Thread Options
#2241375 - 08/20/20 06:10 PM SSPL vs. Section C of the LE
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,516
I thought we had pretty much beat this horse dead, but I came across something in the Small Entity Compliance Guide that seems to potentially give an "out" to many creditors that initially never matched the two documents.

"While the written list must correspond to the required services for which the consumer can shop as disclosed on the Loan Estimate, the creditor is not required to provide a detailed breakdown of all related fees that are not themselves required by the creditor but that may be charged to the consumer by the settlement service provider. These fees could include notary fees, title search fees, or other services the settlement service provider needs to perform the service that the creditor requires."

So, how would you view a creditor saying, "all we require is Title Insurance, and so all we list on the SSPL is "Title Insurance;" however, the Section C of the LE has "Title-Closing Fee, Title-Notary, Title-Lenders Insurance, Title-Courier, etc.?

I don't really feel like this is supported by any of the Regulation, or the Official Interpretations, or any of the "preamble" stuff, but it is in the Compliance Guide.

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2241382 - 08/20/20 06:36 PM Re: SSPL vs. Section C of the LE Compliance NABW
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,652
Galveston, TX
that are not themselves required by the creditor

So, the bank is not requiring that the settlement agent close the loan for the bank or they really do not care if the documents are actually notarized or not?

Kind of hard to train people to pick and choose the right ones and be consistent in anyway shape or form - just put them all on - with the automated doc prep systems - it is a click of a box usually - what is the big deal?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2241435 - 08/21/20 02:25 PM Re: SSPL vs. Section C of the LE rlcarey
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,516
I totally agree. Unfortunately, I think this stupid part of the Small Entity Guide will lead various banks that have not tightened this area up to just throwing up their hands and saying, "all we require is Title Insurance."

Return to Top
#2241436 - 08/21/20 02:27 PM Re: SSPL vs. Section C of the LE Compliance NABW
Compliance NABW Offline
Diamond Poster
Joined: Oct 2015
Posts: 1,516
Apparently some Doc Prep systems also do think it's a big deal and it's fine to just have a single line on the SSPL.

Return to Top
#2241444 - 08/21/20 03:21 PM Re: SSPL vs. Section C of the LE Compliance NABW
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,652
Galveston, TX
That is fine, if there is only one service that you require, but like I previously said, who is going to make that determination?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2242678 - 09/18/20 12:48 PM Re: SSPL vs. Section C of the LE Compliance NABW
Love Cruising Offline
Member
Joined: Dec 2019
Posts: 74
If provider is chosen by borrower from our SSPL list, we do have a 10% tolerance, correct?

Return to Top
#2242682 - 09/18/20 01:16 PM Re: SSPL vs. Section C of the LE Compliance NABW
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 77,652
Galveston, TX
Yes - the fees will move to Section B on the CD and the fees will be subject to the 10% aggregate tolerance rule, with the recording fees.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top