[vellis]

I have a question after I listened to the Webinar. If the bank is not requiring a pest inspection and a home inspection, do we need to list theses on the WPL. Also if we do not list them, do they go in the “H” other section instead of items that “you can shopped for”.

Also, if you have a sales contract and on the contract it states that the buyer will pay so much of the sales commission, so we need to show this on the LE in the “other’ section.

Thanks for your help

Topic

[jholzknecht]

The Loan Estimate includes costs paid by or imposed on the consumer. If you allow the borrower to shop for a service provider, then the service and cost is disclosed in Section C, Services You Can Shop For, on the Loan Estimate and the service must also be listed on the Written List of Providers (WLP) form. You don’t need to list the pest inspection or the home inspection on the Loan Estimate or on the WLP if the fee is not expected to be paid by or imposed on the consumer. The pest inspection and home inspection charges would appear in Section H, Other, if the charge is required by the sales contract, rather than by the creditor, and the creditor is aware of the requirement.

If the sales contract requires the consumer to pay a portion of the sales commission the cost is to be included in Section H.

[vellis]

I don’t think I was clear on my question. Is it possible to list more services on the WLP than is on the LE as “can shop for services”.
We have to prepare our WLP manually and I’m trying to make it easier on the processors.

for example:
The LE has “Services you can shop for”
Title – closing
Title – Lender’s Title Insurance
Title – Shipping & Handling

The Written List of Providers
Title – Attorney Fee
Title – Closing
Title – Document Prep
Title – Lender’s Policy
Title – Search Fee
Title – Shipping & Handling

Please let me know if it is a violation if we list more on the WLP than what is on the LE

Thank you very much

[jholzknecht]

Section 1026.19(e)(1)(vi)(C) states, “If the consumer is permitted to shop for a settlement service, the creditor shall provide the consumer with a written list identifying available providers of that settlement service…” The regulation anticipates that you will disclose one or more providers for each services for which the consumer may shop. It does not anticipate that you will list services on the Written List of Providers that are not included in the “Services you can shop for” section of the Loan Estimate. While the regulation does not specifically prohibit including additional items, the practice could create problems with the disclosure being “clear,” as required by Section 1026.5(a).

The best practice is to include On the WLP those services listed in the “Services you can shop for” section of the Loan Estimate.

[Author]

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