The CFPB wants the borrower to understand the incremental cost of purchasing an owner’s policy. In many states, simultaneous issue rates charge the owner’s premium at a full rate with a smaller simultaneous issue fee for the loan premium. The CFPB requires you to show the full rate for the loan policy. The formula to calculate the owner’s policy is: final owner’s policy premium + final loan policy premium (a.k.a simultaneous issue rate) – full loan premium.

Many underwriters have updated their online rate calculators to include the full loan premium and SI net owner’s premiums as they should be disclosed on the CDF.

Yes, ProForm can also be configured to calculate these amounts. If you do not already have this configuration in place, contact SoftPro for help.

If the borrower is paying for the owner’s policy premium, the description must include the word “(optional)” at the end of the description. If the seller is paying for the owner’s policy premium, this text can be removed. ProForm will automatically include the word “(optional)” when the borrower is paying for any of the premium, and will automatically remove this text when the seller is paying in full.

Since this requirement only applies to the CDF, the “(optional)” text will not appear on the settlement statements.

ProForm uses the label “full loan premium” to describe the amount that is disclosed for the loan policy premium on the CDF. This is generally equal to the same rate that would be charged for the loan policy if no owner’s policy is being issued.

ProForm uses the label “SI net owner’s premium” to describe the amount that is disclosed for the owner’s policy premium on the CDF. The CFPB describes this calculation as:

“The owner's title insurance premium is calculated by taking the full owner's title insurance premium, adding the simultaneous issuance premium for the lender's coverage, and then deducting the full premium for lender's coverage.” ProForm will calculate this for you.

ProForm uses the labels “final loan premium” and “final owner’s premium” for the true policy premiums that are filed in your state and remitted to your underwriter. For simultaneous issues, these amounts no longer appear on the CDF.

The loan policy premium should be shown on the CDF as the full premium rate (the same rate that would appear if no owner’s policy is being issued).

The “Full loan premium” field on the premium screen holds this value.

The premium screen only sends the loan policy premium to the CDF if there’s an amount in the full loan premium field. If this field is blank, you’ll see the total of the owner’s and loan policies appear in Section H as the owner’s policy premium. Enter the full loan premium to correct this.

The CFPB requires the owner’s policy premium to be shown on the CDF based on the following formula:

Final owner’s policy premium + final loan policy premium (a.k.a simultaneous issue rate) – full loan premium

ProForm will calculate this amount for you based on the final owner’s premium, final loan premium, and full loan premium.

ProForm will also display this calculation to you on the Title Insurance Premiums screen – click the hyperlinks on the SI net owner’s premium or full loan premium to view the details.

When the full loan premium is blank, the calculation for the owner’s policy cannot subtract the value of that premium correctly to calculate the SI net owner’s premium to disclose on the CDF. If the full loan premium is blank, you’ll see the total of the owner’s and loan policies appear in Section H as the owner’s policy premium. Enter the full loan premium to correct this.

Yes, there are valid situations where the owner’s policy premium disclosed on the CDF will be negative based on the CFPB’s regulations. ProForm will allow you to disclose a negative value.

Yes, it can reflect this amount. Because the owner’s policy premium disclosed on the CDF is calculated based on the true final premiums being charged, any owner’s policy discount will automatically be applied when ProForm calculates the SI net owner’s premium to disclose on the CDF.

Maybe – we’ve seen different interpretations from underwriters about this. The application can be configured to apply a discount to the full loan premium in this case. Contact SoftPro if you need help with this configuration.

Yes, ProForm can also be configured to calculate these amounts. If you do not already have this configuration in place, contact SoftPro for help.

Yes, the “Paid by Others” column can be used whenever the premium is paid by a party other than the buyer or seller.

Taxable premiums are handled in CDF orders as they were in HUD orders. Check “Taxable” on the Premiums screen and enter the appropriate tax rate and tax disclosure options on the contact screens. The tax amount will be calculated based on the premium amounts disclosed on the CDF.

The loan policy premium will typically appear in section B or C since it is required by the lender. The lender will tell you which section to use.

The owner’s policy premium will typically appear in section H.

If you choose to show a seller credit for the owner’s policy premium on page 3, it should appear in sections L & N.

The CFPB does not require any specific label or description on the CDF for the premiums, but does require they start with “Title –“. The CFPB also requires that the description on the CDF match the description on the Loan Estimate, so your lender may ask you to change your description to match that document. By default, ProForm uses “Title - Lender's Title Insurance” and “Title – Owner’s Title Insurance (optional)” to match the CFPB’s model CDF. You can change this default text if desired by editing the default description on the premiums screen in your default CDF template.

Yes, if the borrower is paying for the owner’s policy premium, the description must include the word “(optional)” at the end of the description. If the seller is paying for the owner’s policy premium, this text can be removed. ProForm will automatically include the word “(optional)” when the borrower is paying for any of the premium, and will automatically remove this text when the seller is paying in full.

Since this requirement only applies to the CDF, the “(optional)” text will not appear on the settlement statements.

Yes, the application’s default behavior when there are multiple charges on a single line is to use this “See Additional…” wording, but you can overwrite this with whatever wording the lender prefers. Putting the premium and all endorsements on the same line and then changing the text to “Title – Lender’s Title Insurance” (or “Owner’s”) is allowed.

The CFPB does not require any seller credits on page 3 related to premiums, so you can use any description that you and the lender agree upon.

These appear near the top of the Title Insurance Premiums screen below the policy code selection, in a group box labeled “Simultaneous Issue”.

These options only appear on orders and templates created after v4.0 was installed. They also only appear when the selected policy type is “Simultaneous”.

This option is used by policy ReadyDocs to determine whether to print both the loan and owner’s policy numbers on each of those policies.

This option turns on the CFPB-required functionality to disclose the full loan premium and SI net owner’s premium on the CDF instead of the true final policy premiums. This option should not be unchecked when you’re producing the CDF, but is available in case you want to use the CDF file type to enter data for transactions that are not regulated by the CFPB, such as commercial transactions.

Unchecking this box removes the full loan premium, SI new owner’s premium, and related fields from your order, and clears any values that were stored in those fields.

When this box is checked, the premiums appear on the settlement statement exactly as they do on the CDF. When this box is unchecked, the final premiums will be disclosed on the settlement statement. The individual versions of the settlement statements always show the final premiums regardless of the checkbox value.

When “Show full premium on settlement statement" is unchecked, the final premiums will be disclosed on the settlement statement.

Checking this box sends the full loan premium and SI net owner’s premium to the invoice. Unchecking it sends the final loan premium and final owner’s premium to the invoice.

The CFPB doesn’t require one specific method for disclosing this, so you can use any of the options described here.

The CFPB doesn’t require any specific method. You have several options:

Option 1. Charge the owner’s policy to the seller and charge a portion of the loan policy to the seller.

Option 2: Charge the owner’s policy to the buyer and add a credit/debit to page 3 for the full amount paid by the seller.

Option 3: Charge the owner’s policy to the seller and charge the remaining amount that the seller should pay as a credit/debit on page 3. ProForm will calculate this value for you and allow you to send it to page 3 from the Premiums screen.

Yes, this is allowed.

Yes, this is allowed. If you want page 3 to reflect the full amount of the premium paid by the seller, you would charge the premium to the borrower on page 2 and add a separate credit on page 3 for the amount paid by the seller, just as you would have done on the HUD-1.

When the seller is paying for part or all of the owner’s policy, this field will calculate the difference between the true final policy amount which should be paid by the seller and the SI net owner’s policy disclosed on the CDF as paid by the seller. This amount can be sent to CDF page 3 to ensure the seller is paying the full cost of the final owner’s premium. Example: Seller pays 100% of owner’s policy. Final policy premium is $800. SI net owner’s premium is $200. Seller credit to borrower is $600. The calculation of this amount will also take sales tax and partial seller pay percentages into account.

• If the checkbox is checked, the premiums on the CDF match the premiums being receipted/disbursed. The seller credit is included in this scenario because it is required to balance the receipts/disbursements.
• If the checkbox is unchecked, the receipted/disbursed amounts don’t need to incorporate the Seller credit because it is based on the actual premium amounts.

This dialog provides a view into both the owner’s and loan policy premiums, including the traditional amounts and the CFPB regulated amounts, seller pay percentage and amounts, paid by buyer, seller, and other amounts, and POC amounts. The disclosures dialog shows both the loan and owner’s final and full premiums as they appear on the Title Insurance Premiums screen. The premiums can be edited on this dialog if Paid Before Closing, Paid by Others, or Paid by the Seller.

If the borrower is paying for the entire owner’s policy premium, the description must include the word “(optional)”. If the seller is paying for the entire owner’s policy premium, this text can be removed. ProForm will automatically include the word “(optional)” when the borrower is paying for any of the premium, and will automatically remove this text when the seller is paying in full.

Since this requirement only applies to the CDF, the “(optional)” text will not appear on the settlement statements.

The regulations do not specifically mention endorsements or require them to be shown in a certain way. You can include them on the same line as the policy premium or itemize them in the same section.

The application gives you three options which are selected in the “Group endorsements” drop-down on the Options screen within your order:

Option 1: Selecting “None” will send each endorsement to a separate line in the same section as the associated policy.

Option 2: Selecting “Same line as parent policy” will send each endorsement as a separate charge on the same line as the policy.

Option 3: Selecting “Separate line as parent policy” will group all the endorsements for each policy on a single line in the same section as the policy.

Yes, the application’s default behavior when there are multiple charges on a single line is to use this “See Additional…” wording, but you can overwrite this with whatever wording the lender prefers. Putting the premium and all endorsements on the same line and then changing the text to “Title – Lender’s Title Insurance” (or “Owner’s”) is allowed.

When the endorsements are grouped on the same line as the policy, both the CDF attachment page and the settlement statements will print each charge’s description and amount.

Yes, each endorsement will send to the same section as its parent policy. The Options screen contains a section called “Title – CDF section defaults” that tells the title screens which section to use when sending. Switching the “All other title fees” option will move the loan policy and all its endorsements to the section you choose. Switching the “Owner’s policies” option will move the owner’s policy and all its endorsements to the section you choose

No, the CFPB does not regulate your invoices, so this decision is up to you. If you’re sending the invoice to the company handling the closing, they may ask you how the premiums should display on the CDF, but you are not required to invoice with those amounts.

Yes, this decision is up to you, so you can invoice for the full loan premium and SI net owner’s premium if you wish.

Uncheck “Show full premium on invoice” on the Title Insurance Premium screen. This will send the traditional (final) premiums to the invoice instead of the full loan premium and SI net owner’s premium.

Check “Show full premium on invoice” on the Title Insurance Premium screen. This will send the full loan premium and SI net owner’s premium to the invoice instead of the traditional (final) premiums.

SoftPro’s default invoice does not give you the option to show both premiums. If you want to invoice for the final premiums but also disclose the CDF-required premiums, this can be accommodated with a custom invoice document

The final premiums always appear on the Policy Register report, because you need to remit to the underwriter based on those true premium amounts. The CDF-disclosed premiums do not appear on this report and are not relevant for remittance purposes