We were recently written up by examiners because on our Service Provider List we did not list Services That you Cannot Shop For but it is within Section B of our Loan Estimate. Is it a requirement to list the services that cannot be shopped for on our provider list? Everything I read indicates that the creditor MAY identify on the written list of service provider those services for which the consumer is NOT PERMITTED TO SHOP FOR. MAY list is the key word??

There is no regulatory requirement to identify providers for services the consumer cannot shop for on the Servicers Providers List.

What section of the Regulation are they citing?

IMO 1026.19(e)1)(vi) and its OSI are pretty clear that you only have to provide a list of providers that will perform the service the consumer can shop for.

Because the idiots at the CFPB issued Model H-27(C) which included it.

There was not a regulation cited.....probably because it doesn't exist!

When you say examiners - you mean regulatory examiners or internal or external auditors? Either way, this needs to be escalated up the chain of command.

Dan and Randy are correct and I would not agree to this finding with your examiners/auditors. I would be very surprised if this is an examiner (and not an auditor) and it made it to the final report after going through a review desk. Either way, I would push back because it isn't required.

Comment 19(e)(1)(vi)-6, with relevant text highlighted:



That is the only reference to the option. I have never yet heard of a lender that has used it. The reasons are obvious.