Fees for Closing Protection Letters (CPL) have been established by the three title insurance underwriters represented by John Bethell Title. Those companies are First American Title Insurance Company, Arsenal Insurance Corporation and Old Republic National Title Insurance Company. The fees are identical for each underwriter.
The Closing Protection Letter fee is $25 for each party protected. More specifically,
- $25 for a Lender CPL when there is a mortgage in either purchase or refinance transactions.
- $25 for a Buyer CPL in all purchase transactions.
- $25 for a Seller CPL in all purchase transactions.
- $25 for the Borrower/Owner CPL in refinance transactions.
John Bethell Title will begin collecting the CPL fee on all closings beginning Monday, July 1, 2013 as follows:
- Purchase transactions with a new mortgage: $50 from the buyer (for the Buyer & Lender CPL’s) and $25 from the seller (for a Seller CPL.)
- Cash purchase transactions: $25 from the buyer and $25 from the seller.
- Refinance transactions: $50 from the borrower/owner.
When the buyer/borrower is obtaining a second mortgage from a different lender, an additional $25 will be collected for the CPL for the second lender.
CPL coverage fees from the buyer/borrower will be shown outside the columns on the HUD-1 and roll up into the title services block on line 1101. CPL coverage fees for the seller will be shown inside the seller’s column on line 1109.
CPL’s are now required by Indiana Law for buyers, sellers, lenders and refinance borrowers in residential transactions pursuant to Senate Bill 370 (P.L. 80-2013), enacted in the most recent legislative session. A CPL indemnifies the parties against loss due to the misappropriation of closing funds and other matters. The law is described in more detail in a previous post that you can link to here.