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#1966689 - 10/02/14 08:30 PM Title Co. Not on List - Change Circumstances
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,060
In the mountains
A borrower is using a Title Co. that is not on our provider list. We quoted Owners Title insurance since it is a purchase. We did not quote Lenders Title insurance because we didn't require it for this loan. Thereafter, it is discovered that there is a judgment on the title against the seller. Legal Counsel has advised that we obtain Lenders Title insurance.

Since the Title Co. was chosen by the borrower and is not on our provider list it is not subject to tolerances. Therefore, do we still have to issue a revised GFE due to changed circumstances since we are going to now require Lenders Title insurance?
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#1966723 - 10/02/14 09:16 PM Re: Title Co. Not on List - Change Circumstances Likes to Comply
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,349
First of all, the only time you MUST redisclose is when you lock the rate. Every other time is at your discretion, usually to capture a fee.

Second, when did you find out there was a judgment against the seller and you were going to require lenders' ti? If it was more than three (3) days ago, you cannot redisclose.

Third, you are requiring a new fee as a condition of getting the loan so yes, I would definitely redisclose. The fact that the company is not on your list doesn't affect what should be on the GFE and will only come into play on the HUD.

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