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?