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#2239352 - 07/09/20 06:30 PM Disclosing HomeStyle Renovation refinance loan
Jason Ellis Offline
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Joined: Jun 2018
Posts: 28
I am trying to determine the correct way to disclose the contingency reserve on the LE for a HomeStyle Renovation refinance loan. I think I know the proper way to disclose it on a purchase loan but if we use the alternative calculating cash to close table for the refinance it does not have and "Adjustments and Other Credits" line. Any help is appreciated.

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TRID - TILA/RESPA Integrated Disclosures Rule
#2239353 - 07/09/20 06:40 PM Re: Disclosing HomeStyle Renovation refinance loan Jason Ellis
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,649
Galveston, TX
Adjustments like that would actually be shown in the Payoffs and Payments table with a proper description and entered either as a postive or negative number - depending on what you were attempting to do.
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#2239356 - 07/09/20 06:56 PM Re: Disclosing HomeStyle Renovation refinance loan rlcarey
Jason Ellis Offline
Junior Member
Joined: Jun 2018
Posts: 28
Thank you for your response. So if we are collecting a contingency reserve and putting it in escrow in case there are cost overruns during the renovation, we would disclose it in the Payoffs and Payments table as a negative number, correct? That does appear what the reg is saying in the commentary to ยง1026.37(h)(2)(iii).

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#2239359 - 07/09/20 07:33 PM Re: Disclosing HomeStyle Renovation refinance loan Jason Ellis
rlcarey Online
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rlcarey
Joined: Jul 2001
Posts: 78,649
Galveston, TX
Correct - a negative number in the Payoffs and Payment table will increase your cash to close from the borrower at closing to fund the reserve account.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2239366 - 07/09/20 08:06 PM Re: Disclosing HomeStyle Renovation refinance loan rlcarey
Jason Ellis Offline
Junior Member
Joined: Jun 2018
Posts: 28
Thank you so much. I appreciate your help.

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