Seriously in need of formula validation for the Calculating Cash to Close Table under 1026.37(h)(1)(v) for purchases when loan amount exceeds purchase price. If someone who has figured this out can reach out I'd appreciate it. We have bridge loans and I thought I had the relevant calculations in an Excel sheet (because system can't handle a loan amount exceeds purchase price scenario), but now I'm unsure and would appreciate being able to email someone.
Last edited by Katherine; 12/06/18 03:39 AM.
Background: Commentary to 1026.37(h)(1)(iii)-2 provides in short that when loan amount exceeds purchase price the amount of funds from customer is determined under 1026.37(h)(1)(v) [Funds for Borrower]
Part of the issue, but not all of it, is the Funds for Borrower section includes some confusing language regarding the calculation of the Total Amount of Existing Debt being Satisfied - the only way I can make the formula work is if I treat the language that says "excluding and closing costs financed disclosed under 1026.37(h)(1)(ii)" as a double negative since 1026.37(h)(1)(ii) in a typical scenario is a negative number:
Total Amount of Existing Debt Being Satisfied = (Sales price + Tangible Personal Property excluded from sales price (if any) + Payoffs/Construction Costs in Section K) Minus (Loan Amount - (Closing Costs Financed Disclosed as a Negative))
The Funds for Borrower Calculation appears to be:
Total Amt of Existing Debt Satisfied = Sales Price + Personal Property (if any) + Payoffs;Constuction Costs;Other Costs
Loan Amount + Assumptions (if any) excluding any closing costs financed disclosed under 1026.37(h)(1)(ii).