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#2295823 - 04/11/24 07:26 PM Affiliated Business Disclosure - Owners TI
transy05 Offline
Junior Member
Joined: Jul 2011
Posts: 28
Bank has a title insurance company affiliate and provides borrowers with an Affiliated Business Arrangement Disclosure Statement.

LE includes Lenders Title Insurance in Section C as a shopable fee, and includes affiliate on Service Provider List, which is a referral, which triggers the Affiliated Business Arrangement Disclosure Statement.

LE also includes Owners Title Insurance as an optional fee in Section H. This fee is NOT included on the Service Provider List.

Regarding the, "Estimated charge or range of charges generally made by such provider," required on the Affiliated Business Arrangement Disclosure Statement [1024.15(b)(1)], would we only list the Lenders Title Insurance since that is what is shopable and triggered the referral, or should we also include the Owners Title Insurance because it is another service available from that affiliate?

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RESPA
#2295840 - 04/12/24 11:52 AM Re: Affiliated Business Disclosure - Owners TI transy05
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 83,738
Galveston, TX
It would appear to me that an owner's title policy is a settlement service under RESPA and would be covered, whether the service is required by the lender or not.


1024.15(c) Definitions. As used in this section:

Person who is in a position to refer settlement service business means any real estate broker or agent, lender, mortgage broker, builder or developer, attorney, title company, title agent, or other person deriving a significant portion of his or her gross income from providing settlement services.

1024.2 Settlement service means any service provided in connection with a prospective or actual settlement, including, but not limited to, any one or more of the following:

(4) Provision of title services, including title searches, title examinations, abstract preparation, insurability determinations, and the issuance of title commitments and title insurance policies;
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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