RESPA/TIL question: We have a residential purchase loan where the attorney who closed the loan did not (also) provide the title insurance policy. FDIC states we have a TIL violation b/c we did not disclose the attorney's fee as a prepaid finance charge. We are not familiar with this being a part of TIL. Your thoughts please.
On a mortgage loan, is the State of Texas Guaranty Fee ($5.00) included in the APR?
We had a borrower who owned his land free and clear and purchased owner's title insurance years ago when he bought the land. He came to us for a construction/perm loan and specifically said that he did not want owner's title insurance for the new transaction. We did not put on the GFE. Is this acceptable since the borrower specifically stated that he did not want owner's title insurance and the file was documented as such?
What line on the HUD settlement statement should the owners title insurance be shown?
When figuring out possible reimbursement for differences between the GFE and HUD 1, is the total reimbursement based on the total difference in charges (10% tolerance items) or is it on an individual basis? As an example, the appraisal fee is over 10% greater than GFE; however, the title insurance is 25% under the GFE. Can these be netted together or do we just need to consider the appraisal fee variance.
We use title insurance companies to disburse funds on our refinances, as this is a requirement in order to obtain a closing protection letter from the title insurance company. In our itemization of title services on HUD line 1101, there is a wire fee for the outgoing payoff and also a disbursement fee. Are these considered prepaid finance charges or not?
We recently had an audit. We were told that we had to provide a price for Owner's Title Insurance on the GFE. The policy for our bank is to have a Title Opinion done by an attorney. We do not require Title Insurance. Since we do not require title insurance, do we have to enter an estimated amount in Block 5?
According to the Patriot Act, "Know your Customer", when closing a loan for a new home purchase, do we verify the borrower's current address or the one he is purchasing?
Regarding the new changes that went into effect 1-1-2010, the one that I am having an issue with is the charges that are supposed to be listed on the new GFE. I told my boss that all charges that are related to a residential one to four family real estate loan, have to be listed on the GFE whether or not we are going to actually charge them. He states there is no reason why if we know up front that we are going to charge one of the fees, why we should have to list it on the GFE. I told him that the new changes state that we have to do this, so I have to have prove where the reg actually states this. He said he isn't going to go by someone's opinion of the reg (such as from a seminar/webinar). He wants it straight from the reg, so am I correct in stating this? If so, please provide me the reg that states this and the explanation.
If the initial GFE was issued and then fourteen days later, we realized that owner’s title insurance and tax transfer stamps are required and not on the initial GFE. Is a revised GFE required with date of acknowledging error by loan originator?