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#1727630 - 08/06/12 03:33 PM Disclosing Closing Costs discount
BankerChic24 Offline
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Joined: Jul 2011
Posts: 45
We recently opened a new branch. As an incentive to get new customers in the door, we handed out coupons for $100 off closing costs for residential mortgage loans. Is it an acceptable practice to disclose this on HUD Line 206 as a negative number and label it "closing cost coupon"?
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Lending Compliance
#1727673 - 08/06/12 04:36 PM Re: Disclosing Closing Costs discount BankerChic24
RR Joker Offline
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Joined: Nov 2002
Posts: 20,654
The Swamp
It would be appropriate based on how other closing cost credits are disclosed within the 200's. That section is already a credit section, so it wouldn't be shown as a 'negative' number, however.

The other place (and the only place actually discussed in the instructions) would be to place the credit in Block 2 of the GFE and 802 of the HUD.
My opinion only. Not legal advice.

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