Real Estate Settlement Charges (Title Search) for Declined Loans?

[Rakesh Patel]

I own four condo units in Boston. Attempted to do four cash out refinances with the low rates now and was declined by my lender since I just started my own company and will be receiving 1099 income instead of W2 income. I have several million dollars in the bank and a top credit score, but the mortgage company said the loans would not be conforming unless I had two years worth of income in this new job (even though I could pay off all four properties in cash easily).

Here is my question though. I had selected to use my own settlement services provider with the lender - an attorney that was giving me a package deal to do all the loans with him. Now that all four loans have been declined he is asking to be paid $200 per property or $800 in total to pay for the title searches and tax certificates. I never signed a contract with this attorney. Am I responsible for paying him for these expenses or should he be seeking these funds from the bank that declined the mortgages or would the title insurance company eat these costs? Any thoughts on this from fellow BiggerPockets experts would be appreciated.