Separate mortgage disclosure identifying available providers for each required settlement service a borrower may shop for.
A written list of service providers is a separate mortgage disclosure identifying at least one available Settlement Service Provider for each lender-required service the borrower is permitted to shop for. It must also state that the borrower may choose a different provider.
The list turns the “Services You Can Shop For” part of the Loan Estimate into an actionable shopping tool. Instead of showing only an estimated charge, it identifies providers the lender believes are available for the property or borrower.
Provider choice can affect both cost and how a later fee increase is evaluated. When the lender permits shopping and the borrower selects an unaffiliated provider from the written list, the charge is generally part of the 10% Cumulative Tolerance category. If the borrower selects an unaffiliated provider not on the list, the estimate generally falls into the category that may vary, provided the original estimate was based on the best information reasonably available.
That does not mean the cheapest provider is always the best choice. Availability, local experience, turnaround time, and service quality can affect the closing schedule.
Borrowers encounter the written provider list early in origination. It is provided separately from the Loan Estimate but follows the same delivery timing: generally no later than the third business day after the lender receives the application.
The exact services depend on the transaction and local practice. Common examples can include settlement or closing services, title work, surveys, or pest inspections when the lender requires the service but allows the borrower to select the provider.
The list must name at least one available provider for each shoppable required service. A provider that is no longer operating or does not serve the relevant location is not meaningfully available.
| List element | Borrower takeaway |
|---|---|
| Service name | Identifies the required service for which the lender permits shopping. |
| Listed provider | Gives at least one lender-identified option believed to be available. |
| Contact information | Helps the borrower request pricing or confirm availability. |
| Choice statement | Confirms that the borrower may select a provider not shown on the list. |
A lender may also show providers for services the borrower cannot shop for, but those services must be clearly distinguished from the shoppable ones.
A Loan Estimate shows $900 for a settlement service under “Services You Can Shop For.” The separate provider list names an available settlement company. The borrower compares that company with another local provider.
If the borrower selects the listed unaffiliated company, its charge generally joins other eligible charges in the 10% cumulative tolerance bucket. If the borrower selects the unlisted company, the final charge may vary without that 10% cap, assuming the lender’s original estimate was made in good faith.
Before selecting a provider, the borrower can ask:
The borrower should tell the lender which provider was selected so the file, fee estimates, and closing coordination can be updated.
Written list of service providers differs from Loan Estimate because the Loan Estimate identifies the shoppable service and estimated charge, while the separate list identifies available provider options.
It differs from Settlement Agent because the settlement agent is a closing role, while the written list is a disclosure tool.
It differs from a Settlement Service Provider because the provider performs the work. The written list identifies available provider choices for specified shoppable services.
It differs from Affiliated Business Arrangement Disclosure because the provider list supports shopping, while the affiliated-business disclosure reveals an ownership or financial relationship behind a referral. An affiliate can appear on the provider list, but the applicable affiliation rules still matter.