Skip to content
GeoDataVision
Thread Options
#2059474 - 01/20/16 04:07 PM Title company fees incorrect- change circumstance
Dodge Offline
100 Club
Joined: Mar 2010
Posts: 241
We sent a title fee quote request to a title company, and on our request form we gave them all the information they needed to give us a accurate quote (two properties securing one loan). We received the quote of fees and disclosed those fees on our loan estimate. The title company notified us yesterday to inform us that they forgot to disclose the fees for the second property. Once we add the new fees in, we are over our 10% tolerance.

Is this a valid change circumstance? I'm thinking that "title company misquoted" is not a valid circumstance, but I wanted to make sure.

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2059485 - 01/20/16 04:30 PM Re: Title company fees incorrect- change circumstance Dodge
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,697
Cape Cod
"Title company misquoted" ought to be grounds for some heavy negotiation with the title company to absorb some of their error, or risk losing ALL of your business going forward (I hope it's not the only show in town).
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2059487 - 01/20/16 04:33 PM Re: Title company fees incorrect- change circumstance Dodge
Dodge Offline
100 Club
Joined: Mar 2010
Posts: 241
It is the only show in town...

Return to Top
#2059489 - 01/20/16 04:40 PM Re: Title company fees incorrect- change circumstance Dodge
John Burnett Offline
10K Club
John Burnett
Joined: Oct 2000
Posts: 39,697
Cape Cod
You had the information you needed (that two properties are involved) when the LE was issued, so I don't see any argument for a changed circumstance here. It's an error, plain and simple, and, unless the borrower fails to provide intent to proceed until after the expiration date and time of the LE (ten business days unless you gave a later date on the LE), you're stuck with a 10% tolerance limit.

I think you have grounds for trying to have the title company share some of this burden.
_________________________
John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8

Return to Top
#2060049 - 01/22/16 06:50 PM Re: Title company fees incorrect- change circumstance Dodge
Darth HMDA, CRCM, CAMS Offline
Diamond Poster
Darth HMDA, CRCM, CAMS
Joined: Dec 2013
Posts: 1,387
CA
title companies... there always seem to be changes.

best of luck!
_________________________
The opinions expressed are mine, do not represent the opinions of my employer, and they are not to be taken as legal advice.

Return to Top