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#2270380 - 05/12/22 04:16 PM Increased title fee
JAM Offline
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Joined: Aug 2005
Posts: 213
If we under disclosed the title fee on the LE do we need to show the correct amount on the CD and list the difference as paid by lender? Or can we just put the amount from the LE on the CD and the bank pays the difference? I thought 3rd party fees paid by the bank always need to be on the CD but want to clarify. Thanks!

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TRID - TILA/RESPA Integrated Disclosures Rule
#2270381 - 05/12/22 04:29 PM Re: Increased title fee JAM
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 78,958
Galveston, TX
Yes - have to show the total fee amount and who paid what portion. So, either part was paid by the bank, or the borrower paid the entire amount with a lender credit if you have a tolerance violation.
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#2270382 - 05/12/22 04:33 PM Re: Increased title fee JAM
JAM Offline
100 Club
Joined: Aug 2005
Posts: 213
We do have a tolerance issue in this case. Thanks for the help.

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#2270588 - 05/18/22 03:22 PM Re: Increased title fee JAM
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,593
Cape Cod
Clarification: There are two ways to handle this situation. If, on the CD, you split the title fee into two parts, with the amount from the LE in the borrower-paid column and the excess in the Paid by Others column as a specific lender credit. you don't have a tolerance issue because the consumer is not paying more than the amount on the LE.

But if you show the full amount in the paid by consumer column, you will have a tolerance issue, and you will need to note that in the Calculating Cash to Close table, in the Borrower Paid at Closing column as part of the Lender Credits line in section J, and on page 1 as part of the lender credits amount in the Closing Costs description in the Costs at Closing table.

When I say "part of the lender credits" I mean that, if there are other lender credits included in the closing (beyond the tolerance cure amount), the tolerance cure amount will be included in the total lender credits shown in the Costs and Closing (page 1) and in Section J (page 2). In such cases, I believe the actual amount of the tolerance cure amount won't appear by itself anywhere.
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