We have an "approved" title company list at our bank but we have always listed one particular title company on our Service Providers list. We never change it even if we know they will not be selecting that particular title company. At closing when we prepare our CD we automatically set all these fees to the unlimited tolerance since they did not select that particular provider. Is this Ok?

So, NONE of your borrowers EVER pick the provider on your list? That sounds kind of strange, actually.

To answer the main question though....if you are listing Title Services Provider A and your borrower selects Title Services Provider B (not on your provider list), then yes, those items are unlimited tolerance, so long as you didn't leave out fees from your LE for required services that later got charged, albeit by a different provider.

Yes sometimes they do but the majority do not bc they are not in the same area.

So long as the title services provider you are listing will actually perform the services for that transaction, you would be ok. You cannot however list a title services provider for every application you take regardless of area if that title services provider does not provide services for that area.

What do you mean they are not in the same area. You are listing a title service provider that does not provide services in the area of the borrower or property?

The title company will provide the service to the other areas but the customers do not want to travel an hr. or more away they would rather choose a title company closer to where they are at.. if that makes sense. We have branches in TN and GA after merging with our sister bank. When TRID first started only putting one provider on the list made sense but now I am starting to doubt this.

I think you're just in "business decision" land. The title company will provide the service, so technically you're covered. However, could you be criticized for only including a provider who will provide the service, but only at the inconvenience of your borrowers? Pretty much. So.....i don't know of any definitive guidance...perhaps Randy does.

We have an "approved" title company list at our bank but we have always listed one particular title company on our Service Providers list.

This sounds like you have an "approved" title company but you are listing a different one on you SPL. If that is the case then I would question your "good faith".

If your borrower has to travel an hour to get to your preferred provider, then they are not available in my mind. That provider is not being put forth in good faith, if there are others available in the their area. You need to go back to the original TRID preamble:


Accordingly, the Bureau believes that if the creditor permits a consumer to shop for a settlement service, it is appropriate to require creditors to provide consumers with a written list that identifies available providers of that service. The Bureau recognizes that a creditor originating a loan in a geographical area with which it is unfamiliar may have less familiarity with the mortgage market in that area, but the Bureau believes that the creditor nonetheless has better access to information than the consumer about settlement service providers in the geographical area.

Thank you!