Question: In WI, the seller always pays part of the owner’s title insurance, leaving about $300 for the borrower to pay. Can the bank break the premium on the LE up to show $X paid by the seller and $Y paid by the borrower? Or does it have to show just one “undiscounted” premium to be paid by the borrower (with the actual split shown on the CD)?
Answer: My first instinct is that the LE generally should show just what the borrower is generally expected to pay, but what must be done is to disclose one undiscounted premium on the LE, and then “clean it up” on the CD. This is just one of the things we have to do in the TRID world that is not exactly reflective of the real world.
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