Thread Options
#2269455 - 04/21/22 02:49 PM Broker Affiliated Title Company
Jason Ellis Offline
Junior Member
Joined: Jun 2018
Posts: 35
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?

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2269458 - 04/21/22 03:03 PM Re: Broker Affiliated Title Company Jason Ellis
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,252
Galveston, TX
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.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2269460 - 04/21/22 03:19 PM Re: Broker Affiliated Title Company rlcarey
Jason Ellis Offline
Junior Member
Joined: Jun 2018
Posts: 35
Thanks Randy! I cannot believe I missed that.

Return to Top