Can “recording fees” be disclosed on a separate line from “transfer taxes” on the LE/CD?
This topic is currently the FAQ that has been voted on the most times as a helpful response in the Resources FAQ section for TRID:
There is a separate line dedicated to each of these fee types in section “E. TAXES AND OTHER GOVERNMENT FEES” on page 2 of the LE/CD.
The pertinent part of the rule states:
TAXES AND OTHER GOVERNMENT FEES. Under the subheading “Taxes and Other Government Fees,” the amounts to be paid to State and local governments for taxes and other government fees, and the subtotal of all such amounts, as follows:(Read More)
§ 1026.37(g)(3) of the rule states the following in Official Interpretation-2, which excludes the aggregate adjustment from the LE:
However, the aggregate adjustment is accounted for on the CD, as follows, § 1026.38(g)(3), Official Interpretation-2:
IDS Compliance has been asked several times why recording fees are not itemized out on the Loan Estimate and Closing Disclosures. The following clarification comes from the CFPB Response from Webinar dated 11/18/2014:
Well, the Loan Estimate requires the sum of all recording fees to be disclosed as one item. The provision for that is found at § 1026.37(g)(1)(i). The Closing Disclosure also requires the recording fees to be disclosed as one item, but also requires that the amount paid to record the deed and mortgage be itemized separately. The itemized recording fee for the deed and the mortgage should only include the amounts needed to record each of those documents. Recording fees associated with any other documents, except for the deed and the mortgage, are just included as part of the total recording fees and are not separately itemized. See, § 1026.38(g)(1)(i). Please note that the total recording fees are allocated between the consumer, seller and others in the applicable column pursuant to the agreement among those parties. [Emphasis added; highlighted parts correspond with the pictures below].(Read More)
IDS Compliance has this simple breakdown from the rule:
Good Faith tolerances are referred to in the TRID rule as “variations,” but many in the industry are referring to them as “variances.”
The following list shows the types of fees that make up each category, per § 1026.19(e)(3):
0% Variance Category