I just need a bit of clarification....

On the instructions for Block 3 it states,"... the loan originator must identify each third party settlement service required and selected by the loan originator along with the estimated price to be paid to the provider of each service..."

Does this mean if a fee in block 3 is $400 and the seller pays half then we can disclose $200?

That's not necessarily my opinion of the correct way to disclose, just needing clarification.

You're not going to know the seller is going to pay half at the time of the GFE are you? Isn't that something that would come about from the contract? If it's typically a borrower cost, i'd quote whatever the fee normally would be, then if at closing, the seller pays half, show a credit on page 1 of the HUD-1 from seller to borrower whilst still showing the $400 (or whatever it is) in the borrower column on page 2.

Thanks, I share your point of view. We did have the contract but the parties involved changed their mind half way through.... I feel this is the exact reason why you disclose the full amount of all fees from the get-go.


Thanks again,

On the instructions for Block 3 it states,"... the loan originator must identify each third party settlement service required and selected by the loan originator along with the estimated price to be paid to the provider of each service..."

ETX, in your example $400 is being paid to the provider therefore you would disclose the $400 regardless who's paying it.

Agree with Dan, the amount going to the provider is the amount to enter. If the seller pays any of it, it can be shown as a credit at closing.

Deleted...basic repeat of raitchjay above!

ok, glad we're all on the same page. Thanks