Perhaps we are trying to hard, but we are struggling with how to quote estimated title premiums on GFEs when we do not know if the client will purchase an owner's policy, but could and would owe the money at closing if they do.

This is a fairly high volume unit and the fees are programmed in a system. But what to program? What we have now doesn't work.

The premiums in many states vary depending upon whether just a lender's policy is purchased or if an owner's and lender's are purchased simultaneously. For example, in one state, if purchased simultaneously, the owner's policy is the straight price, but the lender's is discounted 70%. If no owner's policy is purchased, then the lender's is at the straight price. These are large loans and the premiums are generally thousands of dollars.

Any suggestions? How do others do this?

I would base the disclosure on the most typical purchase pattern for borrowers, and provide an example of what the other choice is. For example, show lender's cost and include a note explaining the total price if the customer chooses borrower coverage as well. This way, you don't have to go through the explanation of which fee is highest-- lender's or owners. The borrower is paying it in any event. The total is the most important number.

Thank you, Lucy. I was hoping you would reply! I was heading in that direction but wasn't sure if it was viable. We are currently gathering info from HUD1s from closed loans to see what has actually been occurring.

You are most welcome. And happy Mother's Day to you also. At least we don't have a RESPA Day!