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)