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Does a bank need to disclose a home warranty as optional on a loan estimate?

My bank has a signed contract that stipulates the borrower will pay for a home warranty. Since the bank knows this prior to issuing the loan estimate, does it need to disclose as optional on the loan estimate?

It appears that the bank would not include the “optional” parenthetical phrase according to the Comment 4 to §1026.37(g)(4):

Examples. Examples of other items that are disclosed under § 1026.37(g)(4) if the creditor is aware of those items when it issues the Loan Estimate include commissions of real estate brokers or agents, additional payments to the seller to purchase personal property pursuant to the property contract, homeowner’s association and condominium charges associated with the transfer of ownership, and fees for inspections not required by the creditor but paid by the consumer pursuant to the property contract. Although the consumer is obligated for these costs, they are not imposed upon the consumer by the creditor or loan originator. Therefore, they are not disclosed with the parenthetical description “(optional)” at the end of the label for the item.

(March 2017)

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