Can anyone help direct me to a FDIC circular 14-2005? It's suppose to be RESPA interpretive guidance, I'm having trouble locating it. Thanks

Click here then type 14-2005 in the Search This Site field in the upper right hand corner. With the number of hits I'm sure you'll find what you're looking for.

Unfortunately, that's where I started and could't find anything on it that pertained to RESPA. Thanks anyways.:)

Can you be more specific then, and are you sure the bulletin, FIL, etc. was 14-2005?

It says CHIRO-14-2005

I got a Bulletin from my vendor today about this. It is titled "Disclosure of Real Estate Taxes under the Real Estate Settlement Procedures Act". Basically, it deals with which Fee Codes you can use to disclose real estate taxes on the HUD. The interpretation from the FDIC says that you do not necessarily have to use the 900 series to disclose real estate taxes. You must, however, make sure that the fee description is clear and the correct amount disclosed.

That's all I know.....

That is a SCANS bulletin out of the Chicago Regional Office. You will not find them on the FDIC Web site.

Here's the text of the bulletin:

Division of Supervision and Consumer Protection, 500 West Monroe, Suite 3500, Chicago, IL 60661 312-382-7500

Bulletin Number: CHIRO-14-2005

Disclosure of Real Estate Taxes under the Real Estate Settlement Procedures Act (RESPA)

FDIC-Chicago has received recent guidance concerning RESPA and the disclosure of real estate taxes on the good faith estimate (GFE) and HUD 1/1A settlement statement (HUD). This guidance reflects a change from our previous interpretation regarding disclosure of the real estate taxes.

For RESPA applicable loans, those banks that require a borrower to pay real estate (RE) taxes as a condition of a loan, must disclose those amounts on the GFE and HUD, whether paid at closing or not. The charges paid outside of closing should be listed as “POC”.

To determine whether a bank requires RE taxes to be paid as a condition of the loan, look to the loan documents as the source for the requirement of real estate taxes – if a bank is requiring borrowers to pay taxes and get insurance, the costs have to be disclosed. In most cases, the loan documents do require the borrower to pay real estate taxes and keep the collateral insured. Where the loan documents include these requirements, the lender can declare the borrower in default and foreclose if the borrower fails to make these payments.

We encourage FDIC-supervised institutions to review these requirements with appropriate bank personnel in conjunction with the bank’s practices and policies for compliance with RESPA.

If you have any questions concerning this information, please contact us by e-mail at scans@fdic.gov or call us at the Chicago Regional Office Banker Hotline, (312) 382-6926.

That is a SCANS Bulletin from The Chicago FDIC. You can email them at scans@fdic. To subscribe is free.

Thank you!!

Is anyone doing this- disclosing the full amount of taxes on the HUD as POC? We disclose the amount we require the borrower to pay at closing, but the full amount? seems like that would be confusing to the customer

We do. Our legal told us we have to so our forms vendor has added it onto our HUD. FDIC guy in our area says we have to so why fight it? 1 year shown as POC.

Sorry. It is scans@fdic.gov or you can call at the Chicago Regional Office Banker Hotline, (312) 382-6926.