CLOSING DISCLOSURE FORM FREQUENTLY ASKED QUESTIONS LENDER FEES/CREDITS 1. Does the date issued on page 1 represent the date the original Closing Disclosure Form (CDF) was provided or does it need to be updated if a CDF is revised? Use the date the final CDF was sent to the Borrower. 2. How do you Net Fund Lender charges? If the item is Net Funded, select the option from the Net Fund drop-down on the selected line. 3. If a Lender instructs you to enter a fee in an incorrect section, should we move it? Yes. It is the Lender s form. Document that these were the Lender s instructions and enter/move the fee to the section, as instructed. To move lines to different sections, right-click and select Move Line, and then select the section to move the line to. The line is alphabetized in the new section. 4. If the Origination Charge is not a percentage, how can it be made a flat amount? Line A01 is for points only, which is always a percentage. If there is a flat Origination fee amount, add another line for the fee and do not put it on Line A01. 5. Where are Lender Credits entered? Lender Credits are for GENERAL CREDIT ONLY NOT FOR SPECIFIC FEES. Enter Lender Credits on page 2 Section J. They also display on page 3, L06. Do not enter as a negative number as this will cause the Cash to Close to be incorrect. 6. How do we address Lenders who want the Lender Credits to be displayed as a negative amount? The Lender Credits display in the Credit section, which is already a negative field. Entering the Lender Credits as a negative amount will result in an incorrect calculation. With the understanding that some lenders interpret this part of the Rule differently, RamQuest is working on an enhancement for this, which will allow more flexibility in meeting unique requests. Until the enhancement is released, the workaround for this is to view the CDF in Print Preview, add a minus sign to the Lender Credits line, and then print the CDF. This does not affect the calculations, but only displays on the printed document. 7. Why does the Total Closing Costs in the Calculating Cash to Close Section not include the Lender Credits or allow us to override to include the Lender Credits if the Lender requests? When the Lender Credits are entered at the bottom of page 2, it is automatically deducted from the Closing Costs. It transfers to page 3, Section L Line 06. The credit is then included in the adjustments and credits on the Calculating Cash to Close table. Closing Disclosure Form FAQs page 1
8. Do we have to show the Title Insurance on the Seller side or can we do it like the 2010 HUD and show it on the Buyer side and give a credit on page 3? The CFPB allows a few different ways to show the Seller-Paid Owner s Title Policy. You may put both fees on the Borrower side and then give a full credit on page 3. 9. How do I get the Payoffs to display on the Borrower side on a Refinance? Be sure to select Switch to CDF Without Seller for Refinances! Enter payoffs via the Payoff Calculator > Borrower Payoffs. NOTE: Seller Payoffs does not display for Refinances 10. Is a CDF required for commercial property? CDFs are not used for commercial property; use the two-page HUD. 11. In a refinance transaction with two mortgages, is a second CDF required? That depends on the lender. If the second mortgage is a standard loan, it is likely they will require a second CDF. If it is a Home Equity type loan and the lender doesn t require a second CDF, use the twopage HUD. 12. When a Lender and Buyer are splitting a fee, how do we Net Fund the Buyer s portion at funding if the Net Funding field does not work in this situation? The Buyer s portion of the fee has to be entered on a separate line; then you can Net Fund that line. 13. How do I enter two or three mortgages for an order? Each mortgage must have a separate Closing Disclosure Form (CDF). 14. What if lender credit is added into lender s wire? In Section J, select + for Net Funding; it auto enters + in Section L. 15. Where do I list funds from a second mortgage? If you want the Amount of the second mortgage to be deducted from the Closing Costs, enter the Amount in Section L under Adjustments with the description, Second Mortgage Funds. 16. When there are fees in the Paid by Others column being paid by the Lender, how do you show it in the system to balance with the Lender s funding amount? Fees entered on the Paid by Others screen are automatically deducted from the Lender s check in Check Writing. 17. How many Payoffs can I enter for a Refinance? It has been verified that you can enter three (3) Borrower Payoffs and four (4) Seller Payoffs for a Refinance. Closing Disclosure Form FAQs page 2
PAID BY OTHERS TITLE 18. When there are fees in the Paid by Others column being paid by the Lender, how do you show it in the system to balance it with the Lender s funding amount? Fees entered on the Paid by Others Check Writing. screen are automatically deducted from the Lender s check in 19. What would you do if a Lender is paying a portion of the title premiums? Click the Paid by Others button. Select the Title Charge, Payor (Lender), and enter the amount they are paying. That amount displays in the Paid by Others column on page 2. 20. The Lender wants to refund the Borrower the Application Fee. Where do we enter the credit? Enter this credit on the Paid by Others screen. 21. What is the member s License Number? The ATG member s License No. with the Illinois Department of Financial and Professional Requirements is: TA.02.020####. The last 4 numbers correspond to your member number. If your member number contains only 1, 2, or 3 digits, add leading zeros to your member number so there are four digits. For example, Member No. 19 would be TA.02.0200019; Member No. 119 would be TA.02.0200119. 22. When does the Owner s Title Policy display as Optional? When a Borrower pays any portion of the Owner s Title Policy, Optional should display in the description. If the Seller pays the entire amount, the word Optional does not display. NOTE: Per the Rule, if the Seller agrees to pay the Owner s Title Policy, it is no longer Optional and cannot be overridden. 23. How do I calculate the amount for the Owner s and Loan Policies under TRID? Closing Disclosure Form FAQs page 3
Use the link below to access our TRID Owner s Policy Calculator, which is available on the ATG web site and can be saved to your desktop. www.atgf.com/sites/default/files/forms/4000/4200i.pdf SELLER CREDITS 24. Why would the Seller-Paid Closing Costs not show on L05 on page 3? L04 and L05 are reserved for last minute credits things that were not in the original contract. Any fees designated to be paid by the contract are shown on L08 and below on page 3. 25. Where are last-minute Seller Credits entered? Last-Minute Seller Credits have to be manually entered in Section L, on line L04 or L05 as a Debit/Credit, and then manually entered as a negative number in the Calculating Cash to Close table on page 3. CASH TO CLOSE 26. On a purchase transaction, when the Borrower is getting money back, we can t get page 1, bottom of page 3, and the top of page 3 to match. Please explain. If the Borrower is getting cash back, page 1 should show Cash to Close $00.00, because Borrower is not bringing anything to closing. The bottom of page 3 should display the amount Paid to Borrower (funds that they are receiving). 27. In the Calculating Cash To Close on Page 3, the Loan Estimate numbers round up or down to the nearest dollar. Some Lenders are requesting it show actual dollars and cents. Is this something specific in the regulations? Per the Rule, the Loan Estimate numbers are rounded and the CDF numbers are exact. The Loan Estimate will not show actual dollars and cents. 28. How do you calculate the Down Payment on an FHA loan? For FHA loans, manually calculate the 3.5% of the sale price and enter that in the Down Payment field. Enter the upfront MIP in the Closing Costs Financed field in the Calculating Cash to Close section on page 3. NOTE: These amounts should be provided by the Lender. Closing Disclosure Form FAQs page 4
29. Does the Down Payment amount affect my Cash to Close totals? If so, how? Yes, the Cash to Close is increased by the amount of the Down Payment. In a typical buy/sell transaction, the Down Payment is the difference between the Sale Price and the Loan Amount. Check to be sure the Down Payment amount is entered in the correct field in CCE and on the CDF, as this could be the reason the Cash to Close totals are not adding up. 30. What if the loan is a VA loan and the amount includes the VA funding fee and no Down Payment? In the case of VA loans, there will not be a Down Payment and the Loan Amount will actually be larger than the Sale Price. RECORDING FEES 31. Can you add additional lines to Section E for additional Recording Fees? Recordings are itemized using the Recording Itemization screen. Only the Deed and Mortgage are itemized on Line E01, per the Rule. All other recordings are entered on the Recording Itemization screen. Add as many as necessary. 32. How do we show the additional Recordings to the customer? Access the Recording Itemization Report from the Reports icon drop-down menu. Closing Disclosure Form FAQs page 5
REALTOR COMMISSION 33. Can an amount, instead of a percentage, be entered for Realtor Commission? Yes. On the Realtor Commission Check screen, do not enter a percentage. Right-click on the Amount field, select Override, and enter in the amount. 34. How do you show additional commission to a Realtor on the CDF? The Rule requires that additional commission, administrative, or other fees be entered as an additional line item on the CDF on Page 2, in Section H, in either the Borrower or Seller column. NOTE: The Realtor Commission Check screen is only for the Division of Gross Commission. This is not where Additional Commission Fees are entered. We recommend users enter Additional Commissions by adding lines in Section H. ALTA SETTLEMENT STATEMENT 35. Why are my fees not printing on the ALTA Settlement Statement? If anything is not categorized (displaying in yellow) on the ALTA Settlement Statement, it will not print. Once everything is categorized, all fees on the ALTA Settlement Statement will print. 36. What is the purpose of the Don t Print button on the ALTA Settlement Statement? Shouldn t every item be disclosed? Yes; however, we want have the flexibility to exclude items for special circumstances, if needed. The Don t Print box is a warning, in conjunction with highlighting the lines in yellow, to notify users, HEY, you have not categorized these lines, THEY WILL NOT PRINT! 37. What is a Universal ALTA ID? The Universal ALTA ID is an ALTA-issued ID Number to enable Lenders to search for Settlement Service Providers in the ALTA registry. The ATG Universal ALTA ID is 0000927. Each ATG agent has their own ALTA Universal ID. If you do not know yours, contact the ATG HelpDesk. 38. Why don t the fees automatically categorize on the ALTA Settlement Statement? This is due to the fact that transactions vary and Categories may also vary by state. 39. Can we use the ALTA Settlement Statement for a refinance? Yes, the ALTA Settlement Statement can be used for a refinance. REALEC CLOSING INSIGHT 40. Do I have to register with RealEC Closing Insight? Yes, lenders exchange order statuses, messages, documents, and Closing Disclosure data through this platform. ATG REsource, via RamQuest s Closing Market, provides the common process and technology necessary to interface with RealEC s systems. Once you are registered and trained on Closing Insight, you can transact with lenders using a consistent process. To benefit from Closing Insight integration and be connected with lenders, ATG member agents should register with Closing Insight as soon as possible: 41. How do I register with RealEC Closing Insight? Go to www.atgf.com for registration information Closing Disclosure Form FAQs page 6