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.

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.

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 §1026.37(h)(2)(iii).

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.

Thank you so much. I appreciate your help.