« Is Borrower Required to Sign Updated Version of Closing Disclosure? | Main | How to Disclose Simultaneous Issue Rate for Know Before You Owe »

10/29/2015

TRID Q&A: How to Handle Recording Fees

Question: I have a question about recording fees on the CD. It is my understanding that recording fees are required to be “rolled up” so to speak in line E 01 since the only two items that the regulations allow to be itemized are for the deed and mortgage and that we are not permitted to add lines for other recording fees (for example the recording fee for a municipal lien certificate or a discharge of mortgage or an assignment of mortgage). So for example, in the CFPB sample CD for a purchase transaction, if there are other recording fees other than for the deed and mortgage, those fees must be added to the box where the figure $85 is represented in the sample form.

Answer: This is a precise understanding of the rule’s requirements on disclosing recording fees. Specifically, the rule requires that all recording fees and other government fees and taxes, outside of transfer taxes, must be added together and labeled “Recording Fees and Other Taxes” under the subheading “Taxes and Other Government Fees.” § 1026.37(g)(1)(i). The bureau clearly states within the Official Interpretations of the rule that no lines can be added or deleted under the “Taxes and Other Government Fees” subheading. Official Interpretation 37(g)(1)-6.

The bureau has also specifically stated that you cannot use an addendum to itemize fees that are required to be disclosed under the “Taxes and Other Government Fees” subheading. § 1026.37(g)(8). If you are required by state law, or simply would like, to make additional disclosures for recording fees or other government fees or taxes, you may disclose those fees in a separate document, such as the ALTA Settlement Statement.

Have questions or issues about TRID that you need answered? Send an email to tridhelp@alta.org. ALTA will address common questions/issues here on its blog.

 

Comments

Feed You can follow this conversation by subscribing to the comment feed for this post.

I am surprised and disappointed that you chose to answer a question about the CD solely with citations to the rule and commentary for the LE. While it is true that 1026.38 frequently directs one to 1026.37, you have left the impression that lines cannot be added at all under that particular heading on the CD (See 1026.38(g)(1) and Comment 38(g)(1)-2). They may be added to itemized transfer taxes even though, as the questioner correctly determined, they may not be used to itemize additional recording fees.

What about recording fees that are charged to the seller? It was my understanding that those fees could be added as additional lines. Please clarify.

Karen,
To clarify, the Closing Disclosure requires the recording fees to be disclosed as one item and requires that the amount paid to record the deed and mortgage be itemized separately within that line item. The itemized recording fee for the deed and the mortgage should only include the amounts needed to record each of those documents.

Recording fees associated with any other documents, except for the deed and the mortgage, are just included as part of the total recording fees and are not separately itemized on page two. They can itemized separately as an addendum. The total recording fees should be allocated between the consumer, seller and others in the applicable column pursuant to the agreement among those parties.

Hello Bob,
Thanks for the comment. When reading the regulation, you must read the applicable section of 1026.37 to understand the requirements on recording fees on the Closing Disclosure. This is because the section on recording fees on the Closing Disclosure (1026.38(g)(1)) makes multiple references back to the Loan Estimate requirements.

The comments to this entry are closed.