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#2266775 - 02/23/22 07:49 PM "Gift" from bank- how to disclose on LE and/or CD
Aruba123 Offline
Member
Joined: Jan 2012
Posts: 70
New York
Hello,

Is there any guidance as to where the amount provided from the bank to a borrower as a "gift" be disclosed on the LE and/or CD? I don't think it's a lender credit (general or specific) because it is not provided by a third party. Thank you!

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TRID - TILA/RESPA Integrated Disclosures Rule
#2266787 - 02/23/22 10:02 PM Re: "Gift" from bank- how to disclose on LE and/or CD Aruba123
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
Gift? From the Bank? That is called a lender credit.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2266793 - 02/23/22 10:30 PM Re: "Gift" from bank- how to disclose on LE and/or CD Aruba123
Aruba123 Offline
Member
Joined: Jan 2012
Posts: 70
New York
Thank you Randy. It's for down payment assistance.

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#2266794 - 02/24/22 12:19 AM Re: "Gift" from bank- how to disclose on LE and/or CD Aruba123
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
So, it is actually coming from the bank and not a third party?
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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#2266801 - 02/24/22 01:48 PM Re: "Gift" from bank- how to disclose on LE and/or CD Aruba123
Aruba123 Offline
Member
Joined: Jan 2012
Posts: 70
New York
Yes, this is coming from the Bank. There are other programs that the bank offers where there is assistance tp the borrower provided by a third party, however, I am being told that this is a gift from the bank.

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#2266803 - 02/24/22 01:54 PM Re: "Gift" from bank- how to disclose on LE and/or CD Aruba123
rlcarey Offline
10K Club
rlcarey
Joined: Jul 2001
Posts: 79,633
Galveston, TX
OK - then yes - it would be just considered a lender credit from a TRID perspective. Direct down payment assistance from the lender is just a little unusual.
_________________________
The opinions expressed here should not be construed to be those of my employer: PPDocs.com

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