We are having a discussion regarding Construction Escrow Fees. The FDIC has advised us that since this is a prepaid finance charge, it must be disclosed in the 800 series. However, all the title companies we do business with put in the 1100 series.These are fees that the title company charges for handling the construction escrow payouts.

Any comments as to where you are disclosing these fees?

Thanks.

Because they are pre-paid FCs does not necessarily mean they belong in the 800 series.

Fees for disbursing funds are not title charges and would not belong in the 1100 series IMO.

These are fees the escrow company passes to the bank and the bank in turn passes them to the borrower, so they are fees paid to, but not retained by the bank therefore I would agree they would be shown in the 800 series.

If these were fees for updating the title policy after each disbursement then I would agree they belong in the 1100 series.

Dan - that's not quite how the fees work. The title company never passes the fee to us - they charge and retain it. It goes directly from the borrower to the title company. This fee also includes the cost of the date downs after every construction draw, so it is being argued that this really is a part of the title fee.