What if there is a fee listed on the CD that's not on the LE? I know its usually ok if a fee is on the LE but not charged on the CD, but what about this situation? Are we eating this charge?

Thank you.

What type of fee?

Its a fee that falls into the unlimited tolerance category since they chose a title company not on our list.

Then you are done. If they don't pick your recommended service provider, you have no idea what they may or may not charge.

It's and unlimited tolerance? Even though on the LE the borrower wasn't told they had the ability to shop for title fees?

I understand the concept behind when they do and don't pick your provider but if they weren't told they could shop wouldn't it land in a 0% tolerance no matter who they pick?

Or am I thinking to far into this?

I'm only curious because we had a case where we left off everything title related on the LE and then added it on the CD. They picked a provider not on our list.

During a recent audit we were told we needed to reimburse the borrower because they weren't given the ability to shop and thus was a 0% tolerance.

StarCityAbe - I don't understand your post.

mdog said "Its a fee that falls into the unlimited tolerance category since they chose a title company not on our list."

Agree with Randy....having a list and providing the list are two different things. Did you provide the list Abe....or do you just have one?

Sounds to me like by not indicating ANY closing / title fees, the borrower would not be under an impression there was anything to shop FOR and the LE was given in bad faith.

I could see the auditor's point even if they gave a list.

I guess i missed the part about not having ANY title fees on the LE.........yeah, that's sorta different.

Title fees are Block B or C charges. Adding them to the CD without allowing shopping made them zero tolerance. Your bank must pay for them.
You can't give a list for charges not shown on the LE. So in effect, even if you did give them a list, you didn't, because they wouldn't know what they were supposed to shop for.
yup...unfortunately you do need to reimburse.

mdog sorry didn't mean to hijack your thread I read you initial post backwards. Since the provider they chose in your example was not on your list you are ok adding those fees on the CD.

My example the LO just missed and completely left off title fees on the LE. Still issued a provider list. Later added title fees on the CD to a provider not on the list. Our auditors told us told us to cure that amount because leaving it off the LE didn't allow the borrower to shop. Do you guys agree? I do, but I don't want to haha

Thanks truffle makes sense. Sorry to confuse the thread.

No problem StarCityAbe, I got what I was looking for. Hope you did!

I have a similar situation.

The “Written list of providers” of services you can shop provided to the customer was not compliant under 1026.19(e)(1)(vi)(C). What are the consequences in terms of tolerances?
under

Would the fees move to 0% tolerance??

What would happen if a title company invoiced for a fee that was not listed on the Loan Estimate? The fee would have been shown as a service they could shop for, had it been quoted to us at the time of the Loan Estimate. The borrowers chose the title company off of our list. Do we refund that fee? It does not bump us out of the 10% category. The fee was not listed on the shopping list as a fee that they were able to shop for (since we were unaware).

First, I would be having a chat with your title company that you have on your list. There should be an agreement that if they are going to charge additional fees that they need to let you know so you can place them on your LEs. Yes, has to be disclosed on the CD and would be subject to the cumulative 10% tolerance test.