We are still handling OTI the same way we did it when the new RESPA rules went into effect in January because I was waiting for more clarification – or something – from HUD. This is what we do (which I believe follows instructions in the FAQ):
A) Always put OTI on the GFE for home purchase loans.
B) Put OTI in the borrower’s column on the HUD-1.
C) Show a credit for OTI in the 200 Series and a charge to the seller in the 500 series.
D) The comparison chart contains amounts in the GFE and HUD column for OTI.
Our Software vendor seems to be making changes to comply with the RESPA Roundup which says:
“If the consumer did not purchase a service that was listed on the GFE (usually owner’s title) there should be nothing entered in that line on Page 2 of the HUD-1 and the estimate of the charge should not appear on the comparison chart on Page 3 of the HUD-1.”
1) Is the “consumer” in this case our borrower or does it mean any consumer (seller) associated with the loan?
2) Is HUD saying to show the OTI in the Seller’s column of the HUD-1?
3) Does HUD still expect us to put the OTI on the GFE for a purchase?
We usually pay for the flood determination rather than passing the fee to the consumer. We handle it basically the same way we do the OTI.
•Does this also fall off of the comparison chart now?
What I want to ask is Why? Why? Why? But I know it’s pointless so I won’t.
Taken from the Banker Online Blog.
Posted via email from Title Insurance Williston Financial Group LLC (WFG) has appointed William Moody as executive vice president. Moody will lead wholly-owned subsidiary New Millennium Title, WFG’s lender services division, from the division’s new headquarters in Simi Valley, Calif. He will also serve on the Executive Committee of WFG. WFG is a national, full service provider of title insurance and real estate settlement services for the mortgage industry. New Millennium Title is already operating in all 50 states. The division delivers a range of settlement services, including title insurance and closing/escrow services, for both the commercial and residential transactions. Moody has 34 years of experience in the mortgage and settlement services industry, most recently as founder, president and chief executive officer of national settlement services firm Lender’s First Choice. He also spent 11 years as a president of financial services with Coast Federal Bank. “WFG and New Millennium Title are a great fit for this market,” said Moody. “We are already serving a variety of large, medium and small national clients, and are pleased to see that flexibility, communication and responsiveness on the part of their settlement services partners are no longer luxuries in the eyes of mortgage lenders. They are now requirements. This fits our business model, which centers on communication, collaboration and co-existence.” WFG President and Chief Executive Officer Patrick Stone asserts that Moody is an excellent match for the company’s approach to the market. “Bill has tremendous experience on both the lending and settlement side of the real estate transaction,” said Stone. “He strives to adapt his services to meet the needs of the customer, rather than forcing the customer to fit his operation. At a time when mortgage lenders need flexibility and speed from their partners, Bill Moody will be an asset to New Millennium’s clients.” For more information, visit www.WillistonFinancial.com. Posted via email from Title Insurance Posted via email from Title Insurance
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