Per RESPA new rules, the owner title policy has to be listed on the GFE as a borrower cost for obtaining the loan.

In many cases, this fee is usually paid by the seller, but obviously the seller is not required by regulation to pay this fee.

So, since it is on the borrowers GFE, is this cost subject to the 10% tolerance?

From what I have read yes it is subject to the 10% tolerance.

My understanding is that it is only subject to the 10% tolerance if the provider of the Owner's policy is selected from your written provider list. If the Owner's policy is provided from the Seller's title company, you are not subject to tolerance.