[mdunker]

We have to re-disclose the LE because of a loan amount change. The customer shopped for title insurance. What are we required to do with our fees. We have an invoice from the title company they chose. Do we have to update the fees to that title company or do we leave the fees as they are?

[rcooper]

Mdunker, I’m sorry we missed this earlier…
I’ve always been of the opinion that you should only change the fees affected by the CofC because that is generally what you’re relying on to determine compliance with the tolerance rules and it could cause issues if you pull in revise number not related to the CofC and have to go back through old LE to find the correct disclosure for tolerance purposes. This is a bit different scenario, but I would be concerned about employing different processes as that could be confusing to staff having to keep up with it.

19(e)(3)(iv)-
2. Actual increase. A creditor may determine good faith under § 1026.19(e)(3)(i) and (ii) based on the increased charges reflected on revised disclosures only to the extent that the reason for revision, as identified in § 1026.19(e)(3)(iv)(A) through (F), actually increased the particular charge. For example, if a consumer requests a rate lock extension, then the revised disclosures on which a creditor relies for purposes of determining good faith under § 1026.19(e)(3)(i) may reflect a new rate lock extension fee, but the fee may be no more than the rate lock extension fee charged by the creditor in its usual course of business, and the creditor may not rely on changes to other charges unrelated to the rate lock extension for purposes of determining good faith under § 1026.19(e)(3)(i) and (ii).

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