Why are Predictable Recording Fees Needed?
In 2013, the Consumer Financial Protection Bureau (CFPB) issued the Integrated Mortgage Disclosure Rule which requires costs in a real transaction to be disclosed to consumers three days prior to the closing/purchase. Recording costs are one of the few fees subject to strict accuracy requirements for lenders. Many factors change the recording fee estimate, such as: adding a power of attorney or required state rider; space for transfer tax stamps; a transaction change of an additional borrower; or simple human calculation error.
Document recording fees represent a very small percentage of the closing costs associated with a real estate transaction. However, if the recording fee is calculated incorrectly it may adversely affect the closing. Predictable recording fees help facilitate fee accuracy and compliance.
- Adoption of flat recording fees, or a simplified fee structure, helps:
- Businesses comply with federal regulations.
- Ensure consumers know the exact costs associated with purchasing their home.
- Create simpler budgeting for country recorder’s offices.
- Save time and money by reducing unnecessary delays, rejections and penalties on recorded documents.
Resources from ALTA and the Property Records Industry Association (PRIA)
- ALTA: Predictable Fees One-Pager Fill-in Form (editable to add state specific information)
- ALTA: Predictable Recording Fees One-Pager (editable to use with lawmakers)
- ALTA: Predictable Recording Fees Overview
- ALTA: Predictable Recording Fees Legislation by State
- PRIA: Recording Fees - Chart A -Evaluation of Flat Recording Fee in Your State
- PRIA: Recording Fees - Chart B - Evaluation of Flat Recording Fee in Your State
- PRIA: Predictable Recording Fees – Background Paper
- PRIA: Predictable Recording Fees Toolkit