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
