Have not run across this before. Title company is giving our borrower a $200 discount off their total fees, but the discount isn't associated with any particular fee (Lender's Title, Closing, Endorsement, etc.). Can this be shown on the CD as Title Fee Discount and a negative $200?

My first question is why? Why would a service provider discount fees that are being charged to the lender for lender services?

I have no idea. They just sent us their proposed fee sheet that shows all their normal fees and the $200 discount listed with them.

Well, I was concerned that it could be a violation of Section 8, if the borrower was related to the bank in anyway. Are they in the position of referring business to title companies? You might want to look at the applicant's employment on their application. Giving them a discount on services being performed for the applicant is one thing, if not a Section 8 issue. Discounting services provided to the bank is another issue.

It doesn't appear to be Section 8 violation in any way. I think the title company may have had an issue with the borrower in another unrelated transaction, and they're trying to kiss and make up.

Then I would suggest placing it in Other Credits in Section L identifying the title company as the provider.

1026.38(j)(2) (vi) The description “Other Credits,” together with a description and amount of other items paid by or on behalf of the consumer and not otherwise disclosed pursuant to paragraphs (f), (g), (h), and (j)(2) of this section;

Or in the Payoffs and Payment table, if using the alternative format.

Great. Thanks!