[belandis]

We are trying to determine how to create a compliant service provider list, particularly for title-related services, when making loans outside of our normal market area in Kentucky. In particular, we have TPO relationships with banks in Kentucky that are outside of our normal reach. We also have customers that regularly purchase property that is out-of-state (i.e. Florida).

It is not practical to maintain multiple provider lists or constantly make changes so that there is a provider on the list where the consumer or property is located.

Is it acceptable to include a regional title company (i.e. serves all of Kentucky and Middle Tennessee) on the list to cover loans made through TPOs? Is it acceptable to include a national title company on the list to cover loans made out-of-state?

We plan to continue to include the providers currently on our list for our normal market area and just add a regional and national company.

[jholzknecht]

Comment 19(e)(1)(vi) – 4. states, “a creditor does not comply with the availability requirement in § 1026.19(e)(1)(vi)(C) if it provides a written list consisting of only settlement service providers that are no longer in business or that do not provide services where the consumer or property is located.”

It is acceptable to include regional or national providers on your list as long as they actually provide services in the area where the consumer or property is located.

Including your local providers on the list that do not provide services in the area where the consumer or property is located may be a problem.

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