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#2151414 - 10/27/17 03:03 PM Re: Owner's Title Insurance terpsfan
RR Joker Offline
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RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
Randy, I believe that statement came from John in another thread I searched yesterday. None of it makes much sense to me, to be quite honest!

so is what you are saying is that the full LTI would be shown, if applicable and required?
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TRID - TILA/RESPA Integrated Disclosures Rule
#2151433 - 10/27/17 03:52 PM Re: Owner's Title Insurance terpsfan
PJeanG7 Offline
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Joined: Apr 2011
Posts: 51
If we cannot "require" any documents at the time the application is triggered, then we may not have the Purchase Contract to refer to an insure that the customary area practice is being followed. In those instanced I would show the Owners Title Insurance. In areas where there are customary practiced and the seller being Fannie/Freddie or Builder, are not followed and are outlines as such in their contracts. If you choose not to disclose the OTI without a contract and later discover one of the exceptions to apply, then we create a tolerance cure. I do not believe that making a judgement of customary practices then an error on our assumption is a Valid COC to add the cost.

Location: Maryland. High Transfer Taxes, customary split unless you feel the burn of Fannie or a Builder, that will never pay. If you go off the assumption of Customary you will quickly realize: Very High Fee Variance. "Customary" and Lender Assumption should not go hand in hand on the LE.

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#2151439 - 10/27/17 04:08 PM Re: Owner's Title Insurance terpsfan
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
How does disclosing or not disclosing something in Section H create a tolerance cure?
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#2151453 - 10/27/17 04:29 PM Re: Owner's Title Insurance terpsfan
PJeanG7 Offline
Member
Joined: Apr 2011
Posts: 51
How do you defend that we did not disclose an Optional Fee to a Consumer when we did not have evidence that supported the non disclosure other than the assumption that the transaction followed the customary? I recall, but will need to research, that we do not have coverage to add a fee that we omitted on the first disclosure, at the base, I do not think we are acting in good faith, when relying on an assumption....but I will research it.

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#2151460 - 10/27/17 04:33 PM Re: Owner's Title Insurance terpsfan
Lakeminded Offline
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Joined: Mar 2014
Posts: 76
Washington
Randy, I can speak to PJG2000's situation, and maybe I'm taking an incorrect position, but usually what happens is no one reads the PSA until the CD is being prepared (reading is highly overrated) and then we have an increased borrower costs in H, and we should have reasonably known about it over the past few weeks - is it in good faith to add this fee during the closing event? It hasn't been a question for which I have an easy answer for - so we currently default OTI as a required item on the LE. Maybe the fee isn't in a protected category, but does that change what is in provided to the consumer "In Good Faith"?
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#2151471 - 10/27/17 05:17 PM Re: Owner's Title Insurance terpsfan
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,226
Galveston, TX
"but usually what happens is no one reads the PSA until the CD is being prepared (reading is highly overrated) "

If you issue an LE or a revised LE with that in your possession and do not disclose accordingly, that is when you have a good faith issue.

I am not really arguing that adamantly concerning going one way or the other in the "customary" situation, as that decision is specifically a fact based situation on which a lender has to make their own business decisions.

Know facts however are another issue.
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