Q: Is there a required naming convention used for charges on the Loan Estimate or Closing Disclosure?
A: Generally, the TILA-RESPA Rule does not prescribe a uniform naming convention outside of the general labels set forth in the rule (i.e., taxes and other government fees, prepaids). It did not create a standard or prescribed list of fee names.
However, there are some specific types of charges that must be identified in a prescribed manner on the form. For example, creditors must itemize and label points paid to the credit or to reduce the interest rate separately and as a percentage of the loan amount. (§ 1026.37(f)(1)-(3); Comment 37(f)(1)-3). There are also specific rules that apply to disclosure of fees related to title services. For example, the TILA-RESPA Rule requires the description fee to be preceded by the word “title” and a dash or a hyphen. (Comment 37(f)(2)-3). Additionally, the name of a particular fee should be consistent on both the Loan Estimate and the Closing Disclosure and should reasonably describe the service performed in exchange for payment of the fee. (See §§ 1026.37(f)(5) and (g)(7))