WHOLESALE Compliance Manual. Instructions to Complete the TRID Closing Disclosure

Transcription

1 WHOLESALE Compliance Manual Instructions to Complete the TRID Closing Disclosure Compliance Department 9/14/ Impac Mortgage Corp. NMLS # Rates, fees and programs are subject to change without notice. Other restrictions may apply. Information is intended solely for mortgage bankers, mortgage brokers, financial institutions and correspondent lenders. Not intended for distribution to consumers, as defined by Section of Regulation Z, which implements the Truth-In-Lending Act. Licensed by the Department of Business Oversight, under the California Residential Mortgage Lending Act (License # ). Page 1 of 45

2 Effective October 3, 2015 The information that follows discusses how to complete the Closing Disclosure ( CD ). General Instructions Unless otherwise permitted below the Closing Disclosure template must be used and the form must be titled Closing Disclosure. The lender is required to make the information on Closing Disclosure clearly and conspicuously in writing, in a form that the borrower may keep. The disclosures also shall be grouped together and segregated from everything else. Unless otherwise permitted below, the disclosures shall be made in the same order, and positioned relative to the master headings, headings, subheadings, labels, and similar designations in the same manner, as shown in the Closing Disclosure template. If a master heading, heading, subheading, label, or similar designation contains the word estimated or a capital letter designation, that heading, label, or similar designation shall contain the word estimated and the applicable capital letter designation. The Loan Estimate may be provided to the borrower in electronic form, subject to compliance with the borrower s consent and other applicable provisions of the Electronic Signatures in Global and National Commerce Act (ESIGN Act). For other transactions subject to the TILA-RESPA rule that are not federally related mortgage loans, lenders are not strictly required to use prescribed form, but the disclosures must contain the exact same information and be made with headings, content, and format substantially similar to the CD. Business card None Administrative information The lender may insert at the bottom of each page under the disclosures required, any administrative information, text, or codes that assist in identification of the form or the information disclosed on the form, provided that the space provided in the Loan Estimate template is not altered. Additional line numbers. Line numbers provided the Closing Disclosure for the disclosure of the information on page 2 Closing Costs Details - Loan Costs and Other Costs that are not used may be deleted and the deleted line numbers added to the space provided for any other of those paragraphs as necessary to accommodate the disclosure of additional items. Two pages. To the extent that adding or deleting line numbers provided on the Closing Disclosure, as permitted under Additional line numbers above, does not accommodate an itemization of all information required to be disclosed under the Closing Costs Details on one page, the information required to be disclosed may be disclosed on two pages, provided that the information required under Loan Costs is disclosed on a page separate from the information required under Other Costs. The information required by Other Costs, if disclosed on a page separate from Loan Costs, shall be disclosed on the same page as the information required by I. Total Other Costs and J. Total Closing Costs. Unit-period. Wherever Closing Disclosure uses monthly to describe the frequency of any payments or uses month to describe the applicable unit-period, the lender will substitute the appropriate term to reflect the fact that the transaction s terms provide for other than monthly periodic payments, such as bi-weekly or quarterly payments. Page 2 of 45

3 Separation of borrower and seller information. The lender or settlement agent preparing the form may use the Closing Disclosure for the disclosure provided to both the borrower and the seller, with the following modifications to separate the information of the borrower and seller, as necessary: o The information required to be disclosed on page 2 Summaries of Transactions may be disclosed on separate pages to the borrower and the seller, respectively, with the information required by the other paragraph left blank. The information disclosed to the borrower under the Borrower Transaction section must be disclosed on the same page as the information required under the Calculating Cash to Close section. o The information required to be disclosed under Loan Costs and Other Costs with respect to costs paid by the borrower may be left blank on the disclosure provided to the seller. o The Form Purpose, Lender name, Loan Terms, Projected Payments, Closing Costs, Additional Information About This Loan, Loan Calculations, Other Disclosures and Contact Information with respect to the lender and mortgage broker, may be left blank on the disclosure provided to the seller. Modified version of the form for a seller or third-party. The information required under The Form Purpose, Lender name, Loan Terms, Projected Payments, Closing Costs, Closing Costs Details, with respect to costs paid by the borrower, Calculating Cash to Close, Borrowers Transaction, Additional Information About This Loan, Loan Calculations, Other Disclosures, Questions and Contact Information with respect to the lender and mortgage broker, may be left blank on the disclosure provided to the seller. Transaction without a seller. Use the alternative tables for Costs and Closing and Cash to Close sections when a seller is not involved in the transaction. Translation. The form may be translated into languages other than English, and lenders may modify the Closing Disclosure to the extent that translation prevents the headings, labels, designations, and required disclosure items under this section from fitting in the space provided Customary recitals and information. An additional page may be attached to the form for the purpose of including customary recitals and information used locally in real estate settlements Page 3 of 45

4 Closing Disclosure Page 1 General Information Section General information, the Loan Terms table, the Projected Payments table, and the Costs at Closing table are disclosed on the first page of the Closing Disclosure. Instructions to complete the General Information section on the top of Page 1 At the top of page 1 of the Closing Disclosure, disclose Closing Information, Transaction Information, and Loan Information Reg. Name of Field Requirement (a)(1) Closing Form must be titled Closing Disclosure. This is HARDCODED on the form. Disclosure (a)(2) Form Purpose Form Purpose must state exactly this phrase. This form is a statement of final loan terms and closing costs. Compare this document with your Loan Estimate This is HARDCODED on the form. (a)(3) Closing Table under heading Closing Information. Information Date Issued Enter the date the CD is delivered to the borrower. Closing Date Enter the date the borrower will sign (consummate) the loan documents. Consummation occurs when the borrower becomes contractually obligated to the lender on the loan, not, for example, when the borrower becomes contractually obligated to a seller on a real estate transaction. Disbursement Date The point in time when a borrower becomes contractually obligated to the lender on the loan depends on applicable State law. Lenders and settlement agents should verify the applicable State laws to determine when consummation will occur, and make sure delivery of the Closing Disclosure occurs at least three business days before this event. Enter the date when the amounts disclosed on Page 3 are expected to be paid: Purchase: Enter the date when the following are expected to be paid in a purchase transaction under to the borrower and seller, respectively, as applicable. Refinance: Enter the date when the Payoffs and Payments will be paid to the borrower or third party. Settlement Enter the name of the Settlement Agent conducting the closing. Page 4 of 45

5 (a)(4) (a)(5) Agent File # Property Sale Price Appraised Value Estimated Prop. Value Transaction Information Borrower Seller Lender Loan Information Loan Term Enter the Settlement Agent s file number, as assigned by the settlement agent. Enter the property address. Used on purchase transactions. Enter the amount of the Sales Price. Used on refinance transactions. Enter the amount of the appraised value. Used on refinance transactions when an appraisal has not been received. Enter the amount of the estimated property value. Table under heading Transaction Information. Enter the name of each borrower and mailing address. If there is not enough space to show the name and address of all borrowers, an additional page may be used and appended to the end of the Closing Disclosure. Enter the name of each seller and mailing address, as applicable. If there is not enough space to show the name and address of all sellers, an additional page may be used and appended to the end of the Closing Disclosure. Enter the name of the lender issuing the CD. Table under heading Loan Information generally includes the same info as the LE, updated to reflect the terms of the Note at consummation (signing). Enter the full term of the loan stated in years or months, or both, as applicable. Describe the Loan Term as years when the Loan Term is in whole years. For example 1 year or 30 years. For a Loan Term that is more than 24 months but is not whole years, describe using years and months with the abbreviations yr. and mo., respectively. For example, a loan term of 185 months is disclosed as 15 yr., 5 mo. For a Loan Term that is less than 24 months and not whole years, use months only with the abbreviation mo. For example, 6 mo. or 16 mo. Purpose Select one from the following: Purchase Refinance Construction Home Equity Loan Product The description of the loan features that may change the periodic payment. Select from the following: Interest Only: if one or more payments may be applied only to accrued interest Step Payment: if payment amounts vary and are not caused by changes to interest rate during loan term Balloon Payment Seasonal Payment: if payments are not scheduled between specific unit periods on a regular basis Description of Loan Product: Select from the following: Adjustable Rate: if the interest rate may increase after consummation Step Rate: if the interest rate will change after consummation and the period for which the rates apply are known at consummation Fixed Rate The description of the loan feature must precede the description of the loan product. If the transaction has more than one of the loan features, the Lender shall disclose only the first applicable feature in the order the features are listed above. The descriptions must each be preceded by the duration of any introductory rate or payment period, and the first adjustment period, as applicable. Examples: Fixed Rate 5 Year Interest Only, 5/3 Adjustable Rate Year 7 Balloon Payment, Fixed Rate Year 5 Negative Amortization, 1/1 Adjustable Rate Page 5 of 45

6 Loan Type Loan ID# MIC # When there is no introductory period for an Adjustable Rate, disclose 0. For example: a product with no introductory rate that adjusts every year after consummation is a 0/1 Adjustable Rate. When the time periods disclosed in are not in whole years, disclose the applicable fraction of a year by use of decimals rounded to two places. For time periods of 24 months or less, disclose the number of months with the abbreviation mo. For example: An Adjustable Rate Product with an introductory interest rate for 31 months that adjusts every year thereafter is a 2.58/1 Adjustable Rate. An Adjustable Rate Product with an introductory interest rate for 18 months that adjusts every 18 months thereafter is an 18mo./18mo. Adjustable Rate. Enter the type of loan offered using one of the following terms: Conventional FHA VA Other (provide brief description). Example USDA Enter the Loan Number of the Lender. MIC = Mortgage Insurance Case number. Enter the case number for any mortgage insurance policy, if required by the lender. Loan Terms Section The Loan Terms table on the Closing Disclosure requires the same information as on the Loan Estimate, updated to reflect the final terms at closing. Instructions to complete the Loan Terms section on Page 1 Reg. Name of Field Requirement (b) Loan Amount Enter the loan amount. Do not round and do not show cents. Enter a NO to indicate that the loan amount will not increase after consummation, under the heading Can this amount increase after closing? Consummation is the date the Note/Security Instrument is signed by the borrower. Interest Rate Note: a YES is used for example on Negative Amortization loans. Since IMC does not make or purchase Neg. Am. Loans, this document is not addressing a Yes response. Fixed Rate: Enter the interest rate that will be applicable at the time of consummation followed by a NO indicating the amount will not increase after consummation. If the interest rate is a whole number truncate the decimal point. Do not round. Examples Page 6 of 45

7 4.00% = 4% 4.5% =4.50% 4.555% = 4.555% Maximum is 3 decimal places Consummation is the date the Note/Security Instrument is signed by the borrower. IO ARM: Enter the interest rate that will be applicable at the time of consummation. If the interest rate at consummation is not known, then enter the fully-indexed rate (index value + margin at the time of consummation). Enter a YES Enter a YES to reflect the interest rate may increase after consummation. Enter the frequency of interest rate adjustments. Enter the date when the interest rate may first adjust. Enter the maximum interest rate, truncated, and the first date when the interest rate can reach the maximum interest rate. Enter statement See AP Table on Page 2 for details. Monthly Principal & Interest The dates disclosed is the year in which the event occurs, counting from the date that interest for the first scheduled periodic payment begins to accrue after consummation. Fixed Rate: Enter the initial monthly principal and interest payment (P&I), include cents. Enter a No to reflect the P&I payment will not adjust. Verify the statement See Projected Payments below for your Estimated Total Monthly Payment appears. (HARDCODED) IO ARM: Enter the initial monthly P&I payment, include cents. If the interest rate at consummation is not known, then the amount disclosed is calculated using the fully-indexed rate (index value + margin at the time of consummation). Enter a YES to reflect the P&I payment will adjust. Enter the frequency the P&I payment will adjust and the due date of the first adjustment. Enter the maximum possible P&I payment, rounded to the nearest whole dollar, and the date when the P&I payment may first equal the maximum P&I payment. Enter whether the payment includes interest only and for how long. Enter statement See AP Table on Page 2 for details. Prepayment Penalty The dates disclosed is the year in which the event occurs, counting from the date that interest for the first scheduled periodic payment begins to accrue after consummation. Enter YES or NO if there is a prepayment penalty. If Yes Enter the maximum amount of the prepayment penalty and the year the penalty ends, rounded to the nearest whole dollar. Page 7 of 45

8 Thee date disclosed is the year in which the event occurs, counting from the date of consummation. Prepayment Penalty means a charge imposed for paying all or part of a transaction s principal before the date on which the principal is due, other than a waived, bona fide third-party charge that the lender imposes if the borrower prepays all of the transaction s principal. sooner than 36 months after consummation. Balloon Payment Enter NO if there is a balloon payment. Balloon Payment means a payment that is more than two times a regular periodic payment. IMC DOES NOT MAKE OR PURCHSE BALLOON LOANS. Projected Payments Table The Projected Payments table on the Closing Disclosure discloses the same information required to be disclosed on the Projected Payments table disclosed on the Loan Estimate, updated to reflect the final terms at closing. In disclosing estimated escrow payments, loans subject to RESPA the amount disclosed is determined by the escrow analysis under Regulation X. loans not subject to RESPA, the amount disclosed may be determined by the escrow account analysis under Regulation X, or in the manner below. Instructions to complete the Projected Payments section on Page 1 Reg. Name of Field Requirement (c) Projected Payments Table under the heading Projected Payments includes the same information by (c)(1) through (4) but not (4)(vi). Payment Calculation Principal & Interest Show in one column the initial Periodic Payment (or range of payments if required) for each of Principal & Interest, Mortgage Insurance, and Estimated Escrow. Depending on the features of the loan, subsequent periodic payments also may be required to be disclosed. The Periodic Payment is the regularly scheduled payment of Principal & Interest, Mortgage Insurance, and Estimated Escrow. Page 8 of 45

9 Mortgage Insurance Estimated Escrow Amount can increase over time Estimate Total Monthly Payment Each separate periodic payment or range of payments shall be itemized as follows: Fixed Rate: Enter in each column the amount payable for the P&I payment include cents. o To calculate the initial Periodic Payment, use the interest rate that will apply at closing, including any initial discounted or premium interest rate. Enter in each column the maximum amount of the monthly mortgage insurance premiums corresponding to the P&I payment, including cents. o Includes any mortgage guarantee similarly to MI (VA Funding Fee and USDA Guarantee fee). o If no MI, enter 0. Enter in each column the amount payable into an escrow account to pay some or all of the charges that make up the Estimated Total Monthly Payment, as applicable, including cents, with a statement that the Amount can increase over time. Enter in each column the total of the P&I payment, the Mortgage Insurance Payment, and any Estimated Escrow payment as the Estimated Total Monthly Payment. If MI and/or Escrow are disclosed including cents. Interest Only Enter the term Interest Only, if the loan is an IO. Follow Adjustable Rate instructions below. Adjustable Rate Enter in each column the amount payable for the P&I payment, include cents. o If the interest rate at closing is not known, use the fully-indexed rate to determine the initial Periodic Payment (index + margin). Enter in each column the maximum and minimum P&I payments, rounded to the nearest whole dollar. o The maximum amounts are determined by assuming that the interest rate in effect throughout the loan term is the maximum possible interest rate. o The minimum amounts are determined by assuming that the interest rate in effect throughout the loan term is the minimum possible rate. Enter in each column the maximum amount of the monthly mortgage insurance premiums corresponding to the P&I payment, rounded to the nearest whole dollar. o Use the max/min interest rates that could apply such as through an interest rate cap. o Includes any mortgage guarantee similarly to MI (VA Funding Fee and USDA Guarantee fee). o If no MI, enter 0. Enter in each column the amount payable into an escrow account to pay some or all of the charges that make up the Estimated Total Monthly Payment, as applicable, rounded to the nearest whole dollar. This is then followed by a statement that the Amount can increase over time. Page 9 of 45

10 Enter in each column the total of the P&I payment, the Mortgage Insurance Payment, and any Estimated Escrow payment as the Estimated Total Monthly Payment, rounded to the nearest whole dollar if the MI and Estimated Escrow amounts are disclosed. If no MI or Escrow amount do not round. Estimated Escrow includes mortgage-related obligations other than premiums or other charges for any guarantee or insurance protecting the lender against borrower default or other credit loss, expressed as a monthly amount, even if no escrow account for the payment of some or any of such charges will be established. Estimate Taxes, Insurance & Assessments Mortgage-Related Obligations includes property taxes, fees and special assessments imposed by condominium, cooperative, or HOA s, ground rents, and leasehold payments; and charges that are required by the lender, including. premiums or other charges for any guarantee or insurance protecting the lender against borrower default or other credit loss. premiums or other charges for credit life, accident, health, or loss-of-income insurance written in connection with the transaction. premiums or other charges for insurance against loss of or damage to property, or against liability arising out of the ownership or use of property, written in connection with a credit transaction. charges or premiums paid for debt cancellation or debt suspension coverage written in connection with a credit transaction, whether or not the coverage is insurance under applicable law. Enter the sum of the amounts listed as Mortgage Insurance and Estimated Escrow as show above, including cents. Verify the statement Amount can increase over time appears. Check the applicable boxes to indicate if the estimated amount includes property taxes, homeowners insurance, and/or Other. If other, provide a description. Enter a YES or NO is the estimated amounts are escrowed (impounded) or not. Verify the statement See Escrow Account on page 4 for details. You must pay for other property costs separately. Fixed Rate Example Calculation of Taxes and Insurance Estimated property taxes and homeowner s insurance are to reflect. The taxable assessed value of the real property securing the transaction after consummation, including the value of any improvements on the property or to be constructed on the property, if known, whether or not such construction will be financed from the proceeds of the transaction, for property taxes; and The replacement costs of the property during the initial year after the transaction. Page 10 of 45

11 Costs at Closing Section Instructions to complete the Costs at Closing section on Page 1 Reg. Name of Field Requirement (d)(1) Closing Costs Closing Costs represents the total of all closing costs and lender credits as seen on Page 2. This should carry over and auto populate. (d)(2) Blank Space 1 -Enter the amount from D. Total Loan Costs (Borrower-Paid) disclosed on page 2. Blank Space 2- Enter the amount disclosed in I Total Other Costs (Borrower-Paid) on page 2. Blank Space 3 -Enter the amount of lender credits disclosed on page 2, J. Total Closing Costs (Borrower-Paid) Lender Credits. Immediately followed by a statement See Page 2 for details. All amounts include cents. Fixed Rate Example Purchase Transaction (no difference if adjustable) Cash to Close - Purchase Cash to Close represents the total cash the borrower needs to close the loan, including total closing costs, down payment, seller credits etc. Blank Space 4 Enter the dollar amount of the Cash to Close under the Final column from the Calculating Cash to Close section on page 3, include cents. Verify the statement Includes Closing Costs. See Calculating Cash to Close on page 3 for details appears. Note: the check boxes from and to borrower will not appear on a purchase money transaction. Fixed Rate Example Purchase Transaction (no difference if adjustable). Cash to Close - Refinance Optional alternative table for transactions without a seller. For refinance transaction may alternatively disclose, using the label Cash to Close : Blank Space 4 Enter the sum total of the Loan Amount minus the Total Closing Costs (J) - Closing Costs Subtotals (D+I) in the At Closing column, plus Lender Credits, and minus K. Total Payoffs and Payments, include cents. Check the box indicated whether the disclosed amount is due from or to the Borrower Verify the statement Includes Closing Costs. See Calculating Cash to Close on page 3 for details appears. Fixed Rate Example Refinance Transaction (no difference if adjustable). Page 11 of 45

12 Closing Disclosure Page 2 Closing Costs Details Loan Costs The items to be disclosed in the Loan Costs table should generally be the same as they were disclosed on the Loan Estimate, updated to reflect the terms of Note at consummation (signing), except as specifically discussed below. Instructions to complete the Closing Costs Details section on Page 2 The Loan Costs table under Closing Cost Details discloses all costs associated with the loan as borrower-paid at or before closing, seller-paid at or before closing, or paid by others. The table contains the names and amounts listed under four subheadings: Origination Charges, Services Borrower Did Not Shop For, Services Borrower Did Shop for, and total Loan Costs. The number of items in the Loan Costs tables can be expanded and deleted to ensure table fits onto page 2 of the Closing Disclosure. However, those items that are required to be disclosed, even if they are not needed (such as Points in the Origination Charges subheading), cannot be deleted. To the extent that an individual item is paid by different parties to the transaction and both at and before closing, the amounts associated with that item can be entered in multiple columns. The Loan Costs and Other Costs tables can be disclosed on two separate pages of the Closing Disclosure. When used, these pages are numbered page 2a and 2b. Lender credits that are applied towards specific fees are disclosed in the paid by other column next to the fee description, and may include the letter L in parentheses, i.e. (L), to the left of the amount to designate paid by the lender. Page 12 of 45

13 Reg. Name of Field Requirement (f)(1) Origination Generally, discloses the same information as required on the Loan Estimate, updated to Charges reflect the terms of the legal obligation at consummation, with the following exception. An itemization of each amount, and a subtotal of all such amounts, that the borrower will pay to each lender and broker for the loan. Enter all origination charges individually with a description of the fee, up to two decimal places, and in alphabetical order o Includes charges paid to lender and broker o Loan Originator Compensation: Enter the loan originator compensation even though loan originator compensation is not disclosed on the Loan Estimate. Compensation from the borrower to a mortgage broker is entered in the Borrower-Paid At Closing or Before Closing columns, as applicable. Compensation from the lender to a mortgage broker is entered in the Paid by Others column. A designation of (L) can be listed with the amount to indicate that the lender paid the compensation at consummation. The amount of compensation from the lender to the mortgage broker is the same as the amount of mortgage broker compensation included in points and fees for purposes of determining the borrower s ability to pay the loan. Note: Compensation to an individual loan originator is not calculated or disclosed on the Closing Disclosure. Enter the points the borrower is paying to the lender to reduce the interest rate as both a percentage of the amount, up to three decimal places, and a dollar amount, up to two decimal places, and using the label % of Loan Amount (Points). Points are always listed first. o If points to reduce the interest rate are not paid, the field must be blank Loan level pricing adjustments charged by the lender as a fee to the borrower must be itemized individually but in alphabetical order, disclosed up to two decimal places. Enter the total of all itemized amounts that are designated Borrower-Paid at or before closing in the line titled A. Origination Charges. Fixed Rate Example Purchase Transaction (f)(2) Services You Borrower Did Not Shop For Generally, discloses the same information as required on the Loan Estimate Services You Cannot Shop For, updated to reflect the terms of the legal obligation at consummation, with the following exceptions: Enter the name of the service, the name of the service provider, and the fee amount for items that the borrower could have shopped for, but did not, regardless of where the item was disclosed on the Loan Estimate. Meaning enter: o the services that were not included on a written Settlement Service Provider List (SSPL) for the borrower to shop for; and o the services the borrower did not communicate whether they chose a service from a written SSPL provided, or selected a service on their own. Note: When a borrower does choose a provider that was on the written Settlement Service Providers List for a service, that service is listed as Services Borrower Did Not Shop For in the Closing Disclosure Loan Costs table. Also, does not include services performed by the broker or lender. Page 13 of 45

14 Re-alphabetized when an item is added to or removed from the Closing Disclosure, when compared to the Loan Estimate. Enter the total of all itemized amounts that are designated borrower-paid at or before closing in the line titled B. Services Borrower Did Not Shop For. (f)(3) Services Borrower Did Shop For The word Title must appear at the beginning of the fee description for any service that is a component of title insurance or is for conducting the closing. These may include, but are not limited to, examination and evaluation of title evidence to determine the insurability of the title being examined and what items to include or exclude in any title commitment and policy to be issued preparation and issuance of the title commitment or other document that discloses the status of title, identifies the conditions that must be met before the policy will be issued, and obligates the insurer to issue a policy of title insurance if such conditions are met resolution of title underwriting issues and taking steps needed to satisfy any conditions for the issuance of title insurance policies preparation and issuance of the title insurance policies, and payment of premiums for any lender s title insurance coverage The amount of the premium for the lender s title insurance coverage must be disclosed without any adjustment to the premium that might be made for the simultaneous purchase of an owner s title insurance policy. All fees include cents up to two decimal places and appear in alphabetical order. Examples of services the borrower did not shop for may include, and are not limited to, appraisal fees, credit report fees, flood determination fee, VA or USDA guarantee fee, homeowner s association fees, lender s attorney fee, tax status search fee, third-party subordination fee, title-closing protection letter fee, title-lender s title insurance policy, and upfront MI Generally, discloses the same information as required on the Loan Estimate Services You can Shop For, updated to reflect the terms of the legal obligation at consummation, with the following exceptions: Enter the name of the service, the name of the service provider, and the fee amount for Items that the borrower did shopped for, and selected their own service providers, regardless of where the item was disclosed on the Loan Estimate. Meaning enter: o the services the borrower communicated they choose on their own and were not listed on the written SSPL. Note: When a borrower chooses a service and did the lender/mortgage broker did not provide a service provider for the borrower to choose from, then the service must be listed under the Services the Borrower Did Not Shop for. Also, does not include services performed by the broker or lender. Re-alphabetized when an item is added to or removed from the Closing Disclosure, when compared to the Loan Estimate. Enter the total of all itemized amounts that are designated Borrower-Paid at or before closing in the line titled C. Services Borrower Did Shop For. Remember, these are services the lender required to complete the loan transactions. Page 14 of 45

15 (f)(4) Total Loan Costs (A+B+C) Examples of services the borrower DID shop for may include, and are not limited to, pest inspection fee, survey fee, title-closing agent fee, and title-closing protection letter fee. The word Title must appear at the beginning of the fee description for any service that is a component of title insurance or is for conducting the closing. See examples under Services you cannot shop for above. All fees include cents up to two decimal places and appear in alphabetical order. Generally, discloses the same information as required on the Loan Estimate, updated to reflect the terms of the legal obligation at consummation, with the following exception. Enter the total of sections A+B+C in D. Total Loan Costs (Borrower-Paid ) for the sum total for the columns: Borrower-Paid (At + Before Closing). Include cents up to two decimal places. Enter the total of sections A+B+C in the Loan Costs Subtotals (A+B+C) for the individual columns At Closing and Before Closing for the Borrower-Paid, Seller-Paid, and Paid by Others columns. Include cents up to two decimal places. Page 15 of 45

16 Closing Costs Details Other Costs The items to be disclosed in the Other Costs table should generally be the same as they were disclosed on the Loan Estimate, updated to reflect the terms of Note at consummation (signing), except as specifically discussed below. Instructions to complete the Other Costs section on Page 2 The Other Costs table under Closing Cost Details discloses all costs associated with the loan as borrower-paid at or before closing, seller-paid at or before closing, or paid by others. The table contains the names and amounts listed under five subheadings: Taxes and Other Government Fees, Prepaids, Initial Escrow Payment at Closing, Other, and Total Other Costs. The number of items in the Other Costs tables can be expanded and deleted to ensure that the Other Costs table fit onto page 2 of the Closing Disclosure. However, items that are required to be disclosed, even if they are not needed, cannot be deleted. Other Costs represents all costs associated with the transaction that are in addition to the costs disclosed Loan Costs previously disclosed in this section. The items listed as loan costs pursuant must be labeled using terminology that describes each item. All fees in Taxes and Other Government Fees, Prepaids, Initial Escrow Payment at Closing sections must be listed in the order prescribed All other fees/services must be listed in alphabetical order Addendums to the forms are not permitted unless expressly stated. Reg. Name of Field Requirement (g)(1) Taxes and Other Generally, discloses the same information as required on the Loan Estimate, updated to Government Fees reflect the terms of the legal obligation at consummation, with the following exception. Enter the amount of the Recording fee itemized to show the amount paid corresponding with the description Deed and/or Mortgage. Enter the sum total in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Page 16 of 45

17 Enter the State s name the transfer taxes are paid to next to the fee description Enter the amount of the Transfer Taxes in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Enter the total of all itemized amounts that are designated Borrower-Paid at or before closing in the line titled E. Taxes and Other Government Fees. Disclose Transfer Taxes paid by the borrower and seller. Who pays the transfer tax is based on applicable State or local law. For example: o If a State law indicates a lien can attach to the borrower s acquired property if the charge is not paid, the amount is included as part of Transfer Taxes; o If State or local law is unclear or does not specifically attribute the amount to the seller or borrower, disclose the amount apportioned to the borrower using common practice in the locality of the property. If an amount required to be disclosed is not charged to the borrower, leave the field(s) blank. All fees include cents up to two decimal places and appear in alphabetical order. (g)(2) Prepaids Generally, discloses the same information as required on the Loan Estimate, updated to reflect the terms of the legal obligation at consummation, with the following exception. Disclose exact dollar amounts, up to two decimal places, in alphabetical order. Do not round. An itemization of the amounts to be paid by the borrower in advance of the first scheduled payment, and the subtotal of all such amounts, as follows: Homeowner s Insurance Premium ( months): Enter the number of months for which homeowner s insurance premiums are to be paid at consummation, the total dollar amount to be paid at consummation, and to who the amount is paid to in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Do not round. Mortgage Insurance Premium ( months): Enter the number of months for which mortgage insurance premiums are to be paid at consummation, the total dollar amount to be paid at consummation, and to who the amount is paid to in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Do not round. Prepaid Interest ( per day for %): Enter the amount of prepaid interest to be paid per day, the number of days for which prepaid interest will be collected, the interest rate, and the total dollar amount to be paid consummation for such interest in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Do not round Property Taxes ( months): Enter the number of months for which property taxes are to be paid at consummation, the total dollar amount to be paid at consummation, and to who the amount is paid to in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Do not round. Enter the total of all itemized amounts that are designated Borrower-Paid at or before closing in the line titled F. Prepaids. If an amount is not charged to the borrower, leave field(s) blank. (g)(3) Initial Escrow Generally, discloses the same information as required on the Loan Estimate, updated to Page 17 of 45

18 Payment at Closing reflect the terms of the legal obligation at consummation, with the following exception. The last item disclosed in the Initial Escrow Payment at Closing is the Aggregate Adjustment. The calculation of the Aggregate Adjustment has not changed. An itemization of the amounts the borrower will be expected to place into a reserve or escrow account at consummation to be applied to recurring periodic charges, and the subtotal of all such amounts, as follows: Homeowner s Insurance ( per month for ) mo.: Enter the amount escrowed per month, the number of months covered by an escrowed amount collected at consummation, and the total amount to be paid into the escrow account, at consummation for homeowner s insurance premiums in the Borrower- Paid, Seller-Paid, or Paid by Others columns, as applicable. Do not round. Mortgage Insurance ( per month for ) mo.: Enter the amount escrowed per month, the number of months covered by an escrowed amount collected at consummation, and the total amount to be paid into the escrow account at consummation for mortgage insurance premiums in the Borrower-Paid, Seller- Paid, or Paid by Others columns, as applicable. Do not round. Property Taxes ( per month for ) mo.: Enter the amount escrowed per month, the number of months covered by an escrowed amount collected at consummation, and the total amount to be paid into the escrow account at consummation for property taxes in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. Do not round. Property Taxes paid during different time periods can be disclosed as separate items. For example, general property taxes assessed for January 1 to December 31 and property taxes to fund schools for November 1 to October 31 can be disclosed as separate items. Enter the total of all itemized amounts that are designated Borrower-Paid at or before closing in the line titled G. Initial Escrow Payment at Closing. If an amount is not charged to the borrower for any item, leave the fields(s) blank. All fees include cents up to two decimal places and appear in alphabetical order. (g)(4) Other Items are disclosed as Other to reflect costs incurred by the borrower or seller that were not required to be disclosed on the Loan Estimate. These costs include: Real estate brokerage fees, Homeowner or condominium association fees paid at consummation (signing), Home warranties, Inspection fees, and Other fees paid at closing that are not required by the lender or otherwise required to be disclosed elsewhere on the Closing Disclosure. The amount of an earnest money deposit does not affect the amount of real estate commissions paid by the borrower or seller on the Closing Disclosure, even if the earnest money deposit is held by the real estate brokerage. Enter the name of each service, the name of the company it is paid to, and the amount in the Borrower-Paid, Seller-Paid, or Paid by Others columns, as applicable. The word Title must appear at the beginning of the fee description for any service that is a component of title insurance. Page 18 of 45

19 All fees include cents up to two decimal places and appear in alphabetical order. The parenthetical description (optional) shall appear at the end of the label for items disclosing any premiums paid for separate insurance, warranty, guarantee, or eventcoverage products (g)(5) (g)(6) Total Other Costs (Borrower-Paid) Other Costs Subtotals (E+F+G+H) Enter the total of sections E+F+G+H in I. Total Other Costs (Borrower-Paid ) for the sum total for the columns: Borrower-Paid (At + Before Closing). Include cents up to two decimal places. Enter the total of sections E+F+G+H in the Other Costs Subtotals (E+F+G+H) for the individual columns At Closing and Before Closing for the Borrower-Paid, Seller- Paid, and Paid by Others columns. Include cents up to two decimal places. (h)(1) & (2) Total Closing Cots (Borrower-Paid) Closing Costs Subtotals (D+I) Enter the total of sections D+I-Lender Credits in the J. Total Closing Costs (Borrower-Paid ) for the sum total for the columns: Borrower-Paid (At + Before Closing). Include cents up to two decimal places. Enter the total of sections D+I in the Closing Costs Subtotals (D+I) for the individual columns At Closing and Before Closing for the Borrower-Paid, Seller-Paid, and Paid by Others columns. Include cents up to two decimal places. (h)(3) Lender Credits All general lender credits, regardless of their reason or source, are included as Lender Credits. However, if the lender credit is attributable to a charge listed on Closing Disclosure page 2, then the amount should be listed with the item and designated as Paid By Others. A designation of (L) can be listed with the amount to indicate that the lender pays the item at consummation. The lender should include the amount of any offset to resolve an tolerance cure by the lender as Lender Credits. A description that amount is paid by the lender to cure a tolerance violation. If there are no lender credits leave blank. Page 19 of 45

20 Closing Disclosure Page 3 Calculating Cash to Close (PURCHASE MONEY TRANSACTION) On page 3 of the Closing Disclosure, the Calculating Cash to Close table and Summaries of Transaction table are disclosed. For transactions without a seller (refinances), a Payoffs and Payments table may be substituted for the Summaries of Transactions table and placed before the Alternative Calculating Cash to Close table. Instructions to complete the Calculating Cash to Close section on Page 3 (Purchase Money Transaction) Reg. Name of Field Requirement (i)(1) Total Closing Costs Enter the total amount of cash or other funds that must be provided by the borrower at consummation, with an itemization of that amount into the following components. Under the Loan Estimate column, enter the amount disclosed in section J. Total Closing Costs from the last valid Loan Estimate. Under the Final column, enter the final amount disclosed in section J. Total Closing Costs (Borrower-Paid) from page 3 of the CD). Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, due to differences in itemized charges that are included in either or both subtotals, a statement that the borrower should See Total Loan Costs (D) and Total Other Costs (I). (Bolding as seen is required) o If the increase exceeds the tolerance limits, a statement Increase exceeds legal limits by XXX. See Lender Credits on page 2 for credit of excess amount. (Bolding as seen is required.) o If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. (i)(2) Closing Costs Paid Before Closing Enter the total amount of cash or other funds that must be provided by the borrower at consummation, with an itemization of that amount into the following components. Under the Loan Estimate column, enter $0. Under the Final column, enter the final amount disclosed in section J. Total Closing Costs (Borrower-Paid) Closing Costs Subtotals (D+) from the Before Closing column located on page 3 of the CD). Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, due to differences in Page 20 of 45

21 o itemized charges that are included in either or both subtotals, a statement You Paid thee Closing Costs before closing. (bolding as seen is required) If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. (i)(3) Closing Costs Financed (Paid from your Loan Amount) Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Closing Costs Financed (Paid from your Loan Amount) from page 3 of the last valid Loan Estimate. Under the Final column, enter the amount of any closing costs to be paid out of loan proceeds, disclosed as a negative number, rounded to the nearest whole dollar o If the amount is a positive number and the amount does not exceed the amount of the lender credit, then enter that amount as a negative number, rounded to the nearest whole dollar. o If the amount is zero or negative number, then enter $0 Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o o If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the borrower included the closing costs in the loan amount, which increased the loan amount. If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. (i)(4) Down Payment/Funds from Borrower Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Down Payment/Funds from Borrower from page 3 of the last valid Loan Estimate. Under the Final column, enter the amount of the difference between the purchase price of the property and the principal amount of the loan, disclosed as a positive number, rounded to the nearest whole dollar. o If the loan amount exceeds the purchase price, enter $0. Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o o If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the borrower increased or decreased this payment and that the borrower should see the details disclosed under sections K. Due from Borrower at Closing and L. Paid Already by or on Behalf of Borrower at Closing, as applicable. Bolding required. If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Bolding required. (i)(5) Deposit Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Deposit from page 3 of the last valid Loan Estimate, as a negative number. Under the Final column, enter the final amount disclosed in section J. Total Closing Costs Deposits from page 3 of the CD, as a negative number. o If the amount is positive, then enter this amount as the Down Payment, rounded to the nearest whole dollar o If the amount is negative or $0, then enter $0 as the Down Payment. Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the borrower increased or decreased this Page 21 of 45

22 o payment, and that the borrower should see the details disclosed under sections L. Paid Already by or on Behalf of Borrower at Closing - Deposit as applicable. Bolding required. If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Bolding required. Note: The Deposit is the amount paid to the seller or held in trust or escrow by an attorney or other party under the terms of the agreement for the sale of the property, rounded to the nearest whole dollar. (i)(6) Funds to Borrower Enter $0 (i)(7) Sellers Credits Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Sellers Credit from page 3 of the last valid Loan Estimate, as a negative number. Under the Final column, enter the final amount disclosed in section L. Paid Already by or on Behalf of Borrower at Closing Seller Credit from page 3 of the CD, as a negative number. Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o o If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the borrower should See Seller Credits in Section L. Bolding required. If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Bolding required. (i)(8) Adjustments and Other Credits Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Adjustments and Other Costs from page 3 of the last valid Loan Estimate, rounded as a whole number. Under the Final column, enter the final amount of the following sections: o K. Due from Borrower at Closing Adjustments (plus) o K. Due from Borrower at Closing City/Town Taxes (plus) o K. Due from Borrower at Closing County Taxes (plus) o K. Due from Borrower at Closing Assessments (plus) o K. Due from Borrower at Closing additional amounts (i.e. HOA) (minus) o L. Paid Already by or on Behalf of Borrower at Closing Other Credits (minus) o L. Paid Already by or on Behalf of Borrower at Closing City/Town Taxes (minus) o L. Paid Already by or on Behalf of Borrower at Closing County Taxes (minus) o L. Paid Already by or on Behalf of Borrower at Closing Assessments (minus) o L. Paid Already by or on Behalf of Borrower at Closing Additional Amounts (equals o Amount disclosed in Calculating Cash to Close Adjustments and Other Credits Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that the borrower should See details in Section K and L. Bolding required. Page 22 of 45

23 o If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Bolding required. (i)(9) Cash to Close Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Estimated Cash to Close from page 3 of the last valid Loan Estimate. Under the Final column, enter the sum amounts itemized under Calculating Cash to Close on page 3 of the CD. Alternative Cash to Close - Refinance transactions (without a seller) Page 3 of Closing Disclosure Use the Alternative Calculating Cash to Close table for transactions without a seller when the Alternative Calculating Cash to Close table was used on the Loan Estimate. The table has five items listed in the table: 1. Loan Amount, 2. Total Closing Costs, 3. Closing Costs Paid Before Closing, 4. Total Payoffs and Payments, and 5. Cash to Close. Instructions to complete the Alternate Calculating Cash to Close section on Page 3 Except as discussed below, the amount disclosed in the Loan Estimate column is the same as the amount disclosed on the Loan Estimate or a revised Loan Estimate. The amounts disclosed in the Loan Estimate column are rounded to the nearest dollar in order to match the corresponding amount disclosed on the Loan Estimate s Calculating Cash to Close table. Reg. Name of Field Requirement Alt (i)(1) Loan Amount Under the Loan Estimate column, enter the Loan Amount disclosed on page 1 of the last valid Loan Estimate. Round to the nearest whole dollar. Do not show cents Under the Final column, enter the final loan amount disclosed in the Loan Terms section on page 1 of the CD. Round to the nearest whole dollar. Do not show cents. Under the Did this change? column, enter YES, or NO if the final Loan Amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o o If the amounts are different, unless due to rounding, a statement of that fact, along with a statement that of whether this amount increased or decreased. Bolding required. If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Bolding required. Page 23 of 45

24 Alt (i)(2) Total Closing Costs (J) Enter the total amount of cash or other funds that must be provided by the borrower at consummation, with an itemization of that amount into the following components. Under the Loan Estimate column, enter the amount disclosed in section J. Total Closing Costs from the last valid Loan Estimate. Under the Final column, enter the final amount disclosed in section J. Total Closing Costs (Borrower-Paid) from page 2 of the CD, as a negative number. Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, and the differences are due to differences in itemized charges that are included in either or both subtotals, a statement that the borrower should See Total Loan Costs (D) and Total Other Costs (I). (Bolding as seen is required) o If the increase exceeds the tolerance limits, a statement Increase exceeds legal limits by XXX. See Lender Credits on page 2 for credit of excess amount. (Bolding as seen is required.) o If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Alt (i)(3) Closing Costs Paid Before Closing Under the Loan Estimate column, enter the amount of $0. Under the Final column, enter the final amount disclosed in section Closing Costs Subtotals D+I Borrower Paid Before Closing column from page 2 of the CD, as a positive number. Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, a statement You paid these Closing Costs before Closing. (Bolding as seen is required) o If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Alt (i)(4) Total Payoffs and Payments Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Estimated Total Payoffs and Payments from page 3 of the last valid Loan Estimate, as a negative number. Under the Final column, enter the final amount disclosed in section K. Total Payments and Payoffs from page 3 of the CD, as a negative number. Under the Did this change? column, enter YES, or NO if the final amount increased or decreased when compared to the Loan Estimate column. The YES/NO must be in capital, bold face letters. o If the amounts are different, unless due to rounding, a statement See Payoffs and Payments (K). (Bolding as seen is required) Page 24 of 45

25 o If the amount in the Loan Estimate and Final columns are equal, a statement to that fact. Alt (i)(5) Cash to Close Under the Loan Estimate column, enter the amount disclosed in section Calculating Cash to Close Estimated Cash to Close from page 3 of the last valid Loan Estimate, and check the applicable box whether it is from or to the borrower. Under the Final column, enter the final sum total of the Calculating Cash to Close section from page 3 of the CD, as a positive number, and check the applicable box whether it is from or to the borrower. Under the Did this change? column, next to the heading Closing Costs Financed (Paid from your Loan Amount) enter sum amounts in the final column of the Loan Amount and Total Payoffs and Payments. However, the amount is disclosed only if the sum is greater than zero and no larger than the Total Closing Costs (deducting the amount in the Final column of Closing Costs Paid Before Closing). Summaries of Transaction Section Generally, the Summaries of Transactions table is similar to the Summary of Borrower s Transaction and Summary of Seller s Transaction tables on the HUD-1 Settlement Statement. There are some modifications to the Closing Disclosure related to the handling of the disclosure of the borrower s Deposit, the disclosure of Credits, and other matters, discussed below. A lender can work with a Settlement Agent, and the Settlement Agent can disclose the Borrower s Transaction column of the Summaries of Transactions table. Any references to the lender would apply to the settlement agent when the Settlement Agent discloses the Borrower s Transaction column. The section begins with the following statement Use this table to see a summary of your transaction, and depending on whether the transaction is a purchase (has a seller) or is a refinance (no seller), will include one of the following: Purchase Transaction: Includes two tables (1) Summary of borrower s transactions and (2) Summary of seller s transactions. These tables will disclose the amounts due from or payable to the borrower and seller at closing. Refinance Transaction: The Seller s Transaction column is not included on the Closing Disclosure. Instead it is replaced with the Payoffs and Payments table when the Alternative Cash to Close and Alternative Calculating Cash to Close tables are used. A separate Closing Disclosure may be provided to the borrower and seller that does not reflect the other party s costs and credits Page 25 of 45

26 Borrowers Transaction Instructions to complete the Borrower s Transaction section on Page 3 (Purchase Money Transactions Only) Items paid outside of closing funds. Charges that are not paid from closing funds but that would otherwise be disclosed in this section, are to be indicated with the phrase Paid Outside of Closing or the acronym P.O.C. and include the name of the payee. As used in this section closing funds means funds collected and disbursed at real estate closing. Page 26 of 45

27 Reg. Name of Field Requirement (j)(1) K. Due From Borrower at Closing This section itemizes the amounts due from the borrower and is comprise of the sum total of the following: Sale Price of Property Sale Price of Any Personal Property Included in Sale Closing Costs Paid at Closing Other consumer charges Enter the amount of the contract sales price of the property, excluding the price of tangible personal property if the borrower and seller agreed to a separate price for these items. Enter the amount of the Personal Property, as defined by State law, and could include such items as carpets, drapes, and appliances. Manufactured homes are not considered personal property for the Closing Disclosure. Enter the amount of the Closing Costs Subtotals (D+I) that are disclosed as Borrower-Paid at Closing, on page 2 of the Closing Disclosure. Enter the amount of any other borrower charges payable by the borrower at closing that are not previously disclosed on page 2 of the Closing Disclosure as Due from Borrower at Closing. Examples include: Amounts paid to any existing holders of liens on the property in a refinance transaction, and any outstanding real estate property taxes. These amounts are disclosed without a corresponding credit in the Seller s Transaction column. Adjustments Could include amounts paid by seller that borrower is required to reimburse at closing. Adjustments due from the borrower to be paid to the seller are disclosed in two places. 1. Amounts owed by the borrower that are neither disclosed on Closing Disclosure page 2 nor specifically required to be disclosed as Due from Borrower at Closing. Examples of these amounts include: A balance in a seller s reserve account transferred to the borrower in connection with an assumed loan, rent that the borrower will collect after closing for a period of time prior to the closing, and the treatment of any tenant security deposit.) 2. Additional adjustments are disclosed along with the time-period associated with the adjustment. Adjustments for Items Paid by Seller in Advance Examples include: Taxes paid in advance for an entire year when the closing occurs prior to the expiration of the year, flood or hazard insurance premiums when the borrower is being substituted as an insured under the same policy, mortgage insurance in connection with an assumed loan, planned unit development or condominium association assessments paid in advance, fuel or other supplies on hand purchased by the seller which the borrower will use when the borrower takes possession of the property, and ground rent paid in advance by the seller. Enter the amounts pursuant to the terms of the real estate sale contract. City/Town Taxes: Enter the prorated amount of any prepaid taxes due from the borrower to reimburse the seller at the real estate closing, and the time period corresponding to that amount. County Taxes: Enter the prorated amount of any prepaid taxes due from the borrower to reimburse the seller at the real estate closing, and the time period corresponding to that amount. Assessments: Enter the prorated amount of any prepaid assessments due from the borrower to reimburse the seller at the real estate closing, and the time period corresponding to that amount. Page 27 of 45

28 (j)(2) (j)(3) (L) Paid Already By or on Behalf of Borrower at Closing Additional Items: Enter a description and the amount of any additional items paid by the seller prior to the real estate closing that are due from the borrower at the real estate closing. The amount Paid Already by or on Behalf of Borrower at Closing is the sum of: 1. Deposit 2. Loan Amount 3. Existing Loan(s) Assumed or Taken Subject to 4. Seller Credits 5. Other Credit 6. Adjustments for Items Unpaid by Seller pursuant to the terms of the real estate sale contract. 7. Principal Reductions (disclosed in this section for both purchase money and refinance transactions) Deposit Enter the amount that is paid to the seller or held in trust or escrow account by an attorney or other party under the terms of the purchase agreement. o If the Deposit has been applied toward a closing cost paid by the borrower, deduct this from the amount of the Deposit. o No deduction in the amount of the Deposit is to be made for the payment of any real estate commission disclosed on page 2 of the Closing Disclosure. Loan Amount Enter the loan amount disclosed on page 1 under Loan Terms. Existing Loan(s) Assumed or Taken Enter the total amount of all loans that the borrower is assuming in the transaction, even if more than one loan is being assumed. Subject to Seller Credit Enter the total amount of money that the seller will provide at the real estate closing as a lump sum not otherwise itemized to pay for loan costs disclosed on page 2 under Loan Costs and Other Costs sections, and any other obligations of the seller to be paid directly to the borrower. Seller credits include any general credit to the borrower from the seller, and they include a seller making an allowance to the borrower for items to purchase separately. However, if the seller s agreement is attributable to a charge listed on Closing Disclosure page 2, then the amount should be listed with the item and designated as Seller-Paid at Closing or Seller-Paid Before Closing on Closing Disclosure page 2. Seller Credits also include any seller credits for issues identified at a walk-through of the Property. Other Credits Enter the amount of other items paid by or on behalf of the borrower and not otherwise disclosed on page 2 in Loan Costs, Other Costs, Total Other Costs, and Lender Credits, along with a description of each item. Other Credits include a general credit from any party other than the seller or lender. Example is a credit a borrower receives from a real estate agent. A description of the credit and the name of the party giving the credit must also be included. However, if the credit or rebate is attributable to a charge listed on page 2 of the Closing Disclosure, then the amount should be listed with the item and designated as Paid by Others on Closing Disclosure page 2. Other Credits also include any transferred escrow balance in a refinance transaction and a credit for any money or other payments made by family members associated with the transaction, along with a description of the nature of the funds. Adjustments for Items Unpaid by Seller Disclosure of any amount paid with funds other than closing funds by a borrower in connection with a subordinate loan payoff are disclosed with a statement that such amounts were paid with outside of closing funds. City/Town Taxes: Enter the prorated amount of any unpaid taxes due from the seller to reimburse the borrower at the real estate closing, and the time period corresponding to that amount. Page 28 of 45

29 County Taxes: Enter the prorated amount of any unpaid taxes due from the seller to reimburse the borrower at the real estate closing, and the time period corresponding to that amount. Assessments: Enter the prorated amount of any unpaid assessments due from the seller to reimburse the borrower at the real estate closing, and the time period corresponding to that amount. Examples include: Taxes paid in arrears for an entire year when the closing occurs prior the start of the year, flood or hazard insurance premiums when the borrower is being substituted as an insured under the same policy, mortgage insurance in connection with an assumed loan, planned unit development or condominium assessments not yet paid, and ground rent not yet paid by the seller. Additional Items: Enter a description and the amount of any additional items which have not yet been paid (disclosed on page 2 or specifically included as Due from Seller at Closing, and which the borrower is expected to pay after the real estate closing, but which are attributable in part to a period of time prior to the real estate closing. Calculation o Examples of these amounts include: Utilities used but not paid for by the seller, rent collected in advance by the seller for a period extending beyond the closing date, and interest on loan assumptions. Under the heading Calculation: Total Due from Borrower at Closing Total Paid Already by or on Behalf of Borrower at Closing Cash to Close To or From Borrower Enter the amount disclosed in K. Total Due from Borrower at Closing. Enter the amount disclosed in, if any, L. Total Paid Already by or on Behalf of Borrower at Closing, as a negative number. Enter the sum total of K and L and check the applicable box either from or to borrower. Page 29 of 45

30 Sellers Transaction Purchase Money Under the heading Summaries of Transactions required by paragraph (j) of this section, a separate table under the subheading Seller s Transaction, that includes the following information and satisfies the following requirements: Instructions to complete the Seller s Transaction section on Page 3 The Settlement Agent completes and discloses the Seller s Transaction column of the Summaries of Transactions table. Charges that are not paid from closing funds but that would otherwise be disclosed in this section, are to be indicated with the phrase Paid Outside of Closing or the acronym P.O.C. and include the name of the payee. Reg. Name of Field Requirement (k)(1) M. Due to Seller at Itemize the amount Due to Seller at Closing as the sum of: Closing Sale Price of Property: Enter the sales price excluding the price of tangible personal property if the borrower and seller have agreed to a separate price for such items. Sale Price of Any Personal Property Included in Sale: Enter the amount of any Personal Property, as defined by state law, but could include such items as carpets, drapes, and appliances. Manufactured homes are not considered personal property for the Closing Disclosure. Adjustments. Additional Items: Enter a description and the amount of other items paid to the seller by the borrower pursuant to the contract of sale or other agreement, such as charges that were not disclosed on the Loan Estimate or items paid by the seller prior to the real estate closing but reimbursed by the borrower at the real estate closing. Adjustments for Items Paid by Seller in Advance Adjustments for Items Paid by Seller in Advance due to the seller pursuant to the terms of the real estate sales contract. City/Town Taxes: Enter the prorated amount of any prepaid taxes due from the borrower to reimburse the seller at the real estate closing, and the time period corresponding to that amount. Page 30 of 45

31 County Taxes: Enter the prorated amount of any prepaid taxes due from the borrower to reimburse the seller at the real estate closing, and the time period corresponding to that amount. Assessments: Enter the prorated amount of any prepaid assessments due from the borrower to reimburse the seller at the real estate closing, and the time period corresponding to that amount. Additional Items: Enter a description and the amount of additional items paid by the seller prior to the real estate closing that are reimbursed by the borrower at the real estate closing. (k)(2) N. Due from Seller at Closing Examples: Adjustments due from the borrower to be paid to the seller are disclosed in two categories: 1. amounts owed by the borrower that are neither disclosed on page 2 nor specifically required to be disclosed as Due from Borrower at Closing. These amounts include, but are not limited to: A balance in a seller s reserve account transferred to the borrower in connection with an assumed loan, Rent that the borrower will collect after closing for a period of time prior to the closing, and The treatment of any tenant security deposit. 2. Adjustments for Items Paid by Seller in Advance are disclosed along with the time-period associated with the adjustment. These amounts include, but are not limited to: Taxes paid in advance for an entire year when the closing occurs prior the expiration of the year, Flood or hazard insurance premiums when the borrower is being substituted as an insured under the same policy, Mortgage insurance in connection with an assumed loan, Planned unit development or condominium association assessments paid in advance, Fuel or other supplies on hand purchased by the seller which the borrower will use when the borrower takes possession of the property, and Ground rent paid in advance by the seller. Itemize the amount Due from Seller at Closing as the sum of: Excess Deposit: Enter the amount of any excess deposit disbursed to the seller prior to the real estate closing. Closing Costs Paid at Closing (J) by the Seller: Enter the amount of closing costs disclosed on page 2 Loan Costs Subtotals (A+B+C) and/or Other Costs Subtotals (E+F+G+H) designated seller-paid at closing. Existing Loan(s) Assumed or Taken Subject to: Enter the amount of any existing loans the borrower is assuming or any loans the borrower is taking title to the property. Payoff of First Mortgage Loan: Enter the amount of any loan secured by a second lien on the property that will be paid off as part of the real estate closing. Payoff of Second Mortgage Loan: Enter the amount of any loan secured by a first lien on the property that will be paid off as part of the real estate closing. Payment of other seller obligations: Enter, for example the payoff or satisfaction amounts for any additional seller obligations as separately itemized amounts. Other examples of these seller obligations include, but are not limited to: o Satisfaction of outstanding liens imposed due to Federal, State or local income taxes, o Real estate property tax liens, o Judgments against the seller reduced to a lien upon the property, o Other obligations the seller wishes the Settlement Agent to pay from the seller s proceeds at closing, and Page 31 of 45

32 Seller Credit Adjustments for Items Unpaid by Seller o Funds to be held by the Settlement Agent for repairs or the payment of water, fuel, or other utility bills that cannot be prorated between the parties at closing because the amounts used by the seller prior to closing are not yet known at closing. Subsequent disclosure of a revised Closing Disclosure after the repairs are made or the utility bill is received is optional. Seller Credit: Enter the total amount of money that the seller will provide at the real estate closing as a lump sum not otherwise itemized to pay for Loan Costs and Other Costs and any other obligations of the seller to be paid directly to the borrower. Adjustments Seller Credit is an amount the seller is giving as a general credit not tied to a specific charge on page 2 or is making as an allowance to the borrower for items to purchase separately. Enter the amount of Seller Credit, including, but not limited to, any credits to the borrower as the result of a walk-through of the property prior to the closing. However, if the amount of a credit is attributable to a charge listed on page 2, then the amount should be listed with the applicable item on page 2 and designated as Seller-Paid At Closing or Seller-Paid Before Closing, as appropriate. Adjustments for Items Unpaid by Seller due to the borrower pursuant to the terms of the real estate sale contract. Adjustments for Items Unpaid by Seller: Enter a description and amount of any and all other obligations required to be paid by the seller at the real estate closing, including any lien-related payoffs, fees, or obligations. City/Town Taxes: Enter the prorated amount of any unpaid taxes due from the seller to reimburse the borrower at the real estate closing, and the time period corresponding to that amount. County Taxes: Enter the prorated amount of any unpaid taxes due from the seller to the borrower at the real estate closing, and the time period corresponding to that amount. Assessment: Enter the prorated amount of any unpaid assessments due from the seller to reimburse the borrower at the real estate closing, and the time period corresponding to that amount. Additional Items: Enter a description and the amount of any additional items which have not yet been paid and which the borrower is expected to pay after the real estate closing, but which are attributable in part to a period of time prior to the real estate closing. (k)(3) Calculation Adjustments for Items Unpaid by Seller due to the borrower to be paid by the seller pursuant to the real estate sales contract has two components: 1. disclose amounts owed by the seller with the time period associated with the adjustments. Examples include: Taxes paid in arrears for an entire year when the closing occurs prior the start of the year, flood or hazard insurance premiums when the borrower is being substituted as an assured under the same policy, mortgage insurance in connection with an assumed loan, planned unit development or condominium assessments not yet paid, and ground rent not yet paid by the seller. 2. disclose amounts owed by the seller that are neither disclosed on page 2 nor specifically disclosed as Due from Seller at Closing. Examples of these amounts include: Utilities used but not paid for by the seller, rent collected in advance by the seller from a tenant for a period of extending beyond the closing date, and interest on loan assumptions. Under the heading Calculation: Total Due to Seller at Closing Enter the amount disclosed in M. Total Due to Seller at Closing. Page 32 of 45

33 Total Due from Seller at Closing Cash to Close To or From Borrower Enter the amount disclosed in, if any, N. Total Due from Seller at Closing, as a negative number. Enter the sum total of M and N and check the applicable box either from or to borrower. Alternate for Transactions without a Seller (Refinance Transactions) The Payoffs and Payments table replaces the Summaries of Transaction Section on page 3 of the Closing Disclosure. This itemizes the amounts of payments and payoffs made at closing from the loan transaction. Instructions to complete the Alternative Summaries of Transaction section on Page 3, Payoffs and Payments. Reg. Name of Field Requirement Alt (j) and (k) To / Amount Enter the name of the payee, a description of the purpose of the disbursements and the total amount. Alt (j) and (k) Total Payments and payments Enter the sum of all payoffs and payments in line L. Total Payoffs and Payments Page 33 of 45

34 Closing Disclosure Page 4 On page 4 of the Closing Disclosure, a Loan Disclosures table is shown with the heading Additional Information About This Loan. Page 34 of 45

35 Instructions to complete the Loan Disclosures section on Page 4 Reg. Name of Field Requirement (l)(1) Assumption The following statement must appear under the heading Assumption. Check the applicable box: If you sell or transfer this property to another person, your lender will allow, under certain conditions, this person to assume this loan on the original terms. will not allow assumption of this loan on the original terms. Example: (l)(2) Demand Feature The following statement must appear under the heading Demand Feature. Check the applicable box: Your loan has a demand feature, which permits your lender to require early repayment of the loan. You should review your note for details. does not have a demand feature. Example: (l)(3) Late Payment The following statement must appear under the heading Late Payment. Enter the number of days and the late payment fee amount. If your payment is more than days late, your lender will charge a late fee of Example: (l)(4) Negative Amortization IMC does not make or purchase loans with negative amortization. Always check the third box: do not have negative amortization feature. Under your loan terms, you are scheduled to make monthly payments that do not pay all of the interest due that month. As a result, your loan amount will increase (negatively amortize), and your loan amount will likely become larger than your original loan amount. Increases in your loan amount lower the equity you have in this property. may have monthly payments that do not pay all of the interest due that month. If you do, your loan amount will increase (negatively amortize), and, as a result, your loan amount may become larger than your original loan amount. Increases in your loan amount lower the equity you have in this property. do not have a negative amortization feature. Example Page 35 of 45

36 (l)(5) Partial Payments The following statement must appear under the heading Partial Payments. Check the applicable box: If monthly payments that are less than the full amount due are accepted and applied to the loan, then check the box may accept partial payments that are less than the full amount due (partial payments) and apply them to your loan If monthly payments that are less than the full amount due are accepted but not applied to the loan until the borrower pays the remainder of the full amount due, then check the box may hold them in a separate account until you pay the rest of the payment, and then apply the full payment your loan If monthly payments that are less than the full amount due are not accepted, then check the box does not accept any partial payments. Verify the statement If the loan is sold, your new lender may have a different policy is included. Example: Use this one (l)(6) Security Instrument The following statement must appear under the heading Security instrument. Enter the property address including a zip code. You are granting a security interest in You may lose this property if you do not make your payments or satisfy other obligations for this loan. Example: (l)(7) Escrow Account Information related to any Escrow Account held by the servicer (or a statement that an Escrow Account has not been established with a description of estimated property costs during the first year after consummation. Under the reference For now, check the box, as applicable, indicating if the loan will have an escrow account (also called an impound or trust account, to pay the property Page 36 of 45

37 costs listed below. Without an escrow account, you would pay them directly, possibly in one or two large payments a year. Your lender may be liable for penalties and interest for failing to make a payment. Complete the Esc row table as applicable, When an Escrow Account is established, disclose: The amount of Escrowed Property Costs over Year 1 with a list of the costs that will be paid by the Escrow Account. The amount of Non-Escrowed Property Costs over Year 1 with a list of the costs that will not be paid by the Escrow Account (to the extent there is room to list the costs in the space provided), Initial Escrow Payment, which is the same amount disclosed as the subtotal of the Initial Payment at Closing on page 2 of the Closing Disclosure, and Monthly Escrow Payment When an Escrow Account is not established, disclose: The amount of Estimated Property Costs over Year 1, and The amount of any Escrow Waiver Fee imposed for waiving the creation of an Escrow Account with the loan. Property Costs include: Property Taxes, Homeowner s Insurance, Charges imposed by a cooperative, condominium or homeowners association, Ground rent, Leasehold payments, and Certain insurance premiums or charges if required by the lender. ( (l)(7)(i); (c)(4)(ii); (b)(8)) Under the reference In the future, verify the following statement appears: Your property costs may change and, as a result, your escrow payment may change. You may be able to cancel your escrow account, but if you do, you must pay your property costs directly. If you fail to pay your property taxes, your state or local government may (1) impose fines and penalties or (2) place a tax lien on this property. If you fail to pay any of your property costs, your lender may (1) add the amounts to your loan balance, (2) add an escrow account to your loan, or (3) require you to pay for property insurance that the lender buys on your behalf, which likely would cost more and provide fewer benefits than what you could buy on your own. Example of an Escrow Account: Page 37 of 45

38 Adjustable Payment (AP) and Adjustable Interest rate (AIR) Tables If the monthly P&I payment may change after consummation but not based on an adjustment to the interest rate, or if the transaction is a seasonal payment product, an Adjustable Payment (AP) Table is required. Adjustable Payment (AP) Table) The same information that was or would have been disclosed in the AP Table on the Loan Estimate is disclosed in the AP Table on Closing Disclosure page 4, updated to reflect the terms of the loan at consummation (signing). Instructions to complete the Adjustable Payment (AP) Table on Page 4 If the periodic P&I payment may change after consummation (signing) but not based on an adjustment to the interest rate, or if the transaction is a seasonal payment product, an Adjustable Payment (AP) Table that contains the following information and satisfies the following requirements is required. If the loan does not contain these features, the AP Table is not included on the CD. Reg. Name of Field Requirement (m) Interest Only Enter a YES if there are any interest only payments and the period they would apply Payments? Optional Payments Enter a No Step Payments? IMC does not permit optional payments, i.e., biweekly payments, and Payment Option ARMs. Enter a No Seasonal Payments? Monthly Principal and Interest Payments IMC does not make or purchase Step loans. Enter a No IMC does not allow seasonal payments. First Change/Amount: Enter the number of the payment that may change, counting from the first periodic payment due after consummation, and the amount or range of the periodic principal payment and interest payment, rounded to the nearest whole dollar Subsequent Changes: Enter the frequency of the subsequent changes to the periodic payment. Maximum Payment: Enter the maximum payment that may be paid during the life of the loan, rounded to the nearest whole dollar, with the number of the first periodic P&I payment that can reach that amount. Page 38 of 45

39 Adjustable Interest Rate (AIR) Table) The same information that was or would have been disclosed in the AIR Table on the Loan Estimate is disclosed in the AIR Table on Closing Disclosure page 4, updated to reflect the terms of the loan at consummation (signing). Instructions to complete the Adjustable Interest Rate (AIR) Table on Page 4 If the interest rate may increase after consummation (signing), a separate table, the Adjustable Interest Rate (AIR) Table, that contains the following information and satisfies the following requirements is required. If the loan s interest rate will not increase after consummation, do not disclose the AIR Table Reg. Name of Field Requirement (n) Index + Margin If the interest rate may, enter the index upon which the adjustments to the interest rate are based and the margin that is added to the index to determine the interest rate. If the margin is a whole number truncate the decimal point. Examples 4.00% = 4% 4.5% = 4.50% 4.555% = 4.555% Maximum is 3 decimal places Initial Interest Rate Enter the interest rate at consummation If the interest rate is a whole number truncate the decimal point. Examples 4.00% = 4% 4.5% = 4.50% 4.555% = 4.555% Maximum is 3 decimal places Minimum/ Maximum Interest Rate Enter the minimum and maximum interest rates for the loan, after any introductory period expires If the interest rate is a whole number truncate the decimal point. Examples 4.00% = 4% 4.5% = 4.50% 4.55% = 4.555% Maximum is 3 decimal places Change Frequency First Change: Enter the month when the interest rate after consummation may first change, calculated from the date interest for the first scheduled periodic payment begins to accrue Subsequent Changes: Enter the frequency of interest rate adjustments after the initial adjustment to the interest rate Limits on Interest Rate Changes First Change: Enter the maximum possible change for the first adjustment of the interest rate after consummation Subsequent Changes: Enter the maximum possible change for subsequent adjustments of the interest rate after consummation If the change on interest rate is a whole number truncate the decimal point. Examples 4.00% = 4% 4.5% = 4.50% 4.55% = 4.555% Maximum is 3 decimal places Page 39 of 45

40 Closing Disclosure Page 5 Page 5 of the Closing Disclosure contains the Loan Calculations, Other Disclosures, Questions, Contact Information, and, if desired by the lender, Confirm Receipt. Loan Calculations Section The Loan Calculations section is similar to the Comparisons section on page 3 of the LE. The Loan Calculations section discloses the Total of Payments, the Finance Charge, the Amount Financed, the APR, and the Total Interest Percentage (TIP) in the Loan Calculations table. The APR and TIP amounts should be updated from the amounts disclosed on the Loan Estimate to reflect the terms of the legal obligation at consummation. Also, with the exception of TIP, these 4 of the 5 material disclosures that appear on the TIL Statement Disclosure issued today. Instructions to complete the Loan Calculations section on Page 5 Reg. Name of Field Requirement (o)(1) Total of Payments Enter the Total of Payments, expressed as a dollar amount, and verify the following statement appears (should be HARDCODED): Total you will have paid after you make all payments of principal, interest, mortgage insurance, and loan costs, as scheduled. (o)(2) Finance Charge Enter the Finance Charge, expressed as a dollar amount, and verify the following statement appears (should be HARDCODED): The dollar amount the loan will cost you. The disclosed finance charge and other disclosures affected by the disclosed financed Page 40 of 45

41 charge (including the amount financed and the annual percentage rate) shall be treated as accurate if the amount disclosed as the finance charge: Is understated by no more than $100; or Is greater than the amount required to be disclosed. (o)(3) Amount Financed Enter the Amount Financed, expressed as a dollar amount, and verify the following statement appears (should be HARDCODED): The loan amount available after paying your upfront finance charge. (o)(4) Annual Percentage Rate (APR) Enter the Annual Percentage Rate, using that term and the abbreviation APR and expressed as a percentage, and verify the following statement appears (should be HARDCODED): Your costs over the loan term expressed as a rate. This is not your interest rate. Do not round. If the APR is a whole number truncate the decimal point. Examples 4.00% = 4% 4.5% = 4.50% 4.555% = 4.555% Maximum is 3 decimal places (o)(5) Total Interest Percentage (TIP) Enter the total amount of interest that the borrower will pay over the life of the loan, expressed as a percentage of the loan amount, using the term Total Interest Percentage, the abbreviation TIP, and the verify the following statement appears (should be HARDCODED): The total amount of interest that you will pay over the loan term as a percentage of your loan amount. Do not round. If the TIP is a whole number truncate the decimal point. Examples 4.00% = 4% 4.5% = 4.50% 4.555% = 4.555% Maximum is 2 decimal places Page 41 of 45

42 Other Disclosures Section Alternative Other Disclosures if no signature line is on CD. Instructions to complete the Other Disclosures section on Page 5 Reg. Name of Field Requirement (p)(1) Appraisal The following statement must appear under the heading Appraisal: If the property was appraised for your loan, your lender is required to give you a copy at no additional cost at least 3 days before closing. If you have not yet received it, please contact your lender at the information below. This statement must be provided for: Higher-priced Mortgage Loans, and Loans covered by the Equal Credit Opportunity Act. (ECOA) Also, as additional information If there was an appraisal of the property in connection with the loan, the lender is required to provide the borrower with a copy at no additional cost at least three days prior to consummation (signing); and If the borrower has not yet received a copy of the appraisal, the borrower should contact the lender using the Contact Information disclosed. (p)(2) Contact Details The following statement must appear under the heading Contact Details: See your note and security instrument for information about Page 42 of 45

43 (p)(3) Liability after Foreclosure What happens if you fail to make your payment, what is a default on the loan, situations in which your lender can require early repayment of the loan, and the rules for making payment before they are due. The following statement must appear under the heading Liability after Foreclosure. Check the applicable box: If your lender forecloses on this property and the foreclosure does not cover the amount of unpaid balance on this loan, state law may protect you from liability for the unpaid balance. If you refinance or take on any additional debt on this property, you may lose this protection and have to pay any debt remaining even after foreclosure. You may want to consult a lawyer for more information. state law does not protect you from liability for the unpaid balance. Select the first box for the following states: AK, AZ, AR, CA, FL, GA, ID, IN, IA, KS, ME, MN, MT, NE, NV, NJ, NM, NC, ND, OK, OR, PA, TX, WA, and WV. Select the second box for all other states. Example: (p)(4) Refinance The following statement must appear under the heading Refinance: Refinancing this loan will depend on your future financial situation, the property value, and market conditions. You may not be able to refinance this loan. (p)(5) Tax Deduction The following statement must appear under the heading Tax Deductions: If you borrow more than this property is worth, the interest on the loan amount above this property s fair market value is not deductible from your federal income taxes. You should consult a tax advisor for more information. (p) (6) Loan Acceptance Alternative Other Disclosure Option. When a signature line is not on the CD, the following statement must appear under the heading Loan Acceptance: Questions? Section You do not have to accept this loan because you have received this form or signed a loan application. Instructions to complete the Questions? section on Page 5 Reg. Name of Field Requirement (q)(1) Questions? Required to contain a statement directing the borrower to use the contact information Statement disclosed under the Contact Information section (r) if the borrower has any questions about the Closing Disclosure(s). Page 43 of 45

44 (q)(2) CFPB Website A reference to the CFPB s Website so the borrower can obtain more information or submit a complaint. The link is: mortgage-closing; and (q)(2) Question Mark A prominent question mark. HARD CODED on the form. Contact Information In the Contact Information table, enter the information for the Lender, the Mortgage Broker, and the Real Estate Brokerage (RE Agent), the seller s Real Estate Brokerage (RE Agent), and the Settlement Agent: Name, Address, The NMLS or State license ID, as applicable The Contact name of an individual (and the NMLS or State license ID), , and Phone number. Unused columns may be removed and columns may be added for additional parties. EXAMPLES: When the borrower has two RE Agent s, a column may be added to identify the second RE Agent When there is no RE Agents involved (refinance transactions) the column for Real Estate Broker (B) and Real Estate Broker (S) may both be deleted. On retail transaction, the Mortgage Broker column may be deleted. Instructions to complete the Contact Information Table on Page 5 The Contact Information Table on the Closing Disclosure discloses generally the same information required to be disclosed on the Loan Estimate, however expands to include the Real Estate Brokers for both the borrower and sellers, as applicable, and the settlement agent. Reg. Name of Field Requirement (r)(1) (r)(2) Name: Lender/ Mortgage Broker/ Real Estate Broker (B)/ Real Estate Broker (S)/ and Settlement Agent Address: Lender/ Mortgage Broker/ Real Estate Broker (B)/ Real Estate Enter the name as applicable If lender or the mortgage broker has not been assigned an NMLS ID, enter the license number or other unique identifier issued by the applicable jurisdiction or regulating body with which the lender or mortgage broker is licensed and/or registered, with the abbreviation for the State of the applicable jurisdiction or regulatory body stated before the word License. Enter the address Page 44 of 45

45 (r)(3) (r)(4) (r)(5) Broker (S)/ and Settlement Agent NMLS/ License ID: Lender/ Mortgage Broker/ Real Estate Broker (B)/ Real Estate Broker (S)/ and Settlement Agent Contact: Lender/ Mortgage Broker/ Real Estate Broker (B)/ Real Estate Broker (S)/ and Settlement Agent Contact NMLS/ License ID: Lender/ Mortgage Broker/ Real Estate Broker (B)/ Real Estate Broker (S)/ and Settlement Agent Enter the name and NMLSR ID of the individual loan officer and NMLS ID/License ID, pf the lender and the mortgage broker, if any, who is the primary contact for the borrower. If lender or the mortgage broker has not been assigned an NMLS ID, enter the license number or other unique identifier issued by the applicable jurisdiction or regulating body with which the lender or mortgage broker is licensed and/or registered, with the abbreviation for the State of the applicable jurisdiction or regulatory body stated before the word License. Name of the individual person who is primary contact for the borrower at the office of the Lender/ Mortgage Broker/ Real Estate Broker (B)/ Real Estate Broker (S)/ and Settlement Agent. Cannot be a company name. Same requirements as (r)(3) except for the individual person who is a primary contact. (r)(6) Enter the address for the person identified as the Contact (r)(4) (r)(7) Phone Enter the phone number for the person identified as the Contact (r)(4) Confirm Receipt Section Instructions to complete the Confirm Receipt section on Page 5 The Confirm Receipt section on the Closing Disclosure discloses generally the same information required to be disclosed on the Loan Estimate. Reg. Name of Field Requirement (s) Signature Statement (p) Other Disclosures Loan Acceptance Generally, includes the same information as on the Loan Estimate. At the lender s option, signature line may be added to the form to Confirm Receipt. If the signature line is added, following disclosure must appear above the signature line: By signing, you are only confirming that you have received this form. You do not have to accept this loan because you have signed or received this form. Generally, includes the same information as on the Loan Estimate, with the exception of where the Loan Acceptance statement is located. If no signature line is used following disclosure must appear under the heading Other Disclosures on page 5 required by section (p) above, labeled Loan Acceptance : You do not have to accept this loan because you have received this form or signed a loan application. Page 45 of 45