Compensation paid directly by the consumer and/or the creditor to a loan originator other than an employee of the creditor

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1 This guide to the Closing Disclosure form is not a comprehensive how to guide. Instead, it is intended to highlight certain areas of the form that require some detailed and difficult input. This guide is based on the assumption that you are generating the forms from a loan software platform and will not cover specifics of the form that should be populated by such software. Origination ChargesItemize separately in alphabetical order (examples) Application fee Origination fee Processing fee Rate-Lock fee Underwriting fee Verification fee Compensation paid directly by the consumer and/or the creditor to a loan originator other than an employee of the creditor Charge imposed to pay for a loan level pricing adjustment assessed on the creditor which the creditor passes onto the consumer as a charge at consummation (not as an adjustment to the interest rate) ABA course content does not provide, nor is it intended to substitute for, professional legal advice.

2 Services Borrower Did Not Shop ForItemize separately including the name of the recipient of the fee in alphabetical order (examples) Appraisal fee Appraisal management company fee Credit report fee Flood determination fee Government funding fee (such as a VA or USDA guarantee fee) Homeowner s association certification fee Tax status search fee Titleclosing agent fee (settlement fee) Titleclosing protection letter fee Titleexam fee Titlelender s title insurance policy fee Titlepreparation and issuance of title commitment Titlepreparation and issuance of title insurance policies Upfront mortgage insurance fee (unless the fee is a prepayment of future premiums or a payment into an escrow account) IMPORTANT NOTES: If the borrower selected a provider supplied on the Written List of Service Providers or does not select a provider and the creditor chooses the provider, the fees are listed in this category The title insurance premium for a lender s title policy is based on the full premium rate

3 Services Borrower Did Shop ForItemize separately including the name of the recipient of the fee in alphabetical order (examples) Pest inspection fee Survey fee Titleclosing agent fee (settlement fee) Titleclosing protection letter fee Titleexam fee Titlelender s title insurance policy fee Titlepreparation and issuance of title commitment Titlepreparation and issuance of title insurance policies IMPORTANT NOTE: The title insurance premium for a lender s title policy is based on the full premium rate.

4 Other CostsH. OtherItemize separately including the name of the recipient of the fee in alphabetical order (examples) Real estate brokerage fees Credit life insurance Debt cancellation coverage Debt suspension coverage Homeowner s association and condominium charges paid at consummation Inspection fees not required by the creditor but paid by the consumer pursuant to the sales contract Title-Owner s title policy Warranties of home appliances and systems Include all other fees paid at closing that are not required by the creditor or otherwise required to be disclosed elsewhere on the Closing Document IMPORTANT NOTES: The title insurance premium for a lender s title policy is based on the full premium rate. For simultaneous issuance rates, the owner s title insurance premium is calculated by taking the full owner s title insurance premium, adding the simultaneous issuance premium for the lender s coverage, and then deducting the full premium for lender s coverage. Fees to be paid by the seller, if known, should also be listed.

5 Fees Subject to Zero Tolerance Fees paid to the creditor Fees paid to a mortgage broker Fees paid to an affiliate of the creditor or a mortgage broker Fees paid to an unaffiliated third party if the creditor did not permit the consumer to shop for a third party service provider for a settlement service Transfer taxes Fees Subject to 10% Tolerance settlement service provider and the consumer selects a settlement service provider from the written list settlement service provider but fails to provide the list* settlement service provider and the consumer does not select a provider but the creditor chooses the provider instead Recording fees Fees Not Subject to Any Tolerance Prepaid interest Property insurance premiums Amounts placed into an escrow, impound, reserve, or similar account Charges paid to third-party service providers selected by the consumer that are not on the written list for which a provider of that specific service could have been selected from the list Charges paid for third-party services not required by the creditor. These charges may be paid to affiliates of the creditor *Although the 10% tolerance may apply to settlement services even when a creditor fails to issue the written list of providers if the customer is truly permitted to shop, the creditor is still in violation of the regulation for failure to comply with the requirements to issue a written list of providers.