I know that optional items not required by us go in Section H.

If we list a pest inspection in Section H, does it get:
- (optional) behind it or,
-does it not get (optional) behind it based on (g)(4)(ii) below because it's not insurance, warranty, guarantee, or event product?

(4) Other. Under the subheading “Other,” an itemization of any other amounts in connection with the transaction that the consumer is likely to pay or has contracted with a person other than the creditor or loan originator to pay at closing and of which the creditor is aware at the time of issuing the Loan Estimate, a descriptive label of each such amount, and the subtotal of all such amounts.

(i) For any item that is a component of title insurance, the introductory description “Title –” shall appear at the beginning of the label for that item.

(ii) The parenthetical description “(optional)” shall appear at the end of the label for items disclosing any premiums paid for separate insurance, warranty, guarantee, or event-coverage products.

(iii) The number of items disclosed under this paragraph (g)(4) shall not exceed five.

Thanks.

Unless you know for sure that the applicant is going to go out and get a pest inspection, why would you ever list one on the LE?

A pest inspection is not an "event-coverage" service.

What if we have the purchase contract when we issue the LE & we know our borrower is boing to pay to the seller to purchase personal property as part of the transaction (for example, a room full of furniture).

This would go in section H. Would we list (optional) behind this?

Read comment 37(a)(7)-2. If personal property is included in the contract sales price for the real estate, you simply list the gross price for the real estate in the Sale Price entry on page 1. You don't mention it elsewhere. If the purchase contract states a separate price for personal property included in the sale, you include only the price of the real estate in the Sale Price entry.

When you get down into the loan estimate, the personal property could be listed in section H if it's separately stated in the purchase contract, but it would not be marked (Optional).

On the closing disclosure, it would appear on page 3 on line 2 of section K.

If the purchase contract is for a single amount that includes personal property, you ignore the personal property altogether.

Back to donnac's original question, if the borrower tells you he is getting a pest inspection (or a home inspection or any other type of inspection) not required by the bank or the purchase agreement, would you list it as (optional)?

No. A pest inspection is not an "event-coverage" service.

I'm sorry, I don't know what you mean by "event-coverage" service.

separate insurance, warranty, guarantee, or event-coverage products.
-

They are buying something like this that covers them if a certain event happens and the coverage is not required by the bank.