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#2164534 - 02/14/18 07:50 PM Payee required for Lender-paid Charge?
AlohaGirl Offline
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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?

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#2164535 - 02/14/18 07:54 PM Re: Payee required for Lender-paid Charge? AlohaGirl
raitchjay Offline
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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.
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#2164536 - 02/14/18 07:58 PM Re: Payee required for Lender-paid Charge? AlohaGirl
rlcarey Online
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Who did you pay. If you paid an appraiser for the follow-up inspection, it would go in Section B not Section A.
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#2164537 - 02/14/18 08:00 PM Re: Payee required for Lender-paid Charge? AlohaGirl
raitchjay Offline
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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.
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#2164552 - 02/14/18 08:39 PM Re: Payee required for Lender-paid Charge? AlohaGirl
AlohaGirl Offline
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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.

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#2164555 - 02/14/18 08:41 PM Re: Payee required for Lender-paid Charge? AlohaGirl
raitchjay Offline
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Yes, you need a payee.
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#2164565 - 02/14/18 09:14 PM Re: Payee required for Lender-paid Charge? AlohaGirl
AlohaGirl Offline
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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?

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#2164571 - 02/14/18 09:22 PM Re: Payee required for Lender-paid Charge? AlohaGirl
raitchjay Offline
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I see no exemption for that. Every section except A. i believe requires ultimate payees.
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#2164652 - 02/15/18 03:02 PM Re: Payee required for Lender-paid Charge? AlohaGirl
RR Joker Offline
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Agree
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