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#2250142 - 03/05/21 07:02 PM Title Company Document Prep Fee
Nicole Offline
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Joined: Nov 2018
Posts: 130
Hello, we are working with a title company and they have a documentation prep fee, should this fee be prepaid?

thank you!

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TRID - TILA/RESPA Integrated Disclosures Rule
#2250143 - 03/05/21 07:17 PM Re: Title Company Document Prep Fee Nicole
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
What is it for? - a fee name does not mean a thing when it comes to determining finance charges.
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2250165 - 03/05/21 09:12 PM Re: Title Company Document Prep Fee Nicole
Nicole Offline
100 Club
Joined: Nov 2018
Posts: 130
it's a fee they are charging to prepare there documents in regards to the closing, i.e warranty deeds etc.

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#2250166 - 03/05/21 09:42 PM Re: Title Company Document Prep Fee Nicole
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,965
Galveston, TX
Well, then you have to weigh that against excluding it under:

1026.4(c)(7) Real-estate related fees. The following fees in a transaction secured by real property or in a residential mortgage transaction, if the fees are bona fide and reasonable in amount:

(ii) Fees for preparing loan-related documents, such as deeds, mortgages, and reconveyance or settlement documents.

or the basic uniform charge for a cash or credit transaction:

4(a) Definition
1. Charges in comparable cash transactions. Charges imposed uniformly in cash and credit transactions are not finance charges. In determining whether an item is a finance charge, the creditor should compare the credit transaction in question with a similar cash transaction. A creditor financing the sale of property or services may compare charges with those payable in a similar cash transaction by the seller of the property or service.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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