The Costs at Closing table on the Loan Estimate will be dynamically completed based on the terms of the transaction. In transactions without a seller, including a refinance transaction, the Costs at Closing table will populate with the alternative version for transactions without a seller. See 12 CFR 1026.37(d).
If Owner’s Title Insurance is not an applicable charge for the loan, such as in a refinance transaction, it should not be disclosed on the Loan Estimate. The lender must disclose under Other Costs any amounts in connection with the transaction that the borrower is likely to pay or has contracted with a person other than the creditor or loan originator to pay at closing and of which the creditor is aware at the time of issuing the Loan Estimate. See 12 CFR 1026.37(g)(4).
Discount points must be disclosed on the Loan Estimate as a percentage of the loan amount. However, all other origination charges, including an origination fee, must be disclosed with the name of the fee and the dollar amount of the charge. See 12 CFR 1026.37(f)(1).
That's correct. The LE doesn’t have the concept of “borrower-responsible” that the GFE has, and only discloses amounts the consumer is generally likely to pay. There is no concept of borrower-responsible like on the GFE for owner's title, etc. So, based on this "likely to pay" standard, things like owner's title are only disclosed if the consumer is likely to pay it.
If a fee name does not fit on a line, the best thing to do is to use commonly-used abbreviations to try and shorten it. The rule is silent on this issue, but the rule does not allow the moving of lines or sections of the form. So trying to shorten the description is the only permissible solution. There is a general "clear and conspicuous" standard that applies to the disclosure under 1026.17(a), including the naming conventions such as 1026.37(f)(5). Under this standard, the description should be clear to the consumer and, essentially, understandable.
TIP only includes the periodic interest and per diem interest. It wouldn't include other charges that would be considered settlement charges, such as points or a buydown.
Yes, Finance Charge is separate from Total of Payments now. It has to be calculated independently. Essentially it would include anything that would be considered a finance charge under Reg Z. You can do it by totaling the interest and MI in the payment schedule and prepaid finance charges. Amount Financed is the same, you can get the prepaid finance charges from that number.
Yes, the new Total of Payment calculation is different. It includes principal, interest, MI, and Loan Costs (the total Loan Costs paid by the consumer under 38(f) - note that this does not incorporate any general Lender Credit). This calculation is the same as the In 5 Years on the LE, except In 5 Years is obviously only for the first five years. The reason for this change in the calculation is that it would correspond with items that are verifiable for a consumer on the disclosure.
Comment 37(c)(1)(i)(C)-1 clarifies that under 1026.37(c), “mortgage insurance or any functional equivalent” includes a United States Department of Veterans Affairs or United States Department of Agriculture guarantee, even if not technically considered insurance under State or other applicable law. But keep in mind that 37(c) only includes periodic charges. An upfront guarantee fee is disclosed under 37(f)(2), because it is considered a service the consumer can't shop for. See comment 37(f)(2)-2.
Any copy sent to the borrower should have the date the copy is issued. If a package is sent by DocMagic eSign, and the package is print fulfilled, the date on the disclosure would be the date the disclosure is sent to the borrower, not the Date Issued in the worksheet and not the date the document is printed. So, for example, if a package is processed 11/7 and sent using DocMagic eSign, and the package is printed on 11/9 and mailed on 11/10, the date on the disclosure would be 11/10.
