Loan is being made to purchase a COOP in NY. Attorney conducting settlement disclosed no owners title insurance, because property is a coop.

Final HUD is received and there is a $5800 charge on owners title insurance line. Attorney stated the borrower elected to purchase the optional Eagle 9 insurance available for COOPs.

Should this be disclosed as owner's title insurance and should it be considered part of any tolerance? This is optional insurance at closing, and as such we would never know if this is going to occur.

Owner's title insurance is always optional.

Agree that owners title insurance is optional. But owner's title insurance cannot be obtained on a COOP as the borrower does not obtain title on the property. They own a "share" and as such this other type of insurance was created for COOPs.

Is the intent of RESPA, to expand the definition of "owners title insurance" beyond mortgage loans (meaning apply to COOPS)or is it only to cover traditional mortgage loans where title insurance is mandated by institutions?