Hello everyone,

As we see more and more places adding "Tip" screens on to their POS systems, it was only a matter of time before invoices for services such as pest inspections began including the gratuity the borrower added. I object to the idea of this since I believe this practice may compromise the integrity of the inspector/inspection, but for arguments sake, let's ignore independence rules for a moment.

In your institution, if you collected an inspection invoice and noticed that gratuity was included into the final cost, how would you document this on the Closing Disclosure? Would you simply input the final amount (tip included) charged to the borrower as one line item In section B/C, itemize the invoice and perhaps include gratuity payable to the inspector in Section H, something different?

I am interested in hearing your thoughts on this!

Unless the "gratuity" wasn't optional, i wouldn't include it. I don't see a gratuity as a "cost". I jumped into section 38 a little bit and that's how i'm reading those sections...."an itemization of the services and corresponding costs for each of the settlement services".

I'm open to other interpretations.

Hey Raitchjay,

Thank you for your response. I think that makes sense to me. Gratuity is not a closing cost per se. Gratuity, as defined by Miriam Webster, is, "something given voluntarily or beyond obligation usually for some service."

Interesting point about the gratuity being optional. At some restaurants, if you have a party of 6 or more, gratuity is automatically included in the bill. This is an example of "non-optional" gratuity. I dread the day an inspector includes automatic gratuity for homes over XXXX sq feet!

LOL......unfortunately, that day may be coming. It was a good question, and not something i've yet faced.