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#2046665 - 10/28/15 04:00 PM APR TRID and Affiliated "on list" provider
niche girl Offline
100 Club
Joined: Jan 2012
Posts: 157
This has probably been addressed before and I simply can't figure out how to locate it so I apologize if I missed it and at this point I simply am tired of arguing the topic around in my own head.

Scenario: Have an affiliated title company for both TIL and RESPA purposes. We include said affiliated title company as our "on list" provider of title services on our settlement provider list and use their quoted fees on our LE as the "default" for the section C title "services you can shop for" on the LE. Because the fees we are quoting for such traditionally non-PPFC fees as Deed Prep or Title Search are the prices of our affiliate, would that necessarily mandate that we consider them as prepaid finance charges for calculation of the APR on the LE when they would not be PPFCs if the customer selected any other provider who was not affiliated? My brain says we should only consider them PPFC if and when the customer selects the affiliate as their provider of choice and until then they should be treated as non-PPFCs because they are still available to be 'shopped for' regardless of who the default fees are from and whether it is an affiliate or not. Am I completely off base here? Otherwise I would think we would be overstating the APR anytime we gave the initial LE because we would always be including traditionally non-PPFCs in the APR calculation when it is highly likely those fees would not be PPFCs once the customer selected any other non-affiliated title service provider.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2046713 - 10/28/15 05:58 PM Re: APR TRID and Affiliated "on list" provider niche girl
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 46,844
Bloomington, IN
Fees exempt form the finance charges under 1026.4, such as title services, are still exempt if charged by an affiliate. Affiliate fees are however included in the fees and charges test for HPML, HOEPA, ATR, etc. and if the service is required and an affiliate is chosen as a provider your estimated fees on the LE are in the 0% tolerance category.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2046778 - 10/28/15 08:11 PM Re: APR TRID and Affiliated "on list" provider niche girl
Ninky Offline
Gold Star
Ninky
Joined: Nov 2002
Posts: 357
Not sure if this is appropriate under this post, but:

Are we required to re-disclose the LE if the APR changes under the old tolerances limits? i.e. we add auto debit during the processing of the loan, the APR drops .25% because they get the lower rate for auto debit. Do we have to re-disclose the LE under TRID like we had to re-disclose the TIL before? Or do we only have to re-disclose when the fee tolerances or change in circumstance applies?

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