Thread Options
#2226484 - 11/28/19 12:20 AM Shopping list - web address
Inspector Offline
Gold Star
Joined: Apr 2016
Posts: 254
Curious to hear thoughts on the idea of listing the phone number and website for a provider on the shopping list but not providing a physical address. The commentary just says "such as a phone number and address" but specifically describes giving enough information that a customer can find the service provider. Would the web address for a national company be enough?

Bit of a side rant here, I have seen a lot of threads about using national title companies on the shopping list and discussion of whether this is appropriate. From what I have been seeing, most large lenders just use one national company and its creating bizarre situations when the national company doesn't have an office local. For example, National Title might write policies everywhere but can't conduct closing so they would contract out to a local company. But the customer doesn't know that and if they go to local title company who is using a national company policy the customer "shopped" when they are actually using a nearly identical set of companies for closing and lenders title. I have even seen a couple large lenders who are using title companies that have no physical offices anywhere in the country. Everything is contracted out locally and therefore the customer is "shopping" 99% of the time. Has the shopping list lost all meaning when it comes to title?
_________________________
Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2226488 - 11/28/19 06:46 AM Re: Shopping list - web address Inspector
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,215
Galveston, TX
If the customer selects your preferred provider and your preferred provider then subcontracts work out to other parties, how does that mean your customer shopped? They didn't, they used your provider regardless to whomever the ultimate payment is made.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2226495 - 11/28/19 10:54 PM Re: Shopping list - web address Inspector
Inspector Offline
Gold Star
Joined: Apr 2016
Posts: 254
What I was trying to convey is that of a customer goes to national company who subcontracts to local company, then the customer didn't shop. But if the customer goes directly to the same local company, possibly even the only one that serves a particular area, then the customer shopped even though they use the same company at the end of the day.

It would seem to be in a lenders best interest to put a single national title company on the list since these large companies will be able to write a policy and subcontract any local work to a local company. This means no unique lists for particular markets or having to up date lists very often. It also means a better chance of consumers shopping as there is a good chance they will go with a local company, especially in rural markets.

This seems off given that in the preamble the CFPB specifically addresses the concern of using single national companies by staying that there will be locations that national companies cannot reach.....however in practice this doesn't appear to be the case or the interpretation. Again, seems like the shopping list is just about listing one of the largest companies and calling it good.

Any thoughts on my actual question about using a web address instead of a physical address?
_________________________
Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

Return to Top
#2226496 - 11/29/19 08:19 AM Re: Shopping list - web address Inspector
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,215
Galveston, TX
Can you add the website address, I would say yes. Should you substitute the website address for the physical address of the provider - that is hard to say as to how acceptable that might be to auditors and examiners. Whether this is a battle you want to engage in would be a business decision.

From the preamble:

The Bureau also does not believe that it would be burdensome for the creditor to include a service provider’s street address. Comment 19(e)(1)(vi)-4 does not state that § 1026.19(e)(1)(vi) requires the provision of addresses. Rather, it explains that to comply with the identification requirement in § 1026.19(e)(1)(vi)(C), the creditor must provide sufficient information to allow the consumer to contact the service provider, and that a creditor that lists the provider’s address, along with its telephone number and the name under which the provider conducts business, would have provided sufficient information. Accordingly, listing an available provider’s street address is not required by § 1026.19(e)(1)(iv)(C), but a creditor that does not list the street address must demonstrate that the information it provided is sufficient information that allows the consumer to contact the service provider.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2226518 - 11/30/19 03:48 AM Re: Shopping list - web address Inspector
Inspector Offline
Gold Star
Joined: Apr 2016
Posts: 254
Thank you sir. I guess I should have been paying better attention to the other parts of the preamble.
_________________________
Opinions expressed are my own and do not reflect legal advice or the opinions of my employer.

Return to Top