Thanks very much for taking time to visit with me this afternoon about Agenda Item 2002-32.

The issue about which we visited is whether a title company can print from, for example, an e-mail from a lender, copies of downloaded closing documents and charge a copy expense charge as long as the charge is reasonable. It is my understanding based upon our discussion today, that a title company will not be cited for a violation if the charge for printing the downloaded closing documents is (1) reasonable and not excessive and (2) designated descriptively as, for example, "copies of downloaded closing documents" rather than as, for example, "printed e-mail". I also understand that the reasonableness of the charge will be judged based upon the number of copies printed for a specific file as opposed to a blanket charge of $"x" on every file or every printed copy job.

As you know, when TDI originally proposed the amendments in Agenda Item 2002-32, those amendments broadly prohibited "document retrieval" and "e-mail" charges. However, I understand from our conversation today that, in applying the final adopted version of Agenda Item 2002-32, reasonable charges for printing copies of downloaded closing documents are permissible. This interpretation is supported by the fact that, as a result of technology changes, closing documents, in the past, were commonly retrieved from lenders and others by courier, but are now frequently retrieved and printed by computer. Because reasonable charges for copies are permissible and because reasonable courier charges are permissible, I understand that it is permissible to charge a reasonable charge for copies of closing documents retrieved by computer in the manner outlined in the above paragraph. Logically, this would work toward reducing courier charges overall in transactions in which the closing documents are retrieved by computer.

If my understanding as outlined above is correct, I would appreciate your reply by e-mail to that effect, and if incorrect or incomplete, I would appreciate any comments you may have in that regard as well.

Again thank you very much for speaking with me on this important issue.

Best regards.
Tom Rutledge
 

Tom,

You are correct. Copy expenses related to the printing of downloaded closing documents are allowed to be passed on to the consumer as long as they are reasonable and supported.

Robert York
Director, Title Examinations
Texas Dept. of Insurance