That section is to disclose the estimated taxes, insurance, flood insurance etc. that will be required in relation to the property. Those payments should also be included in your ATR calculation.
The bank is to disclose those estimates and then indicate if they will be included in an Escrow account.
Regulation Z 1026.37(c)
(c) Projected payments. In a separate table under the heading “Projected Payments,” an itemization of each separate periodic payment or range of payments, together with an estimate of taxes, insurance, and assessments and the payments to be made with escrow account funds.
(4) Taxes, insurance, and assessments. Under the information required by paragraphs (c)(1) through (3) of this section:
(i) The label “Taxes, Insurance & Assessments”;(ii) The sum of the charges identified in § 1026.43(b)(8), other than amounts identified in § 1026.4(b)(5), expressed as a monthly amount, even if no escrow account for the payment of some or any of such charges will be established;
Regulation Z 1026.38(c)
(c) Projected payments. A separate table, under the heading “Projected Payments,” that includes and satisfies the following information and requirements:
(2) Estimated taxes, insurance, and assessments. A reference to the disclosure required by paragraph (l)(7) of this section.
38(c) Projected payments.
1. In general. For guidance on the disclosure of the projected payments table, see § 1026.37(c) and its commentary.
The opinions expressed are mine and they are not to be taken as legal advice.