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#2108896 - 11/29/16 03:08 PM TRID Question
Anonymous
Unregistered

Good morning,

If we have a purchase transaction and the seller picked the title company, will the title fees be listed under "services you can shop for" since the seller had the option of requesting a different title company for closing, or would they be listed under "services you cannot shop for" since the seller picked the title company?

Thanks.

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#2108899 - 11/29/16 03:18 PM Re: TRID Question Anonymous
burke116 Offline
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Joined: Jun 2014
Posts: 562
Petersburg, VA
If the bank allows the applicant to shop, it's "services you can shop for." The bank can't control what's in a contract between two outside parties.

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#2108912 - 11/29/16 04:06 PM Re: TRID Question Anonymous
Anonymous
Unregistered

Can someone point me to the citation in Reg Z that states if a written list of service providers isn't provided, that the fees are moved to the zero tolerance category?

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#2108955 - 11/29/16 07:14 PM Re: TRID Question Anonymous
JC (Darth HMDA) Offline
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JC (Darth HMDA)
Joined: Dec 2013
Posts: 1,399
CA
Zero tolerance is in the proposed rules. We have always considered it zero tolerance but some have treated as 10% tolerance.

The title company listed on the purchase contract is irrelevant. The deciding factor is whether you issued a compliant WLSP and whether the consumer selected a company on your list or not.
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#2109212 - 12/01/16 12:43 PM Re: TRID Question JC (Darth HMDA)
McFly Offline
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Joined: Nov 2016
Posts: 75
If there is no WLSP, then the borrower was not allowed to shop, and thus it should be in the zero tolerance category.
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#2109215 - 12/01/16 01:01 PM Re: TRID Question Anonymous
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,219
Galveston, TX
Originally Posted By Anonymous
Good morning,

If we have a purchase transaction and the seller picked the title company,


Just an FYI

1024.16—Title companies.

No seller of property that will be purchased with the assistance of a federally related mortgage loan shall violate section 9 of RESPA (12 U.S.C. 2608). Section 1024.2 defines “required use” of a provider of a settlement service.
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#2109646 - 12/05/16 06:14 PM Re: TRID Question Anonymous
Truffle Royale Offline

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Joined: Jul 2003
Posts: 17,395
Randy is, of course, right with his citation above.
Reality is that the borrower often ELECTS TO GO ALONG WITH THE SELLER'S CHOICE.
And therein lies the answer to your question.
The buyer is CHOSING the same title company as the seller suggested.
Whether that company is on your provider list or not is what determines whether it is a B or C item on the LE.

(fwiw, you never want to tell an examiner that the seller chose anything. wink )

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#2109960 - 12/07/16 03:48 PM Re: TRID Question Anonymous
SMQ, CRCM Offline
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Joined: Apr 2001
Posts: 4,828
Between the lines
We had a builder that was requiring buyers to use a particular attorney for closings. <head slap>
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