We have a GFE loan that recently closed. It was a refinance. The borrower decided during the loan process (after initial GFE issued) that he wanted to purchase owner's title insurance. We closed the loan and the HUD reflected the owner's title insurance premium in the fees. We didn't do a changed circumstance for the fee since we weren't requiring it. We sell our loans and the lender purchasing this loan says we should give lender credit for the full owner's title premium since we didn't disclose it on GFE after knowing they wanted it. The lender is saying it's a no tolerance and we will have to credit for the full amount.

My head is mush after learning the TRID rules but I don't believe they are correct. At worst, I think it would be a 10% issue. Can anyone chime in with their thoughts? Thank you!

10% of zero equals 100%. Your investor is correct. Under the old GFE rules, OTI was always required to be disclosed.

Even if it's a refinance? That isn't a customary fee.

We only disclosed OTI on purchase transactions.

They should have treated it as a change of circumstance once they knew about it.

Thanks Randy.