We are selling and financing OREO property, a 1-4 family residence. When the property foreclosed and went to sheriff sale the bank obtained a title search of the property.

Therefore, the lender told the processor that the borrower didn't need a title search b/c the bank already had one. The borrower expressed that they were going to obtain one anyway through an attorney friend (who is not on our provider list). We are not requiring any title services for this loan (if that's even possible?)

So the processor did not quote title fees on the GFE and even though this is a purchase transaction they did not quote owner's title insurance. Now the borrower has chosen to use an attorney on our provider list to perform the title services.

We were not requiring the use of any title services in this transaction (if i am understanding the processor correctly).

I think we have a changed circumstance now that the borrower is using an attorney on our list. But my concern is that we never quoted any title fees in the first place.

Can I issue a new GFE b/c of changed circumstances and quote the new attorney's fees?

Or will I have to eat the cost of the title fees b/c they were never quoted in the first place?

Never mind, found question # 14 on page 21 of Q&As. Borrower originally chooses a provider not on list, then chooses one on the list is not a changed circumstance.

We have to cure the tolerance.

If it is not a required service you will not be held accountable for the fee charged regardless of your provider list.

But they (bank) are requiring the service.

The only difference is they wanted to use a title exam they already obtained and paid for but the borrower wanted their own title exam.

Under RESPA the bank, being the seller, cannot dictate what title services provider the buyer uses.

The "Important Dates" on the GFE is 4/20/2012 on line 1 and 2. If the loan doesn't close by that date, can we issue a new GFE with new terms and fees, even for 3rd party settlement services? We don't offer interest rate locks, if that makes a difference. Also, the customer has already given us their intent to proceed, if that makes a difference. The loan just hasn't closed yet due to various set backs.

Never mind, I found the answer, once the intent to proceed is expressed the fees can only change due to "changed circumstance"