Hello,

We have a settlement agent on our LSP that uses another company for recording and in some instances a mobile notary. The fees are listed as paid to the final payee. My question is when the CD is issued, are these fees considered "shopped for" or not "shopped for".

They chose the settlement agent, who chose the other vendors. The consumer had no choice in the matter. Please let me know how you are treating this. Thank you!

If they chose a settlement agent on your list, we list all the fees in Section B. The borrower has no control over who the settlement agent uses for various services.

Ditto Debbie. The agent is on your list and everyone they chose to do the work would be considered on it too.

Thank you both. That is how we have been treating it but it came in as a QC finding (which I am refuting but wanted to get other's take on the matter). Thank you both!

QC finding from who? Makes no sense to say this because the borrower cannot chose any of the subs. Your agent is doing it so every one goes in B.

TENA. Maybe it was somebody new.

And I agree Truffle, that is how we have been treating it all along. Always good to double check though.

So - I have a similar question with an opposite scenario.

The borrower picked a settlement agent (X Title) that was not on our LSP.

X title subcontracted out a couple of services (Lender's title and recording) to a company that WAS on our LSP (Z Title)

So, Z title is on our LSP, but should those fees be considered Shopped for or Did Not Shopped for?

To be on the safe side I said consider them not shopped for (because I know our QC vendor will bring it up as a finding).

But, should that truly be the case? The applicant picked someone who was not on our list who happens to subcontract with someone on our list.

Thoughts?

Bump

bump

You are paying the service provider on your list. Those charges get moved to Section B on the CD and are subject to the 10% tolerance rule.