For each transaction subject
to section 1026.19(f), the creditor shall disclose the information
in this section:
(a) General information.
(1) Form title. The title of the form, “Closing Disclosure,” using that term.
(2) Form purpose. The following statement:
“This form is a statement of final loan terms and closing costs. Compare
this document with your Loan Estimate.”
(3) Closing information. Under the heading “Closing Information”:
(i) Date issued. The date the disclosures required
by this section are delivered to the consumer, labeled “Date Issued.”
(ii) Closing date. The date of consummation,
labeled “Closing Date.”
(iii) Disbursement
date. The date the amount disclosed under paragraph (j)(3)(iii)
(cash to close from or to borrower) or (k)(3)(iii) (cash from or to
seller) of this section is expected to be paid in a purchase transaction
under section 1026.37(a)(9)(i) to the consumer or seller, respectively,
as applicable, except as provided in comment 38(a)(3)(iii)-1, or the
date some or all of the loan amount disclosed under paragraph (b)
of this section is expected to be paid to the consumer or a third
party other than a settlement agent in a transaction that is not a
purchase transaction under section 1026.37(a)(9)(i), labeled “Disbursement
Date.”
(iv) Settlement agent. The name of the settlement
agent conducting the closing, labeled “Settlement Agent.”
(v) File number. The number assigned to the transaction by the settlement
agent for identification purposes, labeled “File #.”
(vi) Property. The address or location of the property required to be disclosed
under section 1026.37(a)(6), labeled “Property.”
(vii) Sale
price.
(A) In credit transactions where there is
a seller, the contract sale price of the property identified in paragraph
(a)(3)(vi) of this section, labeled “Sale Price.”
(B) In credit transactions where there is
no seller, the appraised value of the property identified in paragraph
(a)(3)(vi) of this section, labeled “Appraised Prop. Value.”
(4) Transaction information. Under the heading
“Transaction Information”:
(i) Borrower. The consumer’s name and mailing address, labeled “Borrower.”
(ii) Seller. Where applicable, the seller’s
name and mailing address, labeled “Seller.”
(iii) Lender. The name of the creditor making the disclosure, labeled “Lender.”
(5) Loan information. Under the heading “Loan
Information”:
(i) Loan term. The information required to be disclosed under section 1026.37(a)(8),
labeled “Loan Term.”
(ii) Purpose. The information required
to be disclosed under section 1026.37(a)(9), labeled “Purpose.”
(iii) Product. The information required to be
disclosed under section 1026.37(a)(10), labeled “Product.”
(iv) Loan type. The information required to be disclosed under section
1026.37(a)(11), labeled “Loan Type.”
(v) Loan identification
number. The information required to be disclosed under section
1026.37(a)(12), labeled “Loan ID #.”
(vi) Mortgage
insurance case number. The case number for any mortgage insurance
policy, if required by the creditor, labeled “MIC #.”
(b) Loan terms. A separate table under the heading “Loan Terms” that includes the
information required by section 1026.37(b).
(c) Projected payments. A separate table, under
the heading “Projected Payments,” that includes and satisfies the
following information and requirements:
(1) Projected
payments or range of payments. The information required to be
disclosed pursuant to section 1026.37(c)(1) through (4), other than
section 1026.37(c)(4)(vi). In disclosing estimated escrow payments
as described in section 1026.37(c)(2)(iii) and (c)(4)(ii), the amount
disclosed on the Closing Disclosure:
(i) For transactions
subject to RESPA, is determined under the escrow account analysis
described in Regulation X, 12 CFR 1024.17;
(ii) For transactions not subject to
RESPA, may be determined under the escrow account analysis described
in Regulation X, 12 CFR 1024.17 or in the manner set forth in section
1026.37(c)(5).
(2) Estimated
taxes, insurance, and assessments. A reference to the disclosure
required by paragraph (l)(7) of this section.
(d) Costs at closing.
(1) Costs at closing table. In a separate table, under the heading
“Costs at Closing”:
(i) Labeled “Closing Costs,” the sum
of the dollar amounts disclosed pursuant to paragraphs (f)(4), (g)(5),
and (h)(3) of this section, together with:
(A) A statement that the
amount disclosed pursuant to paragraph (d)(1)(i) of this section includes
the amounts disclosed pursuant to paragraphs (f)(4), (g)(5), and (h)(3)
of this section;
(B) The
dollar amount disclosed pursuant to paragraph (f)(4) of this section,
labeled “Loan Costs”;
(C) The dollar amount disclosed pursuant to paragraph (g)(5) of this
section, labeled “Other Costs”;
(D) The dollar amount disclosed pursuant to
paragraph (h)(3) of this section, labeled “Lender Credits”; and
(E) A statement referring
the consumer to the tables disclosed pursuant to paragraphs (f) and
(g) of this section for details.
(ii) Labeled “Cash to Close,” the sum
of the dollar amounts calculated in accordance with paragraph (i)(9)(ii)
of this section, together with:
(A) A statement that the amount
disclosed pursuant to paragraph (d)(1)(ii) of this section includes
the amount disclosed pursuant to paragraph (d)(1)(i) of this section;
and
(B) A statement referring
the consumer to the table required pursuant to paragraph (i) of this
section for details.
(2) Alternative
table for transactions without a seller or for simultaneous subordinate
financing. For transactions that do not involve a seller or for
simultaneous subordinate financing, if the creditor disclosed the
optional alternative table under section 1026.37(d)(2), the creditor
shall disclose, with the label “Cash to Close,” instead of the sum
of the dollar amounts described in paragraph (d)(1)(ii) of this section:
(i) The amount calculated in accordance with paragraph (e)(5)(ii)
of this section;
(ii) A statement of whether the disclosed amount is due from or to
the consumer; and
(iii) A statement referring the consumer to the table required pursuant
to paragraph (e) of this section for details.
(e) Alternative calculating
cash to close table for transactions without a seller or for simultaneous
subordinate financing. For transactions that do not involve a
seller or for simultaneous subordinate financing, if the creditor
disclosed the optional alternative table under section 1026.37(h)(2),
the creditor shall disclose, instead of the table described in paragraph
(i) of this section, in a separate table, under the heading “Calculating
Cash to Close,” together with the statement “Use this table to see
what has changed from your Loan Estimate”:
(1) Loan amount. Labeled “Loan Amount:”
(i) Under the subheading “Loan Estimate,”
the loan amount disclosed on the Loan Estimate under section 1026.37(b)(1);
(ii) Under the subheading
“Final,” the loan amount disclosed under paragraph (b) of this section;
(iii) Disclosed more
prominently than the other disclosures under paragraph (e)(1)(i) and
(ii) of this section, under the subheading “Did this change?”:
(A) If the amount disclosed under paragraph (e)(1)(ii) of this section
is different than the amount disclosed under paragraph (e)(1)(i) of
this section (unless the difference is due to rounding), a statement
of that fact along with a statement of whether this amount increased
or decreased; or
(B) If
the amount disclosed under paragraph (e)(1)(i) of this section is
equal to the amount disclosed under paragraph (e)(1)(ii) of this section
a statement of that fact.
(2) Total closing costs. Labeled “Total Closing Costs”:
(i) Under
the subheading “Loan Estimate,” the amount disclosed on the Loan Estimate
under section 1026.37(h)(2)(ii);
(ii) Under the subheading “Final,” the
amount disclosed under paragraph (h)(1) of this section, disclosed
as a negative number if the amount disclosed under paragraph (h)(1)
of this section is a positive number and disclosed as a positive number
if the amount disclosed under paragraph (h)(1) of this section is
a negative number; and
(iii) Disclosed more prominently than the other disclosures under
this paragraph (e)(2)(i) and (ii) of this section, under the subheading
“Did this change?”:
(A) If the amount disclosed under paragraph
(e)(2)(ii) of this section is different than the amount disclosed
under paragraph (e)(2)(i) of this section (unless the difference is
due to rounding):
(1) A statement of that fact;
(2) If the difference in the amounts
disclosed under paragraphs (e)(2)(i) and (e)(2)(ii) is attributable
to differences in itemized charges that are included in either or
both subtotals, a statement that the consumer should see the total
loan costs and total other costs subtotals disclosed under paragraphs
(f)(4) and (g)(5) of this section (together with references to such
disclosures), as applicable; and
(3) If the increase exceeds the limitations
on increases in closing costs under section 1026.19(e)(3), a statement
that such increase exceeds the legal limits by the dollar amount of
the excess and, if any refund is provided under section 1026.19(f)(2)(v),
a statement directing the consumer to the disclosure required under
paragraph (h)(3) of this section or, if applicable, a statement directing
the consumer to the principal reduction disclosure under paragraph
(t)(5)(vii)(B) of this section. Such dollar amount shall equal the
sum total of all excesses of the limitations on increases in closing
costs under section 1026.19(e)(3), taking into account the different
methods of calculating excesses of the limitations on increases in
closing costs under section 1026.19(e)(3)(i) and (ii).
(B) If the amount disclosed
under paragraph (e)(2)(i) of this section is equal to the amount disclosed
under paragraph (e)(2)(ii) of this section, a statement of that fact.
(3) Closing costs
paid before closing. Labeled “Closing Costs Paid Before Closing:”
(i) Under the subheading “Loan Estimate,” the amount of $0;
(ii) Under the subheading
“Final,” any amount designated as borrower-paid before closing under
paragraph (h)(2) of this section, disclosed as a positive number;
and
(iii) Disclosed
more prominently than the other disclosures under this paragraph (e)(3)(i)
and (ii) of this section, under the subheading “Did this change?”:
(A) If the amount disclosed under paragraph (e)(3)(ii) of this section
is different than the amount disclosed under paragraph (e)(3)(i) of
this section (unless the difference is due to rounding), a statement
of that fact, along with a statement that the consumer paid such amounts
prior to consummation of the transaction; or
(B) If the amount disclosed under paragraph
(e)(3)(ii) of this section is equal to the amount disclosed under
paragraph (e)(3)(i) of this section, a statement of that fact.
(4) Payoffs and payments. Labeled
“Total Payoffs and Payments,”
(i) Under the subheading
“Loan Estimate,” the total payoffs and payments disclosed on the Loan
Estimate under section 1026.37(h)(2)(iii);
(ii) Under the subheading “Final,” the
total amount of payoffs and payments made to third parties disclosed
under paragraph (t)(5)(vii)(B) of this section, to the extent known,
disclosed as a negative number if the total amount disclosed under
paragraph (t)(5)(vii)(B) of this section is a positive number and
disclosed as a positive number if the total amount disclosed under
paragraph (t)(5)(vii)(B) of this section is a negative number;
(iii) Disclosed more
prominently than the other disclosures under this paragraph (e)(4)(i)
and (ii), under the subheading “Did this change?”:
(A) If the amount
disclosed under paragraph (e)(4)(ii) of this section is different
than the amount disclosed under paragraph (e)(4)(i) of this section
(unless the difference is due to rounding), a statement of that fact
along with a reference to the table disclosed under paragraph (t)(5)(vii)(B)
of this section; or
(B)
If the amount disclosed under paragraph (e)(4)(ii) of this section
is equal to the amount disclosed under paragraph (e)(4)(i) of this
section, a statement of that fact.
(5) Cash to or from consumer. Labeled “Cash
to Close:”
(i) Under the subheading “Loan Estimate,”
the estimated cash to close on the Loan Estimate together with the
statement of whether the estimated amount is due from or to the consumer
as disclosed under section 1026.37(h)(2)(iv);
(ii) Under the subheading “Final,” the
amount due from or to the consumer, calculated by the sum of the amounts
disclosed under paragraphs (e)(1)(ii), (e)(2)(ii), (e)(3)(ii), and
(e)(4)(ii) of this section, disclosed as a positive number, together
with a statement of whether the disclosed amount is due from or to
the consumer.
(6) Closing costs financed. Labeled
“Closing Costs Financed (Paid from your Loan Amount),” the sum of
the amounts disclosed under paragraphs (e)(1)(ii) and (e)(4)(ii) of
this section, but only to the extent that the sum is greater than
zero and less than or equal to the sum disclosed under paragraph (h)(1)
of this section minus the sum disclosed under paragraph (h)(2) of
this section designated borrower-paid before closing.
(f) Closing cost details;
loan costs. Under the master heading “Closing Cost Details” with
columns stating whether the charge was borrower-paid at or before
closing, seller-paid at or before closing, or paid by others, all
loan costs associated with the transaction, listed in a table under
the heading “Loan Costs.” The table shall contain the items and amounts
listed under four subheadings, described in paragraphs (f)(1) through
(5) of this section.
(1) Origination
charges. Under the subheading “Origination Charges,” and in the
applicable columns as described in paragraph (f) of this section,
an itemization of each amount paid for charges described in section
1026.37(f)(1), the amount of compensation paid by the creditor to
a third-party loan originator along with the name of the loan originator
ultimately receiving the payment, and the total of all such itemized
amounts that are designated borrower-paid at or before closing.
(2) Services borrower did not shop for. Under
the subheading “Services Borrower Did Not Shop For” and in the applicable
columns as described in paragraph (f) of this section, an itemization
of the services and corresponding costs for each of the settlement
services required by the creditor for which the consumer did not shop
in accordance with section 1026.19(e)(1)(vi)(A) and that are provided
by persons other than the creditor or mortgage broker, the name of
the person ultimately receiving the payment for each such amount,
and the total of all such itemized amounts that are designated borrower-paid
at or before closing. Items that were disclosed pursuant to section
1026.37(f)(3) must be disclosed under this paragraph (f)(2) if the
consumer was provided a written list of settlement service providers
under section 1026.19(e)(1)(vi)(C) and the consumer selected a settlement
service provider contained on that written list.
(3) Services
borrower did shop for. Under the subheading “Services Borrower
Did Shop For” and in the applicable column as described in paragraph
(f) of this section, an itemization of the services and corresponding
costs for each of the settlement services required by the creditor
for which the consumer shopped in accordance with section 1026.19(e)(1)(vi)(A)
and that are provided by persons other than the creditor or mortgage
broker, the name of the person ultimately receiving the payment for
each such amount, and the total of all such itemized costs that are
designated borrower-paid at or before closing. Items that were disclosed
pursuant to section 1026.37(f)(3) must be disclosed under this paragraph
(f)(3) if the consumer was provided a written list of settlement service
providers under section 1026.19(e)(1)(vi)(C) and the consumer did
not select a settlement service provider contained on that written
list.
(4) Total loan costs. Under the subheading
“Total Loan Costs (Borrower-Paid),” the sum of the amounts disclosed
as borrower-paid pursuant to paragraph (f)(5) of this section.
(5) Subtotal of loan costs. The sum of loan
costs, calculated by totaling the amounts described in paragraphs
(f)(1) through (3) of this section for costs designated borrower-paid
at or before closing, labeled “Loan Costs Subtotals.”
(g) Closing cost details;
other costs. Under the master heading “Closing Cost Details”
disclosed pursuant to paragraph (f) of this section, with columns
stating whether the charge was borrower-paid at or before closing,
seller-paid at or before closing, or paid by others, all costs in
connection with the transaction, other than those disclosed under
paragraph (f) of this section, listed in a table with a heading disclosed
as “Other Costs.” The table shall contain the items and amounts listed
under five subheadings, described in paragraphs (g)(1) through (6)
of this section.
(1) Taxes and
other government fees. Under the subheading “Taxes and Other
Government Fees,” an itemization of each amount that is expected to
be paid to State and local governments for taxes and government fees
and the total of all such itemized amounts that are designated borrower-paid
at or before closing, as follows:
(i) On the first line:
(A) Before the columns described in paragraph (g) of this section,
the total amount of fees for recording deeds and, separately, the
total amount of fees for recording security instruments; and
(B) In the applicable column
as described in paragraph (g) of this section, the total amounts paid
for recording fees (including, but not limited to, the amounts in
paragraph (g)(1)(i)(A) of this section); and
(ii) On subsequent lines,
in the applicable column as described in paragraph (g) of this section,
an itemization of transfer taxes, with the name of the government
entity assessing the transfer tax.
(2) Prepaids. Under the subheading “Prepaids” and in the applicable column as
described in paragraph (g) of this section, an itemization of each
amount for charges described in section 1026.37(g)(2), the name of
the person ultimately receiving the payment or government entity assessing
the property tax, provided that the person ultimately receiving the
payment need not be disclosed for the disclosure required by section
1026.37(g)(2)(iii) when disclosed pursuant to this paragraph, and
the total of all such itemized amounts that are designated borrower-paid
at or before closing.
(3) Initial escrow payment at closing. Under the subheading “Initial escrow payment at closing” and in
the applicable column as described in paragraph (g) of this section,
an itemization of each amount for charges described in section 1026.37(g)(3),
the applicable aggregate adjustment pursuant to 12 CFR 1024.17(d)(2)
along with the label “aggregate adjustment,” and the total of all
such itemized amounts that are designated borrower-paid at or before
closing.
(4) Other. Under the subheading “Other” and
in the applicable column as described in paragraph (g) of this section,
an itemization of each amount for charges in connection with the transaction
that are in addition to the charges disclosed under paragraphs (f)
and (g)(1) through (3) for services that are required or obtained
in the real estate closing by the consumer, the seller, or other party,
the name of the person ultimately receiving the payment, and the total
of all such itemized amounts that are designated borrower-paid at
or before closing.
(i) For any cost that is a component
of title insurance services, the introductory description “Title —”
shall appear at the beginning of the label for that actual cost.
(ii) The parenthetical
description “(optional)” shall appear at the end of the label for
costs designated borrower-paid at or before closing for any premiums
paid for separate insurance, warranty, guarantee, or event-coverage
products.
(5) Total other costs. Under the subheading
“Total Other Costs (Borrower-Paid),” the sum of the amounts disclosed
as borrower-paid pursuant to paragraph (g)(6) of this section.
(6) Subtotal of costs. The sum of other costs,
calculated by totaling the costs disclosed in paragraphs (g)(1) through
(4) of this section designated borrower-paid at or before closing,
labeled “Other Costs Subtotals.”
(h) Closing cost totals.
(1) The sum of the costs disclosed as borrower-paid
pursuant to paragraph (h)(2) of this section and the amount disclosed
in paragraph (h)(3) of this section, under the subheading “Total Closing
Costs (Borrower-Paid).”
(2) The sum of the amounts disclosed in paragraphs (f)(5) and (g)(6)
of this section, designated borrower-paid at or before closing, and
the sum of the costs designated seller-paid at or before closing or
paid by others disclosed pursuant to paragraphs (f) and (g) of this
section, labeled “Closing Costs Subtotals.”
(3) The amount of lender credits as a negative
number, labeled “Lender Credits” and designated borrower-paid at closing,
and if a refund is provided pursuant to section 1026.19(f)(2)(v),
a statement that this amount includes a credit for an amount that
exceeds the limitations on increases in closing costs under section
1026.19(e)(3), and the amount of such credit under section 1026.19(f)(2)(v).
(4) The services and
costs disclosed pursuant to paragraphs (f) and (g) of this section
on the Closing Disclosure shall be labeled using terminology that
describes the item disclosed, in a manner that is consistent with
the descriptions or prescribed labels, as applicable, used for such
items on the Loan Estimate pursuant to section 1026.37. The creditor
must also list the items on the Closing Disclosure in the same sequential
order as on the Loan Estimate pursuant to section 1026.37.
(i) Calculating cash to
close. In a separate table, under the heading “Calculating Cash
to Close,” together with the statement “Use this table to see what has changed from your Loan Estimate”:
(1) Total closing
costs.
(i) Under the subheading “Loan Estimate,”
the “Total Closing Costs” disclosed on the Loan Estimate under section
1026.37(h)(1)(i), labeled using that term.
(ii) Under the subheading “Final,” the
amount disclosed under paragraph (h)(1) of this section.
(iii) Under the subheading
“Did this change?,” disclosed more prominently than the other disclosures
under this paragraph (i)(1):
(A) If the amount disclosed under
paragraph (i)(1)(ii) of this section is different than the amount
disclosed under paragraph (i)(1)(i) of this section (unless the difference
is due to rounding):
(1) A statement of that fact;
(2) If the difference in the “Total
Closing Costs” is attributable to differences in itemized charges
that are included in either or both subtotals, a statement that the
consumer should see the total loan costs and total other costs subtotals
disclosed under paragraphs (f)(4) and (g)(5) of this section (together
with references to such disclosures), as applicable; and
(3) If the increase exceeds
the limitations on increases in closing costs under section 1026.19(e)(3),
a statement that such increase exceeds the legal limits by the dollar
amount of the excess, and if any refund is provided under section
1026.19(f)(2)(v), a statement directing the consumer to the disclosure
required under paragraph (h)(3) of this section or, if a principal
reduction is used to provide the refund, a statement directing the
consumer to the principal reduction disclosure under paragraph (j)(1)(v)
of this section. Such dollar amount shall equal the sum total of all
excesses of the limitations on increases in closing costs under section
1026.19(e)(3), taking into account the different methods of calculating
excesses of the limitations on increases in closing costs under section
1026.19(e)(3)(i) and (ii).
(B) If the amount disclosed under paragraph
(i)(1)(ii) of this section is equal to the amount disclosed under
paragraph (i)(1)(i) of this section, a statement of that fact.
(2) Closing costs paid before closing.
(i) Under the subheading “Loan Estimate,”
the dollar amount “$0,” labeled “Closing Costs Paid Before Closing.”
(ii) Under the subheading
“Final,” the amount of “Total Closing Costs” disclosed under paragraph
(h)(2) of this section and designated as borrower-paid before closing,
stated as a negative number.
(iii) Under the subheading “Did this
change?,” disclosed more prominently than the other disclosures under
this paragraph (i)(2):
(A) If the amount disclosed under paragraph
(i)(2)(ii) of this section is different than the amount disclosed
under paragraph (i)(2)(i) of this section (unless the difference is
due to rounding), a statement of that fact, along with a statement
that the consumer paid such amounts prior to consummation of the transaction;
or
(B) If the amount disclosed
under paragraph (i)(2)(ii) of this section is equal to the amount
disclosed under paragraph (i)(2)(i) of this section, a statement of
that fact.
(3) Closing costs
financed.
(i) Under the subheading “Loan Estimate,”
the amount disclosed under section 1026.37(h)(1)(ii), labeled “Closing
Costs Financed (Paid from your Loan Amount).”
(ii) Under the subheading “Final,” the
actual amount of the closing costs that are to be paid out of loan
proceeds, if any, stated as a negative number.
(iii) Under the subheading “Did this change?,”
disclosed more prominently than the other disclosures under this paragraph
(i)(3):
(A) If the amount disclosed under paragraph
(i)(3)(ii) of this section is different than the amount disclosed
under paragraph (i)(3)(i) of this section (unless the difference is
due to rounding), a statement of that fact, along with a statement
that the consumer included the closing costs in the loan amount, which
increased the loan amount; or
(B) If the amount disclosed under paragraph
(i)(3)(ii) of this section is equal to the amount disclosed under
paragraph (i)(3)(i) of this section, a statement of that fact.
(4) Down payment/funds from borrower.
(i) Under the subheading “Loan Estimate,”
the amount disclosed under section 1026.37(h)(1)(iii), labeled “Down
Payment/Funds from Borrower.”
(ii) Under the subheading “Final”:
(A) (1) In a purchase transaction
as defined in section 1026.37(a)(9)(i), the amount determined by subtracting
the sum of the loan amount disclosed under paragraph (b) of this section
and any amount of existing loans assumed or taken subject to that
is disclosed under paragraph (j)(2)(iv) of this section from the sale
price of the property disclosed under paragraph (a)(3)(vii)(A) of
this section, labeled “Down Payment/Funds from Borrower,” except as
required by paragraph (i)(4)(ii)(A)(2) of this section;
(2) In a purchase
transaction as defined in section 1026.37(a)(9)(i) that is a simultaneous
subordinate financing transaction or that involves improvements to
be made on the property, or when the sum of the loan amount disclosed
under paragraph (b) of this section and any amount of existing loans
assumed or taken subject to that is disclosed under paragraph (j)(2)(iv)
of this section exceeds the sale price disclosed under paragraph (a)(3)(vii)(A)
of this section, the amount of funds from the consumer as determined
in accordance with paragraph (i)(6)(iv) of this section labeled “Down
Payment/Funds from Borrower;” or
(B) In all transactions not subject to paragraph
(i)(4)(ii)(A) of this section, the amount of funds from the consumer
as determined in accordance with paragraph (i)(6)(iv) of this section,
labeled “Down Payment/Funds from Borrower.”
(iii) Under the subheading
“Did this change?,” disclosed more prominently than the other disclosures
under this paragraph (i)(4):
(A) If the amount disclosed under
paragraph (i)(4)(ii) of this section is different than the amount
disclosed under paragraph (i)(4)(i) of this section (unless the difference
is due to rounding), a statement of that fact, along with a statement
that the consumer increased or decreased this payment and that the
consumer should see the details disclosed under paragraph (j)(1)
or (j)(2) of this section, as applicable; or
(B) If the amount disclosed under paragraph
(i)(4)(ii) of this section is equal to the amount disclosed under
paragraph (i)(4)(i) of this section, a statement of that fact.
(5) Deposit.
(i) Under
the subheading “Loan Estimate,” the amount disclosed under section
1026.37(h)(1)(iv), labeled “Deposit.”
(ii) Under the subheading “Final,” the
amount disclosed under paragraph (j)(2)(ii) of this section, stated
as a negative number.
(iii) Under the subheading “Did this change?,” disclosed more prominently
than the other disclosures under this paragraph (i)(5):
(A) If the amount
disclosed under paragraph (i)(5)(ii) of this section is different
than the amount disclosed under paragraph (i)(5)(i) of this section
(unless the difference is due to rounding), a statement of that
fact, along with a statement that the consumer increased or decreased
this payment, as applicable, and that the consumer should see the
details disclosed under paragraph (j)(2)(ii) of this section; or
(B) If the amount disclosed
under paragraph (i)(5)(ii) of this section is equal to the amount
disclosed under paragraph (i)(5)(i) of this section, a statement of
that fact.
(6) Funds for
borrower.
(i) Under the subheading “Loan Estimate,”
the amount disclosed under section 1026.37(h)(1)(v), labeled “Funds
for Borrower.”
(ii)
Under the subheading “Final,” the “Funds for Borrower,” labeled using
that term, as determined in accordance with paragraph (i)(6)(iv) of
this section.
(iii)
Under the subheading “Did this change?,” disclosed more prominently
than the other disclosures under this paragraph (i)(6):
(A) If the amount
disclosed under paragraph (i)(6)(ii) of this section is different
than the amount disclosed under paragraph (i)(6)(i) of this section
(unless the difference is due to rounding), a statement of that fact,
along with a statement that the consumer’s available funds from the
loan amount have increased or decreased, as applicable; or
(B) If the amount disclosed under
paragraph (i)(6)(ii) of this section is equal to the amount disclosed
under paragraph (i)(6)(i) of this section, a statement of that fact.
(iv)
The “Down Payment/Funds from Borrower” to be disclosed under paragraph
(i)(4)(ii)(A)(2) or (B) of this section, as applicable, and
“Funds for Borrower” to be disclosed under paragraph (i)(6)(ii) of
this section are determined by subtracting the sum of the loan amount
disclosed under paragraph (b) of this section and any amount for existing
loans assumed or taken subject to that is disclosed under paragraph
(j)(2)(iv) of this section (excluding any closing costs financed disclosed
under paragraph (i)(3)(ii) of this section) from the total amount
of all existing debt being satisfied in the transaction disclosed
under paragraphs (j)(1)(ii), (iii), and (v) of this section.
(A) If the calculation
under this paragraph (i)(6)(iv) yields an amount that is a positive
number, such amount shall be disclosed under paragraph (i)(4)(ii)(A)(2) or (B) of this section, as applicable, and $0 shall be disclosed
under paragraph (i)(6)(ii) of this section.
(B) If the calculation under this paragraph
(i)(6)(iv) yields an amount that is a negative number, such amount
shall be disclosed under paragraph (i)(6)(ii) of this section, stated
as a negative number, and $0 shall be disclosed under paragraph (i)(4)(ii)(A)(2) or (i)(4)(ii)(B) of this section, as applicable.
(C) If the calculation under this
paragraph (i)(6)(iv) yields $0, $0 shall be disclosed under paragraph
(i)(4)(ii)(A)(2) or (i)(4)(ii)(B) of this section, as applicable,
and under paragraph (i)(6)(ii) of this section.
(7) Seller credits.
(i) Under the subheading
“Loan Estimate,” the amount disclosed under section 1026.37(h)(1)(vi),
labeled “Seller Credits.”
(ii) Under the subheading “Final,” the
amount disclosed under paragraph (j)(2)(v) of this section, stated
as a negative number.
(iii) Under the subheading “Did this change?,” disclosed more prominently
than the other disclosures under this paragraph (i)(7):
(A) If the amount
disclosed under paragraph (i)(7)(ii) of this section is different
than the amount disclosed under paragraph (i)(7)(i) of this section
(unless the difference is due to rounding), a statement of that fact,
along with a statement that the consumer should see the details disclosed:
(1) Under paragraph (j)(2)(v) of this
section and in the seller-paid column under paragraphs (f) and (g)
of this section; or
(2) Under either paragraph (j)(2)(v) of this section or in the
seller-paid column under paragraphs (f) or (g) of this section, if
the details are only disclosed under paragraph (j)(2)(v) or paragraph
(f) or (g); or
(B) If the amount disclosed under paragraph
(i)(7)(ii) of this section is equal to the amount disclosed under
paragraph (i)(7)(i) of this section, a statement of that fact.
(8) Adjustments and other credits.
(i) Under the subheading “Loan Estimate,”
the amount disclosed on the Loan Estimate under section 1026.37(h)(1)(vii),
labeled “Adjustments and Other Credits.”
(ii) Under the subheading “Final,” the
amount equal to the total of the amounts disclosed under paragraphs
(j)(1)(iii) and (v) of this section, to the extent amounts in paragraphs
(j)(1)(iii) and (v) were not included in the calculation required
by paragraph (i)(4) or (6) of this section, and paragraphs (j)(1)(vi)
through (x) of this section, reduced by the total of the amounts disclosed
under paragraphs (j)(2)(vi) through (xi) of this section.
(iii) Under the subheading
“Did this change?,” disclosed more prominently than the other disclosures
under this paragraph (i)(8):
(A) If the amount disclosed under
paragraph (i)(8)(ii) of this section is different than the amount
disclosed under paragraph (i)(8)(i) of this section (unless the difference
is due to rounding), a statement of that fact, along with a statement
that the consumer should see the details disclosed under paragraphs
(j)(1)(iii) and (v) through (x) and (j)(2)(vi) through (xi) of this
section, as applicable; or
(B) If the amount disclosed under paragraph (i)(8)(ii) of this section
is equal to the amount disclosed under paragraph (i)(8)(i) of this
section, a statement of that fact.
(9) Cash to close.
(i) Under the subheading “Loan Estimate,”
the amount disclosed on the Loan Estimate under section 1026.37(h)(1)(viii),
labeled “Cash to Close” and disclosed more prominently than the other
disclosures under this paragraph (i).
(ii) Under the subheading “Final,” the
sum of the amounts disclosed under paragraphs (i)(1) through (i)(8)
of this section under the subheading “Final,” and disclosed more prominently
than the other disclosures under this paragraph (i).
(j) Summary of
borrower’s transaction. Under the heading “Summaries of Transactions,”
with a statement to “Use this table to see a summary of your transaction,”
two separate tables are disclosed. The first table shall include,
under the subheading “Borrower’s Transaction,” the following information
and shall satisfy the following requirements:
(1) Itemization
of amounts due from borrower.
(i) The total amount due
from the consumer at closing, calculated as the sum of items required
to be disclosed by paragraph (j)(1)(ii) through (x) of this section,
excluding items paid from funds other than closing funds as described
in paragraph (j)(4)(i) of this section, labeled “Due from Borrower
at Closing”;
(ii)
The amount of the contract sales price of the property being sold
in a purchase real estate transaction, excluding the price of any
tangible personal property if the consumer and seller have agreed
to a separate price for such items, labeled “Sale Price of Property”;
(iii) The amount of
the sales price of any tangible personal property excluded from the
contract sales price pursuant to paragraph (j)(1)(ii) of this section,
labeled “Sale Price of Any Personal Property Included in Sale”;
(iv) The total amount
of closing costs disclosed that are designated borrower-paid at closing,
calculated pursuant to paragraph (h)(2) of this section, labeled “Closing
Costs Paid at Closing”;
(v) A description and the amount of
any additional items that the seller has paid prior to the real
estate closing, but reimbursed by the consumer at the real estate
closing, and a description and the amount of any other items owed
by the consumer at the real estate closing not otherwise disclosed
pursuant to paragraph (f), (g), or (j) of this section;
(vi) The description “Adjustments
for Items Paid by Seller in Advance”;
(vii) The prorated amount of any prepaid
taxes due from the consumer to reimburse the seller at the real estate
closing, and the time period corresponding to that amount, labeled
“City/Town Taxes”;
(viii) The prorated amount of any prepaid taxes due from the consumer
to reimburse the seller at the real estate closing, and the time period
corresponding to that amount, labeled “County Taxes”;
(ix) The prorated amount
of any prepaid assessments due from the consumer to reimburse the
seller at the real estate closing, and the time period corresponding
to that amount, labeled “Assessments”; and
(x) A description and the amount of
any additional items paid by the seller prior to the real estate closing
that are due from the consumer at the real estate closing.
(2) Itemization of amounts already paid by or on behalf of borrower.
(i) The sum of the amounts disclosed
in this paragraphs (j)(2)(ii) through (xi) of this section, excluding
items paid from funds other than closing funds as described in paragraph
(j)(4)(i) of this section, labeled “Paid Already by or on Behalf of
Borrower at Closing”;
(ii) Any amount that is 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, labeled “Deposit”;
(iii) The amount of the consumer’s new
loan amount or first user loan as disclosed pursuant to paragraph
(b) of this section, labeled “Loan Amount”;
(iv) The amount of any existing loans
that the consumer is assuming, or any loans subject to which the consumer
is taking title to the property, labeled “Existing Loan(s) Assumed
or Taken Subject to”;
(v) 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 as determined by paragraph (f) of this section and other
costs as determined by paragraph (g) of this section and any other
obligations of the seller to be paid directly to the consumer, labeled
“Seller Credit”;
(vi) Descriptions and amounts of other items paid by or on behalf
of the consumer and not otherwise disclosed under paragraphs (f),
(g), (h), and (j)(2) of this section, labeled “Other Credits,” and
descriptions and the amounts of any additional amounts owed the consumer
but payable to the seller before the real estate closing, under the
heading “Adjustments”;
(vii) The description “Adjustments for Items Unpaid by Seller”;
(viii) The prorated
amount of any unpaid taxes due from the seller to reimburse the consumer
at the real estate closing, and the time period corresponding to that
amount, labeled “City/Town Taxes”;
(ix) The prorated amount of any unpaid
taxes due from the seller to reimburse the consumer at the real estate
closing, and the time period corresponding to that amount, labeled
“County Taxes”;
(x)
The prorated amount of any unpaid assessments due from the seller
to reimburse the consumer at the real estate closing, and the time
period corresponding to that amount, labeled “Assessments”; and
(xi) A description
and the amount of any additional items which have not yet been paid
and which the consumer 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.
(3) Calculation
of borrower’s transaction. Under the label “Calculation”:
(i) The amount disclosed pursuant to paragraph (j)(1)(i) of this
section, labeled “Total Due from Borrower at Closing”;
(ii) The amount disclosed
pursuant to paragraph (j)(2)(i) of this section, if any, disclosed
as a negative number, labeled “Total Paid Already by or on Behalf
of Borrower at Closing”; and
(iii) A statement that the disclosed
amount is due from or to the consumer, and the amount due from or
to the consumer at the real estate closing, calculated by the sum
of the amounts dis- closed under paragraphs (j)(3)(i) and (ii) of
this section, labeled “Cash to Close.”
(4) Items paid
outside of closing funds.
(i) Costs that are not paid
from closing funds but that would otherwise be disclosed in the table
required pursuant to paragraph (j) of this section, should be marked
with the phrase “Paid Outside of Closing” or the abbreviation “P.O.C.”
and include the name of the party making the payment.
(ii) For purposes of this
paragraph (j), “closing funds” means funds collected and disbursed
at real estate closing.
(k) Summary of seller’s transaction. 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:
(1) Itemization
of amounts due to seller.
(i) The total amount due
to the seller at the real estate closing, calculated as the sum of
items required to be disclosed pursuant to paragraphs (k)(1)(ii) through
(ix) of this section, excluding items paid from funds other than closing
funds as described in paragraph (k)(4)(i) of this section, labeled
“Due to Seller at Closing”;
(ii) The amount of the contract sales
price of the property being sold, excluding the price of any tangible
personal property if the consumer and seller have agreed to a separate
price for such items, labeled “Sale Price of Property”;
(iii) The amount of the
sales price of any tangible personal property excluded from the contract
sales price pursuant to paragraph (k)(1)(ii) of this section, labeled
“Sale Price of Any Personal Property Included in Sale”;
(iv) A description and the
amount of other items paid to the seller by the consumer pursuant
to the contract of sale or other agreement, such as charges that were
not disclosed pursuant to section 1026.37 on the Loan Estimate or
items paid by the seller prior to the real estate closing but reimbursed
by the consumer at the real estate closing;
(v) The description “Adjustments for
Items Paid by Seller in Advance”;
(vi) The prorated amount of any prepaid
taxes due from the consumer to reimburse the seller at the real estate
closing, and the time period corresponding to that amount, labeled
“City/Town Taxes”;
(vii) The prorated amount of any prepaid taxes due from the consumer
to reimburse the seller at the real estate closing, and the time period
corresponding to that amount, labeled “County Taxes”;
(viii) The prorated amount
of any prepaid assessments due from the consumer to reimburse the
seller at the real estate closing, and the time period corresponding
to that amount, labeled “Assessments”; and
(ix) A description and the amount of
additional items paid by the seller prior to the real estate closing
that are reimbursed by the consumer at the real estate closing.
(2) Itemization of amounts due from seller.
(i) The total amount due from the seller
at the real estate closing, calculated as the sum of items required
to be disclosed pursuant to paragraphs (k)(2)(ii) through (xiii) of
this section, excluding items paid from funds other than closing funds
as described in paragraph (k)(4)(i) of this section, labeled “Due
from Seller at Closing”;
(ii) The amount of any excess deposit
disbursed to the seller prior to the real estate closing, labeled
“Excess Deposit”;
(iii) The amount of closing costs designated seller-paid at closing
disclosed pursuant to paragraph (h)(2) of this section,
labeled “Closing Costs Paid at Closing”;
(iv) The amount of any existing loans
that the consumer is assuming, or any loans subject to which the consumer
is taking title to the property, labeled “Existing Loan(s) Assumed
or Taken Subject to”;
(v) 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, labeled
“Payoff of First Mortgage Loan”;
(vi) 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, labeled “Payoff of Second Mortgage Loan”;
(vii) 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 as determined
by paragraph (f) of this section and other costs as determined by
paragraph (g) of this section and any other obligations of the seller
to be paid directly to the consumer, labeled “Seller Credit”;
(viii) 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;
(ix) The description “Adjustments for Items Unpaid by Seller”;
(x) The prorated amount
of any unpaid taxes due from the seller to reimburse the consumer
at the real estate closing, and the time period corresponding to that
amount, labeled “City/Town Taxes”;
(xi) The prorated amount of any unpaid
taxes due from the seller to the consumer at the real estate closing,
and the time period corresponding to that amount, labeled “County
Taxes”;
(xii) The
prorated amount of any unpaid assessments due from the seller to reimburse
the consumer at the real estate closing, and the time period corresponding
to that amount, labeled “Assessments”; and
(xiii) A description and the amount
of any additional items which have not yet been paid and which the
consumer 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.
(3) Calculation of seller’s transaction. Under the label “Calculation”:
(i) The amount described
in paragraph (k)(1)(i) of this section, labeled “Total Due to Seller
at Closing”;
(ii)
The amount described in paragraph (k)(2)(i) of this section, disclosed
as a negative number, labeled “Total Due from Seller at Closing”;
and
(iii) A statement
that the disclosed amount is due from or to the seller, and the amount
due from or to the seller at closing, calculated by the sum of the
amounts disclosed pursuant to paragraphs (k)(3)(i) and (ii) of this
section, labeled “Cash.”
(4) Items paid
outside of closing funds.
(i) Charges that are not
paid from closing funds but that would otherwise be disclosed in the
table described in paragraph (k) of this section, should be marked
with the phrase “Paid Outside of Closing” or the acronym “P.O.C.”
and include a statement of the party making the payment.
(ii) For purposes of this
paragraph (k), “closing funds” are defined as funds collected and
disbursed at real estate closing.
(l) Loan disclosures. Under the master heading “Additional Information About This Loan”
and under the heading “Loan Disclosures”:
(1) Assumption. Under the subheading “Assumption,” the information required by section
1026.37(m)(2).
(2) Demand feature. Under the subheading “Demand
Feature,” a statement of whether the legal obligation permits the
creditor to demand early repayment of the loan and, if the statement
is affirmative, a reference to the note or other loan contract for
details.
(3) Late payment. Under the subheading “Late
Payment,” the information required by section 1026.37(m)(4).
(4) Negative amortization. Under the subheading “Negative Amortization (Increase in Loan Amount),” a statement
of whether the regular periodic payments may cause the principal balance
to increase.
(i) If the regular periodic payments
do not cover all of the interest due, the creditor must provide a
statement that the principal balance will increase, such balance will
likely become larger than the original loan amount, and increases
in such balance lower the consumer’s equity in the property.
(ii) If the consumer may
make regular periodic payments that do not cover all of the interest
due, the creditor must provide a statement that, if the consumer chooses
a monthly payment option that does not cover all of the interest due,
the principal balance may become larger than the original loan amount
and the increases in the principal balance lower the consumer’s equity
in the property.
(5) Partial payment
policy. Under the subheading “Partial Payments”:
(i) If periodic
payments that are less than the full amount due are accepted, a statement
that the creditor, using the term “lender,” may accept partial payments
and apply such payments to the consumer’s loan;
(ii) If periodic payments that are less
than the full amount due are accepted but not applied to a consumer’s
loan until the consumer pays the remainder of the full amount due,
a statement that the creditor, using the term “lender,” may hold partial
payments in a separate account until the consumer pays the remainder
of the payment and then apply the full periodic payment to the consumer’s
loan;
(iii) If periodic
payments that are less than the full amount due are not accepted,
a statement that the creditor, using the term “lender,” does not accept
any partial payments; and
(iv) A statement that, if the loan is
sold, the new creditor, using the term “lender,” may have a different
policy.
(6) Security interest. Under the subheading
“Security Interest,” a statement that the consumer is granting a security
interest in the property securing the transaction, the property address
including a zip code, and a statement that the consumer may lose the
property if the consumer does not make the required payments or satisfy
other requirements under the legal obligation.
(7) Escrow account. Under the subheading “Escrow Account”:
(i) Under the reference
“For now,” a statement that an escrow account may also be called an
impound or trust account, a statement of whether the creditor has
established or will establish (at or before consummation) an escrow
account in connection with the transaction, and the information required
under paragraphs (l)(7)(i)(A) and (B) of this section:
(A) A statement
that the creditor may be liable for penalties and interest if it fails
to make a payment for any cost for which the escrow account is established,
a statement that the consumer would have to pay such costs directly
in the absence of the escrow account, and a table, titled “Escrow,”
that contains, if an escrow account is or will be established, an
itemization of the amounts listed in paragraphs (l)(7)(i)(A)(1) through (4) of this section;
(1) The total amount the consumer
will be required to pay into an escrow account over the first year
after consummation, labeled “Escrowed Property Costs over Year 1,”
together with a descriptive name of each charge to be paid (in whole
or in part) from the escrow account, calculated as the amount disclosed
under paragraph (l)(7)(i)(A)(4) of this section multiplied
by the number of periodic payments scheduled to be made to the escrow
account during the first year after consummation;
(2) The estimated amount the consumer
is likely to pay during the first year after consummation for the
mortgage-related obligations described in section 1026.43(b)(8) that are
known to the creditor and that will not be paid using escrow account
funds, labeled “Non-Escrowed Property Costs over Year 1,” together
with a descriptive name of each such charge and a statement that the
consumer may have to pay other costs that are not listed;
(3) The total amount disclosed
under paragraph (g)(3) of this section, a statement that the payment
is a cushion for the escrow account, labeled “Initial Escrow Payment,”
and a reference to the information disclosed under paragraph (g)(3)
of this section;
(4) The amount the consumer will be required to pay into the escrow
account with each periodic payment during the first year after consummation,
labeled “Monthly Escrow Payment.”
(5) A creditor complies with the requirements
of paragraphs (l)(7)(i)(A)(1) and (4) of this
section if the creditor bases the numerical disclosures required by
those paragraphs on amounts derived from the escrow account analysis
required under Regulation X, 12 CFR 1024.17.
(B) A statement of whether the
consumer will not have an escrow account, the reason why an escrow
account will not be established, a statement that the consumer must
pay all property costs, such as taxes and homeowner’s insurance, directly,
a statement that the consumer may contact the creditor to inquire
about the availability of an escrow account, and a table, titled “No
Escrow,” that contains, if an escrow account will not be established,
an itemization of the following:
(1) The estimated total amount the consumer will pay directly
for the mortgage-related obligations described in section 1026.43(b)(8)
during the first year after consummation that are known to the creditor
and a statement that, without an escrow account, the consumer must
pay the identified costs, possibly in one or two large payments, labeled
“Property Costs over Year 1”; and
(2) The amount of any fee the creditor
imposes on the consumer for not establishing an escrow account in
connection with the transaction, labeled “Escrow Waiver Fee.”
(ii)
Under the reference “In the future”:
(A) A statement that the consumer’s
property costs may change and that, as a result, the consumer’s escrow
payment may change;
(B)
A statement that the consumer may be able to cancel any escrow account
that has been established, but that the consumer is responsible for
directly paying all property costs in the absence of an escrow account;
and
(C) A description
of the consequences if the consumer fails to pay property costs, including
the actions that a State or local government may take if property
taxes are not paid and the actions the creditor may take if the consumer
does not pay some or all property costs, such as adding amounts to
the loan balance, adding an escrow account to the loan, or purchasing
a property insurance policy on the consumer’s behalf that may be more
expensive and provide fewer benefits than what the consumer could
obtain directly.
(m) Adjustable payment table. Under the master heading “Additional Information About This Loan”
required by paragraph (l) of this section, and under the heading
“Adjustable Payment (AP) Table,” the table required to be disclosed
by section 1026.37(i).
(n) Adjustable interest rate table. Under the master heading “Additional
Information About This Loan” required by paragraph (l) of this
section, and under the heading “Adjustable Interest Rate (AIR) Table,”
the table required to be disclosed by section 1026.37(j).
(o) Loan calculations. In a separate table under the heading “Loan Calculations”:
(1) Total of payments. The “Total of Payments,” using that term
and expressed as a dollar amount, and a statement that the disclosure
is the total the consumer will have paid after making all payments
of principal, interest, mortgage insurance, and loan costs, as scheduled.
The disclosed total of payments shall be treated as accurate if the
amount disclosed as the total of payments:
(i) Is understated by
no more than $100; or
(ii) Is greater than the amount required to be disclosed.
(2) Finance charge. The “Finance Charge,” using
that term and expressed as a dollar amount, and the following statement:
“The dollar amount the loan will cost you.” The disclosed finance
charge and other disclosures affected by the disclosed financed charge
(including the amount financed and the annual percentage rate) shall
be treated as accurate if the amount disclosed as the finance charge:
(i) Is understated by no more than $100; or
(ii) Is greater than the amount required
to be disclosed.
(3) Amount financed. The “Amount Financed,” using that term and expressed as a dollar
amount, and the following statement: “The loan amount available after
paying your upfront finance charge.”
(4) Annual percentage
rate. The “Annual Percentage Rate,” using that term and the abbreviation
“APR” and expressed as a percentage, and the following statement:
“Your costs over the loan term expressed as a rate. This is not your
interest rate.”
(5) Total interest percentage. The “Total Interest
Percentage,” using that term and the abbreviation “TIP” and expressed
as a percentage, and the following statement: “The total amount of
interest that you will pay over the loan term as a percentage of your
loan amount.”
(p) Other disclosures. Under the heading “Other
Disclosures”:
(1) Appraisal. For transactions subject to 15 U.S.C. 1639h or 1691(e), as implemented
in this part or Regulation B, 12 CFR part 1002, respectively, under
the subheading “Appraisal,” that:
(i) If there was an appraisal
of the property in connection with the loan, the creditor is required
to provide the consumer with a copy at no additional cost to the consumer
at least three days prior to consummation; and
(ii) If the consumer has not yet received
a copy of the appraisal, the consumer should contact the creditor
using the information disclosed pursuant to paragraph (r) of this
section.
(2) Contract details. A statement
that the consumer should refer to the appropriate loan document and
security instrument for information about nonpayment, what constitutes
a default under the legal obligation, circumstances under which the
creditor may accelerate the maturity of the obligation, and prepayment
rebates and penalties, under the subheading “Contract Details.”
(3) Liability after foreclosure. A brief statement
of whether, and the conditions under which, the consumer may remain
responsible for any deficiency after foreclosure under applicable
State law, a brief statement that certain protections may be lost
if the consumer refinances or incurs additional debt on the property,
and a statement that the consumer should consult an attorney for additional
information, under the subheading “Liability after Foreclosure.”
(4) Refinance. Under the subheading “Refinance,”
the statement required by section 1026.37(m)(5).
(5) Tax deductions. Under the subheading “Tax Deductions,” a statement that, if the
extension of credit exceeds the fair market value of the property,
the interest on the portion of the credit extension that is greater
than the fair market value of the property is not tax deductible for
Federal income tax purposes and a statement that the consumer should
consult a tax adviser for further information.
(q) Questions notice. In
a separate notice labeled “Questions?”:
(1) A statement directing the consumer
to use the contact information disclosed under paragraph
(r) of this section if the consumer has any questions about the disclosures
required pursuant to section 1026.19(f);
(2) A reference to the Bureau’s Web site
to obtain more information or to submit a complaint; and the link
or uniform resource locator address to the Web site: www.consumerfinance.gov/mortgage-closing;
and
(3) A prominent
question mark.
(r) Contact information. In a separate table,
under the heading “Contact Information,” the following information
for each creditor (under the subheading “Lender”), mortgage broker
(under the subheading “Mortgage Broker”), consumer’s real estate broker
(under the subheading “Real Estate Broker (B)”), seller’s real estate
broker (under the subheading “Real Estate Broker (S)”), and settlement
agent (under the subheading “Settlement Agent”) participating in the
transaction:
(1) Name of the person,
labeled “Name”;
(2)
Address, using that label;
(3) Nationwide Mortgage Licensing System
& Registry (NMLSR ID) identification number, labeled “NMLS ID,”
or, if none, license number or other unique identifier issued by the
applicable jurisdiction or regulating body with which the person is
licensed and/or registered, labeled “License ID,” with the abbreviation
for the State of the applicable jurisdiction or regulatory body stated
before the word “License” in the label, for the persons identified
in paragraph (r)(1) of this section;
(4) Name of the natural person who is the
primary contact for the consumer with the person identified in paragraph
(r)(1) of this section, labeled “Contact”;
(5) NMLSR ID, labeled “Contact NMLS ID,”
or, if none, license number or other unique identifier issued by the
applicable jurisdiction or regulating body with which the person is
licensed and/or registered, labeled “Contact License ID,” with the
abbreviation for the State of the applicable jurisdiction or regulatory
body stated before the word “License” in the label, for the natural
person identified in paragraph (r)(4) of this section,
(6) Email address for the
person identified in paragraph (r)(4) of this section, labeled “Email”;
and
(7) Telephone number
for the person identified in paragraph (r)(4) of this section, labeled
“Phone.”
(s) Signature statement.
(1) At the creditor’s option, under the
heading “Confirm Receipt,” a line for the signatures of the consumers
in the transaction. If the creditor provides a line for the consumer’s
signature, the creditor must disclose above the signature line the
statement required to be disclosed under section 1026.37(n)(1).
(2) If the creditor does
not provide a line for the consumer’s signature, the statement required
to be disclosed under section 1026.37(n)(2) under the heading “Other
Disclosures” required by paragraph (p) of this section.
(t) Form of disclosures.
(1) General requirements.
(i) The creditor shall
make the disclosures required by this section clearly and conspicuously
in writing, in a form that the consumer may keep. The disclosures
also shall be grouped together and segregated from everything else.
(ii) Except as provided
in paragraph (t)(5), the disclosures shall contain only the information
required by paragraphs (a) through (s) of this section and 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 form H-25, set forth in appendix H to this part.
(2) Headings and labels. If a master heading,
heading, subheading, label, or similar designation contains the word
“estimated” or a capital letter designation in form H-25, set forth
in appendix H to this part, that heading, label, or similar designation
shall contain the word “estimated” and the applicable capital letter
designation.
(3) Form. Except as provided in paragraph
(t)(5) of this section:
(i) For a transaction subject to section
1026.19(f) that is a federally related mortgage loan, as defined in
Regulation X, 12 CFR 1024.2, the disclosures must be made using form
H-25, set forth in appendix H to this part.
(ii) For any other transaction subject
to this section, the disclosures must be made with headings, content,
and format substantially similar to form H-25, set forth in appendix
H to this part.
(iii) The disclosures required by this section may be provided to
the consumer in electronic form, subject to compliance with the consumer
consent and other applicable provisions of the Electronic Signatures
in Global and National Commerce Act (15 U.S.C. 7001 et seq.).
(4) Rounding.
(i) Nearest dollar. The following dollar amounts
are required to be rounded to the nearest whole dollar:
(A) The dollar
amounts required to be disclosed by paragraph (b) of this section
that are required to be rounded by section 1026.37(o)(4)(i)(A) when
disclosed under section 1026.37(b)(6) and (7);
(B) The dollar amounts required to be disclosed
by paragraph (c) of this section that are required to be rounded by
section 1026.37(o)(4)(i)(A) when disclosed under section 1026.37(c)(1)(iii);
(C) The dollar amounts required
to be disclosed by paragraphs (e) and (i) of this section under the
subheading “Loan Estimate”;
(D) The dollar amounts required to be disclosed by paragraph (m)
of this section; and
(E)
The dollar amounts required to be disclosed by paragraph (c) of this
section that are required to be rounded by section 1026.37(o)(4)(i)(C)
when disclosed under section 1026.37(c)(2)(iv).
(ii) Percentages. The percentage amounts required
to be disclosed under paragraphs (b), (f)(1), (n), and (o)(4) and
(5) of this section shall be disclosed by rounding the exact amounts
to three decimal places and then dropping any trailing zeros to the
right of the decimal point.
(iii) Loan
amount. The dollar amount required to be disclosed by paragraph
(b) of this section as required by section 1026.37(b)(1) shall be
disclosed as an unrounded number, except that if the amount is a whole
number then the amount disclosed shall be truncated at the decimal
point.
(5) Exceptions.
(i) Unit-period. Wherever the form or this
section uses “monthly” to describe the frequency of any payments or
uses “month” to describe the applicable unit-period, the creditor
shall 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.
(ii) Lender
credits. The amount required to be disclosed by paragraph (d)(1)(i)(D)
of this section may be omitted from the form if the amount is zero.
(iii) Administrative information. The creditor
may insert at the bottom of each page under the disclosures required
by this section as illustrated by form H-25 of appendix H to this
part, 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 on form H-25 for any of the information
required by this section is not altered.
(iv) Closing
cost details.
(A) Additional line
numbers. Line numbers provided on form H-25 of appendix H to
this part for the disclosure of the information required by paragraphs
(f)(1) through (3) and (g)(1) through (4) of this section 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.
(B) Two pages. To the extent that adding or deleting line numbers provided on
form H-25 of appendix H to this part, as permitted by paragraph (t)(5)(iv)(A)
of this section, does not accommodate an itemization of all information
required to be disclosed by paragraphs (f) through (h) on one page,
the information required to be disclosed by paragraphs (f) through
(h) of this section may be disclosed on two pages, provided that the
information required by paragraph (f) is disclosed on a page separate
from the information required by paragraph (g). The information required
by paragraph (g), if disclosed on a page separate from paragraph (f),
shall be disclosed on the same page as the information required by
paragraph (h).
(v) Separation
of consumer and seller information. The creditor or settlement
agent preparing the form may use form H-25 of appendix H to this part
for the disclosure provided to both the consumer and the seller, with
the following modifications to separate the information of the consumer
and seller, as necessary:
(A) The information required to be disclosed
by paragraphs (j) and (k) of this section may be disclosed on separate
pages to the consumer and the seller, respectively, with the information
required by the other paragraph left blank. The information disclosed
to the consumer pursuant to paragraph (j) of this section must be
disclosed on the same page as the information required by paragraph
(i) of this section.
(B)
The information required to be disclosed by paragraphs (f) and (g)
of this section with respect to costs paid by the consumer may be
left blank on the disclosure provided to the seller.
(C) The information required by paragraphs
(a)(2), (a)(4)(iii), (a)(5), (b) through (d), (i), (l) through
(p), (r) with respect to the creditor and mortgage broker, and (s)(2)
of this section may be left blank on the disclosure provided to the
seller.
(vi) Modified version of the form for a
seller or third-party. The information required by paragraphs
(a)(2), (a)(4)(iii), (a)(5), (b) through (d), (f), and (g) with respect
to costs paid by the consumer, (i), (j), (l) through (p), (q)(1),
and (r) with respect to the creditor and mortgage broker, and (s)
of this section may be deleted from the form provided to the seller
or a third-party, as illustrated by form H-25(I) of appendix H to
this part.
(vii) Transaction without a seller or simultaneous
subordinate financing transaction. The following modifications
to form H-25 of appendix H to this part may be made for a transaction
that does not involve a seller or for simultaneous subordinate financing,
and for which the alternative tables are disclosed under paragraphs
(d)(2) and (e) of this section, as illustrated by form H-25(J) of
appendix H to this part:
(A) The information required by paragraph
(a)(4)(ii), and paragraphs (f), (g), and (h) of this section with
respect to costs paid by the seller, may be deleted.
(B) A table under the master heading “Closing
Cost Details” required by paragraph (f) of this section may be added
with the heading “Payoffs and Payments” that itemizes the amounts
of payments made at closing to other parties from the credit extended
to the consumer or funds provided by the consumer in connection with
the transaction, including designees of the consumer; the payees and
a description of the purpose of such disbursements under the subheading
“To”; and the total amount of such payments labeled “Total Payoffs
and Payments.”
(C) The
tables required to be disclosed by paragraphs (j) and (k) of this
section may be deleted.
(viii) Translation. The form may be translated into languages other than English, and
creditors may modify form H-25 of appendix H to this part to the extent
that translation prevents the headings, labels, designations, and
required disclosure items under this section from fitting in the space
provided on form H-25.
(ix) 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.
