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RESPA - Non-Disclosure of Required Fee on GFE

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Question: 
If a loan officer doesn't disclose a survey fee to the buyer on the GFE (even though contract shows buyer will be party to pay for this) and we require the survey deletion in our title policy, are we required to pay for that fee at closing? This was not disclosed on GFE and the borrower did NOT pick a surveyor on our shoppable providers list.
Answer: 

You will need to list the fee on your Settlement Statement (SS). Since it is a requirement of the title services, it is a 10% tolerance item. On page 3 of the SS, list the survey fee in the tolerance table. You may or may not have to pay some or all of the fee depending on the overall tolerance calculation.

First published on BankersOnline.com 4/11/11

First published on 04/11/2011

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