Topic Options
#2164534 - 02/14/18 02:50 PM Payee required for Lender-paid Charge?
AlohaGirl Offline
New Poster

Registered: 07/09/14
Posts: 4
If a lender pays an Origination Charge for the borrower (such as a Lender Inspection fee resulting from appraiser follow-up), and you disclose it as lender-paid in the Paid by Others column of Section A of the Closing Cost Details on the Closing Disclosure, are you required to show a payee for that item? If so, whom? The appraiser? The lender? Or can you omit the payee since it's a credit from the lender to the transaction?

Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2164535 - 02/14/18 02:54 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 7348
Loc: OK
I don't really follow the concept of the lender paying itself. Why not just omit the fee? You can't really pay yourself for a fee--you just don't charge it.
_________________________
I'm fixin' to fix that.

Top
#2164536 - 02/14/18 02:58 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
rlcarey Offline
10K Club

Registered: 07/16/01
Posts: 66453
Loc: Galveston, TX
Who did you pay. If you paid an appraiser for the follow-up inspection, it would go in Section B not Section A.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Top
#2164537 - 02/14/18 03:00 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 7348
Loc: OK
I took the "lender inspection fee" and the reference to origination charges to mean it was a fee that the bank would have charged, but now instead are eating. But i agree with Randy.....if the fee is going to somebody other than the lender, it would need to be shown...and can't be in Section A.
_________________________
I'm fixin' to fix that.

Top
#2164552 - 02/14/18 03:39 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
AlohaGirl Offline
New Poster

Registered: 07/09/14
Posts: 4
I apologize for the Section A reference. The Lender Inspection Fee was disclosed in Section B of the Closing Disclosure. It was paid by the lender to the appraiser to cover costs of follow-up work by the appraiser; it could not be passed to the borrower as it was not disclosed on the LE. It was listed in Section B of the Closing Disclosure as "Lender Inspection Fee" and the amount of the fee was shown as lender-paid in the Paid by Others column of the Closing Disclosure. A question has arisen because the line item did not include a payee. We are questioning whether it's required to show a payee on a fee that lender paid on the borrower's behalf.

Top
#2164555 - 02/14/18 03:41 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 7348
Loc: OK
Yes, you need a payee.
_________________________
I'm fixin' to fix that.

Top
#2164565 - 02/14/18 04:14 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
AlohaGirl Offline
New Poster

Registered: 07/09/14
Posts: 4
Thank you for the speedy reply.
What about items that are paid outside of closing like a termite inspection fee? Is the lender expected to determine and list the payee of that item even though they aren't a party to that transaction?

Top
#2164571 - 02/14/18 04:22 PM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
raitchjay Online
Power Poster

Registered: 10/15/09
Posts: 7348
Loc: OK
I see no exemption for that. Every section except A. i believe requires ultimate payees.
_________________________
I'm fixin' to fix that.

Top
#2164652 - 02/15/18 10:02 AM Re: Payee required for Lender-paid Charge? [Re: AlohaGirl]
RR Joker Online
10K Club

Registered: 11/15/02
Posts: 19730
Loc: The Swamp
Agree
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Top