Loan Estimate Challenges
Texas’s Biggest LE Challenges

With 254 counties, Texas offers numerous opportunities for tax or fee variability, and thus, its fair share of LE challenges.

Numerous Endorsements

Texas is a state well known for the unusually high number of endorsements customarily included in a typical residential real estate transaction. The T-3 (R-24), T-17, T-19, T-30, T-36 are all commonly used here, among others. 

The T-19.1

There is also the T-19.1, which is solely for the owner’s policy. This differs from the typical flat fee endorsement in that it can involve a percentage of the policy…which can add up to 25% of the overall title insurance premium. In a state known for its higher-than-average title insurance premiums, missing this detail in some cases could result in a variance of thousands of dollars. 

Title Insurance, Transfer and Mortgage Taxes

In Texas all rates are regulated and are virtually the same amongst the title underwriters. Also, in Texas, there are no transfer or mortgage taxes.

The R-8 Credit

Cash-out refinance transactions have a different premium than other transactions. This takes the form of the R-8 credit, a discount on the title insurance premium based upon the age of prior policy and combined lien payoff amounts. When one considers that Texas is home to some of the more expensive title premiums in the country, it goes without saying that calculating the R-8 incorrectly can be extremely costly.

Recording Fees

While most of Texas’ 254 counties employ a statewide recording fee schedule, over 30 of those counties do deviate from that schedule.




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