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#2113635 - 01/10/17 10:51 AM recording and other taxes/ transfer tax
Mike T Offline
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Registered: 12/05/16
Posts: 22
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 Online
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Registered: 11/15/02
Posts: 18241
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: 191
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
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Registered: 12/05/16
Posts: 22
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
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Registered: 12/05/16
Posts: 22
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 Online
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Registered: 11/15/02
Posts: 18241
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 Online
10K Club

Registered: 11/15/02
Posts: 18241
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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