I have a question regarding disclosing Title Insurance on the CD for a construction loan where the borrowers already own the lot with no existing mortgage.
The Loan Estimate has the following:
Title – Lender’s Title Insurance $1,980.00
Title – Owner’s Title Insurance (optional) $1,980.00
Borrower did not shop for title insurance selecting a company listed on the shopping list. Borrowers had a current owner's policy from when they purchased the vacant lot but wished to increase their coverage for a nominal fee in comparison with overall cost of the home.
Invoice on Title company is the following:
Owner’s Policy: $1,326.00
Lender’s Simultaneous issue: $ 300.00
So here is what I’m thinking of how I would disclose this on the CD:
Title – Lender’s Title Insurance $1,980.00 (since this is still the full indexed rate, this doesn't change)
Section H. Other
Title – Owner’s Title Insurance (optional) $ -354.00
Do you feel it is ok for me to list Owner’s Title as a negative number? Or would I be better off doing something different? Or am I missing it completely and just list the fees as listed on the invoice?
Thank you in advance for your help.