I don't like this practice - they ALWAYS pad the filing fees and always have refund check available at closing. The problem comes in when we are relying on their information to complete the LE. Both the title company and the bank knows the filing cost of each page and will certainly know before closing how many pages the DOT, and other legal filings are.

The question about how to deal with this situation came up in training yesterday. My immediate reaction was, just don't let them do it - you're in charge. We don't want to follow-up and make sure a refund was in fact given, and now we would also have to esure, that the proper documentation accompanies the refund. Am I making too much of this? If we're in charge and we're the liable ones, my initial opinion, (without hearing yours), is as I stated - don't let them do it. They tell us how many pages, we agree on the amount per page and input a non-padded, good faith estimate of the filing fees.

What say you?

Thank you!

We know what our courts charge and that's how we charge. Never have we had to refund or be short on such fees.

Exactly RR. So, you agree with me. We're in charge, we tell them what it is. If they then inform us they have another doc to file, we deal with it then.

I call it lazy really. And they're unwillingness to do it could result in a bad vendor review and limited business heading their way.

We have a title company that appears to be padding fees. We issue our Closing Disclosure (CD) based on fees in the Estimated Settlement Statement. By the time we get the "Final Settlement Statement" after consummation, we find that escrow requested more money from the borrower than what is on our "cash to close" on the CD, and then they show a refund - sometimes in excess of $600. For example, title settlement statement shows refund to Borrower of $619.38. The Bank's CD shows Cash to Close as $126.70 FROM borrower. Escrow had the borrower wire in more money than was required and then issue a refund. The mortgage lender says that this is what the title companies traditionally used to do but this is no longer acceptable under TRID, right?

Do we need to reconcile our CD to what actually transpired at closing and issue a corrected CD to match the $619.38 refund? How are other banks dealing with this?

Does not the bank prepare the final CD for use by the title company? How in the world do they collect more that what you show? Does your closing instructions agreement not indicate that they are not allowed to make any changes after you issue the final CD without the bank's knowledge? Is there an opportunity to place this title company on your no fly list until they get their act together? Sounds like someone from senior management of the bank needs to conduct a come to Jesus meeting with them.

Thank you so much! Your response is very helpful!

In trying to work this out with the title company, we get this response: "The Escrow Reserve is a cushion not a fee and was refunded to the borrower at the close of escrow. The additional $7.59 refund had to do with several factors - interest to/from dates; actual recording costs; updated payoff reflecting a payment made to Bank B; etc. If you'll notice, the borrower actually brought in almost $3,000 less than shown on the CD because of the payment to Bank B and the change in closing date. I know Compliance likes everything to be exact, but if they look at real numbers, $7.59 is pretty darn close. [happy face]"

Our CD showed "Cash to Close" of $15,394 due FROM borrower. Escrow collected $15,701 from borrower and refunded $7.59. The final Settlement Statement included a $300 "adjustment". Unclear why they said the borrower brought in $3,000 less.

Just sharing what we're dealing with.

I hope that response did not come from the manager or owner of the title agency. If they run their business where "pretty darn close" is acceptable a bank needs need to run, not walk, from doing business with them. Makes one wonder if "pretty darn close" is also acceptable in their title searches. The insurance company for whom they write insurance would be interested in that!

From the ALTA website:
Why is the title company working off the settlement statement at all?
Tell them that they MUST close using the numbers on the CLOSING DISCLOSURE ONLY!
Tell them failure to do so will result in you taking your closing business elsewhere.
Smiley faces and 'pretty darn close' indeed.

Does anyone have language in their closing instructions re: the issues noted above that they'd be willing to share? We need to amend our instructions to state that the title company must use the numbers on the Closing Disclosure and if there are any discrepancies with the title company, that they must notify the bank immediately and obtain our approval prior to closing. We'd also like to require that the title company provide their final ALTA Settlement Statement to the bank at least a day prior to consummation so that we can confirm that there are no changes from our Closing Disclosure. Is there any other helpful instruction that we should also include around TRID and the fees/tolerances? Thank you!!