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#1862757 - 10/18/13 04:56 PM Required use of a Particular Service Provider
Likes to Comply Offline
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Joined: Nov 2008
Posts: 1,065
In the mountains
Is the following still required?

If the Bank requires the use of a particular service provider of a settlement service, other than the lenders own employees, and also requires the applicant to pay any portion of the cost of such service, then the GFE disclosure must:
Clearly state that the provider is required and that the estimate is based on the charges of the designated provider;
Give the name, address and telephone number of each provider; and
Describe the nature of any relationship between each such provider and the Bank
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RESPA
#1862795 - 10/18/13 05:18 PM Re: Required use of a Particular Service Provider Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
No - those charges would just go in Block 3.
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#1862845 - 10/18/13 06:14 PM Re: Required use of a Particular Service Provider Likes to Comply
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,065
In the mountains
Thanks for the help...didn't think so...just some old language in policy from before the RESPA changes. Have a great weekend rlcarey!
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#1868087 - 11/04/13 07:13 PM Re: Required use of a Particular Service Provider Likes to Comply
fslic banker Offline
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To rlcarey or any other RESPA expert. I still see some attorneys provide the Provider of Service Addendum disclosure listing the name, address and nature of relationship with the consumer reporting agency, appraisers, MI companies (essentially those list of those in Block 3 where the bank chooses).

I realize this portion of RESPA was likely scuttled in 2010 or so. Would you consider providing such a disclosure a regulatory violation or just an outmoded practice? I assume some banks might even consider it a best practice since they are provided additional, albeit non required, information to the applicant. Thanks.

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#1868123 - 11/04/13 07:38 PM Re: Required use of a Particular Service Provider Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
You have an attorney preparing GFEs and they are still providing this disclosure??

Considering that went away over three years ago, I would be shopping for some new attorneys.
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#1868348 - 11/05/13 03:44 PM Re: Required use of a Particular Service Provider Likes to Comply
RR Joker Offline
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RR Joker
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The Swamp
I think I'm gonna disagree (to a point). I don't see where the attorney is preparing a GFE, but the attorney may be required to give an AfBD even to this day:

ii) Whenever an attorney or law firm requires a client to use a particular title insurance agent, the attorney or law firm shall provide the disclosures no later than the time the attorney or law firm is engaged by the client.

If the attorney is not referring to the agencies you list, it doesn't sound necessary, as they are not involved...but thought this other instance should be noted.
Last edited by RR Joker; 11/05/13 03:44 PM.
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#1868476 - 11/05/13 05:39 PM Re: Required use of a Particular Service Provider Likes to Comply
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 80,341
Galveston, TX
I don't see where the attorney is preparing a GFE

Hence my question...................
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