Exhibit A to a Title Opinion is generally a description of the property.
• Part 1026.4(c)(7) of Regulation Z (Truth in Lending) states that real estate related charges, including title charges, are excluded from the finance charge in a transaction secured by real property or in a residential mortgage transaction if the fee or charge is bona fide and reasonable in amount.
• Appendix A to Part 1024 Regulation X states, “Line 801 is used to record “Our origination charge,” which includes all charges received by the loan originator, except any charge for the specific interest rate chosen (points). This number must not be listed in either the buyer’s or seller’s column. The amount shown in Line 801 must include any amounts received for origination services, including administrative and processing services, performed by or on behalf of the loan originator.”
o The RESPA FAQs state, “The amount shown in Line 801 must include any amounts received for origination services, including administrative and processing services, performed by or on behalf of the loan originator.”
o There is no discussion regarding which fees are performed by or on behalf of the loan originator. Generally, charges for preparing a mortgage or deed of trust are performed on behalf of the loan originator; since the document is only needed when a lender is making a loan. Title charges are generally incurred whenever a property transfer occurs, whether there is a loan or not. So title charges are generally not performed on behalf of the loan originator. Such charges should appear in the 1100 Series.
