In the scenario below 1. Would the fee be disclosed in block b or C of the CD? 2. Would the payment recipient be the title company or the company that the title company is paying?
Scenario: We disclose a Title fee on the Service Provider List and on the Loan Estimate with ABC title Company. At Closing ABC Title shows the payment recipient is a different party who is paid by the title company.
As the Lender, our payment is going to the title company but the title company is paying another recipient. (Example: paying another party an electronic filing fee). As the lender, we don’t receive an invoice for the other party; we receive an invoice from ABC Title.
Where do we disclose the fee on the CD and who is the payment recipient?
I don’t see a problem with this since it will be the recipient of the funds. If you don’t have the information on the other company then you would of course just list the title company. As to whether this would affect your tolerance catetgory because the electronic filing fee recipient, from your example, wasn’t on the shopping list, it should not since your borrower was given the option to shop and selected the title company which utilized this other party.