Owner’s Premium & Simultaneous Issue Discount – Under the New CFPB Rules

owners premium simultaneous issue

If a buyer opts not to purchase an owner’s policy, in most states they would not receive the benefit of a simultaneous issue discount applied to the loan policy premium. Currently, in a typical residential transaction, a lender quotes the discounted rate on a Loan Estimate.

However, any increase in this premium would result in a tolerance violation or increased annual percentage rate. Therefore, the CFPB wrote into the new rules any simultaneous issue discount must be applied to the owner’s policy premium and not the loan policy premium.

Therefore, when the new CFPB rules are implemented, the lender will need to disclose the full lender’s policy premium on the Loan Estimate and the preparer of the Closing Disclosure will charge the full loan premium. The new formula for calculating the owner’s premium with the simultaneous issue discount applied is as follows:

Owner’s Premium
+ Simultaneous Issue Rate
Full Loan Premium
= Owner’s Rate

The new calculation method applies regardless of which party to the transaction is paying the owner’s policy premium. For example, the premiums on the purchase of a $300,000 residence with a $240,000 loan closed simultaneously with actual premiums are as follows:

Owner’s Policy Premium $1,090
Loan Policy Premium (Full Rate) $ 928
Loan Policy Premium (Simultaneous Issue Rate) $ 469

On a transaction closed prior to the effective date of the new rules the seller would pay $1,090 and the buyer would pay $469. On the same transaction closed after the effective date of the new rules the disclosure would reflect the seller paying the calculated premium of $631 and the buyer paying the full loan premium of $928.

The title provider will still receive all the total premium dollars due to them. However, the seller ends up paying $459 less than obligated and the buyer ends up paying $459 more than obligated.


The only way the formula works is if one of the parties to the transaction is paying both policy premiums, which in most markets is not customary. As a result, our systems have been designed to provide an off–setting debit to the seller for the balance of the owner’s premium and an offsetting credit for the same to the buyer.

The disclosure amounts, and off–setting debits and credits only appear when the Closing Disclosure is printed using the Company’s escrow production systems. Any other document, such as a closing statement or fee ticket, will print the premium dollars in the normal fashion.

Ticor Title Welcomes John Bloomquist as VP/Area Sales Manager!

We are pleased to announce that John Bloomquist has joined the Ticor team as Vice President/Area Sales Manager and will be overseeing a sales team in Snohomish County and North King County.

John brings a proven track record of success and excellent customer service.

A Word to Clients

John Bloomquist

“I made this move confident that it will be mutually beneficial. I will continue to show you the same commitment and dedication that I have always shown, with the added benefit of exceptional preparation for the TRID changes and the backing of a truly progressive Fortune 500 company.”

-John Bloomquist

Why Ticor Title was the Right Choice

John chose Ticor Title because of the unique mix of services that Ticor provides:

  • TRID/CFPB Readiness
  • Nationwide Coverage, Including 19 Counties in WA State
  • “Make it Happen” Underwriting
  • Extremely Competitive Fees
  • Regional Lending Centers
  • Forward-Thinking Agent Tools

Contact John Bloomquist

Effective immediately, you may contact John at his new TICOR TITLE phone and email below:

John Bloomquist
To set up orders: waorders@ticortitle.com
For customer service needs: cs.wa@ticortitle.com


Please join us in welcoming John to our Ticor Family!

Announcing the Ticor Title TRID Wheel

TRID Wheel

The Ticor Title TRID Wheel is the only wheel that instantly determines earliest Consummation Date!

TRID Wheel to determine Consummation Date
Based on the new CFPB rule that goes into effect beginning Oct. 3, 2015, this carefully crafted and well planned TRID Wheel is designed to eliminate the guesswork in determining earliest Consummation Date.

Use the wheel to:

• Instantly determine earliest Consummation Date
• Estimate required closing days by working backwards on the wheel

Reserve Yours Today!

Contact your Ticor Title representative to reserve your Ticor Title TRID Wheel today. Supplies are limited.

Announcing the Relocation of Ticor’s Gig Harbor Office

Gig Harbor Escrow - Ticor Title

Gig Harbor Escrow - Ticor Title
We are very pleased to announce that Ticor’s Gig Harbor Escrow office has relocated to an updated and more spacious location just a few doors down from the previous location.

The move is part of our plan involving the expansion of our Gig Harbor team and provides a freshly updated space with additional room to accommodate client signings, added escrow staff, and a dedicated Property Information Specialist.

We think you’ll love the upscale look & feel, accessibility, ample parking, easy access to highway 16, and our team of experienced professionals.

Where to find us:

Ticor Title
Gig Harbor Escrow Location

New address:
5775 Soundview Drive, Ste 204B
Gig Harbor, WA 98335

Phone: 253-858-2999
Fax: 253-858-3171

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