No, we do not believe you may disclose settlement services (and their related fees) under Section C of the LE if you do not disclose at least one corresponding service provider on your written list of settlement service providers. Also, you are not required to disclose estimated fees on your service provider list, and you may disclose more than one service provider for each settlement service listed under Section C of the LE. However, we do not believe you should disclose fees on the service provider list that do not correspond with any settlement services listed under Section C of the LE.

Regulation Z requires creditors to provide an itemization of each amount and a subtotal of all amounts the consumer will pay for settlement services they can shop for (provided by persons other than the creditor) under Section C of the LE. For settlement services for which the consumer is permitted to shop, the creditor is required to provide a separate written list identifying at least one available provider for each settlement service, and the list must state that the consumer may choose a different provider for the service.

Regulation Z’s Official Interpretations state that the settlement service providers identified on the written list must correspond with the required settlement services for which the consumer may shop, disclosed under Section C of the LE. The CFPB’s commentary to the final rule amending the Truth in Lending Act’s federal mortgage disclosure requirements also clarifies that Regulation Z does not require creditors to include service providers’ estimated fees on the written list.

Consequently, we do not believe you should disclose settlement services and fees under Section C of the LE if you do not provide at least one corresponding service provider on your service provider list. Also, while your list may include more than one service provider for each settlement service for which the consumer may shop, your service provider list should not contain any extraneous service providers or fees that do not correspond with a settlement service included under Section C of the LE.

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.37(f)(3), Loan Estimate (“Services You Can Shop For. Under the subheading ‘Services You Can Shop For,’ an itemization of each amount and a subtotal of all such amounts the consumer will pay for settlement services for which the consumer can shop in accordance with §1026.19(e)(1)(vi)(A) and that are provided by persons other than the creditor or mortgage broker. (i) For any item that is a component of title insurance or is for conducting the closing, the introductory description ‘Title –’ shall appear at the beginning of the label for that item. (ii) The number of items disclosed under this paragraph (f)(3) shall not exceed 14.”)

• Regulation Z, 12 CFR 1026.19(e)(1)(vi)(C) (“Written list of providers. If the consumer is permitted to shop for a settlement service, the creditor shall provide the consumer with a written list identifying available providers of that settlement service and stating that the consumer may choose a different provider for that service. The creditor must identify at least one available provider for each settlement service for which the consumer is permitted to shop. The creditor shall provide this written list of settlement service providers separately from the disclosures required by paragraph (e)(1)(i) of this section but in accordance with the timing requirements in paragraph (e)(1)(iii) of this section.”)

• CFPB, Loan Estimate Explainer (“Review the Services You Can Shop For and shop for these services. The services in this section are required by the lender, but you can save money by shopping for these services separately. Along with the Loan Estimate, the lender should provide you with a list of approved providers for each of these services. You can choose one of the providers on the list. You can also look for other providers, but check with your lender about any provider not on the list.”)

• Regulation Z, Official Interpretations, Paragraph 19(e)(1)(vi), Comment 3 (“If the creditor permits the consumer to shop for a settlement service it requires, § 1026.19(e)(1)(vi)(C) requires the creditor to provide the consumer with a written list identifying at least one available provider of that service and stating that the consumer may choose a different provider for that service. The settlement service providers identified on the written list required by § 1026.19(e)(1)(vi)(C) must correspond to the required settlement services for which the consumer may shop, disclosed under § 1026.37(f)(3). See form H-27 in appendix H to this part for a model list. Creditors using form H-27 in appendix H properly are deemed to be in compliance with § 1026.19(e)(1)(vi)(C). Creditors may make changes in the format or content of form H-27 in appendix H and be deemed to be in compliance with § 1026.19(e)(1)(vi)(C), so long as the changes do not affect the substance, clarity, or meaningful sequence of the form. An acceptable change to form H-27 in appendix H includes, for example, deleting the column for estimated fee amounts.”)

• Final Rule, Amendments to Federal Mortgage Disclosure Requirements Under the Truth in Lending Act (Regulation Z), 82 Fed. Reg. 37656, 37674 (August 11, 2017) (“Regarding commenters’ request for clarification that creditors do not lose the model form’s safe harbor protection if they delete the column for estimated fee amounts, the Bureau notes that current § 1026.19(e)(1)(vi) does not require creditors to list the estimated fees of the service providers. As finalized, comment 19(e)(1)(vi)-3 states that deleting the column for estimated fee amounts is an example of an acceptable change to form H-27. Consistent with final comment 19(e)(1)(vi)-4, final comment 19(e)(1)(vi)-3 also clarifies that the settlement service providers identified on the written list required by § 1026.19(e)(1)(vi)(C) must correspond to the required settlement services for which the consumer may shop, disclosed under § 1026.37(f)(3).”)