Q: Does the borrower have to select a settlement service provider from the loan originator‘s written list of settlement service providers?
A: No. If the loan originator permits a borrower to shop for a settlement service provider, the borrower may choose a qualified provider that is not on the originator‘s written list.
This can be found in GFE-Written List of Providers – FAQ #2 of HUD’s FAQs. HUD’s FAQs can be found at http://www.hud.gov/offices/hsg/rmra/res/respa_hm.cfm