I know this has been batted around but I've seen differing opinions so as we are getting closer I thought I would get one last opinion. The contracts in our market say the seller will pay for Owner's Title. Assume full OTI is $400, full Lender's is $300 and discounted Lender's is $35. Is this how you would show it on the LE and CloD:

LE

C. Services You Can Shop For
Title - Lender's Title Policy $300

Calculating Cash to Close
Adjustments and Other Credits ($265)


CloD

C. Services You Can Shop For
Title - Lender's Title Policy $300 (borrower side)

H. Other

Title - Owner's Title Policy $135 (seller side)

L. Paid Already by or on Behalf of Borrower at Closing

Adjustment for Title Insurance Premiums ($265) (borrower side)

N. Due from Seller at Closing

Adjustment for Title Insurance Premiums $265 (seller side)

bump

LE

C. Services You Can Shop For
Title - Lender's Title Policy $300

Calculating Cash to Close
Adjustments and Other Credits ($265)

You are not disclosing the OTI as optional?

Randy,

I have seen some say that since the OTI is not (nor never will be) paid by the buyer and is paid by the seller that it doesn't need to be shown on the LE.

Using my figures, can you give me an idea of how you think it should be completed? I would greatly appreciate it!

LE

C. Services You Can Shop For
Title - Lender's Title Policy $300

No mention of OTI because buyer doesn't pay for it

CloD

C. Services You Shopped For
Title - Lender's Title Policy $300 (borrower column)

H. Other

Title - Owner's Title Policy $135 (seller column)

L. Paid Already by or on Behalf of Borrower at Closing

Adjustment for Title Insurance Premiums ($265) (borrower side)

N. Due from Seller at Closing

Adjustment for Title Insurance Premiums $265 (seller side)[color:#CC0000][/color]

You could include the $265 on the seller credits line of the Calc Cash to Close table in the LE. It cannot be in the Adjustments and Other Credits amount.

I also assume that you are not in a State that has a simultaneous issue discount?

We are in a state that has a simultaneous issue discount.

Why is it that we can't include it in the Adjustments and Other credits section on the LE?

Because seller credits aren't permitted there.

The sellers credit is not going to resemble the disclosed amounts on the LE and the CloD. It is going to be for the actual cost of the OTI. Without you providing all the numbers that are involved with LTi and OTI and the simultaneous discount, it is hard to say what your CloD is going to look like.

Ah, I think the problem with regards to using the Adjustments and Other Credits section stems from the use of certain available resources: https://www.bankersonline.com/forum/ubbt...lta#Post2025111

Is it truly necessary to jump through those hoops? Why not show the $300 (Full Cost) on the LE for LTi and then on the CD show LTi at $35 (borrowers side) and OTi $400 (sellers side)?

Because:

38(g)(4) Other.

2. Owner’s title insurance premium. In a jurisdiction where simultaneous issuance title insurance rates are permitted, any owner’s title insurance premium disclosed under § 1026.38(g)(4) is calculated by using the full owner’s title insurance premium, adding any simultaneous issuance premium for issuance of lender’s coverage, and then deducting the full premium for lender’s coverage disclosed under § 1026.38(f)(2) or (f)(3).