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Required Providers

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  • #3487
    wp27
    Participant

    Do we still have to give a separate “Required Providers” list under RESPA? I don’t see anything in the reg about it, but we have a form for it. I think it used to be a requirement but isn’t now?

    #3489
    rcooper
    Keymaster

    The required provider list you’re thinking of went away with the revised GFE. Now, if you allow a customer to shop for a third party settlement service, you must provide the borrower with a list of settlement service providers at the time of the GFE, on a separate piece of paper.

    From Reg X, Appendix C, page 2:
    Your Charges for All Other Settlement Services”

    There is a 10 percent tolerance applied to the sum of the prices of each service listed in Block 3, Block 4, Block 5, Block 6, and Block 7, where the loan originator requires the use of a particular provider or the borrower uses a provider selected or identified by the loan originator. Any services in Block 4, Block 5, or Block 6 for which the borrower selects a provider other than one identified by the loan originator are not subject to any tolerance and, at settlement, would not be included in the sum of the charges on which the 10 percent tolerance is based. Where a loan originator permits a borrower to shop for third party settlement services, the loan originator must provide the borrower with a written list of settlement services providers at the time of the GFE, on a separate sheet of paper.em>

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