It was a decision, not by me, to do what is currently being done. They are aware that they are subjecting themselves to a 10% tolerance by getting quotes from the title company on the sales agreement and putting that company as the provider on the Written List of Providers. It was a decision based on some tolerance issues (with recording fees) we've had and also based on the fact that because of the nature of some of the fees, they did not feel right getting quotes from a service provider they knew the applicant had no intention of using, which is an inconvenience to that provider to do work quoting fees but will not get the job. They also felt that they did the customer a disservice quoting fees from our preferred provider which was much lower than the prices of the one on the sales contract. It was a rare occasion (if it ever happened at all) that any applicant decided to pick our preferred provider over the one that the real estate agent suggested (likely convinced them they had to) they use and indicated on the sales agreement.
If we have the right to disclose any preferred provider we want, I see no compliance risk with disclosing who the applicant wanted. Yes, we are subject to 10%, but the quoted fees are always honored at closing. So we no longer have any tolerance issues with recording fees and no longer getting quotes from a third party that will not make any income from the transaction.
I have no control over this decision, and I likely will not be able to change their minds when I couldn't convince them the first time around.
I even bounced this off of BOL users back when management was wanting to go this path and those that responded did not see any compliance violations in what we were doing, only that we were subjecting ourselves to tolerances we would not have otherwise been subject to.
I guess what I really need to know is there any obligation to get updated costs during the loan process in order to include the most up to date information on a revised LE (in the event one is being provided due to a CIC)? I don't think so, but I wanted to be sure.
It was my understanding that we would just update information that we happen to have but that we had no obligation to go out and ask for updated information.
My other question about quoting the fee for the new service needed due to a CIC, I think Truffle answered. We could obtain from and quote the original provider's fee even if we know they will like use the other title company since they are using them for all their other title services.
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Always learning something new...