Scenario:

A creditor works with a broker that has an affiliated title company. The creditor provides all TRID disclosures. The WLSP provided by the creditor does not disclose the broker's title company. If the borrower chooses the broker's affiliated title company is the creditor obligated to treat the title charges as though the title company is an affiliate of the creditor for tolerance purposes?

Reg. Z has a specific definition of "Affiliate" that does not seem to apply to this situation and in §1026.19(e)(3) when it talks about affiliates and tolerance it references "fees paid to an affiliate of the creditor", but I have heard opinions that a broker's affiliate should be treated as an affiliate of the creditor. Does the CFPB address this somewhere that I am not aware of?

19(e)(3)(i) General rule.- Comment 1 - it would be zero tolerance and require an affiliated business disclosure would also be required by the broker.


Although § 1026.19(e)(3)(ii) and (iii) provide exceptions to the general rule, the charges that are generally subject to § 1026.19(e)(3)(i) include, but are not limited to, the following:

iii. Fees paid to an affiliate of the creditor or a mortgage broker.

Thanks Randy! I cannot believe I missed that.