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On the written list of service providers that a consumer can shop for, must the bank include every potential service for which a settlement agent may charge, including for services the bank does not require?

I have a TRID question about the specificity of the list of settlement services on the written list of service providers that creditors must provide consumers if the creditor allows consumers to shop for certain services. My bank allows consumers to shop for most settlement services, including the settlement agent. Must the bank include on the written list of service providers every potential service for which a settlement agent may charge, such as notary and title search services, if the bank does not require these particular services?

No. Under comment 3 to §1026.19(e)(1)(vi) of Regulation Z (Truth in Lending Act), “The settlement service providers identified on the written list . . . must correspond to the required settlement services for which the consumer may shop.” To illustrate, Model Form H-27(B) offers a sample of the written list of providers. In the first column of the table is a list of potential settlement services. The third column identifies a corresponding “provider we identified.” If the bank does not require one of the services in the first column, (e.g., lender’s title policy) it need not include the service or a corresponding provider on the written list.

The Bureau’s 2017 TILA-RESPA Rule: Detailed Summary of Changes and Clarifications addresses this issue in further detail. (June 2019)

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