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#2236428 - 05/08/20 08:45 PM Help! Fee not on LE
Nicole Offline
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Joined: Nov 2018
Posts: 156
Hello,

i am doing an audit review and there is a fee that was not listed on the LE for Title fees and a Third Party Review, do we have to reimburse the entire fees which were not disclosed on LE

Title-Lien Coverage fee $740.00
Title-Inspection Fee $298
Third Party Review $100
Title-Funds Processing $20.00

Total Reimbursement $1,158 or do the title fees fall into 10% tolerance?

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TRID - TILA/RESPA Integrated Disclosures Rule
#2236429 - 05/08/20 08:51 PM Re: Help! Fee not on LE Nicole
rlcarey Online
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rlcarey
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Galveston, TX
Did you allow them to shop and did they pick from your list?
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#2236430 - 05/08/20 08:52 PM Re: Help! Fee not on LE Nicole
Nicole Offline
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Joined: Nov 2018
Posts: 156
we did and yes they did

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#2236431 - 05/08/20 08:56 PM Re: Help! Fee not on LE Nicole
rlcarey Online
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rlcarey
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Galveston, TX
Should have been disclosed in Section B of the CD and subject to the 10% aggregation test then.
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#2236433 - 05/08/20 09:16 PM Re: Help! Fee not on LE Nicole
Nicole Offline
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Joined: Nov 2018
Posts: 156
ok thank you...even if we did not disclosed those fees on the LE?

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#2236444 - 05/09/20 12:08 PM Re: Help! Fee not on LE Nicole
rlcarey Online
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rlcarey
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Galveston, TX
If the LE was not made in good faith and you should have known about those fees, then I think they would fall into the 0% category.
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#2236582 - 05/12/20 07:30 PM Re: Help! Fee not on LE Nicole
Jerod Moyer Offline
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Jerod Moyer
Joined: Oct 2005
Posts: 667
Sioux Falls, SD
Whether or not the applicant was allowed to “shop” in relation to the determination of the cumulative 10% tolerance is based upon all relevant facts and circumstances. For example:

Non-compliance with TRID Loan Estimate section C disclosure requirements* is not an absolute determining factor. For example, if a service was omitted from section C of the Loan Estimate but changed at consummation. If you can demonstrate that the applicant was allowed to shop, the fee related to that service could be included within the cumulative 10% tolerance. [Commentary to §1026.19(e)(3)(ii) #2]

*Note: However, non-compliance as noted is still a violation with respect to the Shopping List and or Loan Estimate requirements.
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#2236591 - 05/12/20 08:46 PM Re: Help! Fee not on LE Nicole
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
Jerod,

If they disclosed title fees in Section C of the LE and gave them a preferred provider list and the consumer selected that provider and the lender did not disclose 4 distinct fees for services that totaled $1,158 - I really do not think those fees fall in the 10% bucket. It was not a good faith disclosure effort.
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#2236594 - 05/12/20 09:06 PM Re: Help! Fee not on LE Nicole
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 83,227
Galveston, TX
But then again you do have this:

Official Interpretation

19(e)(3)(ii) Limited increases permitted for certain charges.

2. Aggregate increase limited to ten percent. Under § 1026.19(e)(3)(ii)(A), whether an individual estimated charge subject to § 1026.19(e)(3)(ii) is in good faith depends on whether the sum of all charges subject to § 1026.19(e)(3)(ii) increases by more than 10 percent, regardless of whether a particular charge increases by more than 10 percent. This is true even if an individual charge was omitted from the estimate provided under § 1026.19(e)(1)(i) and then imposed at consummation.
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#2236609 - 05/13/20 02:06 PM Re: Help! Fee not on LE Nicole
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
There remains more than enough ambiguity in the TRID rule to make for arguments lively discussion and some flexibility.
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