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#2296881 - 05/06/24 10:32 PM TRID: Courier Fee added post-close - do we refund?
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,462
California
TRID Question: If our preferred provider for title insurance adds a "courier fee" at the closing table (that we did not disclose on our LE or our CD and we learn about it after the closing), can we charge it to the borrower if it is within the 10% tolerance? Or, because it was never disclosed to begin with by the bank, should we then refund the fee to the borrower?

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Lending Compliance
#2296882 - 05/06/24 10:55 PM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,005
Galveston, TX
and we learn about it after the closing

Refund? That would require a posting closing CD and collecting the fee and not a refund, would it not? You do not let the title company produce the final CD, do you?
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The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2296883 - 05/06/24 11:05 PM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,462
California
No, we prepare our own CD. We send it to escrow along with the closing documents (they do the closing). And then we receive their final settlement statement and notice that they collected the courier fee that we did not know about before until we received the final settlement statement. So, we are issuing a post-close CD and am thinking we need to refund that courier fee since it was never disclosed by the bank? (But escrow did collect it.)

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#2296884 - 05/06/24 11:06 PM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,462
California
We send our CD 3- days before closing, and include a copy with the closing documents to clarify my comment above.

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#2296885 - 05/07/24 10:53 AM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 85,005
Galveston, TX
Well, if it was me, if the title company collected money from the borrower for a fee of theirs that was not on the CD, then I am sure of a couple of things. I would make title company eat the fee, if this is the first you heard about it. Review your closing instructions, as I am sure it specifically tells them that if the CD is inaccurate in anyway, they need to notify you immediately. I am also sure there is a coordinated effort between the title company and the lender prior to the issuance of the final CD for closing with the title company for a pre-closing confirmation of settlement charges. If this is not true, then you need to review your closing processes.

But yes, charging the borrower for the fee is not proper, as while you may have a 10% tolerance if they picked your service provider, any fee charged that is not on a good faith basis is a zero tolerance and adding a new fee at closing is not in good faith considering the facts. If they push back, you might tell them you are going to revisit your preferred provider list.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2296898 - 05/07/24 03:01 PM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,462
California
Thank you very much for the reply! I agree. The title company is telling us that we’re “the only bank that is this strict with these fees”!!

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#2296899 - 05/07/24 03:35 PM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
John_Burnett Offline
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John_Burnett
Joined: Feb 2013
Posts: 533
Cape Cod
As to the title company's claim that you're the only bank that is this strict, I suggest you consider it a compliment. And I second Randy's suggestion that you tighten down your settlement procedures to include a pre-closing confirmation of settlement charges and a message to the title companies you deal with to the effect that if they "discover after the fact" fees they should have included in their costs for that confirmation step, it's on them.
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#2296903 - 05/07/24 04:00 PM Re: TRID: Courier Fee added post-close - do we refund? Tarhe
Tarhe Offline
Diamond Poster
Joined: Nov 2006
Posts: 1,462
California
Thank you! I appreciate that advice and we will be ensuring our process is adhered to!

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