[Sandy]

We have a purchase consumer home loan that an attorney that is not on our Provider List is handling the closing. There is a payoff that they will need to wire out and the $20 fee is paid by the seller. The wire fee will not be our fee at all. The attorney banks at another Bank. Do we put the wire fee in section C on the Closing disclosure or section H? Also, since it is being collected to the attorney’s office who is the closing agent do we put the word TITLE in front of the fee?

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[jholzknecht]

Getting the cost on the closing disclosure is the most important concern. Where the item goes on the form is of secondary importance.

Section B, “services You Cannot Shop for” is an option, but the Commentary has a fairly comprehensive list of items included in the section, and wire fees are not on the list. This does not appear to be the best option.

Section C is for items for which the borrower is able to shop. It appears the attorney has been selected, the fee is essential, and the borrower cannot choose another provider for the service. So, Section C does not appear appropriate.

Section H, “Other Costs,” includes any other amounts in connection with the transaction that the consumer is likely to pay or has contracted with a person other than the creditor or loan originator to pay at closing and of which the creditor is aware at the time of issuing the disclosure. This appears to be the best option.

For any item that is a component of title insurance or is for conducting the closing, the introductory description “Title –” shall appear at the beginning of the label for that item. The item appears to be related to conducting the closing, so “Title -” should be added.

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