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#2151055 - 10/24/17 10:08 PM Didn't include Trust Deed Modification Fee on LE
Likes to Comply Offline
Diamond Poster
Joined: Nov 2008
Posts: 1,055
In the mountains
The LE was provided without disclosing the cost for the Title Company's preparation of the Trust Deed Modification. We allow our customer's to shop for Title Services. We are now preparing the CD and became aware of the error. The customer has chosen a Title Company that was not on our List of Providers, so those fees are not subject to any tolerance.

I am thinking the fee can be charged to the customer and will not be subject to any tolerance. However, the bank could be cited for a good faith violation. Is this correct? or must we pay for this cost since it was not disclosed on the LE?

Thanks in advance.
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TRID - TILA/RESPA Integrated Disclosures Rule
#2151057 - 10/24/17 10:22 PM Re: Didn't include Trust Deed Modification Fee on LE Likes to Comply
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 79,292
Galveston, TX
Agree regarding a good faith violation. Even if they selected your service provider, the aggregate Section C charges would have been subject to the 10% aggregate test.

See the amended TRID rules: 1026.19(e)(3)(ii)- Comment 2
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