In our area, the need and cost for a water rights conveyance is not known until closing. That said here are my questions:
A. Is that timing normal? Do other areas know of the need for conveyance and cost associated earlier?
B. If this is normal, do you reflect the cost on the CD but not the LE? Does the customer simply pay it outside of closing?
C. If this is not normal and you have the information earlier, are you listing it in H?

Here is my question. Do you require this to happen to make the loan? If not, it is a Section H item not subject to tolerance and should just be estimated at the time of issuing the LE if borrowers typically pay it as part of the closing costs.

It is not a requirement of the loan. I will see if we can work up estimates by state or county for the LE. Thank you for the suggestion.