The bank uses one flood determination company for flood certs. for all r/e secured loans. We were told we had to list them as a required provider on the GFE even though the customer pays the bank who then pays the flood determination company. Does this also hold true for our credit bureau company we use to pull their credit report?

YES

If your bank requires the use of a particular settlement service provider & imposes any part of the cost on the borrower, you must disclose it.

Reg x 3500.7(e)states the bank shold disclose as a required provider for "legal service, title exam service, title insurance or to conduct settlement" ie requiring a consumer to use a specific title comapny or attorney which we do not. Hows does this carry over to a credit reporting company or a flood determination company?

My point is it states "settlement service". A flood determnation company is not a settlement service ie title company or attorney providing a settlement service.

Yes john, it applies to both flood determination and credit bureau company.

Note the definition of “Settlement Service” in Reg x 3500.2. It includes:

(11) Provision of services involving hazard, flood, or other casualty insurance or homeowner’s warranties;

And, just incase they missed the flood determination company, they include:

(15) Provision of any other services for which a settlement service provider (such as the bank) requires a borrower or seller to pay.

If the borrower does not pay the fee for the flood determination are we still required to show the name of the vendor as a required provider? Section 3500.7 states that in a "no cost" loan we would still have to show the fee as POC on the GFE.

The section above states:

e) Particular providers required by lender.

(1) If the lender requires the use (see § 3500.2, ‘‘required use’’) of a particular provider of a settlement service, other than the lender’s own employees, AND ALSO requires the borrower to pay any portion of the cost of such service, then the good faith estimate must:"

Emphasis on "AND ALSO". If the bank pays the flood determination fee, then we would not be required to show the vendor as a required provider. Is that a correct understanding?

Thank you.

Yes

Sorry, but I have to disagree. Halito's understanding is correct. The fee needs to be listed on the GFE and Settlement Statement, but it is NOT a Required Provider fee unless the borrower pays for it.

The key word is the "AND" in §3500.7(e)(1).