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#2188217 - 08/07/18 09:37 AM What SPL to use?
crcmnot Online
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Registered: 09/21/16
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Customer wants a lot purchase loan; collateral will be their current primary residence only. TRID purpose is Home Equity. Current primary residence is in Idaho, lot they are purchasing is in Washington. We utilize different SPL's based on State as the title companies itemize different services.
1. Do we give the customer the SPL for the Idaho collateral to be used (current primary residence) which will not list settlement/closing services
2. Do we use the SPL for WA for the lot to be purchased which will show settlement/closing services?

If we use the SPL for the ID property reflecting no settlement/closing services then our LE would not list settlement/closing services and we know there will be a closing so I am leaning towards #2 but title insurance will be based on the Idaho property and settlement services will be based on the WA property. Feedback is greatly appreciated!!

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TRID - TILA/RESPA Integrated Disclosures Rule
#2188241 - 08/07/18 10:52 AM Re: What SPL to use? [Re: crcmnot]
Truffle Royale Online


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The SPL has to be specific to the transaction, not the state.
That means that if you're going to allow the borrower to shop, you must prepare a new settlement service provider list that lists:
a title insurance company that will insure property in Idaho showing the title insurance charges
AND
a title company where the closing will be showing just the settlement/closing service costs.

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#2188243 - 08/07/18 10:57 AM Re: What SPL to use? [Re: crcmnot]
Dan Persfull Offline
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Loc: Bloomington, IN
collateral will be their current primary residence only

Your loan costs will be based on the property being used for collateral and its location. The costs associated with the lot purchase has nothing to do with your loan.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2188245 - 08/07/18 11:07 AM Re: What SPL to use? [Re: crcmnot]
crcmnot Online
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Registered: 09/21/16
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Dan - should we not list closing settlement fees on our LE or CD? Our loan purpose is for the lot purchase so our loan officer is expecting to see all of the fees on the documents regarding the purchase and closing with the title company.

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#2188248 - 08/07/18 11:47 AM Re: What SPL to use? [Re: crcmnot]
Dan Persfull Offline
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Registered: 08/28/02
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Loc: Bloomington, IN
our loan officer is expecting to see all of the fees on the documents regarding the purchase and closing with the title company.

Why? If the loan is being based on and secured only by the borrower's current primary residence it's really none of the loan officer's business how the borrower completes the purchase for the lot.

As I said earlier the costs associated with the lot purchase has nothing to do with your loan and they do not belong on the LE or CD. The LE and CD should only reflect the settlement costs associated with your loan.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#2188254 - 08/07/18 12:04 PM Re: What SPL to use? [Re: Dan Persfull]
Compliance NABW Offline
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Originally Posted By Dan Persfull
our loan officer is expecting to see all of the fees on the documents regarding the purchase and closing with the title company.

Why? If the loan is being based on and secured only by the borrower's current primary residence it's really none of the loan officer's business how the borrower completes the purchase for the lot.

As I said earlier the costs associated with the lot purchase has nothing to do with your loan and they do not belong on the LE or CD. The LE and CD should only reflect the settlement costs associated with your loan.

Otherwise, this loan would be a "Purchase." wink

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#2188255 - 08/07/18 12:10 PM Re: What SPL to use? [Re: crcmnot]
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Basically, think of this as two separate transactions, even though the funds themselves are being used to purchase the lot, which may make this a "Home Purchase" under HMDA. However, for TRID purposes, all you have here is a "Home Equity" purpose. It would be similar to the borrower using the funds to go buy a car, or to buy a boat, or any other kind of consumer product. Would you need to disclose the car title, dealer commission, etc. on the LE/CD? No. It's not relevant to the Home Equity loan. It's just how they used their funds.

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#2188262 - 08/07/18 12:31 PM Re: What SPL to use? [Re: crcmnot]
crcmnot Online
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Registered: 09/21/16
Posts: 218
Okay, got it. Thank you all.

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