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#2062833 - 02/05/16 08:34 PM Seller Credit
mdog76 Offline
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If there is a seller credit introduced after the LE has been issued, but it doesn't affect the loan amount or loan payment, does a new LE need to be issued or can it be introduced on the CD? I'm still getting all the details.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2062836 - 02/05/16 08:41 PM Re: Seller Credit mdog76
Dan Persfull Online
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Changes learned after the initial LE has been issued do not require a revised LE unless they affect your tolerances and you want to reset them.

The exception is the execution of a rate lock agreement between the borrower and the FI.
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#2062850 - 02/05/16 08:55 PM Re: Seller Credit mdog76
John Burnett Online
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What Dan said ^^^.

The seller credit will be reflected on the CloD, in Section L and N Seller Credit entries and on the Seller Credit line in the Calc Cash to Close table..
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#2062855 - 02/05/16 09:02 PM Re: Seller Credit mdog76
Truffle Royale Offline

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How about a buyer credit that will pay all the seller's costs including transfer tax which in this state is mandated to be seller paid. (It's a familial sale where son is paying to purchase from mom.)
Should those costs now be shown on an LE?
Or should they show as seller costs with a buyer credit on the CloD?

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#2062866 - 02/05/16 09:13 PM Re: Seller Credit mdog76
John Burnett Online
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If you know the buyer pays the cost, it goes on the LE. And when you get to the CloD, list them in the borrower-paid column.
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#2062911 - 02/06/16 03:22 PM Re: Seller Credit Truffle Royale
rlcarey Online
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Originally Posted By Truffle Royale
How about a buyer credit that will pay all the seller's costs including transfer tax which in this state is mandated to be seller paid. (It's a familial sale where son is paying to purchase from mom.)
Should those costs now be shown on an LE?
Or should they show as seller costs with a buyer credit on the CloD?


If it is State mandated, familial deal or not, how can they do it??
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#2062997 - 02/08/16 04:28 PM Re: Seller Credit mdog76
Truffle Royale Offline

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That was my thought too, Randy, which is why I wanted to list the transfer tax on the seller side with a credit from the buyer to offset it. The other costs I could show as John suggested.

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#2063021 - 02/08/16 05:07 PM Re: Seller Credit mdog76
Truffle Royale Offline

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One further question, when the buyer agrees to pay the title costs, on the LE do I put those costs in the title section with applicable tolerances or in H/Other?

I hate these once in a blue moon instances that turn everything inside out! But I'm documenting it for next blue moon. crazy

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#2063034 - 02/08/16 05:26 PM Re: Seller Credit Truffle Royale
Dan Persfull Online
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TR, Randy can correct me if I'm wrong but I think his point is if state law requires the seller to pay the tax then an individual contract cannot contradict or supersede the law. If the buyer is reimbursing the seller in the transaction for the cost then the seller did not pay it which would be a violation of law.
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#2063038 - 02/08/16 05:42 PM Re: Seller Credit Dan Persfull
Truffle Royale Offline

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The statute actually states: There is imposed on the grantor of real estate a real estate transfer fee....
So the fee is the seller's. But there is nothing in the statute that speaks to prohibiting negotiation of who pays this fee as discussed in the HUD answer David got here.

Now what about where I should be putting these fees on the LE???

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#2063190 - 02/08/16 11:12 PM Re: Seller Credit mdog76
rlcarey Online
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Section H
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#2063200 - 02/09/16 01:06 AM Re: Seller Credit mdog76
Truffle Royale Offline

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yea!!! I got it right!!!

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