For your information, the abbreviation "P.O.C." is found three times in the entire regulation.
Last edited by John Burnett; 05/19/17 06:13 PM. Reason: clarity
Specifically, if there items that should be disclosed under paragraph 1026.38(j) or (k), but are not paid from "closing funds" (defined as "funds collected and disbursed at real estate closing"), they are marked "Paid Outside of Closing" or "P.O.C." and the party making the payment is identified. The dollar amount is disclosed, but not in the cost columns. References 1026.38(j)(4)(i) and 1026.38(k)(4)(i).
The abbreviation is also referred to in Comments 38(j)4)(i)-1 and -2.
As noted below (I am editing this post to avoid misleading anyone), those "permissions" to use P.O.C. only address the Summaries of the Borrower's and Seller's transaction sections (K - N) on page 3 of the closing disclosure. Closing costs don't appear there. They go on page 2. What this loan officer suggests isn't permitted.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8