Written List of Providers

Posted By: Comply Central

Written List of Providers - 02/04/21 03:09 PM

We usually do not allow our customers to shop for services on mortgage loans. However, we have a customer that has applied for a loan and in their contract it states that part of the agreement is that they use an attorney that we do not use. We do not have a written list of providers since we do not allow them to shop. If we were to allow them to use this attorney are we required to provide the list?
Posted By: rlcarey

Re: Written List of Providers - 02/04/21 03:34 PM

You cannot tell the borrower what attorney they can use. The attorney that the bank selects represents the bank and not the borrower. If they are selecting an attorney and saying this attorney has to represent the bank, then you can pass on the deal. If some jurisdiction, not allowing the borrower to select the attorney used to represent the borrower in the transaction is going to run into State law issues.
Posted By: Jason Ellis

Re: Written List of Providers - 02/04/21 05:10 PM

I don't want to hijack Lynzey's thread but I logged in to ask a very similar question.

In a state such as West Virginia where an attorney must perform title exams and conduct loan closings, is a lender required to list an attorney on the Written List of Service Providers? I am not sure when the state requires an attorney if that attorney is representing the borrower? Does that means the lender requires the service?
Posted By: rlcarey

Re: Written List of Providers - 02/04/21 05:50 PM

Well, if an attorney must perform title exams and conduct closings, if the lender wants a title exam and the loan to legally close, how is that not a lender requirement?
Posted By: Jason Ellis

Re: Written List of Providers - 02/04/21 06:30 PM

Yeah. I think the title company usually coordinates the closing attorney so I don't know if the borrower can shop thereby requiring us to not only to disclose a title company on the WLSP but also an attorney?
Posted By: rlcarey

Re: Written List of Providers - 02/04/21 07:45 PM

Any specific service has to be separately disclosed. The CFPB was asked to clarify this during the comment period to TRID 2.0, but declined to do so. So, it comes down to how far do you really have to drill down.

Do you disclose the title company's attorney, if you are paying the title company and they are paying them? What about their courier fee - do you disclose that you are paying the title company or are you listing Fed Ex or Joe Courier? How far down the rabbit hole do you have to go?

I think the logical thing is to stop at the first payee. If you have XZY Title company on your SPL and you know that XZY Title will choose an attorney, I do not think that you have to then list every attorney they might select. You would list Title - Attorney Fee and the title company as the provider.
Posted By: Jason Ellis

Re: Written List of Providers - 02/04/21 10:31 PM

Thank you for your insight!