- July 11, 2013
- All Texas Issuing Offices
- GENERAL - Letter from Wells Fargo Regarding Increases to Closing Fees and Other Charges for Wells Fargo Texas Residential Rate/Term Refinance Transactions
The Compliance Department at Stewart Title received a letter from Franklin Codel, Executive Vice President and Head of Mortgage Production for Wells Fargo Home Mortgage regarding Wells Fargo Home Mortgage’s refusal to pay certain increases in closing fees and other charges.
The pertinent parts of the letter are:
It is unacceptable to Wells Fargo for any settlement agent or title agent (or third-party acting on behalf of the title company) to increase their closing or other fees, increase amounts charged for services beyond the actual cost of the services, and/or pad payoff amounts beyond what is required to pay the loan in full for Texas rate/term refinance transactions shortly before closing. All fees, costs, and payoff amounts disclosed and charged by a settlement agent involved in a Wells Fargo mortgage loan must be accurate throughout the application and closing process. Please communicate Wells Fargo's expectations to your relevant employees and agents. Additionally, please immediately take appropriate steps to ensure that fees, costs, and payoff amounts on Wells Fargo loans are accurate at all times through the application and closing process.
Please contact WellsFargoSettlementAgentCommunications@wellsfargo.com if you have questions about this notice.
As a reminder, our underwriting agreements do not authorize our issuing agencies to engage in settlements or closings on behalf of Stewart Title Guaranty Company. This bulletin is not intended to direct your escrow or settlement practices or to change provisions of applicable underwriting agreements. Accordingly, we are forwarding this bulletin to you for your information only.
If you have any questions relating to this or other bulletins, please contact a Stewart Title Guaranty Company underwriter.
For on-line viewing of this and other bulletins, please log onto www.vuwriter.com.
THIS BULLETIN IS FURNISHED TO INFORM YOU OF CURRENT DEVELOPMENTS. AS A REMINDER, YOU ARE CHARGED WITH KNOWLEDGE OF THE CONTENT ON VIRTUAL UNDERWRITER AS IT EXISTS FROM TIME TO TIME AS IT APPLIES TO YOU, AS WELL AS ANY OTHER INSTRUCTIONS. OUR UNDERWRITING AGREEMENTS DO NOT AUTHORIZE OUR ISSUING AGENTS TO ENGAGE IN SETTLEMENTS OR CLOSINGS ON BEHALF OF STEWART TITLE GUARANTY COMPANY. THIS BULLETIN IS NOT INTENDED TO DIRECT YOUR ESCROW OR SETTLEMENT PRACTICES OR TO CHANGE PROVISIONS OF APPLICABLE UNDERWRITING AGREEMENTS. CONFIDENTIAL, PROPRIETARY, OR NONPUBLIC PERSONAL INFORMATION SHOULD NEVER BE SHARED OR DISSEMINATED EXCEPT AS ALLOWED BY LAW. IF APPLICABLE STATE LAW OR REGULATION IMPOSES ADDITIONAL REQUIREMENTS, YOU SHOULD CONTINUE TO COMPLY WITH THOSE REQUIREMENTS.