Yes. Get a revised loan estimate out within the three-business-day deadline, counting from the day you learned this won't be an in-house closing. If you select (and don't allow the borrower to shop) the notary, put the estimated cost of the notary's services in block B. If you will allow the borrower to select a notary, put the estimated cost in section C and include a SSPL identifying at least one notary public available to provide the service to the borrower near the borrower's (or property's) location.
If you have a closing date and need to get the closing disclosure out, you can use the closing disclosure rather than a revised loan estimate to disclose the notary's fees. Just make sure you provide it within 3 business days of learning of the change and at lest three business days before the closing. Include the SSPL with it.
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8