Hi All,

Are we required to provide a service providers list for where the property or customer is located in another state? For example: The bank is in Ohio, the customer is in Florida and the property being purchased is in Florida. Does the service providers on the service providers list have to be specifically for Florida? If so, How specific does it have to be City or just for the state? How are you handling this requirement?

If the property is located in Miami and the service provider you disclose is in Panama City and they will not travel to Miami to provide the specific service then you have not complied with the regulation.

As the regulation indicates, the provider must be one that is available to perform or provide the service at the needed location.

My understanding is that title companies can close a transaction for out-of-state transactions whereby our customer could actually close where they reside. In 1026.19(e)(1)(vi) comment 4:

4. Identification of available providers. Section 1026.19(e)(1)(vi)(C) provides that the creditor must identify settlement service providers that are available to the consumer. A creditor does not comply with the identification requirement in § 1026.19(e)(1)(vi)(C) unless it provides sufficient information to allow the consumer to contact the provider, such as the name under which the provider does business and the provider's address and telephone number. Similarly, a creditor does not comply with the availability requirement in § 1026.19(e)(1)(vi)(C) if it provides a written list consisting of only settlement service providers that are no longer in business or that do not provide services where the consumer or property is located.

As long as a local title company can provide that service, then would it be necessary to find a provider in the area of the property when we can do it based on where the borrower resides?

No. A provider of pest-inspection services would need to be one that does that work in the area of the property, for obvious reasons. But if there's a title company that can provide its services in the area in which the borrower resides, that's just fine.