Kind of a funky scenario. There was a slightly similar thread but it dealt with a simultaneous 2nd.

How would you disclose two separate loans when only one Purchase Agreement exists. This would mainly be problematic for the Sale Price field on the LE/CD, as well as the Calculating Cash to Close information. Perhaps it could impact how to distribute the fees as well. Basically, one loan is structured to meet requirements to sell in the secondary market, while the other loan will be a portfolio deal. There was and is only one sales contract between the buyer and the seller. How would you disclose such a thing on two separate CD's?

I think you will have to give more specifics as to the purposes of each loan before anyone can give you any meaningful opinion.

You use the alternative LE/CD for the second lien/portfolio loan. Both will be purchase loans. The TRID amendments provide a lot of guidance on these.

They both have the same purpose, to purchase a home on 25 acres. But, in order to qualify for secondary market sale, the surveyor split the property into two plots. So I guess you could say one loan is to "purchase" the home and 13 acres and the other loan is to "purchase" an adjacent 12 acre plot. However, there is no separate purchase agreement for the different parcels.

RL - The difference is it is not a second lien situation. As I mentioned above, it is not a simultaneous 2nd. Both loans are secured by a 1st lien. One lien covers 13 acres and the home, while the other covers 12 acres of land.

Can your purchase contract not be split out as to how the loans/security will be? I'm assuming you have separate appraisals so you have a basis to go on to accomplish that.

That's kind of what I was thinking as well. There aren't two separate appraisals though, this is all being done just a few days prior to closing. So, it is mostly just a question of how to do the disclosure at this point. The transaction is going through regardless.

I'm betting secondary is going to refuse to purchase this with two parcels on the appraisal and only one being collateral for their loan.
Just sayin'....

Perhaps, so. My problem is just how to disclose.

Then I think you are stuck from a number of angles. How can you value the property for supervisory LTV purposes if both properties are on one sales contract and one appraisal? There is no way you are going to be able to sell one of the loans into the secondary market with a combined appraisal. Without separate sales prices, you have a challenge in disclosing. As far as loan costs, those would just be allocated to each loan to which the expenses are incurred. How you split the appraisal fee - is a little beyond me. Needless to say, whoever came up with the plan didn't think it all the way through and are probably going to end up costing the customer a lot of extra money. If you couldn't make the original loan because of the two parcels, then it should have been denied and the customer told what they needed to do to get this to go through. As far as selling multiple parcel loans into the secondary, that is not a problem for FNMA as long as the parcels are adjoining, they are similarly zoned, and the entire property contains only one dwelling unit and only limited additional non-residential improvements, such as a garage, are located on the adjoining property.

That's news to me, I had no idea FNMA would take land only [adjacent] these days!

JPC, since you are planning on holding one and selling one, I do assume your DSD/Mortgage/Whatever your area calls it, will be 'split' into the two surveyed parcels?

I know how I would handle this situation, although we would keep both in-house, but I would have it re-evaluated by our in house appraiser, require the Realtors to split out the Sales even if done on one contract and close one Purchase with dwelling and one Land Only.

Considering that, you will have additional recording. Have you even considered the need for a CC to capture a dual closing?

Another question, did all this change during the loan process or did you know from the get go you would have two loans [two LE's were done] and if so, how did you show the SP on it?

Thanks for all the feedback. All good points. My take as well, lol. Sounds like it all changed during the loan process.