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#2113635 - 01/10/17 10:51 AM recording and other taxes/ transfer tax
Mike T Offline
Junior Member

Registered: 12/05/16
Posts: 26
1026.37(g)(1)

1. Taxes and other government fees
Under the subheading "taxes and other government fees", the amounts to be paid to state and local governments for taxes and other government fees, and subtotal of all such amounts, as follows:

i. on the first line, the sum of all recording fees and other govt fees and taxes, except for transfer taxes paid by the consumer and disclosed under recording and other taxes.

ii. on the second line, the sum of all transfer taxes labeled as transfer tax.

My question is this: It appears we have mapping issues from encompass? When we enter state taxes, intangible taxes accordingly, it shows under transfer tax on the loan estimate. On, the CD, it breaks it down accordingly. That being said, we have been curing the state/intangible tax as it wasn't disclosed properly and allocated under recording and other taxes(since the taxes mentioned are not transfer tax). Are we doing this correctly in good faith, or are we doing it incorrectly. We have recently changed the procedures to avoid this issue. However, we still have files with issues as mentioned above. We are curing the full amount as it's zero tolerance fees.

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#2113642 - 01/10/17 11:26 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
RR Joker Offline
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Registered: 11/15/02
Posts: 18406
Loc: The Swamp
I'm really not following you...BUT...transfer taxes are defined by the way they are calculated. SO...transfer taxes and intangibles, in my state, are both based off of a percentage of either sales price or loan amount and are considered transfer taxes.

So..on my LE, the total transfer taxes are lumped together under the general recording fees.

On my CD, they are broken down by label, also under the recording fees, but within the same Section E.

Are you saying something completely different? Like they are going into a different section? What is causing you to think "the taxes mentioned are not transfer tax"?
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#2113643 - 01/10/17 11:28 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
Justin C. Offline
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Registered: 10/22/15
Posts: 269
Not sure if I am following you correctly. On the LE you have amounts that are going in the transfer tax section, but should really be in the Recording fees, etc. section?

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#2113645 - 01/10/17 11:35 AM Re: recording and other taxes/ transfer tax [Re: Justin C.]
Mike T Offline
Junior Member

Registered: 12/05/16
Posts: 26
yes. Currently, the state mortgage tax, intangible tax, or county tax are sometimes lumped into as transfer tax.
that said, under line 2 of the LE, I would show as transfer tax. Per verbiage from the CFPB, it states, all other taxes have to be lumped under recording fee and other taxes. If the tax is labeled transfer tax, then that tax would be under line 2, which is transfer tax.

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#2113646 - 01/10/17 11:40 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
Mike T Offline
Junior Member

Registered: 12/05/16
Posts: 26
To clarify. If I had a recording fee of $50, state mortgage tax of $500, and county mortgage tax of $300 on my settlement statement. On the LE, how it's mapped out, it shows as recording fee of $50 and line 2 - transfer tax of $800.
Reading CFPB, it appears that it needs to be under recording and other taxes, so the amount would be $850 and not the other way around.

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#2113647 - 01/10/17 11:44 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
RR Joker Offline
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Registered: 11/15/02
Posts: 18406
Loc: The Swamp
Again, go back to how these are defined. Transfer taxes are various taxes paid that are based off of a percent. It is not limited to 'transfer tax' as in a tax paid to transfer title, although that is one of them.

Recording fees, such as for recording the mortgage and/or Deed are based of a $ amount per page recorded and are recording fees.

I'm still not seeing where your perceived error is.

The only difference mine would have is the 'transfer taxes' are lumped together on the LE, but broken out under recording on the CD as to whether it pertains to the [warranty] deed or the mortgage. [Georgia language of documents]
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2113649 - 01/10/17 11:47 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
RR Joker Offline
10K Club

Registered: 11/15/02
Posts: 18406
Loc: The Swamp
We were posting at the same time...but as you have shown your software mapping, I see no problems.

Recording-related fees go on Line 01.

Other taxes (transfer, intangibles, etc) are broken down beginning on line 02
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

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#2114662 - 01/18/17 07:26 PM Re: recording and other taxes/ transfer tax [Re: Mike T]
just passing time Offline
Gold Star

Registered: 02/15/07
Posts: 278
Hoping someone can help me with assignment fees. I understand that assignment fees are finance charges under Regulation Z and where the fee is paid to record the transfer it would be disclosed in the taxes and other government fees section of the LE/CD. If however, an assignment fee is paid instead to the purchaser of the note/mortgage, would we disclose that fee as paid to that investor in the cannot shop section of the LE/did not shop of the CD? Everything I can find on assignment fees considers the fee a recording fee, but in this case, I don't believe it is a recording fee. Is anyone else familiar with this type of "assignment fee"?

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#2114673 - 01/19/17 08:03 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
rlcarey Offline
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Registered: 07/16/01
Posts: 61150
Loc: Galveston, TX
"If however, an assignment fee is paid instead to the purchaser of the note/mortgage,"

I guess I am a little confused? Is this a fee you are paying to the current mortgage holder for them to process the assignment or this is a fee that you are paying to a purchaser of the loan after assignment?
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#2114678 - 01/19/17 08:51 AM Re: recording and other taxes/ transfer tax [Re: Mike T]
just passing time Offline
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Registered: 02/15/07
Posts: 278
I have asked that question and am waiting for the response. What I know is that we are originating the loan and assigning it to the purchaser. The purchaser requires that we collect an assignment fee and pay it to them. I am currently trying to sort out whether the purchaser is retaining the fee or if the fee is passed on to the county to file the assignment. If the fee is not passed on to record the assignment and is instead retained by the purchaser, I'm thinking that assignment fee would be disclosed as a "cannot shop" item. If a portion of the fee is passed on to record the assignment, I think the fee should be split with only the recording fee disclosed in the recording and other govt section. Do you agree?

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#2114964 - 01/20/17 12:33 PM Re: recording and other taxes/ transfer tax [Re: Mike T]
just passing time Offline
Gold Star

Registered: 02/15/07
Posts: 278
I believe this is resolved. The assignment fee while being sent to the purchaser will be paid to the county to file the assignment. so we will disclose as a government recording fee and treat as a finance charge. No need to determine whether any portion goes in the cannot shop section of the disclosures. Thanks much.

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