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#278578 - 11/22/04 09:22 PM Recording fees
Anonymous
Unregistered

On the HUD, should the entity to whom recording fees are paid be disclosed? Should the whole amount (including release) be disclosed as paid to the respective recorder, even though this portion will not be paid until down the road?

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Lending Compliance
#278579 - 11/23/04 06:29 PM Re: Recording fees
Anonymous
Unregistered

Any thoughts on this?

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#278580 - 11/23/04 06:37 PM Re: Recording fees
someone else Offline
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someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
We just denote the line as Recording Fees and/or Reconveyance Fees. I don't know how official that is though...
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#278581 - 11/23/04 06:51 PM Re: Recording fees
Anonymous
Unregistered

Thanks for the response. Are other banks out there disclosing to whom the recording fees are paid on the HUD? It would seem that the recorder is providing a service required and would therefore require disclosure. Should we also then be disclosing them as a provider on the GFE? Is this just an assumed thing and therefore does not require disclosure?

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#278582 - 11/23/04 07:01 PM Re: Recording fees
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
We don't disclose who the recording fee is to on either the HUD form or the GFE. I would like to know if we should. However, according to Reg Z 226.4(e)(1), (e) "Certain security interest charges. If itemized and disclosed, the following charges may be excluded from the finance charge:
(1) Taxes and fees prescribed by law that actually are or will be paid to public officials for determining the existence of or for perfecting, releasing, or satisfying a security interest."

It appears that if we are not disclosing who they are to, we should be disclosing them as finance charges then. Is this correct?

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#278583 - 11/23/04 07:09 PM Re: Recording fees
someone else Offline
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someone else
Joined: Aug 2004
Posts: 3,300
back to my roots
But aren't recording fees always paid to the county in which the lien is being perfected?
_________________________
Somewhere, something incredible is waiting to be known. - Carl Sagan

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#278584 - 11/23/04 07:47 PM Re: Recording fees
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
There are 2 thoughts on this process. Reg. Z allows you to itemize it as being paid to "public officials", however RESPA does not spell out that option. RESPA's Appendix A requires you to itemize all charges.

The instructions for lines 1201 - 1205 says they are used to itemize recording and transfer charges.

Some rely on Reg. Z's option to just disclose as paid to public officials. Others list the jurisdiction's name. We list the name.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#278585 - 11/23/04 08:02 PM Re: Recording fees
Anonymous
Unregistered

Quote:

There are 2 thoughts on this process. Reg. Z allows you to itemize it as being paid to "public officials", however RESPA does not spell out that option. RESPA's Appendix A requires you to itemize all charges.




So are you saying that according to Reg Z we should disclose "public official" and according the RESPA we should be disclosing the jurisdiction (city of ____)?
Sorry, I'm a little slow sometimes :-)

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#278586 - 11/23/04 08:17 PM Re: Recording fees
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Reg. Z does not require you to name the jurisdiction - it allows you to simply show public officials in your itemization - however you are free to name the jurisdiction if you wish.

For RESPA, it is my opinion it does not allow that option and the jurisdiction should be named.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#278587 - 11/23/04 08:38 PM Re: Recording fees
Anonymous
Unregistered

So Dan...you list the county as a provider on the GFE as well?

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#278588 - 11/23/04 08:51 PM Re: Recording fees
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
Yes.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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#278589 - 11/23/04 10:04 PM Re: Recording fees
Anonymous
Unregistered

Thanks Dan.

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#278590 - 11/23/04 11:02 PM Re: Recording fees
Auditjg Offline
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Auditjg
Joined: Sep 2004
Posts: 67
Okay, another question. In the case that the loan doesn't fall under RESPA (loan is a re-fi of a business-purpose loan), do we still have the issue with Reg Z? It would still fall under Reg Z, correct?

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#278591 - 11/24/04 02:23 AM Re: Recording fees
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,016
Bloomington, IN
No. If the loan is a business purpose loan, Reg. Z would not apply.
_________________________
The opinions expressed are mine and they are not to be taken as legal advice.

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