For each transaction subject
to section 1026.19(e), the creditor shall disclose the information
in this section:
(a) General information.
(1) Form title. The title of the form, “Loan Estimate,” using that term.
(2) Form purpose. The statement, “Save this Loan Estimate to compare
with your Closing Disclosure.”
(3) Creditor. The name and address of the creditor making the disclosures.
(4) Date issued. The date the disclosures are
mailed or delivered to the consumer by the creditor, labeled “Date
Issued.”
(5) Applicants. The name and mailing address
of the consumer(s) applying for the credit, labeled “Applicants.”
(6) Property. The address including the zip
code of the property that secures or will secure the transaction,
or if the address is unavailable, the location of such property including
a zip code, labeled “Property.”
(7) Sale price.
(i) For transactions that involve a
seller, the contract sale price of the property identified in paragraph
(a)(6) of this section, labeled “Sale Price.”
(ii) For transactions that do not involve
a seller, the estimated value of the property identified in paragraph
(a)(6), labeled “Prop. Value.”
(8) Loan term. The term to maturity of the credit transaction, stated in years
or months, or both, as applicable, labeled “Loan Term.”
(9) Purpose. The consumer’s intended use for the credit, labeled
“Purpose,” using one of the following terms:
(i) Purchase. If the credit is to finance the
acquisition of the property identified in paragraph (a)(6) of this
section, the creditor shall disclose that the loan is for a “Purchase.”
(ii) Refinance. If the credit is not for the
purpose described in paragraph (a)(9)(i) of this section, and if the
credit will be used to refinance an existing obligation, as defined
in section 1026.20(a) (but without regard to whether the creditor
is the original creditor or a holder or servicer of the original obligation),
that is secured by the property identified in paragraph (a)(6) of
this section, the creditor shall disclose that the loan is for a “Refinance.”
(iii) Construction. If the credit is not for
one of the purposes described in paragraphs (a)(9)(i) or (ii) of this
section and the credit will be used to finance the initial construction
of a dwelling on the property identified in paragraph (a)(6) of this
section, the creditor shall disclose that the loan is for “Construction.”
(iv) Home equity loan. If the credit is not
for one of the purposes described in paragraphs (a)(9)(i) through
(iii) of this section, the creditor shall disclose that the loan is
a “Home Equity Loan.”
(10) Product. A description of the loan product, labeled “Product.”
(i) The
description of the loan product shall include one of the following
terms:
(A) Adjustable rate. If the interest rate may increase after consummation, but the rates
that will apply or the periods for which they will apply are not known
at consummation, the creditor shall disclose the loan product as an
“Adjustable Rate.”
(B) Step rate. If the interest rate will change
after consummation, and the rates that will apply and the periods
for which they will apply are known at consummation, the creditor
shall disclose the loan product as a “Step Rate.”
(C) Fixed rate. If the loan product is not an Adjustable Rate or a Step Rate, as
described in paragraphs (a)(10)(i)(A) and (B) of this section, respectively,
the creditor shall disclose the loan product as a “Fixed Rate.”
(ii)
The description of the loan product shall include the features that
may change the periodic payment using the following terms, subject
to paragraph (a)(10)(iii) of this section, as applicable:
(A) Negative amortization. If the principal
balance may increase due to the addition of accrued interest to the
principal balance, the creditor shall disclose that the loan product
has a “Negative Amortization” feature.
(B) Interest only. If one or more regular periodic payments may be applied only to
interest accrued and not to the loan principal, the creditor shall
disclose that the loan product has an “Interest Only” feature.
(C) Step payment. If scheduled variations in regular periodic payment
amounts occur that are not caused by changes to the interest rate
during the loan term, the creditor shall disclose that the loan product
has a “Step Payment” feature.
(D) Balloon payment. If the terms of the legal obligation include a “balloon payment,”
as that term is defined in paragraph (b)(5) of this section, the creditor
shall disclose that the loan has a “Balloon Payment” feature.
(E) Seasonal payment. If the terms of the legal obligation expressly
provide that regular periodic payments are not scheduled between specified
unit-periods on a regular basis, the creditor shall disclose that
the loan product has a “Seasonal Payment” feature.
(iii) The disclosure
of a loan feature under paragraph (a)(10)(ii) of this section shall
precede the disclosure of the loan product under paragraph (a)(10)(i)
of this section. If a transaction has more than one of the loan features
described in paragraph (a)(10)(ii) of this section, the creditor shall
disclose only the first applicable feature in the order the features
are listed in paragraph (a)(10)(ii) of this section.
(iv) The disclosures required by paragraphs
(a)(10)(i)(A) and (B), and (a)(10)(ii)(A) through (D) of this section
must each be preceded by the duration of any introductory rate or
payment period, and the first adjustment period, as applicable.
(11) Loan type. The type of loan, labeled “Loan
Type,” offered to the consumer using one of the following terms, as
applicable:
(i) Conventional. If the loan is not guaranteed or insured by a Federal or State government
agency, the creditor shall disclose that the loan is a “Conventional.”
(ii) FHA. If the loan is insured by the Federal
Housing Administration, the creditor shall disclose that the loan
is an “FHA.”
(iii) VA. If the loan is guaranteed by the U.S.
Department of Veterans Affairs, the creditor shall disclose that the
loan is a “VA.”
(iv) Other. For federally-insured or guaranteed
loans other than those described in paragraphs (a)(11)(ii) and (iii)
of this section, and for loans insured or guaranteed by a State agency,
the creditor shall disclose the loan type as “Other,” and provide
a brief description of the loan type.
(12) Loan identification
number (loan ID #). A number that may be used by the creditor,
consumer, and other parties to identify the transaction, labeled “Loan
ID #.”
(13) Rate lock. A statement of whether the interest
rate disclosed pursuant to paragraph (b)(2) of this section is locked
for a specific period of time, labeled “Rate Lock.”
(i) For transactions
in which the interest rate is locked for a specific period of time,
the creditor must provide the date and time (including the applicable
time zone) when that period ends.
(ii) The “Rate Lock” statement required
by this paragraph (a)(13) shall be accompanied by a statement that
the interest rate, any points, and any lender credits may
change unless the interest rate has been locked, and the date and
time (including the applicable time zone) at which estimated closing
costs expire.
(b) Loan terms. A separate table under the
heading “Loan Terms” that contains the following information and that
satisfies the following requirements:
(1) Loan amount. The total amount the consumer will borrow, as reflected by the face
amount of the note, labeled “Loan Amount.”
(2) Interest
rate. The interest rate that will be applicable to the transaction
at consummation, labeled “Interest Rate.” For an adjustable rate transaction,
if the interest rate at consummation is not known, the rate disclosed
shall be the fully-indexed rate, which, for purposes of this paragraph,
means the interest rate calculated using the index value and margin
at the time of consummation.
(3) Principal
and interest payment. The initial periodic payment amount that
will be due under the terms of the legal obligation, labeled “Principal
& Interest,” immediately preceded by the applicable unit-period,
and a statement referring to the payment amount that includes any
mortgage insurance and escrow payments that is required to be disclosed
pursuant to paragraph (c) of this section. If the interest rate at
consummation is not known, the amount disclosed shall be calculated
using the fully-indexed rate disclosed under paragraph (b)(2) of this
section.
(4) Prepayment penalty. A statement of whether
the transaction includes a prepayment penalty, labeled “Prepayment
Penalty.” For purposes of this paragraph (b)(4), “prepayment penalty”
means a charge imposed for paying all or part of a transaction’s principal
before the date on which the principal is due, other than a waived, bona fide third-party charge that the creditor imposes if the
consumer prepays all of the transaction’s principal sooner than 36
months after consummation.
(5) Balloon payment. A statement of
whether the transaction includes a balloon payment, labeled “Balloon
Payment.” For purposes of this paragraph (b)(5), “balloon payment”
means a payment that is more than two times a regular periodic payment.
“Balloon payment” includes the payment or payments under a transaction
that requires only one or two payments during the loan term.
(6) Adjustments after consummation. For each amount required to
be disclosed by paragraphs (b)(1) through (3) of this section, a statement
of whether the amount may increase after consummation as an affirmative
or negative answer to the question, and under such question disclosed
as a subheading, “Can this amount increase after closing?” and, in
the case of an affirmative answer, the following additional information,
as applicable:
(i) Adjustment
in loan amount. The maximum principal balance for the transaction
and the due date of the last payment that may cause the principal
balance to increase. The disclosure further shall indicate whether
the maximum principal balance is potential or is scheduled to occur
under the terms of the legal obligation.
(ii) Adjustment
in interest rate. The frequency of interest rate adjustments,
the date when the interest rate may first adjust, the maximum interest
rate, and the first date when the interest rate can reach the maximum
interest rate, followed by a reference to the disclosure required
by paragraph (j) of this section. If the loan term, as defined under
paragraph (a)(8) of this section, may increase based on an interest
rate adjustment, the disclosure required by this paragraph (b)(6)(ii)
shall also state that fact and the maximum possible loan term determined
in accordance with paragraph (a)(8) of this section.
(iii) Increase
in periodic payment. The scheduled frequency of adjustments to
the periodic principal and interest payment, the due date of the first
adjusted principal and interest payment, the maximum possible periodic
principal and interest payment, and the date when the periodic principal
and interest payment may first equal the maximum principal and
interest payment. If any adjustments to the principal and interest
payment are not the result of a change to the interest rate, a reference
to the disclosure required by paragraph (i) of this section. If there
is a period during which only interest is required to be paid, the
disclosure required by this paragraph (b)(6)(iii) shall also state
that fact and the due date of the last periodic payment of such period.
(7) Details about prepayment penalty and balloon
payment. The information required to be disclosed by paragraphs
(b)(4) and (5) of this section shall be disclosed as an affirmative
or negative answer to the question, and under such question disclosed
as a subheading, “Does the loan have these features?” If an affirmative
answer for a prepayment penalty or balloon payment is required to
be disclosed, the following information shall be included, as applicable:
(i) The maximum amount of the prepayment penalty that may be imposed
and the date when the period during which the penalty may be imposed
terminates; and
(ii) The maximum amount of the balloon payment and the due date of
such payment.
(8) Timing.
(i) The dates required to be disclosed
by paragraph (b)(6)(ii) of this section shall be disclosed as the
year in which the event occurs, counting from the date that interest
for the first scheduled periodic payment begins to accrue after consummation.
(ii) The dates required
to be disclosed by paragraphs (b)(6)(i), (b)(6)(iii) and (b)(7)(ii)
of this section shall be disclosed as the year in which the event
occurs, counting from the due date of the initial periodic payment.
(iii) The date required
to be disclosed by paragraph (b)(7)(i) of this section shall be disclosed
as the year in which the event occurs, counting from the date of consummation.
(c) Projected payments. In a separate table under the heading “Projected
Payments,” an itemization of each separate periodic payment or range
of payments, together with an estimate of taxes, insurance, and assessments
and the payments to be made with escrow account funds.
(1) Periodic
payment or range of payments.
(i) The initial periodic
payment or range of payments is a separate periodic payment or range
of payments and, except as otherwise provided in paragraph (c)(1)(ii)
and (iii) of this section, the following events require the disclosure
of additional separate periodic payments or ranges of payments:
(A) The periodic principal and interest payment or range of such
payments may change;
(B)
A scheduled balloon payment, as defined in paragraph (b)(5) of this
section;
(C) The creditor
must automatically terminate mortgage insurance or any functional
equivalent under applicable law; and
(D) The anniversary of the due date of the
initial periodic payment or range of payments that immediately follows
the occurrence of multiple events described in paragraph (c)(1)(i)(A)
of this section during a single year.
(ii) The table required by this paragraph
(c) shall not disclose more than four separate periodic payments or
ranges of payments. For all events requiring disclosure of additional
separate periodic payments or ranges of payments described in paragraph
(c)(1)(i)(A) through (D) of this section occurring after the third
separate periodic payment or range of payments disclosed, the separate
periodic payments or ranges of payments shall be disclosed as a single
range of payments, subject to the following exceptions:
(A) A balloon
payment that is scheduled as a final payment under the terms of the
legal obligation shall always be disclosed as a separate periodic
payment or range of payments, in which case all events requiring disclosure
of additional separate periodic payments or ranges of payments described
in paragraph (c)(1)(i)(A) through (D) of this section occurring after
the second separate periodic payment or range of payments disclosed,
other than the balloon payment that is scheduled as a final payment,
shall be disclosed as a single range of payments.
(B) The automatic termination of mortgage
insurance or any functional equivalent under applicable law shall
require disclosure of an additional separate periodic payment or range
of payments only if the total number of separate periodic payments
or ranges of payments otherwise disclosed pursuant to this paragraph
(c)(1) does not exceed three.
(iii) When a range of payments is required
to be disclosed under this paragraph (c)(1), the creditor must disclose
the minimum and maximum amount for both the principal and interest
payment under paragraph (c)(2)(i) of this section and the total periodic
payment under paragraph (c)(2)(iv) of this section. A range of payments
is required to be disclosed under this paragraph (c)(1) when:
(A) Multiple
events described in paragraph (c)(1)(i) of this section are combined
in a single range of payments pursuant to paragraph (c)(1)(ii) of
this section;
(B) Multiple
events described in paragraph (c)(1)(i)(A) of this section occur during
a single year or an event described in paragraph (c)(1)(i)(A) of this
section occurs during the same year as the initial periodic payment
or range of payments, in which case the creditor discloses the range
of payments that would apply during the year in which the events occur;
or
(C) The periodic principal
and interest payment may adjust based on index rates at the time an
interest rate adjustment may occur.
(2) Itemization. Each separate periodic payment
or range of payments disclosed on the table required by this paragraph
(c) shall be itemized as follows:
(i) The amount payable
for principal and interest, labeled “Principal & Interest,” including
the term “only interest” if the payment or range of payments includes
any interest only payment:
(A) In the case of a loan that
has an adjustable interest rate, the maximum principal and interest
payment amounts are determined by assuming that the interest rate
in effect throughout the loan term is the maximum possible interest
rate, and the minimum amounts are determined by assuming that the
interest rate in effect throughout the loan term is the minimum possible
interest rate;
(B) In
the case of a loan that has an adjustable interest rate and also contains
a negative amortization feature, the maximum principal and interest
payment amounts after the end of the period of the loan’s term during
which the loan’s principal balance may increase due to the addition
of accrued interest are determined by assuming the maximum principal
amount permitted under the terms of the legal obligation at the end
of such period, and the minimum amounts are determined pursuant to
paragraph (c)(2)(i)(A) of this section;
(ii) The maximum amount
payable for mortgage insurance premiums corresponding to the principal
and interest payment disclosed pursuant to paragraph (c)(2)(i) of
this section, labeled “Mortgage Insurance”;
(iii) The amount payable into an escrow
account to pay some or all of the charges described in paragraph (c)(4)(ii),
as applicable, labeled “Escrow,” together with a statement that the
amount disclosed can increase over time; and
(iv) The total periodic payment, calculated
as the sum of the amounts disclosed pursuant to paragraphs (c)(2)(i)
through (iii) of this section, labeled “Total Monthly Payment.”
(3) Subheadings.
(i) The labels required
pursuant to paragraph (c)(2) of this section must be listed under
the subheading “Payment Calculation.”
(ii) Except as provided in paragraph
(c)(3)(iii) of this section, each separate periodic payment or range
of payments to be disclosed under this paragraph (c) must be disclosed
under a subheading that states the years of the loan during which
that payment or range of payments will apply. The subheadings must
be stated in a sequence of whole years from the due date of the initial
periodic payment.
(iii) A balloon payment that is scheduled as a final payment under
the terms of the legal obligation must be disclosed under the subheading
“Final Payment.”
(4) Taxes, insurance,
and assessments. Under the information required by paragraphs
(c)(1) through (3) of this section:
(i) The label “Taxes, Insurance
& Assessments”;
(ii) The sum of the charges identified in section 1026.43(b)(8),
other than amounts identified in section 1026.4(b)(5), expressed as
a monthly amount, even if no escrow account for the payment of some
or any of such charges will be established;
(iii) A statement that the amount disclosed
pursuant to paragraph (c)(4)(ii) of this section can increase over
time;
(iv) A statement
of whether the amount disclosed pursuant to paragraph (c)(4)(ii) of
this section includes payments for property taxes, amounts identified
in section 1026.4(b)(8), and other amounts described in paragraph
(c)(4)(ii) of this section, along with a description of any such other
amounts, and an indication of whether such amounts will be paid by
the creditor using escrow account funds;
(v) A statement that the consumer must
pay separately any amounts described in paragraph (c)(4)(ii) of this
section that are not paid by the creditor using escrow account funds;
and
(vi) A reference
to the information disclosed pursuant to paragraph (g)(3) of this
section.
(5) Calculation of taxes and insurance. For purposes of paragraphs (c)(2)(iii) and (c)(4)(ii) of this section,
estimated property taxes and homeowner’s insurance shall reflect:
(i) The taxable assessed value of the real property or cooperative
unit securing the transaction after consummation, including the value
of any improvements on the property or to be constructed on the property,
if known, whether or not such construction will be financed from the
proceeds of the transaction, for property taxes; and
(ii) The replacement costs of the property
during the initial year after the transaction, for amounts identified
in section 1026.4(b)(8).
(d) Costs at closing.
(1) Costs at
closing table. In a separate table, under the heading “Costs
at Closing”:
(i) Labeled “Closing Costs,” the dollar
amount disclosed pursuant to paragraph (g)(6) 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 (g)(6)(ii);
(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 (g)(6)(ii) 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 dollar amount calculated in accordance with paragraph (h)(1)(viii)
of this section, together with:
(A) A statement that the amount
includes the amount disclosed pursuant to paragraph (d)(1)(i) of this
section, and
(B) A statement
referring the consumer to the location of the table required pursuant
to paragraph (h) of this section for details.
(2) Optional 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, instead
of the amount and statements described in paragraph (d)(1)(ii) of
this section, the creditor may alternatively disclose, using the label
“Cash to Close”:
(i) The amount calculated in accordance
with paragraph (h)(2)(iv) of this section;
(ii) A statement of whether the disclosed
estimated amount is due from or to the consumer; and
(iii) A statement referring the consumer
to the alternative table disclosed pursuant to paragraph (h)(2) of
this section for details.
(e) Web site reference. A statement
that the consumer may obtain general information and tools at the
Web site of the Bureau, and the link or uniform resource locator address
to the Web site: www.consumerfinance.gov/mortgage-estimate.
(f) Closing cost details; loan
costs. Under the master heading “Closing Cost Details,” in a
table under the heading “Loan Costs,” all loan costs associated with
the transaction. The table shall contain the items and amounts listed
under four subheadings, described in paragraphs (f)(1) through (4)
of this section.
(1) Origination
charges. Under the subheading “Origination Charges,” an itemization
of each amount, and a subtotal of all such amounts, that the consumer
will pay to each creditor and loan originator for originating and
extending the credit.
(i) The points paid to the creditor
to reduce the interest rate shall be itemized separately, as both
a percentage of the amount of credit extended and a dollar amount,
and using the label “__% of Loan Amount (Points).” If points to reduce
the interest rate are not paid, the disclosure required by this paragraph
(f)(1)(i) must be blank.
(ii) The number of items disclosed under
this paragraph (f)(1), including the points disclosed under paragraph
(f)(1)(i) of this section, shall not exceed 13.
(2) Services you cannot shop for. Under the subheading “Services
You Cannot Shop For,” an itemization of each amount, and a subtotal
of all such amounts, the consumer will pay for settlement services
for which the consumer cannot shop in accordance with section 1026.19(e)(1)(vi)(A)
and that are provided by persons other than the creditor or mortgage
broker.
(i) For any item that is a component
of title insurance or is for conducting the closing, the introductory
description “Title—” shall appear at the beginning of the label for
that item.
(ii) The
number of items disclosed under this paragraph (f)(2) shall not exceed
13.
(3) Services you can shop for. Under the subheading
“Services You Can Shop For,” an itemization of each amount and a subtotal
of all such amounts the consumer will pay for settlement services
for which the consumer can shop in accordance with section 1026.19(e)(1)(vi)(A)
and that are provided by persons other than the creditor or mortgage
broker.
(i) For any item that is a component
of title insurance or is for conducting the closing, the introductory
description “Title—” shall appear at the beginning of the label for
that item.
(ii)
The number of items disclosed under this paragraph (f)(3) shall not
exceed 14.
(4) Total loan costs. Under the subheading
“Total Loan Costs,” the sum of the subtotals disclosed under paragraphs
(f)(1) through (3) of this section.
(5) Item descriptions
and ordering. The items listed as loan costs pursuant to this
paragraph (f) shall be labeled using terminology that describes each
item, subject to the requirements of paragraphs (f)(1)(i), (f)(2)(i),
and (f)(3)(i) of this section.
(i) The item prescribed
in paragraph (f)(1)(i) of this section for points shall be the first
item listed in the disclosure pursuant to paragraph (f)(1) of this
section.
(ii) All
other items must be listed in alphabetical order by their labels under
the applicable subheading.
(6) Use of addenda.
(i) An addendum to a form of disclosures
prescribed by this section may not be used for items described
in paragraph (f)(1) or (2) of this section. If the creditor is not
able to itemize every service and every corresponding charge required
to be disclosed in the number of lines provided by paragraph (f)(1)(ii)
or (f)(2)(ii) of this section, the remaining charges shall be disclosed
as an aggregate amount in the last line permitted under paragraph
(f)(1)(ii) or (f)(2)(ii), as applicable, labeled “Additional Charges.”
(ii) An addendum to
a form of disclosures prescribed by this section may be used for items
described in paragraph (f)(3) of this section. If the creditor is
not able to itemize all of the charges required to be disclosed in
the number of lines provided by paragraph (f)(3)(ii), the remaining
charges shall be disclosed as follows:
(A) Label the last line permitted
under paragraph (f)(3)(ii) with an appropriate reference to an addendum
and list the remaining items on the addendum in accordance with the
requirements in paragraphs (f)(3) and (5) of this section; or
(B) Disclose the remaining charges
as an aggregate amount in the last line permitted under paragraph
(f)(3)(ii), labeled “Additional Charges.”
(g) Closing cost
details; other costs. Under the master heading “Closing Cost
Details,” in a table under the heading “Other Costs,” all costs associated
with the transaction that are in addition to the costs disclosed under
paragraph (f) of this section. The table shall contain the items and
amounts listed under six 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,” the amounts to be paid to State and local governments
for taxes and other government fees, and the subtotal of all such
amounts, as follows:
(i) On the first line, the sum of all
recording fees and other government fees and taxes, except for transfer
taxes paid by the consumer and disclosed pursuant to paragraph (g)(1)(ii)
of this section, labeled “Recording Fees and Other Taxes.”
(ii) On the second line,
the sum of all transfer taxes paid by the consumer, labeled “Transfer
Taxes.”
(iii) If
an amount required to be disclosed by this paragraph (g)(1) is not
charged to the consumer, the amount disclosed on the applicable line
required by this paragraph (g)(1) must be blank.
(2) Prepaids. Under the subheading “Prepaids,” an itemization of
the amounts to be paid by the consumer in advance of the first scheduled
payment, and the subtotal of all such amounts, as follows:
(i) On
the first line, the number of months for which homeowner’s insurance
premiums are to be paid by the consumer at consummation and the total
dollar amount to be paid by the consumer at consummation for such
premiums, labeled “Homeowner’s Insurance Premium (__ months).”
(ii) On the second
line, the number of months for which mortgage insurance premiums are
to be paid by the consumer at consummation and the total dollar amount
to be paid by the consumer at consummation for such premiums, labeled
“Mortgage Insurance Premium (__ months).”
(iii) On the third line, the amount
of prepaid interest to be paid per day, the number of days for which
prepaid interest will be collected, the interest rate, and the total
dollar amount to be paid by the consumer at consummation for such
interest, labeled “Prepaid Interest (___ per day for __ days @ __
%).”
(iv) On the
fourth line, the number of months for which property taxes are to
be paid by the consumer at consummation and the total dollar amount
to be paid by the consumer at consummation for such taxes, labeled
“Property Taxes (__ months).”
(v) If an amount is not charged to the
consumer for any item for which this paragraph (g)(2) prescribes a
label, each of the amounts required to be disclosed on that line must
be blank.
(vi) A maximum
of three additional items may be disclosed under this paragraph (g)(2),
and each additional item must be identified and include the applicable
time period covered by the amount to be paid by the consumer at consummation
and the total amount to be paid.
(3) Initial escrow
payment at closing. Under the subheading “Initial Escrow Payment
at Closing,” an itemization of the amounts that the consumer will
be expected to place into a reserve or escrow account at consummation
to be applied to recurring periodic charges, and the subtotal of all
such amounts, as follows:
(i) On the first line, the amount escrowed
per month, the number of months covered by an escrowed amount collected
at consummation, and the total amount to be paid into the escrow account
by the consumer at consummation for homeowner’s insurance premiums,
labeled “Homeowner’s Insurance __ per month for __ mo.”
(ii) On the second line,
the amount escrowed per month, the number of months covered by an
escrowed amount collected at consummation, and the total amount to
be paid into the escrow account by the consumer at consummation for
mortgage insurance premiums, labeled “Mortgage Insurance __ per month
for __ mo.”
(iii)
On the third line, the amount escrowed per month, the number of months
covered by an escrowed amount collected at consummation, and the total
amount to be paid into the escrow account by the consumer at consummation
for property taxes, labeled “Property Taxes __ per month for __ mo.”
(iv) If an amount
is not charged to the consumer for any item for which this paragraph
(g)(3) prescribes a label, each of the amounts required to be disclosed
on that line must be blank.
(v) A maximum of five items may be disclosed
pursuant to this paragraph (g)(3) in addition to the items described
in paragraph (g)(3)(i) through (iii) of this section, and each such
additional item must be identified with a descriptive label and include
the applicable amount per month, the number of months collected at
consummation, and the total amount to be paid.
(4) Other. Under the subheading “Other,” an itemization of any other
amounts in connection with the transaction that the consumer 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, a descriptive label of each
such amount, and the subtotal of all such amounts.
(i) For
any item that is a component of title insurance, the introductory
description “Title—” shall appear at the beginning of the label for
that item.
(ii) The
parenthetical description “(optional)” shall appear at the end of
the label for items disclosing any premiums paid for separate insurance,
warranty, guarantee, or event-coverage products.
(iii) The number of items disclosed
under this paragraph (g)(4) shall not exceed five.
(5) Total other costs. Under the subheading
“Total Other Costs,” the sum of the subtotals disclosed pursuant to
paragraphs (g)(1) through (4) of this section.
(6) Total closing
costs. Under the subheading “Total Closing Costs,” the component
amounts and their sum, as follows:
(i) The sum of the amounts
disclosed as loan costs and other costs under paragraphs (f)(4) and
(g)(5) of this section, labeled “D + I”; and
(ii) The amount of any lender credits,
disclosed as a negative number with the label “Lender Credits” provided
that, if no such amount is disclosed, the amount must be blank.
(7) Item descriptions and ordering. The items
listed as other costs pursuant to this paragraph (g) shall be labeled
using terminology that describes each item.
(i) The items prescribed
in paragraphs (g)(1)(i) and (ii), (g)(2)(i) through (iv), and (g)(3)(i)
through (iii) of this section must be listed in the order prescribed
as the initial items under the applicable subheading, with any additional
items to follow.
(ii) All additional items must be listed in alphabetical order under
the applicable subheading.
(8) Use of addenda. An addendum to a form of disclosures prescribed by this section
may not be used for items required to be disclosed by this paragraph
(g). If the creditor is not able to itemize all of the charges described
in this paragraph (g) in the number of lines provided by paragraphs
(g)(2)(vi), (3)(v), or (4)(iii) of this section, the remaining charges
shall be disclosed as an aggregate amount in the last line permitted
under paragraphs (g)(2)(vi), (g)(3)(v), or (g)(4)(iii), as applicable,
using the label “Additional Charges.”
(h) Calculating cash to close.
(1) For all transactions. Under the master heading “Closing Cost Details,” under the heading
“Calculating Cash to Close,” the total amount of cash or other funds
that must be provided by the consumer at consummation, with an itemization
of that amount into the following component amounts:
(i) Total closing costs. The amount disclosed
under paragraph (g)(6) of this section, labeled “Total Closing Costs”;
(ii) Closing costs to be financed. The amount
of any closing costs to be paid out of loan proceeds, disclosed as
a negative number, labeled “Closing Costs Financed (Paid from your
Loan Amount)”;
(iii) Down payment and other funds from borrower. Labeled “Down Payment/Funds from Borrower”:
(A) (1)
In a purchase transaction as defined in paragraph (a)(9)(i) of this
section, the amount determined by subtracting the sum of the loan
amount disclosed under paragraph (b)(1) of this section and any amount
of existing loans assumed or taken subject to that will be disclosed
under section 1026.38(j)(2)(iv) from the sale price of the property
disclosed under paragraph (a)(7)(i) of this section, except as required
by paragraph (h)(1)(iii)(A)(2) of this section;
(2) In a purchase transaction
as defined in paragraph (a)(9)(i) of this section 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)(1) of this section and any amount of existing
loans assumed or taken subject to that will be disclosed under section
1026.38(j)(2)(iv) exceeds the sale price of the property disclosed
under paragraph (a)(7)(i) of this section, the amount of estimated
funds from the consumer as determined in accordance with paragraph
(h)(1)(v) of this section; or
(B) In all transactions not subject to paragraph
(h)(1)(iii)(A) of this section, the amount of estimated funds from
the consumer as determined in accordance with paragraph (h)(1)(v)
of this section;
(iv) Deposit.
(A) In a purchase transaction as defined in paragraph (a)(9)(i) of
this section, the 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, disclosed as a negative number, labeled
“Deposit”;
(B) In all transactions
other than purchase transactions as defined in paragraph (a)(9)(i)
of this section, the amount of $0, labeled “Deposit”;
(v) Funds for borrower. The amount of funds
for the consumer, labeled “Funds for Borrower.” The amount of the
down payment and other funds from the consumer disclosed under paragraph
(h)(1)(iii)(A)(2) or (h)(1)(iii)(B) of this section, as applicable,
and of funds for the consumer disclosed under this paragraph (h)(1)(v),
are determined by subtracting the sum of the loan amount disclosed
under paragraph (b)(1) of this section and any amount of existing
loans assumed or taken subject to that will be disclosed under section
1026.38(j)(2)(iv) (excluding any closing costs financed disclosed
under paragraph (h)(1)(ii) of this section) from the total amount
of all existing debt being satisfied in the transaction;
(A) If the calculation
under this paragraph (h)(1)(v) yields an amount that is a positive
number, such amount is disclosed under paragraph (h)(1)(iii)(A)(2) or (h)(1)(iii)(B) of this section, as applicable, and $0 is
disclosed under this paragraph (h)(1)(v);
(B) If the calculation under this paragraph
(h)(1)(v) yields an amount that is a negative number, such amount
is disclosed under this paragraph (h)(1)(v) as a negative number,
and $0 is disclosed under paragraph (h)(1)(iii)(A)(2) or (h)(1)(iii)(B)
of this section, as applicable;
(C) If the calculation under this paragraph
(h)(1)(v) yields $0, then $0 is disclosed under paragraph (h)(1)(iii)(A)(2) or (h)(1)(iii)(B) of this section, as applicable, and under
this paragraph (h)(1)(v);
(vi) Seller
credits. The total amount that the seller will pay for total
loan costs as determined by paragraph (f)(4) of this section and total
other costs as determined by paragraph (g)(5) of this section, to
the extent known, disclosed as a negative number, labeled “Seller
Credits”;
(vii) Adjustments and other credits. The amount
of all loan costs determined under paragraph (f) of this section and
other costs determined under paragraph (g) of this section that are
paid by persons other than the loan originator, creditor, consumer,
or seller, together with any other amounts not otherwise disclosed
under paragraph (f) or (g) of this section that are required to be
paid by the consumer at closing in a transaction disclosed under paragraph
(h)(1)(iii)(A)(1) of this section or pursuant to a purchase
and sale contract, labeled “Adjustments and Other Credits”; and
(viii) Estimated cash to close. The sum of the
amounts disclosed under paragraphs (h)(1)(i) through (vii) of this
section labeled “Cash to Close.”
(2) Optional
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,
instead of the table described in paragraph (h)(1) above, the creditor
may alternatively provide, in a separate table, under the master heading
“Closing Cost Details,” under the heading “Calculating Cash to Close,”
the total amount of cash or other funds that must be provided by the
consumer at consummation with an itemization of that amount into the
following component amounts:
(i) Loan amount. The amount disclosed under paragraph (b)(1) of
this section, labeled “Loan Amount”;
(ii) Total
closing costs. The amount disclosed under paragraph (g)(6) of
this section, disclosed as a negative number if the amount disclosed
under paragraph (g)(6) of this section is a positive number and disclosed
as a positive number if the amount disclosed under paragraph (g)(6)
of this section is a negative number, labeled “Total Closing Costs”;
(iii) Payoffs and payments. The total amount
of payoffs and payments to be made to third parties not otherwise
disclosed under paragraphs (f) and (g) of this section, labeled “Total
Payoffs and Payments”;
(iv) Cash to or from consumer. The
amount of cash or other funds due from or to the consumer and a statement
of whether the disclosed estimated amount is due from or to the consumer,
calculated by the sum of the amounts disclosed under paragraphs (h)(2)(i)
through (iii) of this section, labeled “Cash to Close”; and
(v) Closing costs financed. The sum of the amounts disclosed under
paragraphs (h)(2)(i) and (iii) 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 (g)(6) of this section, labeled
“Closing Costs Financed (Paid from your Loan Amount).”
(i) Adjustable
payment table. If the periodic principal and interest payment
may change after consummation but not based on an adjustment to the
interest rate, or if the transaction is a seasonal payment product
as described in paragraph (a)(10)(ii)(E) of this section, a separate
table under the master heading “Closing Cost Details” required by
paragraph (f) of this section and under the heading “Adjustable Payment
(AP) Table” that contains the following information and satisfies
the following requirements:
(1) Interest
only payments. Whether the transaction is an interest only product
pursuant to paragraph (a)(10)(ii)(B) of this section as an affirmative
or negative answer to the question “Interest Only Payments?” and,
if an affirmative answer is disclosed, the period during which interest
only periodic payments are scheduled.
(2) Optional
payments. Whether the terms of the legal obligation expressly
provide that the consumer may elect to pay a specified periodic principal
and interest payment in an amount other than the scheduled amount
of the payment, as an affirmative or negative answer to the question
“Optional Payments?” and, if an affirmative answer is disclosed, the
period during which the consumer may elect to make such payments.
(3) Step payments. Whether the transaction
is a step payment product pursuant to paragraph (a)(10)(ii)(C) of
this section as an affirmative or negative answer to the question
“Step Payments?” and, if an affirmative answer is disclosed, the period
during which the regular periodic payments are scheduled to increase.
(4) Seasonal payments. Whether the transaction
is a seasonal payment product pursuant to paragraph (a)(10)(ii)(E)
of this section as an affirmative or negative answer to the question
“Seasonal Payments?” and, if an affirmative answer is disclosed, the
period during which periodic payments are not scheduled.
(5) Principal and interest payments. Under the subheading “Principal
and Interest Payments,” which subheading is immediately preceded by
the applicable unit-period, the following information:
(i) The
number of the payment of the first periodic principal and interest
payment that may change under the terms of the legal obligation disclosed
under this paragraph (i), counting from the first periodic payment
due after consummation, and the amount or range of the periodic principal
and interest payment for such payment, labeled “First Change/Amount”;
(ii) The frequency
of subsequent changes to the periodic principal and interest payment,
labeled “Subsequent Changes”; and
(iii) The maximum periodic principal
and interest payment that may occur during the term of the transaction,
and the first periodic principal and interest payment that can reach
such maximum, counting from the first periodic payment due after consummation,
labeled “Maximum Payment.”
(j) Adjustable interest rate table. If the interest rate may increase after consummation, a separate
table under the master heading “Closing Cost Details” required by
paragraph (f) of this section and under the heading “Adjustable Interest
Rate (AIR) Table” that contains the following information and satisfies
the following requirements:
(1) Index and
margin. If the interest rate may adjust and the product type
is not a “Step Rate” under paragraph (a)(10)(i)(B) of this section,
the index upon which the adjustments to the interest rate are based
and the margin that is added to the index to determine the interest
rate, if any, labeled “Index + Margin.”
(2) Increases
in interest rate. If the product type is a “Step Rate” and not
also an “Adjustable Rate” under paragraph (a)(10)(i)(A) of this section,
the maximum amount of any adjustments to the interest rate that are
scheduled and pre-determined, labeled “Interest Rate Adjustments.”
(3) Initial interest rate. The interest rate
at consummation of the loan transaction, labeled “Initial Interest
Rate.”
(4) Minimum and maximum interest rate. The
minimum and maximum interest rates for the loan, after any introductory
period expires, labeled “Minimum/Maximum Interest Rate.”
(5) Frequency of adjustments. The following information, under the
subheading “Change Frequency”:
(i) The month when the
interest rate after consummation may first change, calculated from
the date interest for the first scheduled periodic payment begins
to accrue, labeled “First Change”; and
(ii) The frequency of interest rate
adjustments after the initial adjustment to the interest rate, labeled,
“Subsequent Changes.”
(6) Limits on
interest rate changes. The following information, under the subheading
“Limits on Interest Rate Changes”:
(i) The maximum possible
change for the first adjustment of the interest rate after consummation,
labeled “First Change”; and
(ii) The maximum possible change for
subsequent adjustments of the interest rate after consummation, labeled
“Subsequent Changes.”
(k) Contact information. Under the master heading,
“Additional Information About This Loan,” the following information:
(1) The name and Nationwide
Mortgage Licensing System and Registry identification number (NMLSR
ID) (labeled “NMLS ID/License ID”) for the creditor (labeled “Lender”)
and the mortgage broker (labeled “Mortgage Broker”), if any. In the
event the creditor or the mortgage broker has not been assigned an
NMLSR ID, the license number or other unique identifier issued by
the applicable jurisdiction or regulating body with which the creditor
or mortgage broker is licensed and/or registered shall be disclosed,
with the abbreviation for the State of the applicable jurisdiction
or regulatory body stated before the word “License” in the label,
if any;
(2) The name
and NMLSR ID of the individual loan officer (labeled “Loan Officer”
and “NMLS ID/License ID,” respectively) of the creditor and the mortgage
broker, if any, who is the primary contact for the consumer. In the
event the individual loan officer has not been assigned an NMLSR ID,
the license number or other unique identifier issued by the applicable
jurisdiction or regulating body with which the loan officer is licensed
and/or registered shall be disclosed with the abbreviation for the
State of the applicable jurisdiction or regulatory body stated before
the word “License” in the label, if any; and
(3) The email address and telephone number
of the loan officer (labeled “Email” and “Phone,” respectively).
(l) Comparisons. Under the master heading, “Additional Information About This Loan”
required by paragraph (k) of this section, in a separate table under
the heading “Comparisons” along with the statement “Use these measures
to compare this loan with other loans”:
(1) In five years. Using the label “In 5 Years”:
(i) The total principal,
interest, mortgage insurance, and loan costs scheduled to be paid
through the end of the 60th month after the due date of the first
periodic payment, expressed as a dollar amount, along with the statement
“Total you will have paid in principal, interest, mortgage insurance,
and loan costs”; and
(ii) The principal scheduled to be paid through the end of the 60th
month after the due date of the first periodic payment, expressed
as a dollar amount, along with the statement “Principal you will have
paid off.”
(2) 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.”
(3) Total interest percentage. The total amount
of interest that the consumer will pay over the life of the loan,
expressed as a percentage of the amount of credit extended, using
the term “Total Interest Percentage,” the abbreviation “TIP,” and
the statement “The total amount of interest that you will pay over
the loan term as a percentage of your loan amount.”
(m) Other considerations. Under the master heading “Additional Information About This Loan”
required by paragraph (k) of this section and under the heading “Other
Considerations”:
(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, a statement,
labeled “Appraisal,” that:
(i) The creditor may order an appraisal
to determine the value of the property identified in paragraph (a)(6)
of this section and may charge the consumer for that appraisal;
(ii) The creditor
will promptly provide the consumer a copy of any appraisal, even if
the transaction is not consummated; and
(iii) The consumer may choose to pay
for an additional appraisal of the property for the consumer’s use.
(2) Assumption. A statement of whether a subsequent
purchaser of the property may be permitted to assume the remaining
loan obligation on its original terms, labeled “Assumption.”
(3) Homeowner’s insurance. At the option of the creditor, a statement
that homeowner’s insurance is required on the property and that the
consumer may choose the insurance provider, labeled “Homeowner’s Insurance.”
(4) Late payment. A statement detailing any
charge that may be imposed for a late payment, stated as a dollar
amount or percentage charge of the late payment amount, and the number
of days that a payment must be late to trigger the late payment fee,
labeled “Late Payment.”
(5) Refinance. The following statement,
labeled “Refinance”: “Refinancing this loan will depend on your future
financial situation, the property value, and market conditions. You
may not be able to refinance this loan.”
(6) Servicing. A statement of whether the creditor intends to service the loan
or transfer the loan to another servicer, labeled “Servicing.”
(7) Liability after foreclosure. If the purpose
of the credit transaction is to refinance an extension of credit as
described in paragraph (a)(9)(ii) of this section, a brief statement
that certain State law protections against liability for any deficiency
after foreclosure may be lost, the potential consequences of the loss
of such protections, and a statement that the consumer should consult
an attorney for additional information, labeled “Liability after Foreclosure.”
(8) Construction loans. In transactions involving
new construction, where the creditor reasonably expects that settlement
will occur more than 60 days after the provision of the loan estimate,
at the creditor’s option, a clear and conspicuous statement that the
creditor may issue a revised disclosure any time prior to 60 days
before consummation, pursuant to section 1026.19(e)(3)(iv)(F).
(n) Signature
statement.
(1) At the creditor’s option, under the
master heading required by paragraph (k) of this section and under
the heading “Confirm Receipt,” a line for the signatures of the consumers
in the transaction. If the creditor includes a line for the consumer’s
signature, the creditor must disclose the following above the signature
line: “By signing, you are only confirming that you have received
this form. You do not have to accept this loan because you have signed
or received this form.”
(2) If the creditor does not include a line for the consumer’s signature,
the creditor must disclose the following statement under the heading
“Other Considerations” required by paragraph (m) of this section,
labeled “Loan Acceptance”: “You do not have to accept this loan because
you have received this form or signed a loan application.”
(o) 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 (o)(5) of this section, the disclosures shall
contain only the information required by paragraphs (a) through (n)
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-24, 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-24, 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 (o)(5) of this section:
(i) For a transaction subject to section 1026.19(e) that is a federally
related mortgage loan, as defined in Regulation X, 12 CFR 1024.2,
the disclosures must be made using form H-24, 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-24, 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.
(A) The dollar amounts required to be disclosed
by paragraphs (b)(6) and (7), (c)(1)(iii), (c)(2)(ii) and (iii), (c)(4)(ii),
(f), (g), (h), (i), and (l) of this section shall be rounded
to the nearest whole dollar, except that the per-diem dollar amount
required to be disclosed by paragraph (g)(2)(iii) of this section
and the monthly dollar amounts required to be disclosed by paragraphs
(g)(3)(i) through (iii) and (g)(3)(v) of this section shall not be
rounded.
(B) The dollar
amount required to be disclosed by paragraph (b)(1) of this section
shall not be rounded, and if the amount is a whole number then the
amount disclosed shall be truncated at the decimal point.
(C) The dollar amounts required
to be disclosed by paragraph (c)(2)(iv) of this section shall be rounded
to the nearest whole dollar, if any of the component amounts are required
by paragraph (o)(4)(i)(A) of this section to be rounded to the nearest
whole dollar.
(ii) Percentages. The percentage amounts required to be disclosed under paragraphs
(b)(2) and (6), (f)(1)(i), (g)(2)(iii), (j), and (l)(2) and
(3) of this section shall be disclosed by rounding the exact amounts
to three decimal places and then dropping any trailing zeros that
occur to the right of the decimal place.
(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) Translation. The form may be translated
into languages other than English, and creditors may modify form H-24
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-24.
(iii) Logo or slogan. The creditor providing
the form may use a logo for, and include a slogan with, the information
required by paragraph (a)(3) of this section in any font size or type,
provided that such logo or slogan does not cause the information
required by paragraph (a)(3) of this section to exceed the space provided
for that information, as illustrated in form H-24 of appendix H to
this part. If the creditor does not use a logo for the information
required by paragraph (a)(3) of this section, the information shall
be disclosed in a similar format as form H-24.
(iv) Business
card. The creditor may physically attach a business card over
the information required to be disclosed by paragraph (a)(3) of this
section.
(v) Administrative information. The creditor
may insert at the bottom of each page under the disclosures required
by this section as illustrated by form H-24 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-24 of appendix H to this
part for any of the information required by this section is not altered.
