How do I provide a borrower the benefit of a simultaneous rate on a loan policy issued in conjunction with a second mortgage in a purchase transaction with two mortgages?

When a lender requires a Closing Disclosure for the second mortgage the title insurance premium must be disclosed by applying the same TRID rule as for the first mortgage. Furthermore, Florida currently requires the collection of the $3.28 surcharge for all policies except simultaneous issue. You must therefore disclose the TRID rate for the loan policy in the Loan Costs Section (B or C) and the surcharge in Section E. Taxes and Other Government Fees on the secondary CD.

If an owner’s policy is being issued in the transaction as reflected on the primary CD, you can provide a credit on the secondary CD for the difference between the TRID rate and simultaneous rate coupled with credit for the surcharge in section H. Other. Subtract the simultaneous rate from the TRID rate and add the $3.28 surcharge to the difference. Disclose this sum in the borrower’s column as a negative number and describe the entry as “Title - Owner’s Coverage credit to (agent/agency).”

If borrower opts out of the owner’s policy on the primary CD, removing that product on the primary CD and the credit on the secondary CD will be all that is necessary.