When the seller is paying for the owner’s title insurance policy, we believe that the best approach is to disclose the policy cost in the seller-paid column (under “Other Costs” in the Closing Disclosure), although the TRID rules do not specify exactly which column to use.

The TRID rules simply require you to designate title insurance charges as either seller-paid or borrower-paid. As you noted, in Illinois, the seller commonly pays for the owner’s title insurance policy. In that typical situation, it seems that the logical approach is to place the charge in the seller-paid column. If you instead disclose the charge as borrower-paid (with a seller credit), this may be viewed as misleading or confusing.

For resources related to our guidance, please see:

• Regulation Z, 12 CFR 1026.38(g) (“Other” closing costs must be disclosed “with columns stating whether the charge was borrower-paid at or before closing, seller-paid at or before closing, or paid by others . . . .”)

• Regulation Z, 12 CFR 1026.38(g)(4) (“Under the subheading “Other” and in the applicable column as described in paragraph (g) of this section, an itemization of each amount for charges in connection with the transaction that are in addition to the charges disclosed under paragraphs (f) and (g)(1) through (3) for services that are required or obtained in the real estate closing by the consumer, the seller, or other party, the name of the person ultimately receiving the payment, and the total of all such itemized amounts that are designated borrower-paid at or before closing.”)