Two situations:

1) Combo Purchase, our bank is making the 2nd loan. The first loan would be done through another institution but they need both loans to purchase the property. Would we need to disclose any fees associated with the first loan?

2) Combo Refinance, our bank is making the 2nd loan. The first loan would go towards paying off the existing lien, but they may need some of our loan proceeds to complete the pay off. How would that be disclosed on our documents?

1. What services are you requiring in order to make the loan?? For example, if you are requiring an appraisal, IMHO you would have to make the disclosure and then indicate on the CloD that it was paid outside of closing if they paid the fee to the other bank and you both used the same appraisal.

2. The only impact I see would be in the cash to close table.

Just to clarify,these situations are happening after October 3rd when the new rules take effect. Is your feeling the same?

Purchase money transactions include deed and transfer taxes and would be part of the 1st mortgage disclosures. The concern is that we would have to disclose also even though we are doing the 2nd mortgage which is needed to purchase the property.

I would not have referenced the Closing Disclosure if I was not referring to after Oct 3rd.

You are going to have to make a call as the CFPB gave no guidance on simultaneous subordinate lien financing.

Send the CFPB an e-mailed question. Let us know what they say.