We've had issues with the Loan Officer not including doc prep fees with origination charges disclosed on the GFE.

Legal Secretaries and Bank Managers argue the point that they are not calling it a "doc prep" fee but they are preparing documents like "Cash Sale Deeds" and I am considering that a doc prep fee when I review the closing documents.

Any advice from others who have found ways to help avoid these types of situations?

Show them this and have them explain to you again why these are not processing and adminstrative fees that go into Block 1:

12) Q: What are processing and administrative services?

A: Processing and administrative services are those services required to perform the functions involved in title service and origination service. Processing and administrative services include, but are not limited to the following: document delivery, document preparation, copying, wiring, preparing endorsements, document handling and notarization.

One other thought is that all potential fees that a bank can charge should either be pre-loaded into your document prep software or appear on an approved bank list (along with specific instructions for which box or line the fee appears on the GFE and HUD-1). Individual loan officers should not be able to pick and choose what fees go into what box or line. If they want to charge a fee that is not on the approved list, then they need to go through an appropriate approval process so that a determination can be made on what box/line is appropriate, whether it is a finance charge, whether the charge is legal under Federal or State law, etc.

What you reference is what I am reading and I find nothign that disputes this. Thanks for verifying that we are on the right track. I will come up with a list/guide to help them understand these fees need to be known before we issue our GFE.

I have received another option from our compliance consultants. The consultant feels the documents that are prepared by the attorney to transfer title, for example, a Cash Sale Deed, is going to be in the 10% tolerance category. I asked for something in the regulation referencing this distinction.

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While document preparation fees could fall under "title services" the preparation of a deed is not related to a title service.

HUD-1 – 1100 series
1) Q: What are title services?

A: The term "title services"; includes:

1. Any service involved in the provision of title insurance, including but not limited to: title examination and evaluation preparation and issuance of commitment clearance of underwriting objections preparation and issuance of policies all processing and administrative services required to perform these functions (e.g. document delivery, preparation and copying, wiring, endorsements, and notary); and

2. The service of conducting a settlement.

Even then, it would only be in the 10% tolerance category if the borrower selected a preferred provider.

I'll be perfectly honest here in the real world. There is no real good way to separate out what an attorney will charge for a deed...or anything else the attorney charges for to prep a closing and try to truly separate it out betweenthe title services/closing and a doc prep 'technically' on our behalf.

My only good solution is to not allow itemization. Therefore, it does not go in our origination charges, but I'm sure does get lumped into to Title Services.

It probably depends on your marketplace. Few attorneys close loans here and are not involved in providing title services. The attorney works for the bank - the title companies handle all the title work.

But in other environments, it is probably a little more difficult