[mdunker]

In the state of Indiana our title companies have to collect a $5.00 fee for the state of indiana. What i am trying to figure out is where would this fee go on the Loan Estimate. If it is a title charge and i list it as title-tieff, then would I have to say this is a fee that can’t be shopped for? currenlty this fee is included with title services but listed out under title services.

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[rcooper]

I reviewed your state law pertaining to this fee. You can find it here: https://www.in.gov/legislative/ic/archive/11620/ic/2010/title27/ar7/ch3.6.pdf. This is a unique fee since it is required by the state, but paid to the title insurance company which retains a portion and passes the remainder on to the state. Additionally, there is a disclosure requirement in the state statute.

With all this in mind and since they have probably already had this question arise, I suggest you contact Indiana’s Department of Financial Institutions for their advice on how you should disclose this fee on the integrated disclosures. Please let us know what you find out or if they aren’t able to help you.

[Author]

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