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January 6, 2015
Business Accounts Documentation and Procedures with Beneficial Ownership
Deborah Crawford

January 6, 2015
FFIEC Cybersecurity Initiatives and Observations from the 2014 Assessments
Susan Orr

January 15, 2015
The ABC's of IRAs - The Basic Ingredients
Patrice Konarik

January 20, 2015
B & Z Appraisal Rules - Getting Them Right
Jack Holzknecht

January 21, 2015
HMDA Soup to Nuts
David Dickinson

January 22, 2015
Navigating the Treacherous Waters of IRA Rollovers, Transfers and Beneficiary Payouts
Patrice Konarik

January 28, 2015
Mortgage Life Cycle
Part I
David Dickinson and Jerod Moyer



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#1333467 - 01/28/10 05:37 PM RESPA - GFE Title Services Shopping List
JobSecurity Offline
Gold Star

Registered: 10/16/09
Posts: 347
How are other banks handling letting the borrower shop for title services? Our in-house lenders do not allow them to 'shop'. Our secondary market lenders do. (What does 'shop' really mean anyway?) I am concerned about putting too many companies on the list and trying to keep up with them if their prices change. I don't want the bank to have to pay for that! What if our in-house lenders use a company not on the list? It would be in our best interest to keep the list small. I can't find this addressed anywhere. Please give some advice.

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Lending Compliance
#1333512 - 01/28/10 07:07 PM Re: RESPA - GFE Title Services Shopping List [Re: JobSecurity]
pacar Offline
Gold Star

Registered: 07/24/07
Posts: 317
Deb G,
I have many of the same questions you do and it sounds like we're in the same boat! I'll add one more question:

Is it OK for lenders in the same bank to have different practices on allowing the shopping to occur? If "Bill" lets them shop and "Ted" does not, can we get in trouble? Can we specify the ability to shop based on the type of loan? (e.g. we're keeping this one in house so you can't shop, but we're selling this one so you can shop)

I'll be watching this thread for some guidance from the community...

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#1333517 - 01/28/10 07:30 PM Re: RESPA - GFE Title Services Shopping List [Re: pacar]
jlroberts Offline
Diamond Poster

Registered: 09/07/09
Posts: 1419
Loc: Ohio
We are only listing one two title companies on our list. They both charge exactly the same fees. If the borrower chooses one of those two, it is considered lender choosen, however the fees will be accurate. If they do not choose either company, then the fees can change, it is consider borrower choosen and the lender is not subject to the 10% tolerance. We are only listing one surveyor on our list for the same reasons.

Shop = the borrower has the choice to tell the lender who they want to provide the service. If the lender makes all the choices, then you are not allowing them to shop.

In your example of the in-house title, you are not allowing them to shop, therefore your fees should always be accurate. As far as the loans that are not in-house. You will be given them a list of provider(s) that can provide that service. There is no minimum number of providers that you must have on your list but you must have at least one provider on your list.

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#1333518 - 01/28/10 07:36 PM Re: RESPA - GFE Title Services Shopping List [Re: jlroberts]
Truffle Royale Offline

10K Club

Registered: 07/09/03
Posts: 14387
I don't understand how lenders get to make choices like this.

It would seem to me to not only open the door for processing errors because someone forgets forgets who does what when. It leaves the bank open for borrowers wondering how come 'he got to choose and I didn't?' Or worse yet, 'Jim let me choose but Bill won't? What gives?' I'd get a bank wide policy on it and make everyone stick to it.

Beyond that, who's preparing the lists Jim is giving out? Does it have the same companies that Bill is insisting the borrower use?

Too many potential pitfalls here and the examiners haven't even walked in the door to give you their 'opinion'. crazy Not good business practice, imho.
_________________________
Everyone is entitled to their own opinions, but not their own facts. - Daniel P. Moynihan

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#1333525 - 01/28/10 08:01 PM Re: RESPA - GFE Title Services Shopping List [Re: Truffle Royale]
jlroberts Offline
Diamond Poster

Registered: 09/07/09
Posts: 1419
Loc: Ohio
We do in-house loans loans and secondary market loans. Our LOS has the ability to set up default fees by product. When the lender chooses the product, they don't have to mess with the fees or required services. Everything calculates for them based on whether the loan is a purchase or refinance.
The only service that the borrower can shop for on our in-house loans is the title service. Secondary market loans are a different animal and have different requires. They dictate the type of appraisal you must get or what endorsements you must have on the title policy. The two services they can shop for are the title and the surveyor.
We only have one list and that will be given to every applicant.

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#1333635 - 01/29/10 09:37 AM Re: RESPA - GFE Title Services Shopping List [Re: jlroberts]
pacar Offline
Gold Star

Registered: 07/24/07
Posts: 317
jlroberts: When you say "Title Service" is one of the services your borrower can shop for, whch part of the GFE does this go? Box 4, 5, or 6?

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#1335174 - 02/01/10 03:35 PM Re: RESPA - GFE Title Services Shopping List [Re: pacar]
jlroberts Offline
Diamond Poster

Registered: 09/07/09
Posts: 1419
Loc: Ohio
Block 4 and 5. Title services can never go in Block 6. We'll be listing the survey in Block 6.

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#1341252 - 02/10/10 02:06 PM Re: RESPA - GFE Title Services Shopping List [Re: jlroberts]
rsanders Offline
Member

Registered: 02/03/10
Posts: 56
What about if you have branches in different towns? Do you have the same list for all branches or do you taylor it to that branch?

Also are there any specifics on the layout of the list? i.e. title, format, letter head, etc.

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#1341409 - 02/10/10 03:50 PM Re: RESPA - GFE Title Services Shopping List [Re: rsanders]
David Dickinson Online
10K Club

Registered: 11/28/00
Posts: 14214
Loc: Central City, NE
The list needs to be specific to the customer. Not only tailor it for the branch, but tailor it for the customer.

There is no guidance on the layout.
_________________________
David Dickinson
http://www.bankerscompliance.com

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#1347613 - 02/23/10 01:01 PM Re: RESPA - GFE Title Services Shopping List [Re: jlroberts]
zums Offline
Junior Member

Registered: 01/05/10
Posts: 40
Originally Posted By: jlroberts
Block 4 and 5. Title services can never go in Block 6. We'll be listing the survey in Block 6.


If title services are the only service we are allowing the customer to shop for and putting on our list, and they are requried to be listed in block 4.... does this mean that block 6 would remain blank with a $0.00 amount?

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#1347834 - 02/23/10 04:17 PM Re: RESPA - GFE Title Services Shopping List [Re: zums]
zums Offline
Junior Member

Registered: 01/05/10
Posts: 40
Originally Posted By: zums
Originally Posted By: jlroberts
Block 4 and 5. Title services can never go in Block 6. We'll be listing the survey in Block 6.


If title services are the only service we are allowing the customer to shop for and putting on our list, and they are requried to be listed in block 4.... does this mean that block 6 would remain blank with a $0.00 amount?



bump.... any thoughts ^^ ? Just wondering if that throws any red flags to have nothing listed in block 6 as it is required to have at least one shoppable service. Thanks in advance.

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#1347873 - 02/23/10 04:39 PM Re: RESPA - GFE Title Services Shopping List [Re: zums]
Dani York, CRCM Offline
Power Poster

Registered: 04/13/05
Posts: 3302
Loc: TN
Where does it say that you must have at least one shoppable service?
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1347897 - 02/23/10 04:50 PM Re: RESPA - GFE Title Services Shopping List [Re: Dani York, CRCM]
Dan Persfull Offline
10K Club

Registered: 08/28/02
Posts: 41156
Loc: Bloomington, IN
zums, we have nothing in block 6 for most of our loans.

Dani, I'm not aware of anything in the new Reg that requires you to allow the consumer to shop for any service. If you don't allow them to shop then all services, with the exception of title services and OTI, would be shown in Block 3.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#1347902 - 02/23/10 04:54 PM Re: RESPA - GFE Title Services Shopping List [Re: Dan Persfull]
Dani York, CRCM Offline
Power Poster

Registered: 04/13/05
Posts: 3302
Loc: TN
That's what I thought. Thanks Dan!
_________________________
I can't herd the cats anymore, so I just set up the electric fences and let them fry when they stray out of bounds.

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#1348108 - 02/24/10 09:17 AM Re: RESPA - GFE Title Services Shopping List [Re: Dani York, CRCM]
zums Offline
Junior Member

Registered: 01/05/10
Posts: 40
I believe from some webinar or faq session (dont remember exactly which one) we got the impression we were required to have at least one shoppable service provided to the borrower; however, after some further investigation it looks like we misinterpreted a statement that IF you have a shoppable service, you must provide at least one provider on your list for that service.

This confirms what you suggest so we will adjust our thinking. Thanks for clearing that up!

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