We have a loan where the Recording Fee listed on the LE consists of 4 charges. When the final CD came in, only 3 of the items were charged.


Would we use the LE's full Recording Fee as part of calculating the 10% tolerance, or would we subtract out the fee that did not get charged on the final CD?


Thanks

IMHO - Recording fees are a lump sum amount and there is no requirement to make a determination upfront as to what specifically that estimate is based on . If you say total recording fees are $100 on the LE then that is your estimate for comparison purposes.

Thank you. That's what I was thinking, but not everyone agrees. If they needed to be itemized, I think they'd separate them out on the LE and CD. The only way I can tell what they consist of is to check the fees worksheet and our origination system.

There have been previous discussion on this (i highly respect Randy's opinion, but i happen to be one of those who disagrees on this subject....but we have hashed it out in these threads on a couple of occasions before, so i don't want to hash it out again)..you might do a search. Our LOS will print a Tolerance Basis Checklist where you can see what fees were entered as recording fees.

OSI 1026.37(g)

2. Other government charges. Any charges or fees imposed by a State or local government that are not transfer taxes are aggregated with recording fees and disclosed under § 1026.37(g)(1)(i).

1026.38(g) Closing cost details; other costs. Under the master heading “Closing Cost Details” disclosed pursuant to paragraph (f) of this section, with columns stating whether the charge was borrower-paid at or before closing, seller-paid at or before closing, or paid by others, all costs in connection with the transaction, other than those disclosed under paragraph (f) of this section, listed in a table with a heading disclosed as “Other Costs.” The table shall contain the items and amounts listed under five subheadings, described in paragraphs (g)(1) through (6) of this section.

(1) Taxes and other government fees. Under the subheading “Taxes and Other Government Fees,” an itemization of each amount that is expected to be paid to State and local governments for taxes and government fees and the total of all such itemized amounts that are designated borrower-paid at or before closing, as follows:

(i) On the first line:

(A) Before the columns described in paragraph (g) of this section, the total amount of fees for recording deeds and, separately, the total amount of fees for recording security instruments; and

(B) In the applicable column as described in paragraph (g) of this section, the total amounts paid for recording fees (including, but not limited to, the amounts in paragraph (g)(1)(i)(A) of this section); and

(ii) On subsequent lines, in the applicable column as described in paragraph (g) of this section, an itemization of transfer taxes, with the name of the government entity assessing the transfer tax.