LodeStar, as a default on purchase transactions that require both a lender’s and owner’s policy, discloses according to consumer financial protection bureau (CFPB) / TILA-RESPA Integrated Disclosure (TRID) requirements.
The TRID calculations for the disclosure of the owner’s and lender’s title policies are as follows –
Owner’s Title Policy = Full Owner’s Policy Premium plus (+) Simultaneous Issuance Fee minus (-) Full Lender’s Policy Premium
Lender’s Title Policy = Full Lender’s Policy Premium
As an example, if the Full Owner's Title Policy is $1292, the Simultaneous Fee $100, and the Full Lender's Title Policy is $876, the calculation is as follows –
Owner's Title Policy = $1292 + $100 – $876 = $516
Lender's Title Policy = $876
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Before the TRID requirements were put into place in 2020, the "old" way of disclosing was as follows –
Owner’s Title Policy = Full Owner’s Policy Premium
Lender’s Title Policy = Simultaneous Issuance Fee
Given the same numbers as in the example above, the disclosed amounts would be as follows –
Owner's Title Policy = $1292
Lender's Title Policy = $100
Notice that the sum of the disclosed Owner's Title Policy and the Lender's Title Policy is unchanged between the two disclosure types, they both total $1392.
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Again, by default, LodeStar discloses the premiums using TRID requirements. We do have the ability to update your calculator to quote the premiums using the "old" way, if preferred. Please reach out to support@lssoftwaresolutions.com to have this updated.