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Until we get more experience with how lenders are handling Closing Insight and other portal fees, these fees should be separately itemized when initial numbers are given to the lender.

Yes. Information provided by an association does not come from “official or public records” so obtaining this information is not considered to be a title search.

Since Section E is reserved for payments to state and local governments it is unlikely that lenders will disclose these fees in that section since they are not paid to government. Instead, the proper location will likely depend on whether the lender authorizes or requires the use of e-recording services.

If required, they should be disclosed within the same table as the lender’s title insurance premium. If authorized, but not required, they should be considered an elective service which would be disclosed within the table H. (Other).

Note also that under an interpretation of Florida law e-recording fees are arguably a component of the settlement fee when the use of such a service is not required by a lender.

Changes to closing costs or cash to close will require a revision to the Closing Disclosure, but will not automatically require a restart of the three-day delivery clock.

If the change is accompanied by either an increase in the APR above the legal limit, a change in the loan product, or the addition of a prepayment penalty, it is that change which will cause a restart of the clock.

Current interpretation is that a lien search is considered part of the “title search” as defined by Sec. 627.7711(4), F.S. and that it may be included in the charge for the title search. (A search of the records of a Uniform Commercial Code filing office is the only title search specifically excluded from such treatment.)

Based upon unofficial guidance from the State of Florida, as well as the practical problems faced by lenders in creating Loan Estimates, best practice would suggest that you combine all of your title search fees into one entry on the CD such as “Title - Title Search to “Name of Settlement Agent”.” When done in this fashion you would issue separate checks for all services included within the combined amount.

In the event you are authorized or directed to itemize a lien search separately from other title search charges, you should disclose it as “Title - Title Search to Lien Search Company.”

For closings where a CD is not issued (e.g. cash, commercial, etc.) you may choose to either combine your title searches into one fee or to separate them. In either case, the fee should be called “Title Search.” If you choose to combine the fees, the payee should be the settlement agent who handled ordering the searches. If the fees will be displayed separately you would list the payee as the entity to whom the bill is owed. For example, two fees would be displayed as:

Title Search Fee to ATFS, LLC - $150
Title Search Fee to Lien Search, Inc. - $250

Whereas a combined fee would be displayed as:

Title Search Fee to Adam Attorney, P.A. - $400

Most eRecording fees are considered to be a component of “closing services” as defined by Sec. 627.7711(1)(a), F.S. and must be included in the settlement/closing fee. As such, they may not be separately itemized. (You may, however, choose to itemize costs and services which are included in your settlement/closing fee on a separate disclosure.)

NOTE: Lender instructions may specifically direct itemization which conflicts with Florida law. If that is the case, you should follow the lender’s instructions because it is responsible for preparing the form.

The Butler Rebate is a rebate of all or a portion of a title agent’s share of title insurance premiums. It can only be given to the party charged for the title insurance premium upon which the rebate is based.

A Butler Rebate should be separately disclosed; preferably in Section H (“Other”) on page two, but it could also be disclosed on page three in the Summaries of Transactions tables. In Section H the amount of the rebate is disclosed as a negative number placed in the column of the party receiving the credit. The description can read “Butler rebate from (title agent/agency).”

When disclosed on page three, rebates to borrowers will be disclosed as a positive number on an available blank line in Section L (Paid Already by or on Behalf of Borrower at Closing) under “Other Credits” (“Butler rebate from title agent/agency”). Rebates to sellers will be similarly disclosed on a blank line in Section M (Due to Seller at Closing) above “Adjustments for Items Paid by Seller in Advance.”