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#2063364 - 02/09/16 08:44 PM Gift Funds
Minion Offline
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Minion
Joined: Jun 2015
Posts: 64
Virginia
If a borrower received gift funds for $10,000 but only uses $5,000 towards closing what needs to be reflected on the Loan Estimate under Adjustments and Other Credits? I would say only the $5000.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2063379 - 02/09/16 09:13 PM Re: Gift Funds Minion
Dan Persfull Offline
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Dan Persfull
Joined: Aug 2002
Posts: 46,423
Bloomington, IN
This sounds like the borrower has already received the gift funds. If that is true you would not disclose them on the LE or the CD.

If the gift funds are being provided at the closing then you disclose the amount that will be paid at that time.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2063457 - 02/10/16 02:39 PM Re: Gift Funds Minion
Luv2run Offline
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Joined: Jan 2015
Posts: 450
So, if the gift funds are going to be transferred prior to closing, they are not to be disclosed on the LE? I am going to be discussing this topic with the lenders tomorrow and want to make certain I understand when it is to be included on the LE and when it is not. I did not see anything that specific and would love guidance.

Thanks
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#2063478 - 02/10/16 03:45 PM Re: Gift Funds Minion
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,346
Cape Cod
If you are aware of the gifts, and they have not been received at the time you issue the LE, you include them in the LE Calculation of Cash to Close, included as a negative number in the Adjustments and Other Credits amount. If you are not dealing with a purchase (no seller), you may want to use the regular Calculating Cash to Close table so that the Adjustments and Other Credits line is available. Note that you'll have to use the regular version of the Cash at Closing tab on page 1, and that you will have to use the regular versions of those tables in the Closing Disclosure as well.

If the gifts are received by the borrower prior to closing, they won't factor into the closing disclosure.
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BankersOnline.com
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#2064046 - 02/12/16 02:31 PM Re: Gift Funds Minion
Luv2run Offline
Gold Star
Joined: Jan 2015
Posts: 450
Thank you for your explanation John. I did not realize that if the gift funds have been transferred as of the time of the LE, then they do not need to go on the LE. I will have to inform the sales people of this.
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