We believe that if you have more than 14 items in the “Services You Can Shop For” section of the LE (Section C), you should either include an addendum with the remaining items or disclose the remaining charges in line 14 as an aggregate amount labeled as “Additional Charges.”

Regulation Z requires creditors to itemize each amount the consumer will pay for settlement services they can shop for, with a subtotal of all such amounts, under Section C of the LE. However, the number of items disclosed in this section “shall not exceed 14.”

Regulation Z provides two options for creditors that are unable to itemize all of the amounts required to be disclosed on fourteen lines in Section C of the LE. The LE may list the remaining items on an addendum, with an appropriate reference to the addendum on line 14 of Section C, such as “See attached page for additional items you can shop for.” Alternatively, the LE may disclose the remaining amounts as an aggregate amount on line 14, with the label “Additional Charges.”

Additionally, we believe that you should list all settlement services for which a consumer may shop on your service provider list, with at least one provider listed for each service (even if some of the services are included in an addendum on the LE or are aggregated under “Additional Charges”). Unlike the LE, the service provider list does not have a limit to the number of items that can be listed.

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. . . . (ii) The number of items disclosed under this paragraph (f)(3) shall not exceed 14.”)

• Regulation Z, 12 CFR 1026.37(f)(6)(ii) (“An addendum to a form of disclosures prescribed by this section may be used for items described in paragraph (f)(3) of this section. If the creditor is not able to itemize all of the charges required to be disclosed in the number of lines provided by paragraph (f)(3)(ii), the remaining charges shall be disclosed as follows:

(A) Label the last line permitted under paragraph (f)(3)(ii) with an appropriate reference to an addendum and list the remaining items on the addendum in accordance with the requirements in paragraphs (f)(3) and (5) of this section; or

(B) Disclose the remaining charges as an aggregate amount in the last line permitted under paragraph (f)(3)(ii), labeled ‘Additional Charges.’”)

• Regulation Z, Official Interpretations, Paragraph 37(f)(6), Comment 2 (“If an addendum is used as permitted under § 1026.37(f)(6)(ii), an example of a label that complies with the requirement for an appropriate reference on the last line is: ‘See attached page for additional items you can shop for.’”)

• CFPB Guide to the Loan Estimate and Closing Disclosure Forms (May 2018), page 42 (“Disclose no more than 14 Services You Can Shop For. (§ 1026.37(f)(3)(ii)) If there are more than 14 Services You Can Shop For, disclose the total amount of the items that exceed 13 with the label Additional Charges. (§ 1026.37(f)(6)(ii)(B)) An addendum to the Loan Estimate can be used to disclose the additional items. (§ 1026.37(f)(6)(ii))”)

• 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.”)

• 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).”)