HUD-1: 1108, 1109: Title insurance premium: if there are special endorsements required by the lender (for example a Planned Unit Development endorsement, environmental endorsement) that costs an additional sum, do those costs need to be specifically and itemized separately from the basic title premium?

TIL: Demand feature: if there is NO demand feature, is it an error to disclose "No demand feature". In other words, is the only time you should reference any demand feature in your TIL, when there IS a demand feature.

We are being told that both of these are improperly disclosed (i.e., 1) any separate cost for special title endorsements must be specifically itemized and 2) if there is no demand provision then it is an error when the TIL discloses "no demand feature").

You thoughts would be appreciated.

Bump..... Anyone have any thoughts on this? Please?

HUD: If you refer to Appendix A of RESPA, you will find the line instructions. For Lines 1108-1110, they state (I bolded key sentences):

Lines 1108–1110 are used for information regarding title insurance. Enter the total charge for title insurance (except for the cost of the title binder) on Line 1108. Enter on Lines 1109 and 1110 the individual charges for the Lender's and owner's policies. Note that these charges are not carried over into the Borrower's and Seller's columns, since to do so would result in a duplication of the amount in Line 1108. If a combination Lender's/owner's policy is purchased, show this amount as an additional entry on Lines 1109 and 1110.

I do not see any requirements to separately itemize special endorsements. I would ask the person telling you this to show you where the instructions state to do it that way.

TIL: §226.18(i) indicates "If the obligation has a demand feature, that fact shall be disclosed." Therefore, I agree. If there is no demand feature, you should not state this. You only state if there IS demand feature. Very technical, but they are correct.

We have never separated out the cost for these endorsements. These endorsements are part of the title insurance policy and included in the premium. I would look at them no different than say a jewelry endorsement on a homeowners policy.

From Appendix A:

Lines 1108-1110 are used for information regarding title insurance. Enter the total charge for title insurance (except for the cost of the title binder) on Line 1108. .......

I have never seen a contract where it states there is no demand feature, but I also know of no prohibition from disclosing that fact. What specific section are they quoting that prohibits this disclosure?

Thank you both so much!!!