We viewed a demonstration from our software provider for automating how we get title fees from our preferred provider. A couple of questions arose:
1) The software will provide a fee for Title Insurance but included in that would be related fees like the Notary Fee - so we'd be disclosing a $500 title fee on the LE (which is $400 for title and $100 for Notary). We would no longer disclose Notary Fee as a separate item on the LE or Service Provider List. Are we required to itemize or is it okay to lump those 2 fees into one?
2) The software's site for generating this information is not located within our state (we are in CA, the vendor is in TX). Our preferred provider is a national title company and we previously disclosed their headquarters in CA for contact information. (We do not lend out of state). The vendor is saying that the hundreds of customers he has in CA have had no problem disclosing a TX title company. My understanding is that we can disclose the headquarters, or the local address of the provider where the consumer or property is located.
Level of itemization. The CFPB understands that there is uncertainty as to the extent a creditor must itemize settlement services on the LE and Written Service Provider List (WLSP). In TRID 2.0, the CFPB clarified that creditors need not include all settlement services that may be charged to the consumer, but must include at least those settlement services the creditor required for which the consumer may shop. Comment 19(e)(1)(vi)-4. For example, if a creditor requires the consumer to purchase lender’s title insurance and the creditor permits the consumer to shop for lender’s title insurance, the creditor must disclose the lender’s title insurance on the LE and at least one title insurance company on the WLSP. However, the creditor does not have 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 such as a notary fee, title search fee or other ancillary and administrative services needed to perform or provide the settlement service the creditor requires. The CFPB thinks all detailed breakdown of all settlement services would be information overload for the consumer and thereby hinder the consumer’s ability to shop. 82 FR at 37674.