[penny.vise@cbsbank.net]

We want to verify how these should be disclosed on the LE and the CLoD. We did communicate with an examiner who stated that the regulation is not clear on some of these but provided his recommendation. We are questioning one in particular, just wanted to get your opinion, on all.

There are times when a closing agent may charge any of these fees in purchase transactions, we are not sure at the time of LE but since it is typical want to include on the LE. We allow shopping for the closing agent, yet was told this should go in Section B. Assume the logic is that although borrower can choose the closing agent, cannot choose Fed Ex, UPS, etc. But on the flip side, said such fees paid to a title company are disclosed in Section C (do allow shopping for title provider).

The main one we are questioning is an overnight fee that we, the bank, may charge and at the time of the LE, do not know if it will be FedEx, UPS, etc.; were told this should go in Section A unless paid to directly to FedEx/UPS by the borrower. We see this no different than the flood fee or credit report fee although we do know at the time of the LE who it will be paid to. Still feel the overnight fee should be disclosed in Section B as payable to CB&S Bank to FedEx/UPS.

Thanks for any insight!!

[jholzknecht]

The one thing I do agree on is that “the regulation is not clear on some of these.”

It appears that the delivery fees are ultimately paid to the delivery service and that the borrower is not allowed to shop for the service provider. On the LE the ultimate service provider is not identified, but on the CD you are required to list “the name of the person ultimately receiving the payment.” Section 1026.37(f)(2) (Cannot Shop for) includes “settlement services for which the consumer cannot shop and that are provided by persons other than the creditor or mortgage broker.” Section 1026.37(f)(3) includes “settlement services for which the consumer can shop and that are provided by persons other than the creditor or mortgage broker.”

In my opinion whether processed by the closing agent, the title company or your bank the charge goes in Section B – Services You Cannot Shop For.

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