Overview: Create a Closing Disclosure Form (CDF) form and one HUD where the HUD is for a Home Equity Line of Credit (HELOC). Use the steps and additional information below for help with key items and where to enter information. Use the HUD provided to you to create a second order for the HELOC. When finished you would transfer the funds from the second HUD order to the CDF order. 1. Open a new order and in the Settlement type section, ensure you select Closing Disclosure 2. Ensure the Use optional Closing Disclosure forms for transactions not involving seller is selected on Options screen 3. Write down your order number for the 1 st loan here: Order Entry Screen Transaction type: Refinance Order type: Title & Escrow Product type: Refinance Policy type: Loan Only Settlement Date: 08/22/2016 Address: 600 Refinance Way, your local city, state, & zip Loan Amount: $150,000 Borrower: Michael Jones and Mary Jones (Husband and wife) Hazard Insurance Agent: USAA Lender: First Ever Savings & Loan NOTE: Marketing Source Payoff Lender: Wells Cargo Government Choose a County Recorder Government Choose a Tax Collector Settlement Agents: (Choose an office if one is not defaulted) Page 1 of 5
Title Insurance Premiums Policy Code: Select one Assume the Final loan premium amount is supposed to be $500. Adjust if necessary using the Loan Policy Premium and Split More/Less Bar Loan Information & funding Screen Borrowers: Ensure both names are selected on both loans as they are both appearing on the CDF Verify loan amount and lender Loan Terms & Payment Loan Interest Rate: 4.25 Page 2 of 5
CDF Page 1 Product: FIXED Issued Date : 8/17/2016 Appraised Value $200,000 Loan #: 111-11-111 Estimated Taxes, Insurance & Assessments: Let system calculate after you enter you Initial Escrow Payment at Closing (Escrows).on CDF Page 2 NOTE: The amounts for Property Taxes and Homeowner s Insurance flows from CDF Page 2. Do not enter the amounts on this screen. CDF Page 2 A. Origination Charges 0.5% of Loan Amount (Points): $750.00 HINT: Click on the 01 Line link to go to the details screen to enter the percent. Application Fee: $200.00 Origination Fee: $400.00 Underwriting Fee: $450.00 B. Services Borrower Did Not Shop For Appraiser Fee: $750.00 (Borrower Paid Before Closing) Tax Service To: L Name: Taxes R Us in the amount of $45.00 Flood Certification To: L - Name: Flood Cert. Inc.: $65.00 Credit Report Fee To: L, Name: Credco - $30.00 (Borrower - Paid Before Closing) Press CTRL+S to ensure all charges are in alphabetical order Additional Title Charges (All non-policy Title Charges are always entered here) Settlement Agent Fee: $400.00 Doc Prep Fee: $30.00 Wire Fee: $50.00 Use Back Icon to Return to CDF Page 2 Page 3 of 5
CDF Page 2 Taxes and Other Government Fees Recording Fees to G placeholder contact: $50.00 F. Prepaids Homeowner s Insurance Premium to USAA: $1200.00 Prepaid Interest to Lender: $104.79 Property Taxes to G2 placeholder contact for 6 months: $631.80 F. Initial Payment at Closing: Homeowner s Insurance: Collect 2 months at $100.00/month for a total of $200.00 Property Taxes : Collect 2 months at $105.30/month for a total of $210.60 Aggregate Adjustment: -$10.00 CDF Page 3 Payoffs andpayments Click Line 01 link Add line by press + icon Select Payoff Description: Payoff of existing lien To: P (Payoff Lender) Enter Payoff Amount of $90,000.00 TIP: You may delete blank line 01 after adding line 02 Calculating Cash to Close Loan Amount: $150,000.00, Did this Change: No Totlal Closing Costs (J): -$6,500.00, Did this Change: Yes Reason: See Total Loan Costs (D) and Total Other Costs (I) HINT: Press Ctrl + B to bold text. Closing Costs Paid Before Closing: $50.00, Did this Change: Yes Reason: You paid these Closing Costs before closing Total Payoffs and Payments (K): -$100,000.00, Did this Change: Yes Reason: See Payoffs and Payments (K) Page 4 of 5
CDF Page 4 Late Payment: 5 days @ 5% Partial Payments: Does not accept Escrow Account: Will have CDF Page 5 Manual entry per lenders CDF Total Payments: 1 st : $273,214.50 Finance Charge 1 st : $121,029.00 Amount Financed 1 st : $148,241.94 APR 1 st : 4.543% Total interest Percentage 1 st : 77.290% Verify contacts Verify confirm receipt signature appearance Documents Search for closing Closing Disclosure searching by CDF will only bring up statements Select Closing Disclosure Form, Pages 1-5 and attachment TIP: on the Options screen you can select which docs (if any) user would like signature lines to print on Note: You do not need to perform the next steps for this exercise. After August 1 st if you did have a second loan for a home equity line of credit, you would create the HUD order as an A file. Then, you would disburse the funds from the A file and receipt them into the CDF file Page 5 of 5