Thread Options
#2242169 - 09/09/20 12:43 PM Financing Closing Costs
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
Good morning!...A Consumer does not want to finance their closing costs.
Does this mean that they just want to pay the closing costs before closing? So we set it up on the CD as Paid Before Closing?
The PFC must still be included in the APR and FC, correct?

Thank you!

Return to Top
TRID - TILA/RESPA Integrated Disclosures Rule
#2242174 - 09/09/20 01:23 PM Re: Financing Closing Costs Cheli
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,618
Galveston, TX
Not sure how we can answer what your customer wants to do, but when they pay a fee has no impact on whether it is a finance charge or not. If they pay it before closing, then yes, it is a prepaid finance charge.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top
#2242178 - 09/09/20 01:45 PM Re: Financing Closing Costs Cheli
Cheli Offline
Platinum Poster
Cheli
Joined: May 2013
Posts: 919
I think you answered my question...I'm not exactly sure what the Consumer wants to do either... :-/ I suggested they can lower their loan amount from what the closing cost are, but even if they do that, the PFC are still in the FC and APR...

Return to Top
#2242331 - 09/11/20 05:02 PM Re: Financing Closing Costs Cheli
RR Joker Offline
10K Club
RR Joker
Joined: Nov 2002
Posts: 20,653
The Swamp
Typically, you either finance or you do not finance the closing costs based on customer wishes. If they want to pay them in cash, they typically pay them at closing, unless you have a requirement for some fees upfront, such as the appraisal and/or credit report.

I personally detest the practice of automatically including the costs in the loan amount without consulting with the borrower.
_________________________
My opinion only. Not legal advice.

Say you'll haunt me - Stone Sour

Return to Top
#2242332 - 09/11/20 05:21 PM Re: Financing Closing Costs Cheli
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 78,618
Galveston, TX
Customers are also easily confused about the cash to close table when using the standard format - they request that the closing costs be financed, but depending on the loan amount and the purchase price of the property for example - it is not going to always show them as financed. The TRID math just does not work like that.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

Return to Top