It seems that when there is no sale, the lender has the option of using Payments and Payoffs, is that true? I thought it had to be used in order to describe other payments and payoffs specifically enough for the borrower to understand the disbursement.

But, I have a lender questioning this, saying the title company will do a settlement statement (?), so they just normally lump payoffs and payments together and label them, "funds to the title company". They don't even use the payoff table.

Of course this doesn't seem right to me, regardless of whether the title company closes the loan. I told them they needed to follow the example here: http://files.consumerfinance.gov/f/201403_cfpb_closing-disclosure_cover-H25G.pdf (sample CD - refi, no seller.) Payoffs are clearly labeled. We should not rely on the title company to provide a disclosure not a part of TRID, to satisfy the components of TRID. (That's just crazy talk to me.)

Questioning myself. Can someone please confirm or dispose of my statement above? Thank you.

Items should be broken out according to what they are paying for and who the payee is.
So 'funds to title company' is not correct.
The only items that should be listed with 'Title - ' preceding them are actual charges for services rendered by the title company.
Payoffs need to be broken out in the payoff section and must show who the recipient of the monies is.

Point your lender at Subpart E |§1026.38(e)(3)(iii)(B) 4. Payoffs and Payments.
You might also remind them that it is your bank's responsibility to provide a true and accurate closing disclosure.
Alta allows for a settlement statement but their webpage specifically states: The ALTA Settlement Statements are not meant to replace the CFPB's Closing Disclosure.

Thank you Truffle. This is what I told them and provided a copy of the CFPB sample to follow. Thank you for the backup!