Skip to content
GeoDataVision
Thread Options
#1844220 - 08/20/13 06:57 PM Close by day X or get a credit!
Burgess Offline
Diamond Poster
Joined: Jan 2004
Posts: 1,620
new promotion which is coming in over my dead body:
"if we can't close your loan within X days you will receive a $2000 credit against your closing costs!"

wow! so we close on day X+1.
how do i show the $2000 credit?
on the HUD and hopefully i don't generte the need for a new TIL.
_________________________
My views, not my employer's views.

Return to Top
RESPA
#1844231 - 08/20/13 07:07 PM Re: Close by day X or get a credit! Burgess
James M. Moore Offline
100 Club
James M. Moore
Joined: Jul 2013
Posts: 110
Georgia
From the Q&A:
The General Instructions indicate that if a charge has been shown on the GFE as payable by the borrower but at closing it is paid by another person, including by the loan originator in a loan other than a no-cost loan, the fee should be shown in the borrower‘s column on the HUD-1 and be offset by listing a credit to the borrower on lines 204-209 of the HUD-1.
_________________________
James M. Moore, CRCM
My postings are not legal advice and may not be endorsed by my employer.

Return to Top
#1844247 - 08/20/13 07:24 PM Re: Close by day X or get a credit! Burgess
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,349
That's the easy part.
The issue is that doing so will change the TIL and MDIA will kick in again.
burgess, lie down and play dead!

Return to Top
#1844256 - 08/20/13 07:31 PM Re: Close by day X or get a credit! Burgess
James M. Moore Offline
100 Club
James M. Moore
Joined: Jul 2013
Posts: 110
Georgia
Every now and again you have to just answer the easy part and let someone else deliver the bad news! smile
_________________________
James M. Moore, CRCM
My postings are not legal advice and may not be endorsed by my employer.

Return to Top
#1844260 - 08/20/13 07:36 PM Re: Close by day X or get a credit! Burgess
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
But will it, really? If it's just a lump sum credit, how do you know which/what ppfc's the lender is actually paying? Wouldn't they have to be further itemized in order to not count the page 2 ppfc's in the borrower's column as such?
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1844263 - 08/20/13 07:40 PM Re: Close by day X or get a credit! Burgess
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,349
I'd agree with you if it was a smaller credit. In my world, $2k is going to pretty much cover ALL the ppfcs.

Return to Top
#1844269 - 08/20/13 07:44 PM Re: Close by day X or get a credit! Burgess
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,654
The Swamp
It would here too, and lower the loan amount to boot! laugh
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#1844363 - 08/21/13 11:31 AM Re: Close by day X or get a credit! Burgess
rlcarey Online
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,637
Galveston, TX
Put the credit in the 200 series and ignore it from a TIL perspective. This is one promotion that compliance should not step into the way of in any manner:

Commentary 18(b) Amount Financed

2. Rebates and loan premiums. In a loan transaction, the creditor may offer a premium in the form of cash or merchandise to prospective borrowers. Similarly, in a credit sale transaction, a seller's or manufacturer's rebate may be offered to prospective purchasers of the creditor's goods or services. At the creditor's option, these amounts may be either reflected in the Truth in Lending disclosures or disregarded in the disclosures. If the creditor chooses to reflect them in the §1026.18 disclosures, rather than disregard them, they may be taken into account in any manner as part of those disclosures.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#1844396 - 08/21/13 01:58 PM Re: Close by day X or get a credit! Burgess
Truffle Royale Offline

10K Club
Joined: Jul 2003
Posts: 17,349
Wow. I don't recall reading or hearing that before! So we can give a lender credit and leave the TIL as it stands with the credited amounts being counted as PPFCs?

ok...learned my lesson for today so I can go home now, right? crazy

Return to Top

Moderator:  QCL