You are not required to disclose the owner’s title policy on the Loan Estimate if the borrower is not going to pay for it. Only fees paid by the borrower are disclosed on the Loan Estimate. In most cases, the borrower will not be paying for the owner’s title policy, and consequently Regulation Z does not require you to disclose it in the Loan Estimate. However, if you are aware that the borrower will be paying for the owner’s policy in a particular transaction (for example, if you have a copy of the sale contract stating that the borrower will be paying for the owner’s policy), then you should disclose the premium as a cost paid by the borrower.

Note that the owner’s policy premium should be disclosed on the Closing Disclosure, regardless of who pays the fee. 

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.37(g)(4) (“Under the subheading ‘Other,’ an itemization of any other amounts in connection with the transaction that the consumer is likely to pay or has contracted with a person other than the creditor or loan originator to pay at closing and of which the creditor is aware at the time of issuing the Loan Estimate . . .”)