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#2051580 - 11/27/15 10:28 PM Owners Title Policy - not required
Ninky Offline
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Ninky
Joined: Nov 2002
Posts: 357
We do not require an owner's title policy for a lot purchase loan. We have a borrower whose seller has agreed to pay for an owner's title policy for our guys at closing. The title company wants us to include the premium on our closing disclosure.

(1) Where does the seller paid policy premium go on the closing disclosure? It's not a required cost for our loan.
(2) Do we have to disclose it on our closing disclosure just because the title company says so?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2051585 - 11/28/15 07:54 AM Re: Owners Title Policy - not required Ninky
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,901
Galveston, TX
OTI should be disclosed as optional to the borrower on every purchase money transaction. I'm not sure when or why a lender would require OTI. If you new the seller was going to pay it before issuing the LE, you would leave it off of the LE and disclose the seller paid OTI cost on Page 3 in the seller's transaction of the CloD.
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