CFPB TRID Sec. 8 - May the written list of service providers be revised to reflect Loan Estimate revisions?

Compliance > Regulation Z - TILA / TRID Specific > Loan Estimates
Q:  May the written list of service providers be revised to reflect Loan Estimate revisions?
 
A:  A creditor may update and re-disclose the written list of service providers to reflect a new service that is added as a result of a changed circumstance or borrower requested change.
 
When an event that would permit resetting of tolerances under § 1026.19(e)(3)(iv) occurs and an additional settlement service is required, the creditor may disclose third-party service providers of that additional service on the written list at the same time as issuing the revised Loan Estimate. If the creditor will permit the consumer to shop for this new service, there are two ways that a creditor may approach adding this new service to the written list.
 
  • First, the creditor may include the additional service and provide an updated written list; or
  • Second, the creditor may provide a written list showing only service providers of the additional service.
 
If, based on all the relevant facts and circumstances, the creditor allowed the consumer to shop for the additional service but fails to provide an updated or revised written list of service providers, the additional service is subject to 10% cumulative tolerance, so long as the service is not provided by the creditor or its affiliate. (Comment 19(e)(3)(iii)-2)
 
 
This Loan Estimate / LE information can be found in the CFPB's TILA-RESPA Integrated Disclosure rule compliance guide - http://www.consumerfinance.gov/regulatory-implementation/tila-respa/
 

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