Suite of Services

Suite of Services
*Full Service Compliance Support!

TOPICS

Thursday, December 10, 2015

TRID: Itemizing Fees on the Closing Disclosure

QUESTION
Is it true that a creditor cannot itemize recording fees and other government fees and taxes on the Closing Disclosure (“CD”)? If so, how does a creditor reflect such fees and taxes on the CD?

ANSWER
Yes, it is true! The TILA-RESPA Integrated Disclosure Rule (“TRID”) does not permit the itemization of recording fees and other government fees and taxes on the CD.  Instead, TRID requires that all recording fees and government fees and taxes, other than transfer taxes, be added together and listed as a lump sum on the CD. [§ 1026.37(g)(1)(i)] 

The lump sum total must be recorded in Section E of the CD as “Recording Fees and Other Taxes” under the “Taxes and Other Government Fees” subheading. [Idem] 

Additionally, all transfer taxes must be totaled and recorded as a lump sum on the next line.
[§ 1026.37(g)(1)(ii)].

See below:


Moreover, TRID does not permit additional lines or items to be added to individually catalogue these fees and taxes. [Commentary at 1026.37(g)(1)-6] If no recording fees or transfer taxes are charged, these lines should simply be left blank. Lines from this section should never be deleted. [Idem]

In the event a creditor desires to itemize and disclose these fees and taxes, or state law requires such disclosure, we suggest the creditor do so using a separate document. To meet this need, the American Land Title Association (“ALTA”) has developed the ALTA Settlement Statement (http://www.alta.org/cfpb/documents.cfm), which provides a model form for disclosure of all itemized fees and charges that buyers and sellers pay during the settlement process.

Michael Barone
Executive Director
Director/Legal & Regulatory Compliance 
Lenders Compliance Group