Date: June 27, 2018
Compliance Memo C2018-05: Settlement Service Provider List (SSPL) Update
This memo represents internal process and system changes that have been made to the Settlement Service Provider List (SSPL), effective for any new applications started after July 1, 2018.
The TRID Rule states that if you are disclosing a fee as one an applicant(s) “can shop for”, a SSPL must accompany the disclosed Loan Estimate and must include the service provider’s name, contact information and service(s) offered by that provider.
Rule also states that only the applicable service provider, service(s) and corresponding fees associated with the “can shop for” fee should be listed on SSPL being disclosed to the applicant(s). This means that if the SSPL reflects a service provider - for example, a survey company - but we are not actually disclosing the survey fee to the applicant(s) on the Loan Estimate, the SSPL is incorrect and we are out of compliance.
To ensure we are in compliance with this rule, the following system enhancements and processes have been implemented:
1100 section of the Itemization - Once a fee amount is added in this section, the system will populate the service provider and service (fee name) based on each pre-set Branch template onto the SSPL.
- 1300 section of Itemization (designated) – Once a fee amount is added in line items below, system will populate provider and service based on pre-set Branch template onto the SSPL.
o Line 1302 designated for Pest/Termite Inspection
o Line 1303 designated for Survey Fee
1300 section of Itemization (non-designated) – Lines 1304-1309
o Any fee name and amount added to these lines will require manual entry of a Service Provider by Loan Officer or Loan Processor (see attached for instructions).
If you are starting a loan with a property in a state outside your branch, the following pop-up will appear and Service Providers will need to be manually added to your SSPL.
A Quick Reference Guide for Adding Service Providers to Your SSPL is attached.