems a bit shady to me. If it is kosher, then so be it. But if not, they need to be taken to task. Any thoughts?